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Monthly Archives: September 2020
Central Sahel – Shaping peace together with women and young people Statement for International Peace Day – Inter Press Service
Posted: September 21, 2020 at 7:00 pm
Africa, Armed Conflicts, Crime & Justice, Development & Aid, Economy & Trade, Education, Gender, Gender Violence, Headlines, Health, Human Rights, Humanitarian Emergencies, Inequity, Peace, Sustainability, TerraViva United Nations
Opinion
Mabingue Ngom, Regional Director, West and Central Africa Region, UNFPA and Shoko Arakaki, Director of Humanitarian Office, UNFPA
NEW YORK, Sep 21 2020 (IPS) - The countries of Central SahelBurkina Faso, Mali, and Nigerface an unprecedented crisis, marked by violent extremism, forced displacement, and rising insecurity. The sharp increase in armed attacks on communities, health centres, schools and other public institutions and infrastructure has disrupted livelihoods and access to social services. The impact on affected people is devastating.
As the international community responds to the crisis, we must meet immediate needs, and invest in long-term development. We must also work on shaping peace together, the theme of this years International Peace Day.
In Central Sahel, shaping peace together requires the full participation of women and young people. Engaging, employing, and empowering women and young people offers the best hope for peace, stability and recovery.
While the responses to address this complex crisis to date have centred on humanitarian and military interventions, collective investments are required simultaneously in all sectors including humanitarian response, economic and social development, and peacebuilding to foster a sustainable and resilient society.
As a priority, governments and partners must take action to reduce massive human suffering. It is important not to lose sight of the centrality of protection in our collective response to this crisis. Of 63 million people, more than 13 million, about 1 of 5, need humanitarian assistance. More than 1.5 million people are displaced, fleeing from non-state armed groups in the Central Sahel region and from neighboring countries, and violence is taking a massive toll.
Assistance is needed to address gender-based violence, lack of basic health services, growing food insecurity, rising poverty, and COVID-19. In Central Sahel, as in countries around the world, women and girls bear a disproportionate impact during crises, and face increased risks of sexual exploitation and abuse. During COVID-19, reports of violence against women are rising.
Given overstretched health systems and health worker capacity, it is vital that frontline responders are equipped with personal protective equipment to prevent the spread of COVID-19, respond to the needs of survivors, and provide much needed services.
An estimated 12 million girls in the Sahel are out of school due to the pandemic, which puts them at greater risk of sexual assault, child marriage, and early pregnancy, according to the Sahel Womens Empowerment and Demographic Dividend (SWEDD) programme.
Launched by the United Nations and the World Back Group in response to a call made by Sahel governments, the ambitious SWEDD programme, led by UNFPA with the West Africa Health Association and partners, is a benchmark initiative to reduce gender inequality and convert population growth into an economic dividend.
To move forward, the vulnerabilities and violations of women, adolescents and youth affected by the crisis must be addressed to avoid a disaffected and dependent generation, from which to draw young people (and young men in particular) to armed groups and extremism.
It is time for collective action to put women and young people at the center of efforts, support social reform, and invest in social services while responding to the pandemic. Dynamic partnerships between governments and humanitarian agencies could provide women and young people with opportunities and support protection, health including sexual and reproductive health, and education.
Enabling women and youth to develop their skills, receive training, and earn an income would foster social cohesion, reduce economic dependency and extreme poverty, and promote peace, resilience and recovery in a more sustainable manner. Building more inclusive and healthy communities diminishes risks such as early marriage and early and unintended pregnancy.
Enabling women and young people to become self-sufficient creates an atmosphere of ownership and empowerment.
To drive progress, there is a need to develop economic incentives for private sector companies to employ young people, including young women. A strong partnership with the private sector will allow governments to spur innovation, progress, and a more diverse funding base supporting longer-term youth employment strategies. A win-win with young people is one where companies can find a balance between philanthropy and business, and young people can achieve financial goals and independence as they transition into adulthood.
To succeed, the governments of Mali, Burkina Faso, and Niger should lay the institutional and structural foundation for youth employment by promoting programmes and partnerships for skills training and establishing small and medium-sized enterprises. This is especially important in remote communities to benefit young people and the communities in which they live.
Efforts should reflect the rights, and drive to self-determination and economic prosperity, of young women and men, and promote gender equality, social cohesion, and access to quality health services and care, including psychosocial support and family planning.
Given growing funding constraints, the UN system must demonstrate new and innovative ways of working and efficiency in doing more with less. A complementary humanitarian, development and peacebuilding approach is the only way to address the complexities of the Central Sahel crisis. Investments across these three pillars can address immediate needs, root causes, and fund efforts to build back better with women and young people at the centre.
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A Discussion About the Black and Brown Experience – The Cougar’s Byte
Posted: at 7:00 pm
On Thursday, Sept. 17, Kean's Pan-African Student Union (P.A.S.U.), along with the National Pan-Hellenic Council and National Council of Negro Women, Inc., held a virtual student panel, where participants had personal conversations about racial identities from 3:30 to 5:30 p.m. on Zoom.
Diversity Speaks: The Black and Brown Experience provided students a way to have their voices heard on issues pertaining to ethnic disparities.
This open forum gave students the confidence to speak their hearts in a comfortable space where courage was welcomed and support was given. The Diversity Speaks platform has a goal of educating the community on diversity through a series of student-led discussions.
"We want to change Kean University for the better," said Malcom Moreira, president of P.A.S.U. "This event was needed to express our thoughts and feelings."
When asked about the event's turnout, Moreira was confident of the outcome.
"It turned out well. During this event, we made all the problems on campus well known. Our organization went through the problems, spoke about them with everyone giving their opinions," continued Moreira. "Our moderator mediated the discussion correctly by letting all participants express themselves freely."
Malcom gave a bit of insight on how the forum was put together.
"The Black and Brown Experience had so much planning. Taylor Williams came up with the idea," Moreira continued. "She helped us so much. Taylor is a professional and understands the experience that comes with being a person of color in her field. It gets difficult."
Moreira mentioned that President Lamont Repollet, Ed. D., the 18th leader of the university, stopped by.
"He spoke at the event by saying that he is doing his best to make the university as great as it was," said Moreira.
Kean P.A.S.U. is doing its due diligence by fortifying the university's title of the most diverse campus in the nation.
"Our organization is working to assist students of color on campus along with showcasing black excellence," Moreira mentioned. "Exposing the student body to our history, consisting of various cultures, lets them know that we are all connected."
Moreira feels such events such as The Black and Brown Experience is crucial to student development.
"Having these events that are based on our culture and history will help students of color understand where they're going," said Moreira.
The Pan-African Student Union is a cultural organization at Kean that unites all students of African descent with the knowledge of self by providing empowerment through its programs and events.
More information about P.A.S.U. can be found on Cougar Link. For any questions, comments or concerns, P.A.S.U. can be emailed at pasu@kean.edu.
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MAPPING OF TVET (TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING) INSTITUTIONS AND HEALTH FACILITIES – ReliefWeb
Posted: at 7:00 pm
BACKGROUND
Triggerise is registered in Kenya under the Kenya Companies Act with a Certificate of Registration Number PVT/2016/025180 dated September 16th, 2016 as a subsidiary of Triggerise BV.
Triggerise Kenya Limited has its main office in Nairobi but carries out its operations in various counties in the Republic of Kenya.
Consulting services are being sought by Triggerise Kenya Limited from a recognized consultant to undertake mapping of Technical Vocational and Education (TVET) institutions and health facilities in the counties of Nairobi, Mombasa and Kisumu within sub-counties Triggerise implements programs in.
1. SCOPE OF WORK (SOW)
This SOW is being developed to support the implementation of a youth empowerment program focused on improving sexual and reproductive health outcomes and social-economic well being of the youth within informal settlements in Nairobi, Mombasa and Kisumu
The main aim of the assignment is to ensure that Triggerise Kenya Limited does a market landscape mapping of all NITA accredited TVET institutions and master craftsmen and health facilities(Public, faith-based and private clinics and pharmacies) within specific sub-counties within the areas of program implementation. The mapping will include assessment of the services and products available at the facilities in line with the project deliverables, capacity of the institution based on client flow or student capacity, updated premise license and accreditation (NITA for TVET, NHIF for health facilities) confirmed interest in participating in the program and facility contact person details. We expect accurate geography mapping with GPS coordinates for all facilities and individual mastercraftsmen and defined by county, sub-county and civic ward. The following are the expected outputs of this consultancy:
Mapped NITA accredited TVET institutions offering project courses.
Mapped NITA accredited mastercraftsmen offering project courses
Mapped health facilities , both public, faith based and private(including franchise network members) offering project SRH services
Mapped private pharmacies offering project SRH services
Mapping of public facilities should cover all public hospitals, dispensaries and sub-county hospitals. The private and public clinics mapping should be split into three categories;
a) Category 1- Franchised clinics which include Tunza Clinics, Amua Clinics, MSK clinics, FHOK clinics & any other (most of these are branded from outside with the franchise colours)
b) Category 2- Individually owned clinics- Any other Private Clinic located in the areas of interest which meets criteria 3 above.
c) Category 3- Public and faith based facilities in the areas of interest
The mapping exercise will require picking GPS coordinates for all health facilities and pharmacies as above
Drawing their position/locations on a map with a colour ramp showing the different categories
Location of services
2. TECHNICAL REQUIREMENTS
The qualified firm should exhibit the following:
Demonstration of experience and expertise of similar assignment with similar organizations by availing a personal/company profile.
Provide an activity plan of actions to achieve the objectives of the assignment, specifying budgeted hours, timelines and sequence for its consultancy procedure and level of staff to be assigned;
Incorporating a brief CV's of the proposed professional staff of the core management team for the engagement and the authorized representative submitting the proposal. CVs should demonstrate relevant experience in mapping works
List of current and past clients where the bidder carried mapping exercise along with the name of the organization, contact person, designation, and a contact number,
Registration Certificate if a company
Other relevant Certificates
3. EVALUATION CRITERIA
Proposals will be evaluated in two parts.
The technical proposal weighted at 70%
Financial proposal weighted at 30%
Proposals should make clear about the relevant skills, experience and capacity of the participant, in respect of this particular SOW. It must contain the details of the proposed approach to be adopted in order to deliver the service in accordance with the SOW. Proposals should clearly indicate whether or not bid participants have the capacity to meet the requirements of the SOW
Functionality evaluation criteria
1. Experience, Skills and Ability of consultant
This will include
Past experience in similar work of this nature.
Team member experience (accompanied by brief CV's).
Bidders track record.
The ability of the bidder to fulfil the requirements
Score: 40
2. Technical Approach and Execution Plan
Proposals must contain the details of the proposed approach to be adopted in order to deliver the service in accordance with the TOR. The proposal should contain a work plan, showing tasks and timelines. Did the bidder submit clear proposed timelines for this engagement?
Score: 30
3. Financial Capacity
Proposals should clearly indicate whether or not bid participants have
the financial capacity to meet the requirements of the TOR based on
the previous value of similar work done.
Score: 30
Terms of performance for the services
The consultant will be required to provide a report to the management of Triggerise on the work accomplished. This will be in the form of the management report and will specifically include the following:
The final presentation of maps for all the above outputs
GPS coordinates for all health facilities mapped
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Statement from Circostrada in Response to the Open Letters of Jasmine Straga and Sosina Wogayehu – CircusTalk
Posted: at 7:00 pm
Once a year, as part of its programme of activities, Circostrada tends to organise a professional field trip outside Europe, so as to foster international collaborations between European and non-European key players in the circus and street arts fields. As such, in recent years, the network members have been able to connect with professionals from Japan, Korea, Ethiopia, and Mexico[1].
Indeed, back in 2018, Circostrada and Fekat Circus jointly organised a dedicated seven-day programme for the networks members in Ethiopia. Fifteen delegates came to Addis Ababa to take part in the second edition of the African Circus Arts Festival, an initiative that gathered many circus professionals from all over the African continent. A rich and intense week of meetings and artistic shows in Addis Ababa allowed Circostrada and Ashara[2] members alike as well as several artistic companies invited to the festival to get to know each other better, engage first-hand with current contemporary challenges in both Europe and Africa, and create a space for fair cooperation. As a concrete result, a bountiful series of exciting projects between Ethiopia and many European countries France, Spain, UK, Sweden, Finland, Netherlands to name a few stemmed out from this trip: artistic collaborations, capacity development activities, peer-to-peer exchanges, and more. Very recently, back in March 2020 during the last edition of the RICAs and in the frame of an activity co-organised by the RICAs[3], MASA[4] and Circostrada several African organisations decided to launch the creation of an African federation for the development of circus arts and Fekat Circus was the first Ethiopian member to join such organisation.
Following this professional journey to Ethiopia, the network decided to produce a short field report with the intent to inform all its members of the meetings and discussions held during this one-week trip and more largely to create a tool capable of starting conversations and engaging in future collaborations. The publication that came out and which is available free of charge in both English and French was however never intended as an academic research paper presenting a broad, exhaustive or conclusive panorama of the history of Ethiopian circus. The report among other pieces of information and knowledge humbly provides a glimpse into the history of circus arts in Ethiopia and its most recent development, while especially focusing on the role and actions of Fekat Circus, one of the most dynamic key players in the field and a member of the network.
Two years later, two circus professionals and agents based in Australia and operating in Ethiopia Jasmine Straga and Sosina Wogayehu felt and claimed this publication was not reflecting the richness and diversity of Ethiopian circus arts, pointing out some sensible issues that were not understood or acknowledged in the report, but also promoting their own stories and experiences since these were not portrayed in this publication. Thus, two open letters were simultaneously shared on their personal Facebook profiles, as well as on the Circademics Facebook group, a space dedicated to anyone interested in the nexus of circus arts and academic inquiry; subsequently their open letters were also published on the CircusTalk website. Sadly enough, the coordinator of Circostrada Network never received those letters directly and was only informed by CircusTalk about their existence. One cannot help but wonder about the ethical bases for such behavior and also about the strategic time in which these open letters were published. As a matter of fact, a mere week later, a project aiming at developing two venues dedicated to circus arts in Ethiopia was shared online by the very same people who wrote these open letters.
These two texts contain many serious and unfounded accusations against Circostrada that the network clearly refutes; moreover, these allegations represent an offense to the network ethics and values. It must also be stated that it was never the intention of the network to silence voices or rewrite histories. Since then, Circostrada has carefully proceeded to a review of these claims and the network will take into consideration some of the sensitive issues that were brought up and will also address certain inaccuracies and omissions by updating the current publication. It goes without saying that this work will be done in close collaboration with Fekat Circus, the co-organiser of this activity back in 2018.
Out of sheer clarity, it should be noted, however, that the article that concentrated the most negative and aggressive critiques was written by a young and talented woman Sarah Bushra who is a multidisciplinary artist from Ethiopia, as well as a creative worker; back in 2018 she was also the creative communication officer of Fekat Circus. Circostrada will not silence her voice or her name, for that matter as suggested in these open letters, but will have editorial notes added to her text to avoid any further misleading arguments.
Beyond the content of the publication itself or the reactions it spurred, one might argue that it is often a troubling sign when the safe space for the plurality of voices and the diversity of opinions feels no longer safe; or when stories are pitted one against the other, as if presenting one would inevitably invalidate the other, however valuable this other story may be. In line with the values it embodies, Circostrada and its members consistently strive to ensure openness and diversity and to provide a fertile ground for discussion, exchange of experiences and mutual growth. Very much aware that living up to these values is an on-going collective process as individuals, organisations, and sectors as a whole the network stays open to constructive criticism and true open dialogue. Most importantly, the core mission of Circostrada is and will always be to further the development, empowerment and recognition of circus arts and street arts at European and international levels.
[1] Due the current pandemic, this last field trip was transformed into a full digital experience.
[2] Ethiopian network of contemporary circuses created in April 2017 by 6 Ethiopian circuses: Circus Arbaminch, Circus Bahar Dar, Circus Debre Berhan, Circus Dire Dawa, Circus Hawassa, and Fekat Circus.
[3] Rencontres Interculturelles du Cirque dAbidjan.
[4] March des Arts du Spectacle dAbidjan.
.
Related content: Two Open Letters about the State of Ethiopian Circus
Since 2003, Circostrada Network works to develop and structure the fields of Circus and Street Arts in Europe and beyond. With more than 100 members from over 30 countries, it contributes to build a sustainable future for these sectors by empowering cultural players through the production of resources and actions of observation and research, professional exchanges, advocacy, capacity-building and information.
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After six years of bootstrapping, Aimfit is ready to grow online with $1 million in recent funding – Profit by Pakistan Today
Posted: at 7:00 pm
In September 2014, sisters Mahlaqa Shaukat and Noor Shaukat returned to Pakistan from the UK to conceive a fitness movement, led by women, for women. Their movement materialized in the form of Aimfit, a leading platform that, presently, provides fitness classes to females belonging to the well-off segments of Lahore and Islamabads population.
But that is only what it started off as. Over the past six year, Aimfit has gained serious momentum, and now its founders have secured $1 million in seed investment. Where did the money come from? The oversubscribed round was led by Indus Valley Capital, a Pakistan-focused fund started by LinkedIns former VP of Growth, Aatif Awan.
With an increasing base and a million dollars to play with, Aimfit has become the first VC backed fitness startup out of Pakistan. But the beginnings of Aimfit were not as grand as its current position, and the sisters think Aimfit has what it takes to be bigger than a regular startup. Their vision sees Aimfit not as a startup, but as a prospective nationwide fitness movement that could possibly be a lucrative business at the same time.
The need for Aimfit
For anyone with the bare basic cognitive skills, regardless of gender, it is obvious that Pakistan has a problem giving any kind of attention to women when it comes to social activities like fitness.If youre returning from a more developed country, where gyms, yoga studios, pilates, and jogging lanes are everywhere and not a luxury, the contrast will be even more stark for you.
There are certainly no dedicated spaces for women to achieve their fitness goals. That is, of course, an opportunity with the trends towards fitness favourable globally. It wasnt, therefore, unlikely for two Oxford University-graduated women with a passion for fitness to do something about it and cash-in on the opportunity.
For countries like Pakistan, thinking about physical fitness is expensive, and thus usually an upper class endeavour. The seedy gyms that do exist in the underbelly with iron cast dumbbells and tin cans filled with concrete as weights are not usually places welcoming to women. But even in the upper classes, the opportunities for women are limited.
Aimfits presence is currently in Lahore and Islamabad only. They have three fitness studios in Lahore, two in DHA and the other in Garden Town both posh neighbourhoods, and one fitness studio located in Bahria Town in Islamabad. The platform boasts over 5,000 active members across these four locations in two cities. And this entire time they have been bootstrapping meaning they have only used existing resources and made no outside investment since 2014.
With $1 million in seed investments, Aimfit was set to expand and become bigger than ever. But as with so many stories these days, just as things were looking towards infinity and beyond for the fitness organization, the pandemic came, meaning suddenly all four of their locations were closed and classes cancelled.
The sisters responded, like every other business, to the online model, providing fitness classes online, to keep the revenues coming in. And like every other business, Aimfit too believes that online is the way to go, with the Covid-19 pandemic providing the impetus to expedite the plans.
Mahlaqa, the co-founder and CEO of the fitness startup says that Aimfit was offering online training sessions pre-Covid as well, and with the $1 million in seed investment, plans are to double down on the online model, along with increasing the physical studio footprint.
Aimfit founders and sister, Noor and Mahlaqa Shaukat
This is particularly important because Aimfit is not without competition. While Pakistan ranks 149 out of 150 countries for recreational physical activity by participation in 2018 measured by the Global Wellness Institute, the market for fitness institutions is picking up pace, and Aimfit is not the only organization looking to cash in.
As co-founder and COO of Aimfit, Noor Shaukat, admits, the last five years have seen a boom in the fitness industry in Pakistan. This is also why the online model is important. We are proud of the role AimFit has played in enabling this ecosystem of independent fitness studios. While there isnt a direct online competitor focusing on a scaled, online fitness solution for women, there are multiple individuals and brands in the market, says Noor.
We are excited to see this growth since the biggest challenge is to encourage more people to take up a healthier lifestyle. The more players there are in the market, the more our target market is educated on the need for our product. On this level, Aimfit is well supported by Indus Valley Capital as well, which agrees with Aimfits methods and goals.
At Indus Valley Capital, our mission is to help founders build the most transformational companies in Pakistan. We believe that AimFit will transform the country in an incredible way by bringing fitness to millions of women in their homes, says Aatif Awan. Being able to achieve fitness goals as part of a community is truly empowering and has a spill over effect into improving other aspects of life, including family, work and mental health. Were thrilled to partner with AimFit in revolutionizing female fitness in Pakistan.
Changing targets
For any consumer-facing business, growth and scale cannot be achieved unless the product or service is targeting the mass market, which in this case can potentially be 101 million females, or 49% of the total population of Pakistan, according to the Pakistan Bureau of Statistics (PBS) data of the latest census.
Compared to that, 5,000 members is not a large number. It is, in fact, a tiny number. But Aimfit has not really planned to reach out to the mass market, until recently. Since its existence, Aimfit has been targeting women from the wealthy upper-middle and elite classes of Lahore and Islamabad (as evident by the locations of their studios). These women can afford to pay Rs8,000-16,000 per month based on what one is looking for from the wide assortment range in the fitness menu, and has always remained oversubscribed, as they claim. This means that the demand shot through the roof but they did not have enough capacity to serve that demand. Hence the plans for expansion.
A user can get an unlimited pass, which is a little bit of a more expensive box. If youre going for 10 classes or eight, it will be cheaper. If you get a membership, you come as many times as you want in the month, but you have to book classes in advance online. Others can come and pay per class. We do not think that we are super expensive or catering to the elite only. We have different prices to cater to a wide market, Mahlaqa Shaukat told Profit in an interview.
Rs8,000-16,000 is a little expensive in a country where the average monthly household income is only slightly above Rs40,000. This price and income equation is perhaps what drives Aimfits focus towards an online-to-offline (O2O) model, where a low-income consumer can subscribe to Aimfits service online for as low as Rs1,000 or even Rs800 per month, with offline services available to those who can afford the Aimfit experience at the physical studios.
Were trying to position ourselves to think of our studios as experience centres. The idea is to have anchor studios across major cities, eventually even in tier two cities, where people have these experience centres to come and get a taste of the brand, says Mahlaqa. For that, you really have to establish the tone and the personality of your brands for these centres. But then we have to reach the mass market through some home workout solution, which is possible only online and also which obviously has a much higher distribution.
It is perhaps the community experience more than fitness that Aimfits customers pay for, indulging with people who share the same ideology, women empowerment and fitness in that. From the get-go, Mahlaqa explains that women in Pakistan have always felt that Aimfit was like a space that was exclusively catering to them. Aimfit provided them a unique fitness experience, making it their happy place. And it is perhaps because of this community experience that Aimfit caters exclusively to females, providing them with a niche that has remained unserved for a long time.
Concepts like community experience may sound like so much mumbo jumbo on the surface, but they have a real world impact on businesses and people. In a recent study by Business Insider, reporter Irene Jiang went inside an urban sweat lodge a prison-style workout taught by former convicts, and full-body cryotherapy. Her takeaway? Im not sold on the idea of sweating or freezing my way to a better body but it quickly became clear that what they really had to offer its customers was a sense of community. They also focused on self-improvement and reaching personal fitness goals rather than exercising to attain a certain body type, read her report.
In another example that shows how fostering community has increasingly become a selling point for fitness studios and gyms, and how consumers are aligning their fitness venues of choice with their personal identities more than ever before, consumers of US-based fitness companies SoulCycle and Equinox decided to sever ties with the company when they learned of the owner of both companies, Stephen Ross ties to President Donald Trump and the fundraiser he had announced for the president. The values of the community simply did not align with that decision.
Aimfit follows the same community model as SoulCycle. So if any decision of the company is against the ideology of the community that the company caters to, it risks losing all these consumers that form this community. That is also why Aimfit has never turned towards catering to the male segment of the population and does not plan to do it in the future either.
We actually started off with classes for men as well. Even though the focus was on bringing this service to women. However, our community grew and bonded very quickly, and started defining what our values are for us, Mahlaqa tells us. And now we actually hear all these women referring to AimFit as their happy place. So we have really evolved to become that and strive to be that for as many women as possible.And we really embrace that personality trait.
But with the seed money and their new goals to expand fresh, does Aimfit have a plan to scale to the mass market and still make money? Aimfits packages have already been discussed above and the management of the company did not disclose revenue or profit numbers.
Based on the information disclosed to Profit, for 5000 members paying between Rs8,000-16,000 per month would yield Rs40-80 million in monthly revenue, and Rs480-960 million in annual revenue. The management further disclosed that from the four studios, the EBITDA margin is 40%.
Talking about the healthy margins, Mahlaqa said that is what has actually driven the organic growth of the company so far. What makes these margins possible? You have to deliver a certain quality in the studios when you have to create an experience. But because our fitness themes do not require gym machinery, we have very lean equipment so our studio CAPEX (capital expenditure) is low. This (margin) number is we are really proud of. Our studios make money. Now we have an opportunity online for us.
How is it going to work online?
To reiterate, Aimfit is not a gym. The founders like to call it a fitness facility, providing a broad range of fitness programmes, which incur research and development expenses to create those programmes scientifically to improve fitness, all done by a team dedicated for that purpose.
From dance to yoga to pilates and really anything that is suitable for women, we develop programmes accordingly. We develop choreographies, in-house programmes, just like the curriculum at schools. We call this our fitness curriculum that how our instructors are going to do this, feedback, monitoring and quality control, she says. We also have a fitness academy because fitness is not that widespread that you can just go out and hire people. There is a lack of depth in fitness training all around. We feel that is essential for our clients. We from the very start, we train our instructors and that is what differentiates us actually. Now our fitness academy trains even people from the outside.
Now because online is largely a different segment where the startup will be serving lower economic classes with low incomes, the model is going to look completely different. The programmes that are being or will be developed according to fitness goals of individuals will be scientifically crafted and then be made available to masses online on the Aimfit application for a low monthly subscription of, say Rs1,000. The model is similar to that of popular fitness training application Freeletics that has custom programmes for users with varying fitness goals. Various fitness programmes are available on the app for a little over Rs1,000 per month, charged on a quarterly basis. The application is online only and because there are no fixed costs associated with physical studios, the overall cost of customer acquisition is low and hence the low price.
Aimfit would perhaps be following the same model, with custom programmes designed for a different segment with different fitness goals. And because the expenditures would be incurred once on creating these programmes, they could be made available on a low rate to low-income demographics in Pakistan.
We are looking at a market size of $5.5 billion. It is largely because we would be targeting a larger wallet share that includes healthy meals, outfits etc. But that comes later. Right now the business case in front of us is going online, says Mahlaqa.
For the purpose of growing further, Aimfit has raised $1 million in a seed round led by Silicon Valley-based Pakistan-focused Indus Valley Capital.
With the funding round, the management identified opening up new anchor studios, programme development and growing programme development team as focus areas for future expenditures.
There are three things that the money will be deployed towards. One is the product build for the online workouts. We want to obviously have a really good product out. The second is, you know, we have, like I was saying, we have a really strong programme team that serves the studios that is going to serve the online workouts. And its like all about the content that we are putting out there, the sisters tell us.
So theres going to be expenditure on growing the programme team. Thats what we really feel like is our IP. We actually do research and development on which workouts are burning how many calories and all of that. The third is establishing two anchor studios.
The company provided an estimated timeline of one year for utilization of these funds, with eventual plans of going for a larger round in a years time.
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Conservative group launches website to battle big tech companies over online censorship – Fox News
Posted: at 6:59 pm
The Media Research Center has launchedCensorTrack,a website dedicated to#FreeSpeechAmerica, a campaign designed tofight online censorship of conservatives.
Our position is that if they can do it to the president of the United States, they can do it to anyone, and in fact that is exactly what is happening... everyplatform in Silicon Valley today is censoring conservatives, MRCfounder and president Brent Bozell told attendees of a virtuallaunch event on Sept. 17.
WHAT IS SECTION 230 OF THE COMMUNICATIONS DECENCY ACT, AND WHY IS IT UNDER FIRE?
The Media Research Center has launched CensorTrack, a website dedicated to #FreeSpeechAmerica, a campaign designed to fight online censorship of conservatives.
Were going to be coordinating our effort with those on Capitol Hill, trying to work in a bipartisan manner to take our concerns,Bozell added.
MRC vice president Dan Gainor saidCensorTrack.org is the first initiative of Free Speech America and will featureanalysis of tech companies,a look at fact-checkers, an examination of specific censorship issues, a breakdown ofpoliticians, pundits and media figures who helpthe tech industry censor conservatives, and potential remedies.
Weve gone back to the basics and are working actively, proving the problem. Weve done that by creating an archive of incidents of bias, as well as a resource for people interested in the issue or writing about it, Gainor said.
What we are seeing in the tech world right now is the greatest danger and encroachment to freedom of expression and thought, I think, in the history of our country,First Liberty Institute CEO Kelly Shackelford said.Tech companies are now an information highway, common couriers. And they control this information, and theyre engaging in extensive censorship.
NBC NEWS UNDER FIRE FOR APPARENTLY PUSHING GOOGLE TO REMOVE CONSERVATIVE SITES FROM AD PLATFORM
Sen.Marsha Blackburn, R-Tenn., attended the virtual launch event, telling listeners thatSection 230 of the Communications Decency Act (CDA) should not be used as an opaque shield by the tech industry.
Section 230 states that "no provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider."
The section has been pivotal in the rise of today's social media giants by allowing not only Internet service providers but also Google, Twitter,Facebook, YouTube and others to be shielded from liability from content posted on their platforms by third parties, in most cases.
Critics says Section 230 gives tech companies too much power over what is and is not allowed on their sites. Supporters including a wide range of Internet companies, free-speech advocates and open-Internet proponents say that without the law, online communication would be stifled and social media as we know it would cease to exist,Washington Post's Rachel Lerman wroteearlier this year.
Blackburn plans totake action, althoughSection 230 has many defenders inits current state, and President Trump's attempts to alter how social media platforms are regulated have been met with resistance.
HAWLEY INTRODUCES BILL TARGETING BIG TECH COMPANIES OVER POLITICAL CENSORSHIP CONCERNS
What we are doing with Section 230 reform is clarifying who can use it, when they use it, how they are going to use it, and what it can apply to. And were changing language, removing that otherwise objectionable language that has caused or allowed big tech to say, 'Well we find this, thator the other objectionable,'Blackburn said.
Bozell agreed, telling attendees that Section 230 needs to be addressed.
We are going to be advancing the ideas of Section 230. We think it's time for this to be addressed. These are not impartialplatforms,these arepublishersand they have to betaken into account, he said.
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Fox Business' Evie Fordham contributed to this report.
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Big Comeback For Apple, Netflix, And Other Big Tech Names Softens Some Of The Pain – Benzinga
Posted: at 6:59 pm
A rally in the wilting Tech sector prevented a complete Monday washout. Still, at the end of the day, the week is off to a rough start as concerns about the virus, politics, and banks ganged up on most of Wall Street.
That turnaround in Tech does raise some hopes going into Tuesday. Consider keeping an eye on futures trading overnight to get a sense of whether any of that strength can flow into tomorrows open.
Having theNasdaq(COMP) go positive at one point in the last few minutes was quite a statement, even if COMP couldnt hold those gains at the close. The area the market depended on so much during the long rally (Tech) came back, with stocks likeApple Inc.(NASDAQ: AAPL),Netflix Inc(NASDAQ: NFLX),QUALCOMM, Inc.(NASDAQ: QCOM), andMicrosoft Corporation(NASDAQ: MSFT) all having nice days.
On the other end, Financials continue to get beat up. Theyre deep in the red, and Industrials got hammered too. Most of the big banks fell 3%, and industrials likeHoneywell International Inc(NYSE: HON),Lockheed Martin Corporation(NYSE: LMT), andCaterpillar Inc.(NYSE: CAT) all finished sharply lower amid fears of the virus spreading in Europe. Leading the indices lower was the small-capRussell 2000(RUT), which finished the day down 3.35%not too far off the lows, relative to the other indices (see chart below).
That said, there are still plenty of positives out there and not necessarily any reason for investors to panic. Consider these positive signs from Mondays session:
Ironically, resurgence of the virus in Europe and parts of the U.S. could be a positive force for stocks if it brings buying interest back into the stay at home stocks in Tech that helped lead momentum in July and August. Some of the quarantine names likePeloton Interactive Inc(NASDAQ: PTON) andZoom Video Communications Inc(NASDAQ: ZM) are up pretty sharply over the last week. Whether the FAANGs and semiconductors can regather their former glory remains a question.
Some analysts, however, dont think thats necessarily bound to happen. They see the current turbulence as a sign of the market trying to find leadership outside the Tech sector. Today was a bad day for that argument because Financials, Materials, and Industrialsall sectors youd expect to be doing better if theres a shift back toward cyclical sectors going ongot crushed. The selling in Financials might have reflected concerns over reports in the media about possible money laundering in parts of the industry, however.
Another industry taking it on the chin was travel, where investors seemed spooked about talk of a new virus-related lockdown in the U.K. after 4,000 new cases were reported Sunday. AirlinesincludingDelta Air Lines, Inc.(NYSE: DAL) andUnited Airlines Holdings Inc(NASDAQ: UAL)were among the hardest hit, but cruise lines and hotels suffered too.
Selling at the height of Mondays weakness was pretty dramatic. At one point, there was more than 91% down-volume on the New York Stock Exchange (NYSE), the strongest selling pressure since June 26 on a volume basis and since June 11 on a breadth basis.
Any time the down volume exceeds 90%, its considered a Major Distribution Day (MDD). Typically, these are considered contrarian events, but context is key for the indicator, according to my fellow TDAmeritrade Network* contributor Michael McKerr,Sr Strategist, Institutional Trading Education.
Typically, he writes, when a MDD occurs near a recent high, they often come in clusters as additional length and momentum need to be worked off, typically with a lower low. But when they occur after a prolonged period of selling, they often can be one and done. How will this time play out?
Though things did bounce back a bit in the late going, most of the session was characterized by risk-off trading. That was evident in the dollar index, which slugged its way to a one-month high above 93.50. This could be a sign of investors flocking to perceived safety, as seen back when the pandemic first slammed markets. Keep an eye on the dollar over the next few days to see if it keeps attracting new interest, as that could be a sign of more risk-off action to come.
Still, bonds didnt do much to write home about Monday, with the 10-year yield falling only a couple basis points to 0.67%. Thats historically low, but yields have generally been holding in there. The yield curve isnt really showing much change over the last few months, though 30-year yield is down slightly from recent highs.
Technically, we talk a lot about moving averages being potential support for the major indices. Admittedly, they didnt do much to help when the market cratered back in March. What happened then was just way too few people interested in buying when stocks fell, meaning they had to fall lower, despite whatever moving average had just been pierced. Ultimately, it took a drop back toward the late-2018 lows before things found a stopping point.
You never can tell, as the old song goes, but its a little harder to see that happening this time. First of all, theres just too much Fed support in place. Second, people remember how fast the market popped back off the floor after the March knock-out punch, and might not want to be sitting on the sidelines if theres a repeat.
If the 200-day moving average of 3,100 for the SPX cant hold, look for potential further support at the psychological level of 3,000. Thats where theres a double-bottom on the charts from back in June. The level held very nicely then, though thats no guarantee it happens again.
Another level to remember is 3226, which would represent a 10% pullback from the all-time highs hit in August. Any 10% drop represents an official correction for the SPX, something the COMP is already in.
Theres nothing particularly rare about a market correction. They typically happen once or twice a year, at least. If this latest move down from the August peak has you worried, remember not to make decisions based on fear. Instead, consider carefully thinking through whether anything really material happened in the last month thats changed how you want to be positioned for the long term. Stocks dont always go up in a straight line.
CHART OF THE DAY:A SMALL CAP CONFLUENCE.The Russell 2000 Index (RUTcandlestick), like the rest of the market, saw a massive selloff as its low got very close to its 100 day simple moving average of 1461 (blue line). Whats interesting here is that the 200-day moving average (purple line) is just a few ticks lower at 1455.Data Source: FTSE Russell Indexes.Chart source: Thethinkorswim platform from TDAmeritrade.For illustrative purposes only. Past performance does not guarantee future results.
TD Ameritrade commentary for educational purposes only. Member SIPC.
Photo by Michail Sapiton on Unsplash
2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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BARCLAYS: Tech stocks priced at dot-com bubble levels are at serious risk of bursting. Here’s why the next meltdown will be far less severe than in…
Posted: at 6:59 pm
Collectively, the stocks that make up the S&P 500 are trading at a value not seen since the peak of the dot-com bubble, and you can peg that rise to a similar cause tech stocks.
While this bubble too may burst, it's not likely to do so in as dramatic a fashion or have as prolonged an effect, said Barclays analyst Maneesh Deshpande. The tech companies that have driven the rally since the selloff this spring are much bigger, more stable, more mature and profitable organizations than those that spurred the dot-com boom, and investors have much more muted growth expectations for them than they did for the dot-com counterparts, he said.
Unlike the dot-com boom, "there's no sort of really wild optimism here," Deshpande told Business Insider in an interview on Friday. "The valuations are substantially higher" than they've been in the past, "but the downside is not going to be that substantial."
Still, in a research note on Thursday, Deshpande downgraded the biggest tech stocks Facebook, Amazon, Netflix, Microsoft, Apple, and Google parent Alphabet, collectively dubbed by Deshpande as FANMAG to a market weight rating from overweight on the potential that they could be sold off in coming months.
Deshpande made the comparison to the dot-com era in his research note. The S&P stocks are trading at 18.7 times their expected earnings for the year-long period that begins a year from now. He chose to look at that later timeframe because the near-term earnings of many companies are expected to be poor, thanks to the recession, and investors are widely understood to be looking past those numbers.
That ratio of price to year-out earnings for the index is the highest it's been since 2000, according to Barclays' research. By contrast, over the last five years, the median ratio for the S&P has been 15.2 times expected year-out earnings.
But those broad numbers obscure the reality that much of that rise in valuation is being driven by the FANMAG stocks and a small group of companies built around ecommerce. That's different from the dot-com boom, when the S&P benefitted from a much wider spread rise in valuations.
This time around, those select few tech and ecommerce companies Deshpande dubbed them the "resilient" stocks are trading at 29.2 times their expected year-out earnings. That valuation exceeds the overall S&P 500's peak ratio in the dot-com boom. It's also 50% above the median valuation ratio those stocks have posted over the last 5 years and 25% above their previous high.
"Our worry is that current valuations are quite elevated and in bubble territory," Deshpande said in his research note. "While a bubbly rally might continue, it could equally burst."
There are good reasons why the resilient companies' stocks have performed so well during the pandemic. Most notably, the companies have been able to take advantage of it, gaining market share against their non-digital rivals.
In a normal recession, investors would largely rotate out of growth and cyclical stocks and into defensive plays companies like consumer staples or healthcare providers that are more insulated from the effects of a downturn, Despande said. But this recession has been unusual because of the degree to which it has shifted consumer spending, boosting the businesses of certain companies that are able to cater to citizens who have been hunkered down in their homes.
Seeing that, investors particularly everyday ones have been buying up shares in these resilient companies.
"This time, these guys are the new defensive" stocks, Deshpande told Business Insider.
But as good as business might be for those companies, at least relatively speaking, they are looking overvalued, he said. Bubbles can go on for a while, but eventually they deflate, one way or another.
What might pop the balloon this time around is a vaccine, Deshpande said. The widespread release of an effective vaccine would help spur the broader economy, allowing people to return to offices, restaurants, and movie theaters and to decrease their reliance on video conferencing software, food delivery services, and streaming video providers.
When that starts to happen, investors will likely rotate out of some of the big tech stocks and into some of the cyclical stocks that are likely to see their revenue and earnings start to surge, Deshpande said. Given their relative valuations, those cyclical stocks are likely to look cheap compared with the resilient ones despite what will likely be similar growth expectations.
"You have to look at valuations" of the resilient stocks, particularly the FANMAG group, he said. "At some point," he continued, "you have to say this is too much."
That said, Deshpande isn't expecting a huge selloff when the rotation comes and the bubble pops. He doesn't expect a repeat of the dot-com bust, where it seven years for the S&P and the Dow to regain their lost ground and 15 years for the Nasdaq.
The dot-com boom was led by a bunch of younger, immature companies, many of which were losing money. That's just not the case today, Deshpande said. The FANMAGs in particular, which comprise 73% of the market cap of the resilient stocks, are stable and mature, he said.
"These are solid companies," he said. "There's no doubt that they're making money."
Got a tip about the tech industry or tech investing? Contact Troy Wolverton via email at twolverton@businessinsider.com, message him on Twitter @troywolv, or send him a secure message through Signal at 415.515.5594. You can also contact Business Insider securely via SecureDrop.
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Gen Z Says They’re Eager to Use a Big Tech for Banking But Will They? – The Financial Brand
Posted: at 6:59 pm
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Here are a couple of fascinating facts for retail bankers to chew over: First, nine out of ten 90% of Gen Z respondents would consider obtaining a banking account from a nonbank company, and more than half (53%) of consumers overall would do so.
Second, 85% of Gen Z consumers say that for certain types of financial accounts they would only apply for them in person. For consumers overall almost two-thirds (64%) say the same.
While its true these are attitudinal would you questions, not descriptions of actual behavior, the sheer size of the numbers on two sides of the digital banking question coming from the same respondent base is eye opening.
Veteran financial services researcher Bill McCracken, President of Phoenix Synergistics, which fielded the national research, has a couple of key takeaways from this pair of statistics:
Two large retail banks that currently are getting this new digital/physical formula right are Bank of America and Capital One, says McCracken. Another, smaller, institution he singles out is Umpqua Bank with its signature Go-To banker program that enables every customer to have their own personal banker, reached digitally through its mobile app.
The Phoenix Synergistics survey, based on detailed online responses from 1,500 consumers collected in August 2020, focused on how the customer journey in banking has been changed by the rise of digital banking. In an interview with The Financial Brand, McCracken elaborated on several of the most significant findings.
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The research does not contradict the importance of digital transformation among financial institutions. If anything, the willingness of a majority (53%) of all consumers to obtain a banking account from a nonbank company affirms its importance.
More than that, the fact that nine out of ten Gen Z respondents are willing to turn to nonbank companies for banking accounts is more than eye-opening, its an overwhelming number, as the report states.
Amazon topped the list of specific nonbank companies consumers would be willing to do banking with, followed by PayPal and Walmart. Clearly youth reigns here as just under a quarter of Baby Boomers feel comfortable banking with big techs. As McCracken observes, even though older consumers use these digital platforms, Millennial and Gen Z users are much more comfortable with them. Younger consumers apply the same mindset for buying a new mobile phone case online in under five minutes to acquiring a checking account or a credit card or a mortgage, he states.
Baby Boomers, on the other hand, sometimes have difficulty online knowing where to go next or what to click, says McCracken.
Theyre thinking, A mortgage is a complicated product, do I want to do that on Amazon? Its a whole different mindset between those two generations, he observes.
Overall, the main reasons why so many consumers are willing to consider doing banking with big tech firms are more advanced technology and faster/easier processes, according to the survey.
All this should be a message in neon to financial institutions, McCracken states. Hes not sure how many have gotten the message, however. There are so far only a handful of what he calls technologically progressive financial institutions, including the ones named earlier. Bank of America is trying to be very close to an Amazon type of experience, the researcher states.
A telling statistic is that the average customer age at these institutions is much lower than the industry average: 38 at Capital One and 39 at BofA compared to the overall industry average of 44, according to McCracken. Credit unions as a group have an average customer age of 47, and some banks have an average age over 50, he says.
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The other striking statistic from this study, as noted earlier, was that 64% of consumers overall say that for some type of banking accounts they would prefer to apply in person and would not consider any other method. And again, Gen Z respondents stood out here with 85% agreeing with that statement. McCracken believes consumers are saying: Dont take away from us the ability to meet face-to-face or at least speak with a human by phone, video or live chat.
McCracken admits to being shocked by the fact that the type of account consumers most often prefer to open in person is the checking account. He and his team had expected it to be retirement accounts or mortgage-related accounts.
The more we thought it through, says McCracken, the more we realized that banks have done a tremendous job in making the checking account sticky. Today consumer checking accounts are tied into many products including direct deposit of payroll and ACH payments for mortgages, auto loans, credit cards and utilities.
Theres a level of complexity and importance with checking accounts that goes beyond simply signing the application and making a $25 deposit to open the account, McCracken points out.
By contrast, digital has become the preferred channel for opening credit card accounts and this is beginning to creep into lending products secured by homes.
In a separate survey during the summer of 2020, Phoenix Synergistics found that while a majority of consumers dont expect to change their branch or digital banking behavior post-pandemic, just over a quarter (27%) say they will use branches less. The figure is 40% among Gen Z respondents.
The results of the customer journey survey, however, indicate that consumers, and especially younger consumers, still do want to use every channel. To eliminate the branch channel altogether, McCracken believes, would be shortsighted for most institutions. You would be telling individuals that need or want face-to-face interaction that thats not an option, he states.
That said, the researcher suggests that institutions cant get by with the same branches of ten or 20 years ago. Self-service options and universal bankers who can knowledgeably handle a wide range of financial issues are examples of what is needed, McCracken believes.
Younger consumers need branches for different reasons, he states. I dont think Gen Zers go to a bank to deposit a check. Theyve got their phone for that. But theyre also not going in to meet with Sally or John sitting behind a wooden desk. Thats not their idea of a physical interaction, McCracken maintains. Something closer to an Apple Store experience would be, he says.
Banks and credit unions may not need as many branches as they have, but rather than closing all or most of them, McCracken suggests they should ask What do our branches need to be? What does our staff need to be? And then look at the digital banking elements and ask How should we integrate all of that?
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If the competitive challenge seems daunting and for many institutions it is , consider that the research also found that incumbent primary providers of banking services have an edge in getting additional business from existing customers.
However, once again, age is a major factor. While a minority of older and middle-aged consumers (and even Millennials) comparison shop among multiple financial institutions when looking for a new product, more than half of Gen Z do this.
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How The Turmoil With TikTok Could Change The Course Of Big Tech – BusinessBecause
Posted: at 6:59 pm
Following Trump's threat to ban TikTok in the US, the app has announced plans to become a standalone US company, with Oracle, a US software company, taking a minority stake. ByteDance, TikToks Chinese parent company, will remain the majority stakeholder.
After a lot of toing and froing, the latest update is that Trump has given his 'preliminary approval' of the deal, though he also announced that TikTok would be creating a $5 billion patriotic education fund, which they later denied.
As tension rises between China and the US over who has access to the data generated by the app, a gap is emerging between social media and politics. Instead of connecting people across nations, the TikTok circus has inflamed geopolitical tensions and highlighted a potential split between eastern and western internet infrastructure.
While TikToks announcement is a big story, Betsy Sigman, professor at Georgetown Universitys McDonough School of Business, points out that its far from a done deal.
Partnering with Oracle makes some sense, since Oracle CEO Larry Ellison is one of the only Silicon Valley tech leaders to vocally support Trump.
This could also help position Oracle well for the ongoing period of trade wars between China and the US, and expand into cloud operations and advertising, Betsy adds.
After a series of U-turns, its still hard to know wether the proposed deal actually satisfies the Whitehouse. Both Trump and the Committee for Foreign Intervention in the United States (CFIUS) want to ensure TikTok wont be passing any data from its many young American fans back to China, or posing any threat through malware.
In a recent stipulation, China insisted that TikToks algorithm counted as sensitive information that cant be shared with the US, adding further complications to any deal being made.
Kislaya Prasad, professor at Robert H Smith School of Business, believes this stipulation was made in order to delay a distressed sale. My guess is that they will stretch out the finer points of the deal until after the US election, he says.
Though Microsoft was tipped as the more likely partner, they turned down a deal after TikTok refused to give them end to end control of US data. It's possible the Oracle deal may have too lenient in this crucial area, causing further complications and doubts.
TikTok may appear nothing but a mindless, if addictive app, but the platform has become a battleground for ongoing political tensions between Washington and Beijing. There is an element of wrong place, wrong time, says Kislaya.
In a way, TikTok is a victim of its own success, he adds. There are over 100 million monthly active US users on the app.
Chinese tech companies may be more at risk of becoming pawns in the trade war with the US, since Chinese manufacturing is so hard to compete with. As the home to Amazon, Google, Facebook, and Microsoft, America can afford to throw its weight around in this arena.
Just as tense are concerns over data sovereignty, privacy, and security. When it comes to state access to information, China is playing by a completely different rulebook, says Kislaya.
State control of information is enshrined in Chinese law, and all Chinese companies are required to cooperate with any intelligence operation and request for data from the Chinese Communist Party.
The professors remain divided over the level of threat TikTok actually poses. Kislaya believes its alarmist to see TikTok as a huge threat to American security in its current state.
Betsy is more cautious, having already advised her American students to delete the app. There is a threat of software malfeasance if apps are connected to a company controlled by a country whose leadership has a past record of disregarding human rights, she says.
Both Betsy and Kislaya predict tensions will only continue to rise, as neither China nor the US show signs of backing down.
The drama over TikToks sale comes at a critical time for big tech, and in the wake of Silicon Valleys CEOs facing a grilling from the US congress anti-trust panel.
The issue is that tech giants have monopolized the market, but monopolization is often baked into the very premise of social media apps. Facebook becomes more valuable if there are lots of people on it, as does TikTok, says Kislaya.
Big tech will want free movement of data with no constraints at all, he adds, which is at direct odds with increasing government concerns over data protection.
In India, where TikTok is already banned, there has been a goldrush of new startups creating social media apps to fill the nations sudden vacuum.
Since ByteDance has had to break up its company to keep TikTok in the US, it may be that the age of establishing a new giant tech company is over. New companies may find it tough to break into different countries amid government tensions.
The whole situation highlights that there are really two different internets, Chinas, and Americas, says Kislaya. It seems increasingly unlikely any one company will ever operate in both America and China successfully.
Betsy also highlights how US tech giants have been quick to launch competitors to TikTok, such as Instagram Reels and YouTube Shorts. If such apps take off, the strength of the American tech giants may grow stronger still.
For both professors, the most important takeaway from the drama with TikTok is the need to regulate tech better, though this is a huge challenge in the current political climate.
For regulation around data sovereignty to work effectively, Kislaya suggests an international, institutional framework which sets out clear rules about how data is used and transferred between nations.
But if Trump wins in November, it may be a while before progress is made in this area.
Given the level of sophistication and constant developments in modern tech, its a difficult sector for politicians to keep up with. Awareness is increasing, but it may take a generational shift until those in power have the technical knowledge necessary to regulate properly.
For Betsy, this is too long to wait. The U.S government has to work harder to stay on top of cybercrime, data security, and the threat to digital misinformation. Too much is at stake to risk.
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