Advantages and Disadvantages of Financial Innovation
Sanderson AbelFinancial innovation can be defined as the act of creating and then popularizing new financial instruments. This implies advances over time in the financial instruments and payment systems used in the lending and borrowing of funds as well as innovations in the payment mechanisms and systems in the economy.Financial...
The Benefits of Formalising your MSME Business
Is your small business operating formally or informally? What are the benefits and costs associated with formalizing your Micro or Small Enterprise? What are the challenges? These are all important questions faced by a vast majority of Micro Small and Medium Scale Enterprises (MSMEs) in the economy, which are in...
Building a Sustainable SME Business
Being called a successful “business person” or “entrepreneur” is an honour that most of us cherish. It is however not easy to become a business person, let alone, a successful one. How do bankers measure the successfulness or otherwise of a small business? What are the qualities of a successful...
The Links Between Financial Inclusion and Financial Stability
The drive for Financial Inclusiveness (FI) has taken centre stage in developing economies particularly in the last twenty years. The G20 Nations, as well international development institutions such as the World Bank, amongst many others, are assisting the process through their various arms and programs and have endorsed FI as...
The Importance of Financial Stability
It is fundamental to have a sound, stable and healthy financial system to support the efficient allocation of resources and distribution of risks across the economy. Financial instability and its effects on the economy can be very costly because of the associated contagion or spillover effects to other parts of...
How Franchising Can Benefit the SME Sector
Financing of small business is a big challenge and one of the innovative ways in which a small business can gain recognition is through pursuing a franchising model. But what is franchising and how can it benefit players in the SME Sector?Franchising is a business system that creates a network...
Basic Financial Survival Strategies for MSMEs
Basic Financial Survival Strategies for MSMEsBy Clive MphambelaRESEARCH shows that almost 80 percent of all small businesses collapse within the first one and a half years of operation. Whilst this “death rate” has become an accepted statistic by economists, the sad part is that most SMEs don’t “die of natural...
You are here Budgeting Basics for College Students
https://www.newsday.co.zw/2013/11/08/budgeting-basics-university-student...Budgeting Basics to See You Through UniversityClive MphambelaBack in the days , for many of us, enrolling into university gave us a first taste of true independence. Apart from the freedom from daily scrutiny of personal activities by parents, college life gave us our first taste of financial independence. During...
Banks and Collaterized Lending
Bank lending is evolving fairly rapidly in light of changing global and domestic financial conditions and the advent of technology which continues to revolutionize banking and financial services. Significantly, the more many aspects of bank lending are changing, the more others endure, seemingly unencumbered by both time and evolving economic,...
Budgeting and Financial Discipline key to Personal Development
Financially, discipline is about controlling your spending and making sure you pay for the things that need to be paid. The hardest part for most people is controlling their spending. If you cannot control your spending then no matter how much money you make it will never be enough. Our...
Costs of Financial illiteracy
The phrase “financial illiteracy” describes the widespread inability of individuals to understand key financial concepts and manage their personal finances wisely. Financial illiteracy is costly to both individuals and society. The cost of financial illiteracy can be viewed from various angles: forgone savings and investment opportunities, lives shattered by financial...
Costs of Non-Performing Loans
A non-Performing Loan can be defined as the sum of borrowed money upon which the debtor has not made his or her scheduled payments for at least 90 days. A nonperforming loan is either in default or close to being in default. Once a loan is nonperforming, the odds that...
Financial Education Critical for Financial Inclusion
Financial inclusion can be defined as the access to appropriate financial products and services needed by vulnerable groups, such as weaker sections and low income groups, at an affordable cost, in a fair and transparent manner by mainstream institutional players. So, from the financial literacy perspective, it essentially involves two...
Financial Education Means to increased Savings
Savings are fundamental to sustainable economic development. They are the most frequent source of funding for microenterprise startup and expansion. Savings enable households to smooth consumption in the face of uneven income flows, to accumulate assets for the future, to invest in education, and to better prepare for emergencies. Despite...
How to avoid defaulting on your loan?
Economic conditions in a country determine, the quality of clients that banks will acquire. In stable economies, bank clients are of good quality and a credit culture is well established in the society. This in turn makes it possible to maintain relatively low levels of Non-Performing Loans. In developing and...