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Will cash still be king after COVID-19?

(EDITORIAL) Physical cash has been a preferred mode of payment for many, but will COVID-19 push us to a cashless future at an even faster rate?

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No more Cash

Say goodbye to the almighty dollar, at least the paper version. Cashless is where it’s at, and COVID-19 is at least partially to thank–or blame, depending on your perspective.

Let’s face it, we were already headed that direction. Apps like Venmo, PayPal, and Apple Pay have made cashless transactions painless enough that even stubborn luddites were beginning to migrate to these convenient payment methods. Then COVID-19 hit the world and suddenly, handling cash is a potential danger.

In 2020, the era of COVID-19, the thought of all the possible contaminants traveling around on an old dollar bill makes most of us cringe. Keep your nasty sock money, boob money, and even your pocket money to yourself, sir or madam, because I’ll have none of it! Nobody knows or wants to know where your money has been. We like the idea of taking your money, sure, but not the idea of actually touching it…ewww, David. Just ewww.

There is no hard evidence that cash can transmit COVID-19 from one person to the other, but perception is a powerful agent for changing our behavior. It seems plausible, considering the alarming rate this awful disease is moving through the world. Nobody has proven it can’t move with money.

There was a time when cash was king. Everyone took cash; everyone preferred it. Of course, credit cards have been around forever, but they’ve always been just as problematic as they are convenient. Like GrubHub and similar third party food delivery apps, banks end up charging both the business and the consumer with credit cards. It’s a trap. Cash cut out the (greedy) middle man.

Plus, paying with a credit card could be a pain. Try paying a taxi driver with a credit card prior to, oh, about 2014 when Uber hit the scene big time. Most drivers refused to take cash, because credit cards take a percentage off the top. Enter rideshare companies like Uber. Then in walks Square. Next PayPal, Venmo, and Apple Pay enter the scene. Suddenly, cabbies would like you to know they now take alternate forms of payment, and with a smile.

It’s good in a way, but it may end up hurting small businesses even more in the long run. The harsh reality of this current moment is that you shouldn’t be handling cash. No less an authority than the CDC recommends contactless forms of payment whenever possible. However, those cabbies weren’t wrong.

The banking industry has been pushing for a reduced reliance on cash since the 1950s, when they came up with the idea of credit cards. It was a stroke of evil genius to come up with more ways to expedite our lifelong journey into crushing debt.

The financial titans are very, very good at what they do, at the expense of all the rest of us. The New York Times reported on the trend, noting:

“In Britain alone, retailers paid 1.3 billion pounds (about $1.7 billion) in third-party fees in 2018, up £70 million from the year before, according to the British Retail Consortium.

Payment and processing companies such as PayPal (whose stock is up about 55 percent this year) and Adyen, based in the Netherlands (up 72 percent), also stand to gain.”

All kinds of banking-related industries stand to benefit as well. Maybe we’ll go back to spending physical cash one day, but I don’t think there’s any hurry. Fewer old grandpas are hiding their cash in their proverbial mattresses, and the younger, most tech-savvy generation seems perfectly content to use their smart phones for everything.

We get it. Convenience plus cleanliness is a sweet combo. If only cashless payments weren’t such a racket.

If this trend towards a cashless future continues, future travelers may not experience what it’s like to fumble with foreign currency, to smile and shrug and hand over a handful of bills because they have no idea how many baht, pesos, or rand those snacks are. They may not experience the realization that other countries’ bills come in different shapes and sizes, and may not come home with the most affordable souvenirs (coins and bills).

We shall see what the future holds. Odds are, it may not be cash money, at least in the U.S. I hope the cashless movement makes room for everyone to participate without being penalized. We’re in the middle of a pandemic, people. We need to find more ways to ease the path for people, not callously profit off of them.

Joleen Jernigan is an ever-curious writer, grammar nerd, and social media strategist with a background in training, education, and educational publishing. A native Texan, Joleen has traveled extensively, worked in six countries, and holds an MA in Teaching English as a Second Language. She lives in Austin and constantly seeks out the best the city has to offer.

Business Finance

India bans cryptocurrency prior to releasing their own

(BUSINESS FINANCE) India is potentially planning to ban cryptocurrency — and instead, they’re planning to introduce their own version of it for purchase.

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Cryptocurrency coin on a phone open to a purchasing app.

Owning mainstream cryptocurrency these days is a bit like owning a pair of Crocs: Potentially lucrative (especially if you’re Post Malone), but mostly just weird. A recent report shows that India is planning on adding “illegal” to that list, possibly ahead of launching their own cryptocurrency in place of the banned ones.

The proposed law would also fine anyone found tradingor even simply owningbanned cryptocurrencies in India. Mining and transferring ownership of cryptocurrency would similarly warrant punitive measures.

CNBC notes that this law would be “one of the world’s strictest policies against cryptocurrencies” to date. While some countries have imposed strict laws regarding things like mining and trading cryptocurrency, India would be the first country to make owning it illegal.

Some talk of jail timeincluding sentences of up to 10 yearsfor cryptocurrency owners and users was floated by Indian lawmakers back in 2019, but there is no explicit indication that those terms would be present in this rendition of the bill.

To be fair to the lawmakers involved here, the bill wouldn’t be as cut-and-dry as “has bitcoin, gets fined.” According to the CNBC report, people who own cryptocurrency would be able to “liquidate” their earnings for up to six months preceding the bill going into effect. This would theoretically allow investors to hold onto their portfolios for a bit longer before having to cash out.

But that leniency might not matter anyway. It doesn’t take a genius to see that this move could do two dramatic things to the cryptocurrency market: Add yet another niche option for investors, and destabilize every other pre-existing cryptocurrency optionor, at least, make them less stable than they already were.

In fact, the simple introduction and threat of this bill could be enough for the cryptocurrency market to take a nosedivesomething that can’t be discounted as a factor in making this decision. Current reports put Indian-owned bitcoin values at roughly $1.4 billion, though, so it’s clear that the bill hasn’t had a deleterious effect at this point.

The fact that India’s central bank has plans to introduce a government-sponsored cryptocurrency of their own cannot be separated from this bill, either. While the official government position is that blockchain is to be trusted while existing cryptocurrencies are eschewed and dismissed as “Ponzi schemes”, it’s clear that at least part of this bill is motivated by a desire to thin out the competition.

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Business Finance

Which generation has cried the most over money?

(BUSINESS FINANCE) Financial stress is tough on everyone. Here’s who has cried the most about money woes, and a few tips on how to alleviate some of that stress.

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Upset young man seated on bench with head in hands thinking about money.

There’s been serious critique in the last several years about the educational system and what basic knowledge young people should be taught in the United States. Home Economics (Home Ec) comes to mind (everyone should probably know how to cook or sew a button), as well as financial literacy.

There are many young Americans who grow up not really having a deep understanding of budgeting and fixed and variable expenses… But it may not be their fault. Perhaps, Mom and Dad (or other guardians) have always been paying for all of their expenses, making sure they had a roof over their head, clothes on their backs, and food in their fridge. Because, that is what you’re supposed to do as a parent, correct?

So, while there’s no reason to blame anyone, often the process of learning what it costs to live and pay your bills is a rite of passage.

The current state of debt and financial fears also doesn’t mean that Millennials and Gen Zers weren’t educated around savings or working. Many young people have had part-time jobs (although much less in comparison to Gen X or Baby Boomers) but they may also be able to use the majority of that income for discretionary spending – which never created room for feelings of lack when they didn’t have to pay rent or a mortgage.

This scenario can ultimately create a challenge when you are finally out on your own and now have student loan debt, credit card debt, utility bills, and required car insurance. Especially if you are young person moving to a big city for exploration and/or new opportunities, where the cost of living can be quite high.

If you are feeling nervous or sad around finances, you are not alone. If you have cried over your personal balance sheet or your bank statements, you are also not alone. According to yahoo!money, a recent online survey of 1,004 Americans by CompareCards.com found that “7 in 10 Americans said they have cried about money in their lifetimes. Many cited worries over their job or making ends meet. Younger Americans appear the most vulnerable to financial tears. About half of millennials and half of Gen Zers said they cried at least once in the past month over money.”

So how can you cry LESS about money? Well, the first thing is to not be too hard on yourself. But you will also want to create a plan that works for you. Each person deserves financial freedom and not a bank statement that makes them cry on the regular.

Here are some financial literacy resources that may help you figure out how to navigate your way out of crippling debt.

Dave Ramsey Books – The Total Money Makeover – A Proven Plan for Financial Fitness

Bravely Go with Kara Perez – Feminist economics + inclusive personal finance

Debt Relief Programs – you’ll have to do your research but there may be a program that is right for you and an agency that can help you set up a realistic payment program for you

Student Loan Forgiveness – it is worth looking in to your options if you are feeling overwhelmed with student loan debt and there may be ways for your loans to be forgiven

Financial Advisor – consider working with a professional that can help you with your budgeting, investing and retirement savings/funds

And you may still cry because this is big adult stuff… But hopefully you trust yourself to do the research, explore, ask, and find options that work for you to gain a little more control over your financial situation.

If you are not already doing so, it may be as simple as starting with a budget to better understand your income and outgoing expenses. Being informed can help you to plan better for the future and make you feel less like crying.

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Business Finance

Lauren Ford explains how you can support women in fintech all year

(BUSINESS FINANCE) Interview with Lauren Ford: Celebrate International Women’s Day beyond just the day by including more women in your finance company.

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Women in fintech over laptops and paperwork, in discussion.

A bit delayed, but happy International Women’s Day! It’s been a hard year, but this is one day I can always look to for inspiration. To celebrate this year, I interviewed Lauren Ford – the Customer and Content Marketing Manager at OneStream Software, a corporate performance management solutions provider. Not only is Ford a total powerhouse in her industry, but she is also a firm believer in female empowerment in the world of tech.

Here are her top 5 tips on how finance companies in particular can strengthen their gender diversity efforts – and a little bit about Ford too:

Tell me a little about your background and how you came to be the Customer & Content Marketing Manager at OneStream.

I have an extensive background working with enterprise software, specific to digital transformation, and I came to OneStream with a decade’s worth of experience in the Marketing Communications field. After earning my degree in Public Communications and Applied Economics from the University of Vermont, I was intrigued by the state of technology: What it had brought us, what it was doing for us now, and where it was taking us next. I was determined to get involved and landed a role at a start-up software development firm, specializing in enterprise content management and capture automation solutions specific to the office of finance. At the time, there were 30 employees – and I was 1 of only 5 women in that fintech space.

Overtime I achieved more prominent roles in the organizations and built customer-centric marketing teams, driving strategies for customer engagement and advocacy. The small start-up I knew had grown immensely but after 8 years it was time to take on a new challenge in a larger, well-known company – which brought me to OneStream.

What is it like to be a high-powered women in this industry at OneStream?

It’s no surprise that there is a shortfall of women in finance-leading roles. But, OneStream has really taken the time to focus on engaging, nurturing and retaining the best professionals throughout the industry. And over time the company has created a culture where women in high-powered positions are more prominent and well-respected. There are many women who have made it to the top – and what’s great about that is they’re open to sharing their journeys, challenges, and wisdom to the greater OneStream community. So much so, that the company recently introduced the Women of OneStream group, which has been developed to support the business success of OneStream and the women within. This group works to inspire and transform the landscape of women in fintech and in technology to achieve personal growth and company success. It’s inspiring to have this type of support within our industry, and I commend OneStream for taking the necessary steps forward to ensure a welcoming workplace.

We both know that there is a great lack of women in finance and fintech industries – what do you make of this disparity?

Obviously, the statistics about women in finance and fintech are quite grim – and sadly this is all too clear when looking at high-level leadership positions. Demanding hours can take away from home life, which could be a main reason why more women aren’t entering finance roles. But in my opinion, the biggest obstacle to women entering the finance field is an unsupportive or biased corporate culture. Even when a company looks to implement change to close the gender gap, people in senior roles are often privier to what’s happening whereas entry-level employees don’t have as much visibility to changes in policy or behavior – and therefore don’t believe it exists.

I think it’s important to communicate messages of change to all levels of the workforce hierarchy, and something as simple as creating more opportunities for mentorship and sponsorship can help make women feel more supported in their finance careers. The good news is we are lifting a veil on a problem that has always been there, but wasn’t always discussed, and now we are paving the way for change.

How can we help to combat this disparity moving forward?

I think there are some strategies that women can use to achieve a more prominent role in their organizations. Standing up, making their voices heard and cultivating relationships with people they respect and admire is important. Creating a support network is key to success. On the other hand, there are several things an organization can do to support diversity, equality, and inclusion to transform the perception of women in fintech:

  • Create internal support groups dedicated to diversity (ex. mentorship programs that empower women to improve and advance)
  • Offer consistent support from the top
  • Develop leadership training to help all get a seat at the table
  • Reevaluate company benefits (ex. paid family leave)
  • Expand internship/apprentice programs to train young and upcoming females (ex. teach them about finance and technology)

How do we make this push for women in finance as intersectional as possible? Why is this important?

There has been a lot of time and effort spent on segmented groups to promote diversity, but many people fall into multiple minority groups. Women and ethnic minorities are often disadvantaged when seeking roles in the finance field. Business leaders must adopt an intersectional lens and pay more attention to the interplay between the characteristics of ethnicity/race, gender, and social class in their onboarding. To help address this, organizations can:

  • Develop a Diversity and Inclusion Policy and create a strategy with quantitative data to meet diverse onboarding goals.
  • Expand internship/apprentice programs to train young women in high school and college to teach them about finance and technology and recruit for entry-level positions.
  • Encourage employees to invest time (volunteering, speaking, and tutoring) in youth STEM programs to help educate and interact with young people who are traditionally underrepresented in STEM fields.

What does International Women’s Day mean to you? How does this day tie into your career goals?

International Women’s Day is a day to reflect on the challenges and accomplishments of women throughout history and those who have fought for the equality of so many things I often take for granted. It’s a day filled with pride! I have gratitude for the women I am surrounded by, from my family to my friends and colleagues. This day also is a reminder that although we have come so far, there is still a long way to go.

There is definitely still a long way to go. If you own, manage, or work at a tech or finance company, Ford’s tips are definitely worth trying to implement. There is an amazing generation of young women coming into the workforce, and you won’t want to miss out – this boss knows what she’s talking about.

Happy ITWD!

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