The Rise of Social Media Banking: Money in the Digital World

The banking industry has long since evolved from its meager beginnings of tellers, cashboxes and large looming safes with humidifiers to online personal bankers, expansive financial services, and a myriad of other services created to service a broader customer base. It is no longer important to just be a system of debits and credits but it is now important to be a visible and global presence for potentially millions of people. Social banking can create a wider attraction for media product recognition, customer building as well as customer retention, and the general sustainability of simply being, "out there".

Social media banking can be provocative as the rules regarding customer contact and product presentation is greater. The potential customer has the opportunity to make more informed decisions as to how they can invest money, create working accounts online, and even get sound financial advice without leaving the monitor. Social banking gives customers an opportunity to find goods and services that reflect their true needs for financial assistance and find a bank that reflects their personality. Yes, banks do have personality as well. Social media banking has the greatest opportunity to attract a broad range of customers who are interested in the goods and services they offer. Those users found on social media sites such as Twitter, Facebook, and others are informed users who are exposed to many industries at a single click. Financial institutions with a "Like" to them are more attractive to this media and get more attention. The digital generation is much more reachable and more likely to use services from those entities that share their interests, and more importantly, their means of communication. In effect, it is really about good communication for those who become potential customers and a financial institution that is online, and visible. High Internet visibility can be the one sustainable option for customer building and customer retention simply because to users it means the bank is approachable, friendly, and "has a face".

Social banking can be furthered in terms of longevity and potential growth by continuing to expand goods and services in a social media forum. Social media banking can become a realized platform for selling the personality of the institution to attract those customers that will grow with them. The goods and services can then be tailored to meet the needs of growing demands, and even changed to bring new customers in new and challenging ways.

If you're not familiar with the term social banking, visit our website to learn more about this innovative technology and its impact on marketing for financial institutions.

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The World's Money Crises in a Nutshell

Go to Sections 5 & 6 for an analysis of the crises. Read Sections 1 to 4 for an explanation of the factors underlying them.

1. Commercial Banks: Banks make their profits by lending out the money in their customers' accounts at a higher-rate of interest than they are paying to their customers. The system works only if the banks maintain enough reserves to meet any sudden demand for repayment from their depositors.

2. Bonds: When a government or a large company needs money to cover its current expenditure it can get it by selling bonds. The US Treasury might sell bonds with a face value of $1000 bearing a promise to pay the holder $1000 on June 1, 2022 and interest at an annual rate of 5%. The market value of the bond goes up and down as market interests rates go down and up; but it will converge on its face value of $1000 as 2022 approaches.

3. Central Bank: National currencies have an associated Central Bank. In the UK it is the Bank of England. Central Banks buy bonds from their governments and others at a Bank Rate of their choosing. The money to pay for the bond is created by transfer from the Bank to the receiver's current account. The Central Bank cannot go bankrupt since it is authorised to issue any required amount of new money to pay for the bonds that it buys.

4. Government Deficit and Debt: Governments spend money on education, defence, social services, transport and so on. The amount they spend is their expenditure for the stated period. The government can pay for a large part of its expenditure with its income, mostly derived from collection of taxes. But often its income is less than its expenditure. The difference is its deficit for the stated period. To pay for the deficit the government borrows money by selling bonds. Governments are continually issuing and repaying bonds and the net total of bonds issued constitutes the total government debt at the stated time.

The interest paid on the debt is part of the government's expenditure. It can become excessive. If government debt is already high, to borrow more may undermine the government's credit-worthiness and lead to inflation. The alternative is to cut government expenditure, causing hardship.

5. The 2008 World Financial Crisis: For some years house prices in the US had been rising steadily. Mortgage companies could make more money by selling 'sub-prime mortgages' to less well-off buyers and to speculators. Banks all over the world were keen to increase their profits by lending to these mortgage companies. Then it became clear that there would be huge bank losses if US house prices fell and interest rates rose. This perception became self-fulfilling. Sub-prime house buyers found not only that they could not afford the mortgage but that their house was worth a lot less than they had paid for it. In 2008 Lehman Brothers, the huge US and international financial institution, became bankrupt. Banks all over the world were affected and there was fear of a meltdown of the banking system and a calamitous recession in world trade. In late 2008 world leaders agreed on a massive transfer of money to the commercial banks from their central banks.

6. The eurozone crisis: As the world was beginning to recover from the 2008 crisis, another one was starting. The euro is the currency of the 17 countries in the eurozone. There are no central banks, only the ECB (European Central Bank). But the ECB is not obliged to buy bonds from the 17. So countries, with large deficits and low credit ratings, like Greece, have to pay high market interest rates and cut their expenditure, risking civil unrest. Because they are in the eurozone individual countries have lost the option of devaluing their currency to restore growth. The crisis is spreading to countries inside and outside the eurozone because the markets judge the eurozone to be unstable and damaging to the world's banking system.

At the meeting of all 27 EU countries in Paris towards the end of 2011 there was a loose agreement, with only the UK dissenting. The eurozone crisis would be solved by taking a further step towards a federal Europe: control over national budgets would be yielded to Brussels. It is likely that many national parliaments will rebel against this proposed surrender of sovereignty and that the crisis will continue. One solution would be for Germany to leave the eurozone and allow the mark to rise against the euro; and for the ECB to relax its rules for buying the bonds of the remaining 16. At present this is unthinkable.

I hope that one day people who are prominent in public life (scientists, broadcasters, presenters, clerics, commentators) will see it as a duty to tell us clearly and briefly 'where they are coming from' - that is, to publish their fundamental beliefs or their 'My Credo in a Nutshell' (acronym 'mycian').

My website will eventually provide space for such Credos. For the moment it carries those of Charles Darwin, Winston Churchill, Bertrand Russell, Albert Einstein and Pope John Paul II, written at critical points in their lives. To read them, please go to http://www.mycian.com/.

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Money Grows on Trees

Do you know the old saying: "Money doesn't grow on trees"? Well, you most likely do. But do you know it is not true? Money actually does grow on trees. After having read this article I am sure you agree and want to start getting your personal money tree.

It is always good to refer to nature for some of the biggest truths in our life. It makes us wonder about things and it makes some things more clear. Many times farmers are more in tune to these answers, because they work in a close relationship with nature. If I asked a farmer: "Do money grow on trees?" what do you think would be his answer. He would say "Of course they do! Every autumn I harvest money from my field".

But why do we believe the saying then? We believe that old saying because we have lost our way and have started thinking differently. The farmer knows he has to plant the seed in the spring in order for him to harvest in the autumn. He knows that the plant needs sun, water and fertilizer to grow from the little seed to the plant he can harvest and sell the fruits of. Somehow we have lost that knowledge. We think we can get a money tree we can use every time we need money, forgetting we have to take care of the tree along the way.

I think this analogy can be expanded to most of the areas in our life. My interest is in investments and in that area it definitely is true. To make it clearer for you I will explain what you need to make your own investments a money tree.

The investment strategy is our seed

It is like the seed for the farmer. Without the seed the plant will not have its DNA and know how to grow into the desired plant. If you plant a seed of wheat you can't expect to harvest oranges. If you want to invest your money your seed is the investment strategy. The investment strategy defines how your investments will be made, how much capital you invest, your investment goal, which assets you will invest in and when you will trade in the markets. Without the right investment strategy you can't expect to reach your financial goal.

The financial environment is our soil

The farmer needs to plant the seed in a field with the right soil. If he plants in rich dirt chances of success is much better than if he tries to plant the seed in sand. No matter how much effort he puts into growing the seed it is bound to fail. In the investment analogy the financial opportunities are the soil. If we have no opportunities of investment it does not matter how great a strategy we have, we are bound to fail. Fortunately we have very good conditions in the western world, with plenty of opportunities and relatively stable economies and governments.

The money invested is our fertilizer

Without adding the right fertilizer the farmer will not get the plant to grow. If he adds fertilizer the plant will grow fast. Our fertilizer is the money we invest. With a good strategy and a fertile environment all we need to add is money and the money tree will grow. Like the farmer we reach the best possibilities if we keep adding money to our investments. It will make them grow much faster.

Time is our sun

The farmer knows he can't do all the work. He needs some help from the sun. If he plants a seed of wheat the wheat plant needs sun to grow. The farmer has no control of the amount of sun the plant will get, but can use his historic experience to plant a seed of a plant that is suited for the weather condition of where the field is located. Time is our sun. We have no control of the time, but we know we need time for our investments to grow. Often we get impatient and want results immediately. This could result in us changing the factors we do have control of, but it will not get us closer to our goal. Patience with our decisions will.

Management of our investments is our water

The farmer will make sure the plants get water. If the weather is not supplying enough water, he knows he has to. Otherwise the plants will wither and die. We also need to manage our investments, for them to be on the right path to grow into our money tree. If we just make our investment and then forget about it, it might not grow as we want it to. Maybe we will not have the right balance in our portfolio or maybe we just need to make sure the strategy is still working as planned.

I hope it has become clear to you that money does grow on trees. We have just forgotten that it is not a tree we can forget about until we want to harvest from it. We need to do the work to make it grow.

Thank you for reading this article. I hope you enjoyed it and would like to share more of my knowledge with you. If you want to get the investment results you desire, join me and learn the Secrets 2 Invest.

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Save Money Couponing!

So you've probably seen the TLC show, Extreme Couponing - well, this article is NOT going to save you that kind of money. But hopefully, you'll find a few tips that can save you some cash the next time you go to the grocery store.

Shop the Sales - When I make my round through the grocery aisles, I don't shop for what I need. I shop for what's on sale and I adjust my needs accordingly. So if spaghetti sauce is buy one get one free (BOGO), then my kids have spaghetti that week instead of tacos.
Know the BOGOs - Grocery stores like Publix, Winn Dixie and BiLo offer Buy One Get One (BOGO) free specials on a weekly basis. But who wants to visit each store website to determine what BOGOs are the best? Couponing sites like SouthernSavers.com research all of these specials for you, so you don't have to waste time determining what to buy each week.
Collect Coupons from Your Sunday Paper - I usually get two Sunday papers so I can have double the amount of coupons. You have to be careful though because every once in a while, there are NO coupons in the Sunday paper. So if possible, pilfer through it before buying two.
Save big with BOGO Coupons - The real savings come when you can use a coupon for the BOGOs. Many grocery stores double coupons up to $.50. So if you have two coupons for a BOGO item, then you can use one coupon for the item you're paying for and another coupon for the item you're getting for free. If it's a $.50 coupon, then the store will automatically double it. Which means you're getting two items, but only paying for one and you're saving $2.00 on the only item you're paying for. It's a sweet deal!
Save big with Manufacturer Coupons AND Store Coupons - Some stores offer their own coupons for various products. So collect the store coupon and then collect the manufacturer coupon (available in the Sunday paper and online) and use them BOTH for the same item. You have to be sure your grocery store accepts both, but most do. This can really compound your savings.
Save money with Competitor Coupons - Know your grocery store's competitors. I shop at Publix and their main competitor is Winn Dixie. Sometimes, I shop at Winn Dixie (they have great meat specials) and when I do, I collect any available Winn Dixie coupons, because I can use them at Publix!! Publix will treat a Winn Dixie coupon as a store coupon, meaning I can use it AND a manufacturer coupon for the same item.

Couponing can be time-consuming, and honestly, I used to just go to discount stores to buy everything. It's less hassle and they do have "Low Prices." But when I compare the two stores, I save more and I get more for my money when I coupon at Publix. So if you have the time, try couponing. It provides huge savings and allows you to spend your money on other things...like going out to eat!

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Problems Encountered When Sending Money Overseas

Billions of dollars per annum are sent around the world by foreign workers sending money home to such countries as The Philippines, India, Pakistan, Vietnam, Mexico and Indonesia and large numbers of usually fairly small sums are also transferred to pay allowances, school fees, and to make small internet purchases, hence the possible methods for transferring money have also increased substantially.

Sending money overseas to family used to be exclusively the preserve of banks and a very few money transfer companies with offices in major countries. Since the advent of internet banking, sending money home or sending emergency funds to your kids has become a lot easier but there are real pitfalls you need to be aware of.

The first thing you need to consider is the security of your money, if you pick a major bank or use one of the well known money transfer companies then you can be fairly sure that at least your money will actually arrive but this can be an expensive and often slow method to send money. Fees can easily come to $40 or more at each end and the currency exchange rates they give you can be very poor indeed.

So what other choices are there?

a. Foreign exchange brokers are useful for transferring large amounts and generally fairly safe, however make sure the broker you pick is fully accredited by a financial services agency because your money moves through their accounts and can therefore be at risk. Fees and exchange rates are normally fairly reasonable but transfers can take a few days depending on the banks used and the receiving bank may also lever a charge to clear the funds.

b. Sending a credit or debit card is becoming a popular choice. It seems easy and there are plenty of ATM machines around the world to access the money, however cards can be lost or stolen in transit. Perhaps not so likely if the cards are couriered but that's going to cost you plenty. Cards can also have substantial fees attached to their use so make sure you read the fine print and the fee structure which should be supplied by any reputable card provider. Currency exchange rates used by these companies can be prohibitive, make sure you know how much you are going to end up sending and how much it's going to cost you first.

c. You can send a check issued by a bank or Post Office, either in local funds or in the currency you need to send if you have that facility. Using this method you will at least know what it's going to cost you before you obtain the check but again, checks get lost in the mail and it takes time to mail them.

d. Using one of the new online money transfer organizations such as Ezybonds, Xoom or Paypal is the simplest option if you want to send the money quickly. There are many other similar companies but with this kind of organization it is imperative that you ensure their data security is good enough to prevent hacking. With these organizations you need to open an account meaning you will need to provide identification, so check that the company has either been around long enough to be well established or is backed by a substantial parent company to ensure that your private data is secure. Once again check the fees and currency rates. Be aware that sometimes while they say there are no fees, there may well be a charge of up to 4% of the money you want to send and that can be very expensive.

Dick Aronson has been a business and financial consultant for more than 30 years. In that time he has seen many changes in international banking and some of his clients have experienced considerable trouble with their supposedly simple money transfers. He has authored a number of articles on the best ways to transfer money and runs several informative websites, viz: http://www.sendmoneycheap.com/ and http://www.ezybondscards.com/

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Sending or Transferring Money The Modern Way

Whether you are sending money home to family, making a payment overseas or needing to send emergency funds to a child, there is now a bewildering multitude of methods available to you.

You can do it by; bank wires, moneygrams, checks, preloaded debit cards or credit cards, specialist money transfer companies with offices around the world, PayPal, foreign exchange brokers or now by the use of a virtual account backed by the big custodial banks.

How do you choose?

Well let's take a deeper look at the benefits and sometimes well hidden pitfalls of the various methods of transferring money.

1. The traditional method of sending a bank wire, which as long as you are using a major bank is obviously fairly safe and generally a reliable although slow method of sending money. However, the currency exchange fees, exchange rates used and other costs can make this a fairly expensive exercise. Quite often $30 to $40 dollars on either end is added, plus the retail exchange rate used by banks is higher than is necessary. There is also a fair bit of paperwork required and this can all take time, even if everything goes smoothly.

2. Sending large amounts of money through foreign exchange brokers is usually cheaper in that because they trade in bulk amounts, they offer somewhat better exchange rates and cheaper fees, but since you are dealing with private companies, recent history tells us that there is always a small risk of losing your money through the company collapsing. Again, there is a fair bit of paperwork required and this can be time consuming even if you know what you are doing.

3. Sending money using the mainline specialist money transfer companies seems pretty simple but each comes with a number of disadvantages. Fees are generally much higher, the exchange rates are not great and some charge a conversion fee of as much as 4.5% of the money sent. They do tend to have plenty of conveniently situated offices around the world but long lines and a fair bit of paperwork can mean 30 to 40 minutes to collect the money even if the recipient has all the ID required. With PayPal you need to make sure that the recipient's bank has an agreement with PayPal or it will be impossible for them to collect the money.

4. The use of prepaid or preloaded debit or credit cards is becoming more common. Here for a fee of around $5 to $30 depending on the company, plus usually around 3 % of the money sent and a postage fee of up to $25, you can arrange to pay a predetermined amount of money in the currency of choice onto a card which will be shipped to the recipient. Sounds fine, however you must have ID and a mailing address on both sides which can be a problem if the people you are sending the card to are moving around and security in some areas can be problematic. The cards can be reloaded and fees will be charged when they are used.

5. Virtual accounts are the very latest and to my mind, the best method to safely, cheaply and quickly send money overseas. Here you have access to the best exchange rate, the security of major holding banks and instantaneous transfer of money at very cheap rates between account holders. There are some small charges involved when the accounts are used but overall, this is by far the quickest and cheapest way to transfer money internationally.

Benefits of a virtual account are:

Accounts are free to open, needing only ID in the form of one photo ID plus one ID with an address to conform with international banking and anti-terrorist requirements. To open an account is simple and can be done quickly online

Extremely competitive exchange rates where because you can change your local currency within your own account to the currency you want to send, you can see how much it will cost you before you send it

No currency exchange fees, although If the currency you need to send is not on the list of currencies available, then there will probably be a small fee charged by the recipient's local bank to change the currency.

Instant transfer to other virtual account holders, so great for emergencies.

Very cheap money transfer fees with an average fee of about $3 - $4 regardless of how much you need to transfer. Available to anyone over the age of 16 without a credit check.

Money can be distributed from one virtual account to another as well as to debit cards, credit cards or conventional bank accounts.

Dick Aronson is a long time business consultant with considerable experience in international business, online transactions and currency trading. Dick has published well over 40 articles and also runs a number of informative websites. viz: http://www.ezybondscards.com/

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Money Allows Women To Be In Their Personal Power

Historically, we have seen people in authority as well as religious institutions use money to exercise power in negative ways. As a result, some of us unconsciously fear that having money will somehow make us the 'bad guy', or we judge rich people, assuming they are 'bad'.

It would be difficult to attract money if we associate negative images and experiences to it. It is crucial, therefore, that we have a positive definition of money and are able to see how it can serve us better. Money enables us to be in our personal power and act from a place of personal authority.

Money allows us to express ourselves authentically. We are not dependent on anyone else when we have money, and the need to please others due to fear of losing their support isn't there. We can live in inter-dependent relationships trusting that we can exercise our personal power with authenticity, grace, and integrity without fear of displeasing others.

Here are three ways money can allow women to be in their personal power:

1. When a woman is in survival mode and dependent on other people for her living, it is very difficult to listen to the voice of her soul. It is even harder to draw boundaries in relationships that may not be honoring her for who she is. Being financially independent offers the woman the choice of saying 'no' to what isn't serving her.

2. If you see yourself as an agent of change, someone able to make great changes, you can influence many decisions in areas of authority such as politics and other public and social arenas involving money. If you are a good person with great causes, it is important, therefore, that you see the value of money and how it can allow you to act on your internal beliefs and convictions to exercise change in causes you care about.

3. Money allows you to take better care of yourself, and you are able listen to your personal voice as you are rested, relaxed and not worried about providing for yourself.

When we are in touch with our personal values, we don't need to fear that we will use money in a negative way. Consequently, we need to stop worrying that money will somehow turn us into a 'bad guy'.

I am asking you to trust yourself to use money your way. You are going to serve even more people and causes when you have more money. It will allow you to be more generous when you have more.

Detach the idea of money from your thoughts of people who have misused it, and instead, visualize it wanting to come to you, to comfort you, to support you and allow you to become the powerful woman you are meant to be- powerful in your feminine, graceful and brilliant way!

To get a free e-book on 'Abundance in Business,' please visit http://www.zahraefan.com/
Zahra specializes in supporting creative, heart centered female entrepreneurs such as coaches, artists, healers, writers, filmmakers, designers and others to create successful businesses

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Venezuelan Migration and Money Transfer Options

Venezuela resides on the northern coast of South America, beside Columbia, Guyana, and above Brazil. It is privileged to be on the coast of both the Carribbean Sea, and Atlantic Ocean. Its population exceeds 30 million people, making it the 40th largest country in the world. However, a steady flow of citizens continue to consider if it is the best place for their future.

A large proportion of Venezuelan citizens receive money from their family members abroad on a weekly or monthly basis. Many of those who send money to Venezuela are in America. There are nearly 180,000 people with direct Venezuelan ancestry in the US.

Venezuela's expatriate community worldwide, especially in America is greatly respected. They are known for their high levels of education and business successes. Many Venezuelans come to America as young adults to attend university. It takes an intense dedication in high school, just to be accepted to an American university, as Venezuelan schools are not the most respected in South America.

As well as those that migrated to America for educational opportunities, growing numbers have come for political reasons. While the US certainly has her own political demons, the distaste for the current regime in Venezuela and their stringent policies is a polarizing source for many.

The options to send money to Venezuela vary, but of late, taking advantage of the ability to send money online has been attractive to the intellectual Venezuelan community.

In the past Venezuelans utilized traditional money transfer services. With these services, both sender and recipient had to report to a third-party location to complete the money transfer. Recipients have become more and more weary of these establishments as it makes the process lacking in privacy.

Due to the business acumen and success for Venezuelans in America, most of them hold and maintain US banks accounts for proper storage of their funds. The easiest method for them to send money to their family back home would be to simply transfer money to their family's bank account. Unfortunately it's not that easy, as a less than ideal amount of those in Venezuela don't use banks due to proximity or trust.

Reloadable debit cards provided by a few services allow an increased level of flexibility and value for those transfer money back home. Once the card is shipped out, the sender is able to add money onto the card online as often as they would like. Recipients use the card to withdraw funds at most any local ATM. The advantage here going to those who send money on a regular basis. The ease and security provided by this method make it a surely increasing option.

As Venezuelans continue to seek educational and salary opportunities in the US, those that send money to Venezuela will grow concurrently. The method in which they transfer money may become more and more the same, a reloadable debit card.

To learn more about prepaid debit cards or how to send money to Venezuela, check out http://www.atmcash.com/.

Logan Lemberger takes pride in expressing his knowledge on the subjects of travel, personal finance, international relations, sports, and music.

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