Category: Finance

While it sounds pretty straightforward, personal banking has a comprehensive range of services designed to serve the needs of individual people. Personal retail banking is a type of banking service and product line provided by banks to retail customers.

Also known as retail banking or consumer banking, personal banking is a financial service offered by banks and some other financial institutions to individual people. The consumers of this particular banking service are the people themselves, not their businesses or other organizations they own or work for.

To elaborate, consumer banking is the service which is offering to individuals to manage their money. It includes securely depositing their money and earning interest on it while also getting access to credits. Usually, these services include checking accounts, savings accounts, personal loans, mortgages, credit cards, and personal loans. Consumers can also obtain a certificate of deposits (CD) if required.

It is Different From Corporate Banking

Contrary to personal banking, corporate banking is the banking services which provide directly with corporate customers such as corporations, businesses, service providers, etc. Like retail banking, however, the service includes loans, credits, checking accounts, saving accounts, etc. All of these services are designing differently than what is offered to individuals. Catering to the different needs of the companies and offering some suitable solutions to their investment and liquidation needs.

Retail banking is also more visible to the masses than corporate banking, thanks to the way they work. To make banking services more accessible. Banks usually set up many branches in most major cities, bringing banking services to the doorsteps. For corporate banking, most of the work happens directly with the businesses and behind the scenes. Thanks to the internet, however, a lot of consumer banking services can now be performed online. This is what is enabling many challenger banks or modern banks to go totally branchless and to the internet.

These two services are so close, though. The money deposited by individuals in their savings accounts often get loans to corporate clients and businesses. It allows the bank to put money to work and earn a profit, while also paying individuals interest on deposits.

Types of Services Offered by Retail Banking

Traditionally, individuals can perform a wealth of financial activities by opening up a personal banking account with a retail bank or financial institute. Depending on the kind of accessibility you need, you can opt for a checking account or a savings account. Often, you can also open an account to deposit a fixed amount periodically to earn a bigger percentage on interests.

Moreover, retail banks also offer individuals to go overdraft, to take a personal loan, mortgage, and other lines of credits. It also enables them to obtain credit cards and debit cards, paying bills and installments, and so on effortlessly.

In this digital age, many fintech banks are offering retail banking services entirely online, and thus, making it more accessible. Some of these hi-tech banks sometimes also offer enhanced services like holding multiple currencies, transferring money and paying bills globally, trading bonds, stocks, and securities, etc.

COVID-19 has created unprecedented circumstances in almost every industry and economy in the world, affecting businesses and consumers alike. Measurements and restrictions have been put in place by the government to contain and curtail the spread of the virus, safeguard businesses, and protect the NHS.

What is the impact on the car finance sector?

The car finance industry has been hit as hard as any, as new car production halted across Europe back in March 2020. The purchase of new or used cars came to a standstill last year. As dealers were required to close their showrooms and postpone car deliveries.

In this blog, we will discuss in more detail. How COVID-19 impact on the car finance sector was effected globally since the beginning of last year?

Falls in Sales During First Lockdown

According to the European Automobile Manufacturers Association, between January and October 2020 new-car registrations dropped by 26.8% in the European Union. Eight million cars were first registered during this time, a drop of 2.9 million from the same period in 2019. Spain, Italy, and France were the worst hit – with 37%, 31%, and 27% reductions, respectively.

 

A Change in the Dealership Model

National lockdowns have driven significant change in the way customers search for and find car finance. The relationship between online and showroom motor retailer sales has changed with it. Being forced to work from and stay at home means more of us are shopping online. And also relying on the internet to obtain goods and services. This means an increasing number of car dealers and car finance companies are having to embrace digital infrastructure. Which reveals how much COVID-19 impact on the car finance sector was effected.

By now, dealers should be able to switch between the two, as lockdown restrictions continue to fluctuate. Nevertheless, there are rumours that this current lockdown may last until March, meaning digital click-and-collect may be the only option for the first quarter of the year.

Boost in Electric Vehicle Sales

One positive piece of news for the motoring world during lockdown – the electric car market is booming! At the end of September 2020. There were over 164,100 pure-electric cars and over 373,600 plug-in models driving on UK roads.

In fact, according to the Society of Motor Manufacturers and Traders (SMMT), pure-electric cars accounted for 6.7% of new car registrations last year, making it an extremely positive 2020 for the electric car market.

Consumer Credit and Ability to Finance

COVID-19 has had a major effect on consumer credit and the ability for people to obtain finance. People are low on work, furloughed or even worse completely out of employment. The collective ability to acquire COVID-19 impact on car finance sector or keep up with existing finance payments is becoming less and less. Missed or late payments as a result of this can seriously impact peoples’ credit ratings. It means they may struggle to obtain finance elsewhere in the future.

Getting a Car Finance Deal with Poor Credit

If you have poor credit, as an indirect result of COVID-19 or not, but still want to look into finding a car on finance, you should look at bad credit car finance. This is a deal that a lender agrees to offer someone with a poor credit history. No deposit is required, so you only have to cover your monthly payments that will be spread across 2-4 years.

To assess whether this is suitable for you, a ‘soft’ credit check will be made first to see if the lender can find a finance deal and to check which types are available to you. This will not impact your credit rating. If you are happy with what they offer, an actual ‘hard’ credit check will be made, which will impact your credit rating.

 

The point of this is to take the risk of negatively impacting your credit score with a ‘hard’ credit check at first. If credit is not available to you and you fail a credit check, this will affect your credit score. With a ‘soft’ check, a lender can assess your options without putting a blip on your credit report.

It seems like just a few weeks ago the world was a very different place. In fact, COVID-19 has been circulating the world now for nearly 10 months. There is little doubt many people’s lives have changed dramatically. Despite efforts by the government the unemployment rate is rising slowly.

But, even those lucky enough to still have jobs may have found their hours and earnings have been reduced.

That means if you have an auto loan or any other type of finance, you’ll be worrying about how to afford the loan repayment during the current pandemic.

Fortunately, there are things that can be done to help!

Check Your Finances

The first thing you should do is to check your finances and eliminate unnecessary expenditures. This may mean cutting the cable bill or looking for cheap car insurance. Every saving can help you to have more funds available for your auto loan.

Do a new budget and you may be surprised, you may be better off than you think.

Contact Your Lender

Whether you’ve got a personal loan or specific car finance, the next thing you need to do is contact your lender and tell them you’re having financial difficulties due to COVID-19.

Your lender may be much more sympathetic than you think. In fact, many auto loan providers are extending the payment periods, effectively reducing monthly payments but extending the term of the loan.

Others are freezing interest, waiving overdue fees, or creating personalized flexible payment arrangements. In some cases, if you’re in the right financial position, they will accept a smaller one-off amount to settle the loan, making the vehicle yours and reducing the stress of having to find the payment every month.

COVID Scheme

Many lenders are signed up to the COVID-19 deferral scheme. This means your payments will be deferred until you can afford them again. It allows you to keep the vehicle without damaging your credit and settle the balance in the future.

Sell The Car

It’s not necessarily a great market to sell a vehicle. But, if you have a personal auto loan that is not secured on the vehicle you will be within your rights to sell the car. You can then use the proceeds to settle your outstanding loan and hopefully purchase a cheap car, eliminating the issue for now.

It is important you verify that you are legally allowed to sell the car first!

The Takeaway

It’s impossible to say what your auto loan provider will do as everyone’s situation is different. However, most lenders are being very supportive during this difficult time and will work with you to find a suitable solution.

In short, your first step needs to be establishing your finances to confirm what you have available. Then, talk to your auto loan provider and prepare to be surprised.

Of course, loan deferrals and reduced payments still mean you have to pay the full amount of the loan. You may even need to pay more interest. It’s important to consider this when making your final decision regarding the best route for you.

The Singapore Budget 2020 Payout was delivered by Heng Swee Keat. The country’s Finance Minister, at 3 pm on February 18th. And while it is some ways similar to the previous budget of 2019, there are some key differences that you need to be on the lookout for, especially if they apply to you in these times of global crisis and following uncertainty. The global pandemic regarding the COVID-19 virus is but one of the issues surrounding this budget because this is also under the sign of Singapore’s weakest economic growth from the past 12 years. However, keeping this and more in mind, the budget seems to address these particular challenges while at the same time keeping an eye out for long-term planning and continuous stability.

This being said, it is noticeable that the government has prioritized the welfare of its citizens by increasing the Care and Support Package. Compared to previous years, the payout you can expect is considerably larger, which is good news for the people who will unfortunately truly need these extra finances to maintain a decent lifestyle. It is essential to know that this Care and support package comes on top of the money already given to Self-Help Groups, and the Community Development Councils, as announced by https://www.straitstimes.com/singapore/singapore-budget-2020-all-adult-singaporeans-to-get-one-off-cash-payout-ranging-from-100.

Different categories of Singapore budget 2020 payout

Read through and find out if you are eligible and what you can expect from this year’s budget, and when.

1. Care and Support

This involves a one-off cash payout to be made for all Singaporeans above 21 years of age.

These will also be made towards families with children and elderly citizens.

The amount will vary depending on income and is based on the following scheme:

• $300 – those who earn between $0-$28.000
• $200 – those who earn between $28.001-$100.000
• $100 – those who earn $100.001 and above or those who have more than 1 property
• +$100 – those who are parents

If you are eligible, you will be notified in August of 2020 and should expect to receive the money between the end of August and the month of September.

2. GTS Voucher – U Save

This aid is usually given to lower-to-middle income households to offset their utilities and other expenses. This year’s budget implies receiving double the usual amount, and simultaneously, families with five or more members are going to receive and extra U-Save rebate.
The rates will fluctuate between $480 and $1.000 depending on the household’s criteria. The payout is in four quarters (April, July, October, and January 2021). While the rebate will be directly credited in their utility account.

3. PAssion Card Top-Up

For those citizens aged 50years and above, the 2020 budget brings an additional $100 top-up on their PAssion card. Those aged 50-59 who do not have such a card, can apply for a complimentary one either online or through their nearest Community Centre from March 1st, 2020.
The amount will be available to those eligible from May 2020 onwards.

4. Grocery Voucher

Singaporeans who are 21 years of age and above, and live in a 1 or 2 room apartment (without owning an additional property). Will be eligible for Grocery Vouchers. These imply the sum of $100 for the year 2020 and 2021, and these can be spent in participating supermarkets. As of now. There is still no date for when these amounts will roll out, but they will be announced shortly.

5. Workfare Special Payment

The WSP dedicate to those lower-wage workers whose earnings fall in the bottom 20% of salaries; this means that all those citizens that were in the Workers Income Supplement for the year 2019. Will be eligible for WSP in the current year if they are 35years-old and above.
The amounts given out in cash with a minimum of $100 and a maximum of $720. These rates calculated on the bases of both age and income. The money can expect as of November 2020.

6. Service and Conservancy Charges Rebate

This fund aim at covering some of the costs associated with maintaining and upgrading estates. And as such, it varies across town councils. However, households in which a member owns a private property or has rented out. The entire apartment is not eligible for such rebates.

If you’ve been following along with the financial news over the past year, you likely have watched with bemusement as the value of Bitcoin has risen and fallen almost without any reason. If you’ve already invested in it, it probably feels like the queasiest rollercoaster ride that you’ve ever had. But those on the sidelines might be wondering if it makes any sense to get involved. Let’s be clear: Bitcoin Investment, which mimics the actions of physical money in the digital sphere and requires no third-party intervention, is not for the faint of heart.

That said, you shouldn’t get too overwhelmed by the flood of good and bad news about the coins, but you should rather view it with detached vigilance whenever possible. Many people are realizing that but aren’t ready to follow all of Bitcoin’s financial peaks and valleys so diligently, which is why they rely on the digital trading assistance of programs like Bitcoin Code. If you can get through all of the flashy news and get right to the substance of Bitcoin, you’ll likely find that it is still capable of being a sound investment for you, for the following reasons.

1. Thrilling Technology

Whatever you might think about the concept of Bitcoin or some of the negative news surrounding it over the years, you can’t deny that the blockchain technology on which it is built is ingenious and something that will change society. Once all of the dust clears on Bitcoin, that technology will still be in place, which means that the foundation for the coins is sounder than people give it credit for being.

2. Room To Grow

The only way that you can bet against Bitcoin in the long term is if you believe that it will eventually be wiped off the map by regulations or laws and that the coins will become worthless. That is an absolute worst-case scenario that seems less and less likely every day as more financial institutions start to make concessions to it. That means that it will still be a player in the financial world and it will continue to possess value well into the future.

3. No Overexposure

If you feel like Bitcoin is too pricey at this time for you to get actively involved in buying the coins, there are still options for you in terms of potential investments. Many investment companies are devising instruments much like stock indexes, where you can essentially wager on the success of Bitcoin without the high price of actual ownership.

4. The People Have Spoken

Bitcoin has gained enough of a foothold with its adopters, who don’t want to return to high fees, slow transaction times, and lack of financial protection, that it’s unlikely to go the way of the dodo bird. If anything, it figures to draw more adherents to the fold, thereby raising the value even more.

Don’t be too alarmed by the negative news of Bitcoin or too overjoyed by the positive. Keep a cool head about it, look at the facts, and you’ll see that it still has wonderful potential as an investment.

5. Bitcoin rules are permanent and keep your investment safe

Almost every government across the globe tends to print more and more money daily and claims that they are doing so to facilitate their people. The people call it “Quantitative Easing”. But with Bitcoin, things are different and constant as well. Bitcoin has fixed its limit at 21 million coin supply cap and will never cross over it. No matter the fact remains that new coin mine and add to the existing supply on a daily basis. No company can make more Bitcoin.

This permanent rule is also public and nobody can change it, though you may check it for yourself any time. So, we can say that your investment with Bitcoin is well safe from any manipulation by the government, banks or any company. This is transparent as well, for you may check and verify it yourself through a public ledger. Hence, it will be very much wise to buy Bitcoin online without any further delay.

6. Bitcoin can serve you in your old age after retirement

Everyone needs to financially well-supported and care-free especially after his/her retirement. At this age, you never get any regular salary and cannot even run a business out of a lack of energy and agility. At that time, it feels a real blessing if you have a permanent source of income in the form of monthly profit against some past investment. Moreover, if you have a great asset like Bitcoin investment which keeps on getting multiply with the passage of time regularly. This clearly proves the best performance bond on the part of Bitcoin, for you will find it your most trustworthy companion in your old age. Then you will feel proud of your Bitcoin.