AI & MACHINE LEARNING

Discussions on AI and machine learning has taken up a major space in technology circles for the last couple of years specifically. AI – or ‘cognitive learning’ as IBM calls it to underline that it should not go into the way of replacing human intelligence but should go into the way of empowering it – is used especially for those areas of finance industry.

• Making your fight with fraud more swift and more efficient
• Focusing on higher customer satisfaction with the help of AI based chatbots
• Removing human based factors from investment decisions in wealth management

APIs

It has been seen clearly that applications based on APIs are the true and the most effective way to fight with the economic and business challenges faced by the finance industry. Most Fintech startups with their applications try to break down the traditional rules of the finance industry. These kind of little organizations taking the advantage of APIs can move faster than bigger and more traditional ones with their agility. Traditional financial organizations keep investing in Fintech startups and trying to use their vast data more effectively so to be able to stay in the competition.

BLOCKCHAIN

Blockchain technology is giving a promise of security and transparency to a world of insecurity and fraudulence. Bigger players of the financial world are trying to construct a new infrastructure based on this new technology as an alternative to the old, unreliable ones by coming together. From trade finance platforms to cross-border payments and digital identification, erasing the inefficiencies of security and transparency is the major benefit of blockchain technology.

HUMAN DIGITAL INTERFACE

For most of us, it is not possible to spend a day without our personal technological devices. So it is not shocking to see the speed of adaptation of mobile technologies to our lives. For example, we can use our voices easily to give orders on our technological devices rather than writing. Traditional passwords are being replaced by biometric finger, retinal or face scans as security checks. These kinds of examples affect device interactions as well and push for a change in those areas.

QUANTUM COMPUTING

Unlike the traditional computers, with its qubit technology, quantum computing technology makes it possible to store much bigger knowledge with much less energy. It is used to maximize the return to an investment according to a given risk profile. When it is assessed alongside with the upcoming developments in artificial intelligence and machine learning technology, it is clear that it will have a huge place in the fight with fraud and money laundering in the future.

ROBO-ADVISORS

Robo-advisors (agentive technology) are completely automated or hybrid services that give investment advise to customers. This technology rely simply on wealth management algorithms to evaluate risks and manage money based on customer’s investment objectives. Private investors can now use algorithmic wealth management companies to invest their money more effectively with the help of millions of data points.

NATURAL LANGUAGE PROCESSING (NLP)

Natural Language Processing is an area of the general Artificial Intelligence sphere that understands languages both written and verbal. Fintech companies have started to use NLP services to reduce costs and to improve services through better and cheaper customer communication solutions.

Resources

IBM

Cohaesus

Entrepreneur

When it comes to tech-based startups, user experience (UX) is one of the many factors to reflect upon. It is not surprising when we think about the major role UX playing on two of the benefits that startups run after: conversion and user retention rates.

Startups usually feel the necessity of choosing one of these two: Working on a seamless product development process or working with a full-time UX designer for a perfect user experience. The problems associated with money can be understandable for startups but UX should not be an expendable item in that process. Because, offering a continuous, positive user experience is a must for startups to be able to grow continuously.

So before talking about the importance of UX for startups, let’s take a look at the elements of good UX for startups briefly.

Secrets of Good User Experience

The need for a good user experience for startups is even bigger because they don’t have their bases upon which they can rise and grow. This creates the problem of showing their brands and products to the world effectively enough.

The items below are the things that startups should approach professionally with their needed emphasis on UX.

Color: The choice of color palette is one of the integral parts of good user experience because it relates directly to the user base of the product. Right use of color psychology can lead to an increase in conversion rates and sales numbers.

Font: The ways of delivering a message is as important as the substance of the message itself. With the right kind of font usage, delivery and readability of message can be made simpler.

Voice: Good user experience practices can make the area it is been deployed more humane. This empowers the connection between the product and the user. Rise or decline in the number of users of your product is directly related with the voice of your brand developed by your user experience.

Functionality: People usually turn off the sites when they find them pretty hard to navigate especially in the areas where there are so many alternatives. Good UX empowers the functionality and the performance of the product by offering some easy-to-use practices.

CTA (Call-to-action): It is important for especially new initiatives like most startups that they should deliver their messages as directly and understandable as possible. The experience should be built by always remembering the fact that most of the people face that product or brand for the first time now.

WHY UX PRACTICES IMPORTANT FOR STARTUPS?

Beyond Branding

The prominent trend when it comes to startups is mostly not creating benefits for the user but developing a beautiful looking product. It is understood that these two are complementary elements for each other and there can not be a priority among them by startups mostly with the comprehension of the importance of user experience.

The right application of UX practices supports the functionality with the good usability and appearance and makes more and more user choose your product day by day.

User Retention

Users of a specific product can tolerate being exposed to a bad user experience for some time but startups need to put the necessary emphasis to the matter of usability so to make sure that their users stay with them. And it is also an important factor determining the quality of the brand in the eyes of the first-time user.

Comprehensive Research

Researching everything from what is already out there to habits of your potential target personas is among the services provided by a UX designer. This in-depth research into the market at the development and launching process of a product makes it easier to see potential threats and opportunities and can save you money, time and effort.

Resources

AppFutura

Brainmobi

CareerFoundry

According to Thomson Reuters, there were more than 50,000 M&A deals worldwide last year. $3.2 trillion in deals is expected in 2018, more than $2.6 trillion of the last year.

A number of factors including technological advances, globalization and competitive conditions have contributed to a growth in business thinking from build-to-grow to buy-to-grow. Not only technology companies but also companies from other areas understand the necessity to acquire smaller companies to be able to stay in competition.

To be able to sell your startup, you must understand the dynamics of this kind of acquisition.

TALENT

You are wanted mostly for your talent sometimes. For example, Jet.com was founded by Marc Lore, a former leader at Amazon.com. Walmart bought Jet.com not just for its technology but also for the talent of its founder so to be able to stay in competition with Amazon.

PLATFORM

In this case, Microsoft’s acquisition of LinkedIn for $26 billion can be cited as an example. LinkedIn remodeled itself as an advanced, open content platform from a business oriented social network by purchasing Pulse. And Microsoft wanted to own that platform as a definitive professional publishing platform.

TECHNOLOGY

PetSmart’s acquisition of Chewy.com for $3.35 billion is one major example for this kind of acquisition of a startup by a bigger company. PetSmart made this purchase for Chewy’s ecommerce network and Chewy provided PetSmart with one of the fastest-growing e-commerce sites.

As another example, Dell’s acquisition of EMC in 2016 can be mentioned. Dell made this purchase to be able to serve new technology products and services and compete with cloud providers like Amazon and Microsoft. The deal created DELL EMC and company saw a surging demand for servers, networking equipment and computers. After the purchase, they signed on 10.000 new business customers in 2017.

BRAND

Hostess Brands is a packaged food company dating back to the beginning of the 20^th century. The company that purchased Hostess Brands was motivated by plans to invest in seasonal and healthier versions of Hostess snack foods. They made this purchase to use the well-known brand name and existing distribution channels.

By looking at the growth rates in the sales of Hostess Brands – a 15% annual growth throughout 2015, 2016  – we can say that the acquisition strategy has proved to be a real success.

ACCESS TO A NEW DEMOGRAPHIC

Nordstrom’s decision of acquiring Trunk Club – a personalized clothing service – was to challenge traditional purchasing habits in accordance with the new generations. After this move, Nordstrom can now serve to those who want to get new clothes without shopping for them. This was a great way to own a vast number of loyal millennial customers.

DISTRIBUTION MODEL

Dollar Shave Club is US-based company serving quality razor blades and male grooming products to your door. To use that proven direct-to-consumer distribution channel and to own the loyal customer base, Unilever acquired this little company for $1 billion dollars. Besides the huge boost it got – 47% jump in direct-to-consumer sales between 2015 and 2016 – Unilever also won loyalty with that move.

Resource

entrepreneur.com