How to Boost Your Business Cash Flow During the COVID-19

June 3, 2020

Cash flow management is an integral part of a business’s overall assessment and action planning during the COVID-19 crisis. This is not only for big companies but even for small businesses and those who are not yet impacted by the downside of the economy brought about by the global crisis. A business should evaluate its cash flow requirements and come up with development plans under different scenarios that can possibly boost the company’s cash flow even during the crisis.

What do financial experts advise?

1. Provide Virtual Business Services

Since everyone is on lockdown or in a quarantine situation, a lot of social distancing restrictions are limiting people to gather in public places. While public health is very crucial this time, businesses are greatly impacted especially those that are dependent upon foot-traffic. The lockdowns have greatly affected business cash flows but with the digital age and technology, you can still look for ways to serve your customers. For instance, if your business is a gym, you can bring back your business even without opening your place physically and offer workouts to your clients through virtual sessions and deliver through live-streaming fitness activities. You can think of ways on how you can do this specific virtual services by your business. Your objective is to keep your cash flow active and keep your business at par even during this crisis.

2. Consider financial help programs

Learn about financial programs to help your cash flow become at least healthy and make the business active. Although there may be innovative solutions to run your business, there is still a possibility that you still need financial assistance to support your expenses for your employees and customers. This assistance may be in the form of cash loans or cash credits. Financial experts believe that gaps in cashflows hinder a business to operate continuously but because facilities like invoice finance services, businesses are able to produce funds without property security and they can avail of this on a fixed-term contract with minimal contract term.

3. Keep a connection with your customers digitally

If you have figured out how to continue your service to your customers, keep in touch with them through social media, or for a personal approach, send them emails. If your operations stopped, and you want them to feel that you still have that passion to serve them, you can send them e-vouchers or gift certificates which they can use once you open your shop again. Some companies also offer free gift rewards or discount codes that may be purchased and sent as gifts to other people, so you are making income from your promotions and when they use the promos, it’s another income-generating output that you get from your emails or social media posts.

Having to deal with cash flow issues during this Covid-19 crisis can be a little bit challenging. There are several financial institutions that actually offer business solutions for businesses that are greatly impacted and have experienced downfall during this worldwide crisis. As a business owner, you need to think smart and consider the options that will really help boost your revenue and keep up with the expenses that will be incurred as you try to revive your business.

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Russia’s Sovcombank starts issuing Digital Mortgages completely remotely

June 2, 2020

Sovcombank launched online mortgage loans for the primary market. The entire approval process no longer requires any visits to the bank branch and relies on using an enhanced qualified electronic signature.

On May 21st, the Bank closed its first purely online transaction. The loan was issued to finance the purchase of an apartment in St Petersburg (“English Mile” residential complex, Glorax Development) under a shared-equity construction agreement.

Digital mortgage transactions have now become a fully functional process and are not limited to Sovcombank’s existing customers: potential customers can also apply.

Sergey Khotimskiy, First Deputy Chairman of the Management Board:

“After a successful pilot we can now issue mortgage loans for the primary market online. Today, it is essential for our customers to be able to enter into mortgage transactions staying home.”

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About bank

Sovcombank is Russian universal bank with RUB 1,1 tn total assets. It operates a network of 2500 offices and employs 15,600 people across 1,034 Russian cities. The bank serves 6 million clients. Credit ratings (international scale): ВВ, outlook stable (Standard & Poor’s), Вa2, outlook stable (Moody’s), ВB+, outlook negative (Fitch Ratings). Credit ratings (national scale): A+, outlook stable (Analytical Credit Rating Agency or ACRA), А, outlook positive (Expert RA), АА-, outlook stable (National Credit Ratings agency or NCR)

Belize: The Personable Approach to Doing Business Abroad

June 2, 2020

Interview with Mr. Luigi Wewege, the Senior Vice President of Caye International Bank in Belize

In times of uncertainty, investing abroad is an effective way to protect your personal portfolio. The tropical paradise of Belize is one investment location that is well worth taking into consideration. Here, Luigi Wewege, Senior Vice President and Head of Private Banking of Caye International Bank, sets out what the country has to offer.

We’ve seen a lot of instability in the world economic situation in recent times. How would you describe the current local economic climate and prospects for the future in Belize?

With agriculture and tourism, the key elements of Belize’s economy, the country has a core strength to help it bounce back from global economic instability. The land, the ocean and the reef are sustainable natural resources that will help with its recovery.

For someone who is thinking of starting a new business or relocating an existing one, what advantages would you say that Belize offers as a business location?

Belize offers major tax advantages for foreign investors. In fact, since the International Business Companies Act of 1990, IBCs set up for non-residents of Belize have the ability to operate tax-free. The country also offers ease of doing business. Foreign entities can start businesses in Belize with very similar requirements to local residents.

Bank accounts can even be opened remotely. Belize’s location in the Americas offers easy travel from the US, and access to export markets. While it’s hard to quantify, one of the biggest benefits of operating in Belize is a more relaxed way of doing business, which leads to a much more personable approach.

What would you say are the pros and cons of investing abroad in general, and in Belize in particular? Is the country’s investment jurisdiction favourable?

Investing abroad is a great way to assure privacy and asset protection. This is a unique way of diversifying a portfolio to be separate from the economic, political and other varying conditions in your home country.

I would say that one of the Belize pros is that the country has a stable currency tied to the US dollar. Belize’s banks have legally required liquidity rates of at least 24 per cent, which are very high, roughly four to five times those required in the United States for their domestic banks. Also, for those who choose to live near their investments, the country is a tropical paradise. As for the cons, Belize is still considered to be in the “third world” category, with coinciding risk and lack of infrastructure in certain areas of the country.

What do you see as the Belize government’s main priorities in encouraging both foreign investment and foreign business ownership? Is it possible to identify some short- and long-term goals?

Belize encourages foreign investment to help rapidly increase GDP and develop local capabilities. This includes joint venture and partnership investments, as well as 100 per cent foreign ownership. The government offers incentive programmes in numerous investment sectors, including agriculture, agro-processing, aquaculture, fisheries, logistics, light manufacturing, offshore outsourcing, sustainable energy, and tourism-related industries. There are also duty-free Export Processing Zones with multi-decade income-tax holidays. In addition, Belize is a member of CARICOM, enhancing many opportunities for trade within the Caribbean region.

Short-term goals for the country’s government include the need to continue efforts to rein in public debt and narrow the fiscal deficit. A longer-term goal for the country is economic diversification, since Belize’s economy relies primarily on tourism and exports of marine products, citrus, sugar and bananas.

Tourism is one of the biggest growth areas for Belize’s economy, meaning on-going demand for new businesses and existing business growth catering to visitors.

Do you see Caye International Bank as having a role to play in the economic growth of Belize as a country?

Yes, absolutely. As mentioned, tourism is one of the biggest growth areas for Belize’s economy, meaning on-going demand for new businesses and existing business growth catering to visitors. Caye International Bank plays a role in providing not just a place for offshore savings accounts, but also a source of funds for investment in these and other opportunities for supporting the country’s economy. The biggest impact is through local financing of everything from commercial mortgages to residential construction loans, which allow foreigners to participate in the economic growth of Belize.

How can foreign ownership of businesses and property benefit the citizens of Belize? Can foreign investment make a difference?

Yes, foreign investment can make a big difference. Belize is a very small country, so investment from external resources is quite important. The Belize government particularly encourages investment in export-oriented businesses and the associated increased employment and development of local technological capacity.

Real estate is one of the prime movers of economic development in Belize. While some of the development comes from domestic sources, a significant amount results from actions of international investors and buyers. It’s not just people who plan on retiring to the country eventually who help drive the real estate market growth, but also business owners who seek to purchase and develop properties.

How would you rate the skills and knowledge base of the local workforce? Do you think the foreign business owner or investor has a role to play in the development of these capabilities?

English is the official language of Belize, providing a leg-up for the local workforce in basic skills and development capability, especially in interacting with international customers. More than 70 percent of the country’s population has completed secondary education. Today, while agriculture and tourism make up almost half of the industry in Belize, roughly the other half of the labour force is in services and professional occupations. Also, women are now entering the workforce in greater numbers, thus creating a need for more jobs to be created by the government, so as to keep unemployment down.

Foreign business owners and investors create demand for more workers, often with specific skills not taught through the Belizean education system. Fortunately, most of the developmental training needed is available somewhere in the world and can fairly easily be used to upskill the local workforce through online education modules.

These days, we hear much about digitalisation and fincom. These are aspects that any company setting up today, particularly one that operates in the financial services sector, would be well advised to take into account. Would you say that Belize has, first, the requisite infrastructure and, second, appropriately qualified human resources to support these important dimensions of the modern business?

Yes, Belize has not just developed a strategy, but also taken action in the last decade to expand its digital capabilities, partly through the implementation of state-of-the-art fibre-optic connectivity. Belize’s prime minister, Dean Barrow, says that this will give the country core data infrastructure on a par with London, New York, Singapore or even Seoul. This expansion of broadband penetration has enabled an increased rate of GDP growth for the country over the last decade.

Caye International Bank – Board Meeting

Belize has received a certain amount of bad press as potentially offering a favourable economic regime for criminal operations, including money laundering. Would you say that this is an issue that potential investors should be concerned about?

Sadly, criminal operations and money laundering are potential concerns in every country of the world. That is why the US passed the Money Laundering Control Act of 1986 and continues extensive activities to prevent money laundering on an on-going basis. Belize passed its own Money Laundering and Terrorism (Prevention) Act in 2008, with additional legislation in 2013 and 2018.

Belize has completed a national risk assessment and is preparing a national plan of action to address those risks. The March 2020 International Narcotics Control Strategy Report on Money Laundering from the US State Department recognises Belize’s rigorous anti-money laundering legal, policy and regulatory framework and praises the strong political will to combat money laundering. Thus, I believe progress has been made and the right things are happening to minimise risk.

Could you tell us something about Caye International Bank’s offering as a partner for foreign investors in Belize?

Offshore bank accounts are some of the most powerful financial tools that you can employ for managing personal wealth with safety, privacy and asset protection. One of the great things about having offshore savings, checking and investment accounts is that they remain relatively untouched by whatever is happening within your home jurisdiction, such as a local recession or a political shift.

Assets held in offshore accounts aren’t subject to judgments awarded by domestic courts. With offshore bank accounts in place, people can have a foundation for getting back on their feet after personal or national setbacks. Diversification can also allow investors to engage in currency exchanges, which makes it possible to build more wealth. Caye International Bank fulfils the dual role of facilitating this investment and acting as caretaker.

Given your long history of involvement with the financial services industry, it would be very interesting to hear your take on leadership. What does the financial sector need from its senior managers in today’s quickly changing environment?

Leaders who are able to develop an adaptive vision and implement responsive systems to meet clients’ new needs are the ones who will be the most successful.

There are two ways of dealing with rapid change. One way is through reactive protectionism. This is often through trying to stop the bleeding when change is forced upon you. This can be done by tweaking costs here and there to still be in the black for each quarterly budget. The other is a nimbler, proactive approach. Knowing that most changes are not short-term, recognise that the first inkling of any change is a signal of potential opportunity.

Leaders who are able to develop an adaptive vision and implement responsive systems to meet clients’ new needs are the ones who will be the most successful. Often the big breakthrough successes come from leveraging disruptive change. It’s important to note that getting to this point also requires helping employees develop skills to deal with this rapid change and as always, communicating “what” and “why” is critical to success.

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Executive Profile

Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution which is available in audio, kindle and paperback formats throughout all major international online bookstores and is now in its third edition.

The Ongoing Lebanese Financial Crisis: Can There be Justice for Private Foreign Banking Customers?

June 1, 2020

Lebanon_Protests_11316 — A student protester waves her national flag during protest against the government in front of the education ministry in Beirut, Lebanon, Friday, Nov. 8, 2019. Lebanese protesters are rallying outside state institutions and ministries to keep up the pressure on officials to form a new government to deal with the country’s economic crisis. (Hussein Malla) (AP Photo)

By Kiran Nasir Gore and Charles H. Camp

In October 2019, Lebanon’s domestic financial crisis finally started to make international headlines. Mass protests erupted with a focus on national financial stability and government corruption. At the center of these concerns lie the policies and practices of Banque du Liban, Association of Banks in Lebanon (ABL), and Lebanese commercial banks – they had worked together for years to artificially buoy the country’s economic condition, which was now crumbling. To protect themselves, Lebanese commercial banks swiftly imposed a variety of restrictions on their customers’ ability to access funds, including restrictions on withdrawal amounts, transfer of funds, and foreign currency transactions. Few commentators have focused on the impact of these actions on foreign banking customers, who find themselves unable to access their monetary deposits and caught within a web of highly sensitive and crucially important local economic concerns. This article draws on our years of work representing clients in international disputes, and our specialized experience in cases involving international banks, to provide guidance to those foreign banking customers. First, we explain the historic context for the foreign funds held by Lebanese banks. Then, we explore examples of possible legal solutions available to foreign customers – both private individuals and corporations.

Introduction

In many ways, Lebanon’s international financial footprint is negligible. In mid-2019, the International Monetary Fund classified Lebanon as an emerging market developing economy, with an estimated GDP of approximately USD$60 billion.[i] Most of its bonded debt is held by local banks, including Banque du Liban (the Lebanese Central Bank) and its stability has faced economic challenges from a variety of domestic, regional, and global events – for example, the 2006 Lebanon War, the 2008 financial crisis, and the 2011 Syrian Civil War.[ii] In October 2019, after years of unrest, these issues finally came to mass international attention when prolonged protests erupted across the country with local commercial banks as the symbolic focus. Protesters voiced their concerns over national financial stability and government corruption. These concerns have grown as confidence in the banking sector has dropped, businesses have closed, and unemployment rates increased. The crisis is further magnified as the spread of COVID-19 continues and its economic fallout deepens.

The policies and practices – past and present – of Banque du Liban; Association of Banks in Lebanon (ABL), a membership-based consortium of Lebanese commercial banks; and local commercial banks are at the center of the crisis. They swiftly reacted to the protests in the interest of the local banking sector. During the first two weeks of protests in October, local commercial banks completely closed and banking customers were unable to make transfers or withdrawals. As the situation somewhat stabilized, banks reopened, but customers faced several restrictions on their ability to access funds. They faced restrictions on withdrawal amounts, transfer of funds, and foreign currency transactions. Experts describe these restrictions as de facto capital controls, apparently implemented by local commercial banks, but coordinated and overseen by ABL to prevent “capital flight.”[iii]

These restrictions have seemingly been implemented by necessity, to retain liquidity in Lebanon’s ailing economy.[iv] But this does very little to ameliorate banking customers’ pressing financial concerns. They are rightfully frustrated and forceful demands at local branches are increasing.[v] It seems banking restrictions and public dissatisfaction are far from over. The controls imposed by Banque du Liban and ABL have made it impossible to transfer money abroad or convert Lebanese pounds into other currencies at the official rate. Many businesses are unable to import goods, a key element of the Lebanese economy. In recent weeks, protesters have defied public health-related government lockdown orders to participate in demonstrations about the banking sector, with violent incidents increasing.[vi]

These mass protests have been driven by local banking customers, but foreign banking customers have also been harmed. They share concerns with the local population. They want access to their account deposits and face the added challenge of trying to access the funds abroad. Ironically, these same foreign customers provided cash flows that in recent years were a major source of Lebanon’s financial stability. Few commentators have focused on these foreign banking customers, who find themselves unable to access their monetary deposits and caught within a web of highly sensitive and crucially important local economic concerns.

This article draws on our years of work representing clients in international disputes, and our specialized experience in cases involving international banks, to provide guidance to foreign banking customers impacted by Lebanon’s financial crisis. First, we explain the historic context for the foreign funds held by Lebanese banks. Then, we explore examples of possible legal solutions available to foreign customers – both private individuals and corporations.

Lebanon’s Frail Economic Ecosystem

Lebanon’s national financial ecosystem and local banking balance sheet are inextricably intertwined. Banque du Liban’s Governor Riad Salameh (who has already served a 26-year tenure as Governor) was once lauded for the “financial engineering” that facilitated Lebanon’s financial stability. Today, he is publicly criticized for the fallout from those same economic policies and his financial engineering has been compared to a Ponzi scheme.[vii]

At the dawn of the 2008 financial crisis, Salameh told the BBC: “I saw the crisis coming and I told the commercial banks in 2007 to get out of all international investments related to the international markets.”

At the dawn of the 2008 financial crisis, Salameh told the BBC: “I saw the crisis coming and I told the commercial banks in 2007 to get out of all international investments related to the international markets.”[viii] This move, coupled with other steps implemented by the government and local commercial banks, allowed the government’s financial balance sheet to continue thriving even during tough times. Banque du Liban pegged the Lebanese pound to the U.S. dollar.[ix] Meanwhile, the Lebanese government financed itself by selling a large portfolio of bonds in mostly U.S. dollars (and sometimes in Lebanese pounds) to Banque du Liban and local Lebanese banks.[x]

The local banks, in turn, raised money by making themselves exceedingly attractive to private foreign banking customers by offering high interest rates for U.S. dollar and other foreign currency accounts (as high as 15% per year). Banque du Liban also took loans from the local commercial banks at high interest rates and required local commercial banks to limit their debt and maintain at least 30% of their assets in cash.[xi] This foreign currency cashflow, along with government loans and purchase of Eurobonds, created an artificial buoying effect.

Shortly after protests erupted, Salameh announced a series of banking measures to ease the crisis and avoid a shortage of goods in the market. His remedies included lenders’ acceptance of Lebanese pounds from clients repaying dollar loans, reevaluation of credit facilities cut as the protests began, and coverage of certain bounced checks.[xii] However, local commercial banks continue to impose their own restrictions on withdrawals. In February 2020, Al Jazeera reported that Lebanese banks further tightened limits on foreign currency withdrawals, with at least one financial institution restricting depositors to a maximum withdrawal of $400 a month.[xiii] Meanwhile, in March 2020, Lebanon defaulted on a major Eurobond.[xiv] In April 2020, Banque du Liban acknowledged the changed national circumstances by setting a new alternative exchange rate for smaller bank depositors that devalues the Lebanese pound by more than 40% compared to the previously applicable exchange rate.[xv] More recent reports suggest that even this practice has shifted and local commercial banks are no longer dispensing U.S. dollars at all, regardless of the nature of the account.[xvi]

Holding Lebanese Commercial Banks Accountable for Private Foreign Deposits

Much of the foreign currency available to Lebanese commercial banks came from deposits made by Lebanese living abroad. For years, this seemed to be a mutually advantageous arrangement: Lebanese in the diaspora felt they were supporting their homeland’s economy while benefiting from significant interest rates, and local commercial banks obtained an influx of foreign currency.[xvii] Yet today, Lebanese abroad are suffering some of the greatest financial losses owing to the magnitude of their trapped deposits. Other foreign individuals and corporations are in the same situation.

These trapped deposits could be the basis for a variety of legal claims, including conversion and unjust enrichment.

These trapped deposits could be the basis for a variety of legal claims, including conversion and unjust enrichment. Claims would be based on the benefit that local commercial banks obtained from foreign currency deposits through years of banking relationships with these customers. Now, by wrongfully denying access to those deposits, banks must compensate their customers for both the value of the deposits and any additional related damages they may have sustained by being denied access to those deposits since October 2019. A fraud claim may also be successful if a local commercial bank knew of its liquidity problems, failed to make relevant disclosures to its customers, and caused its customers to make deposits through misrepresentations. Based on the deep connections between Banque du Liban and ABL, in which nearly all local commercial banks hold membership, such a claim has merit.

Foreign banking customers may have further claims against other Lebanese institutions, including Banque du Liban and ABL, if they issued “bad” bank checks in foreign currency, intended for deposit abroad, and later dishonored by Banque du Liban. While regular checks are negotiable instruments, bank checks hold special status and refusal to pay upon presentment can be equivalent to breach of contract.

Separate and parallel, certain claims may be possible if a local commercial bank declines to dispense funds from a foreign currency account in that foreign currency. However, the success of these claims depends not only on the bank’s customer terms and conditions, but also on the source of the decision to control currency: Is it a unilateral decision by the local commercial bank, or is driven by a change in Lebanese law or a decision of the State?

However, it is challenging to assert these substantive claims abroad in a jurisdictionally-sound manner. At first blush, these claims seem fully local to Lebanon. Indeed, the parties’ banking relationship would be governed by the bank’s customer terms and conditions and those terms and conditions likely provide how (and under what law) any disputes arising out of the banking relationship are to be resolved. This would be a fact-specific inquiry for the court presented with such a claim.

Foreign customers with connection to the U.S. may have an apt solution for this hurdle. It would likely not be enough to claim that jurisdiction is created by the correspondent banking relationship between Lebanese commercial banks and New York banks. Indeed, New York courts have previously rejected identical arguments.[xviii] However, based on our substantial experience litigating international disputes, we believe U.S. courts could find personal jurisdiction if there are predicate acts that have a connection to and/or cause damage in the U.S. Again, this would be a fact-specific inquiry for the court hearing the claim and its merit would depend on the precise details and steps leading to a customer’s claim against the bank.

Holding the Lebanese State Accountable for Failure to Protect Foreign Investments

Undeniably, the Lebanese government and related entities are centrally involved in the current economic crisis and challenges faced by foreign investors who wish to access deposits held in local commercial banks. It may be possible, in lieu of or in addition to other avenues, to assert a claim against the State for violation of a bilateral or multilateral investment treaty.

Lebanon is party to fifty bilateral or multilateral investment treaties.[xix] Each treaty provides certain protections and allows for international arbitration proceedings to be commenced by qualified “investors” with qualified “investments” against the State to assert claims for damages caused by improper State action.

The first hurdle is determining whether the potential claimant is a qualified “investor.” There is no treaty with the U.S. that would allow American nationals to assert such a claim. This path only would be available to individuals and companies holding certain other nationalities. Since many potential claimants may be from the Lebanese diaspora, it is important to consider under the specific treaty whether dual nationals (where one nationality is Lebanese) would qualify to assert claims against Lebanon.

The next hurdle, determining whether a qualified “investment” exists, can be more straightforward because the bank deposits themselves may be enough. As discussed above, Banque du Liban has been inextricably involved in local commercial banks’ decision to offer high interest rates on foreign currency deposits. Many foreigners were attracted by these favorable terms and, over the years, benefited from steady returns. This could serve as a qualified investment under the most widely accepted legal test in investment arbitration jurisprudence: It involves a contribution of assets, over time, involving some element of risk, with the investment actively contributing to the State’s economy.[xx]

After satisfying these hurdles, potential claimants must frame their claims to match the protections offered by the applicable treaty. Protections available under Lebanon’s various treaties include “free transfer” provisions, “fair and equitable treatment”/ “minimum standard of treatment” provisions, and “full protection and security” provisions. While resolving a dispute with a troubled State is by no means the quickest legal remedy, we encourage potential claimants to seek specialized advice to determine if this avenue would help vindicate their rights.

Conclusion

Lebanon’s path to rebuild its economic stability and integrity will be a long and uphill battle. While Banque du Liban, ABL, and local commercial banks claim limitations are necessary to retain liquidity within Lebanon’s economy, this does nothing to ameliorate their customers’ immediate concerns and financial needs. Just like local banking customers, foreign customers are rightfully frustrated. However, this does not necessarily mean that foreign banking customers, who have been deprived of the value of their bank deposits, are without remedies. Thoughtful legal guidance can help potential claimants navigate the jurisdictional challenges and devise thorough solutions to vindicate their rights.

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About the Authors

Charles H. Camp is an international lawyer with over thirty years of experience representing foreign and domestic clients in international litigation, arbitration, negotiation, and international debt recovery. He has expertise in international banking disputes, with a lengthy track record of matters with a nexus to the Middle East. In 2001, Mr. Camp opened the Law Offices of Charles H. Camp, P.C. in Washington, D.C. to focus on effective, personalized representation in complex, international matters. Mr. Camp teaches international negotiations at the George Washington University Law School.

Kiran Nasir Gore is Counsel at the Law Offices of Charles H. Camp, P.C. Her expertise is in international dispute resolution, including advocacy before U.S. courts, commercial and investment arbitration tribunals, and investigative authorities. Ms. Gore has experience representing globally renowned clients in the banking and finance sector and has significant experience representing Middle Eastern clients. She also draws on her professional experiences as an educator at the George Washington University Law School and New York University’s Global Study Center in Washington, D.C.

References
[i] World Economic Outlook Database, April 2019, www.IMF.org.
[ii] Brad W. Setser, Lebanon’s Imminent Financial Crisis, Council on Foreign Relations Blog (Feb. 18, 2020), https://www.cfr.org/blog/lebanons-imminent-financial-crisis.
[iii] Emma Scolding, Tensions Mount at Lebanon’s Banks as Customers Push Against Capital Controls, Middle East Eye (Jan. 9, 2020), https://www.middleeasteye.net/news/confrontations-mount-lebanons-banks-customers-push-against-capital-controls; Samia Nakhoul and Lisa Barrington, Banks will Seek to Stop Money Leaving Lebanon When Doors Reopen: Sources, Reuters (Oct. 31, 2019), https://www.reuters.com/article/us-lebanon-protests-banks/banks-will-seek-to-stop-money-leaving-lebanon-when-doors-reopen-sources-idUSKBN1XA2QH.
[iv] Emma Scolding, Tensions Mount at Lebanon’s Banks as Customers Push Against Capital Controls, Middle East Eye (Jan. 9, 2020), https://www.middleeasteye.net/news/confrontations-mount-lebanons-banks-customers-push-against-capital-controls.
[v] Ibid.
[vi] Victoria Gatenby, Lebanon Protests Turn Violent Over Failing Economy, Al Jazeera (28 Apr 2020), https://www.aljazeera.com/news/2020/04/lebanon-protests-turn-violent-failing-economy-200428060704954.html.
[vii] Tom Arnold, In Lebanon, A renowned Central Bank Governor Faces Attack, Reuters (Nov. 15, 2019), https://www.reuters.com/article/us-lebanon-protests-cenbank/in-lebanon-a-renowned-central-bank-governor-faces-attack-idUSKBN1XP1FL.
[viii] Natalia Antelava, Lebanon ‘Immune’ to Financial Crisis, BBC (Dec. 5, 2008), http://news.bbc.co.uk/2/hi/middle_east/7764657.stm.
[ix] Ibid.
[x] Brad W. Setser, Lebanon’s Imminent Financial Crisis, Council on Foreign Relations Blog (Feb. 18, 2020), https://www.cfr.org/blog/lebanons-imminent-financial-crisis
[xi] Natalia Antelava, Lebanon ‘Immune’ to Financial Crisis, BBC (Dec. 5, 2008), http://news.bbc.co.uk/2/hi/middle_east/7764657.stm.
[xii] Dana Khraiche, Lebanon Offers Banks Dollars as ‘Haircut’ on Deposits Ruled Out, Bloomberg (Nov. 11, 2019), https://www.bloomberg.com/news/articles/2019-11-11/salameh-says-lebanon-has-no-plans-to-impose-capital-controls.
[xiii] Timour Azhari, ‘Not Legal’ But Necessary: Lebanon’s Banks Tighten Restrictions, Al Jazeera (Feb. 3, 2020), https://www.aljazeera.com/ajimpact/legal-lebanon-banks-tighten-restrictions-200203163004785.html.
[xiv] Lebanon Economy: QuickView – Creditors Fear Haircut on Sovereign Debt, EIU ViewsWire (Mar. 25, 2020).
[xv] Lebanon Economy: Quick View – Central Bank Sets New Exchange Rate for Bank Withdrawals, EIU ViewsWire (Apr. 8, 2020).
[xvi] Dana Khraiche, Lebanon’s Premier Slams Central Bank Chief Over Currency Chaos, Bloomberg (Apr. 24, 2020), https://www.bloomberg.com/news/articles/2020-04-24/lebanon-s-dollar-peg-gives-way-to-currency-chaos-after-default.
[xvii] Matein Khalid, Thinking the Unthinkable: Lebanon’s Sovereign Debt Default?, AMEInfo (Jan. 2, 2020), https://www.ameinfo.com/industry/finance/thinking-the-unthinkable-lebanons-sovereign-debt-default.
[xviii] See Georgakis v. Excel Mar. Carriers Ltd., 900 N.Y.S.2d 260, 261 (1st Dep’t 2010) (finding that “[e]ven assuming . . . defendant transacted business in New York, CPLR 302(a)(1) does not authorize the courts to exercise jurisdiction . . . because there is no relationship between defendant’s transaction of business and plaintiff’s claims.”).
[xix] See UNCTAD International Investment Agreements Navigator, https://investmentpolicy.unctad.org/international-investment-agreements/countries/116/lebanon
[xx] Salini v. Morocco, ICSID Case No. ARB/00/4, Decision on Jurisdiction (July 16, 2001), https://www.italaw.com/sites/default/files/case-documents/ita0738.pdf

Sovcombank introduces a loan application service based on digital profile on the Public Services Portal

June 1, 2020

28 May 2020, Moscow – Sovcombank has become one of the first Russian banks to get connected to the “Digital Profile”, a service commissioned by the Russian Ministry of Digital Development, Communications and Mass Media and the Central Bank of Russia.

The service users will be able to submit loan applications online, via Sovcombank’s website, with the bank gaining access to the borrower’s details specified in their digital profile on the Public Services Portal. At first, Sovcombank’s customers will be granted the option to apply for a cash loan.

Digital Profile is a service making individuals’ data from various databases (Federal Tax Service, Federal Service for State Registration, Ministry of the Interior, Pension Fund, etc.) available to financial institutions. This will allow customers and banks to interact remotely, without the need for submitting any additional documents. Most importantly, the access to such data is subject to the customer’s consent, which will be stored in the unified register of digital consents.

“We strive to lead the innovation in customer service aimed at making the bank and customer relations easier for both parties. In this context, Digital Profile is a unique service helping our customers apply for loans without coming to the office and collecting documents, while the bank can access reliable and up-to-date information on the borrower’s creditworthiness. This service can potentially become a key driver for digitalisation of bank customers, and thus significantly impact the landscape and infrastructure of retail banking,” said Alexey Panferov, Deputy Chairman of the Management Board at Sovcombank.

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Sovcombank is Russian universal bank with RUB 1,1 tn total assets. It operates a network of 2500 offices and employs 15,600 people across 1,034 Russian cities. The bank serves 6 million clients.

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Retail strategies in response to consumption changes in post-COVID-19 China

June 1, 2020

chinaconsumers — People wear face masks as they shop at a market in Beijing, March 14, 2020. (AP/Mark Schiefelbein)

By Dr Lisa Qixun Siebers

China came out of the COVID-19 outbreak around March/April as the earliest in the world, when cities and provinces implemented policies to ease the lockdown. Life in China is a “new normal”, but it is gradually getting closer to the situation before the outbreak. However, retailers need to set up prompt strategies to respond to the changes in consumption and new types of shopping preferences originating from the outbreak, to meet the needs of consumers, as well as to make a profit. The “new normal” life creates challenges and also brings opportunities for retailers. This article discusses the strategies adopted by retailers in China, based on both the lessons learned from the outbreak and proactive approaches undertaken by retailers in response to consumption changes that form new and likely more permanent consumer behaviours.

Changes in behaviour of Chinese consumers

China’s outbreak started around the Chinese New Year (on 25 January 2020), when the strict lockdown began. During the key days of the Chinese New Year (the first seven days), online retail sales skyrocketed. At the same time, the commodity structure also changed dramatically as a result, and some goods were kept in the warehouse while others were in short supply.

After experiencing the lockdown, consumer behaviour and preferences have shifted in several aspects. These are mainly reflected in the structure of consumer expenditure, cautious shopping psychology, sensitivity to prices, and higher expectations with regard to shopping environment. Consumers who originally preferred offline shopping, particularly middle-aged and elderly consumers, were forced to use online channels due to the impact of the epidemic.

Furthermore, Chinese consumption of foreign products through tourism and online sales has been restricted due to the pandemic. This led to increased consumption of high-end products inside China. Domestic luxury goods and Chinese high-end brand sales have been undergoing short-term growth.

Retail strategies for sales recovery

Simplifying and digitalising procedures

During the epidemic, some retailers’ organisational structure has become flatter and more flexible, which is achieved through process optimisation and the adjustment of their core businesses. This improves coordination across departments. For example, by adopting this approach, Wal-Mart China was able to make speedy decisions to deal with emergency situations during the epidemic that they would normally have discussed at length by going through more hierarchical procedures, with the potential for delays. Taking this lesson on board, Wal-Mart China now plans to integrate the key e-commerce businesses further with supply and operations at the organisational level, in order to simplify its operational procedures.

Many Chinese franchising retailers are making the most of digital technologies and artificial intelligence (AI) to expand their businesses during the lockdown period. Baiguoyuan (百果园), a fresh fruit franchiser based in Shenzhen, has started to organise online franchising conferences. The company is collaborating with specialised online platforms to hold live investment conferences in combination with offline seminars, providing the maximum convenience to their potential franchisees by offering multichannel communications.

Accelerating expansion

Long-term isolation and protection make consumers realise more the importance of physical social platforms. This type of consumer psychology is fundamental to the growth of physical stores. Although it may not bring a rapid rebound to business in physical shops, it helps with long-term psychological support. Wangfujing (王府井) Shopping Centre, one of the biggest Chinese department stores, based in Beijing, plans to seize this opportunity and make adjustments to achieve accelerated development, taking advantage of this consumer psychological change. It plans to speed up the nationwide network during the recovery stage of the pandemic, increase collaboration with partners nationwide, develop more shopping centres, and outperform the market.

Enhancing live broadcast and refined services

Due to the lockdown, intentional consumption is strengthened, while random consumption is weakened. During the slow recovery period for physical stores, live broadcasting and delivery services have become the general trend. Thus, refined services for store members/customers have become fundamental for commercial operations. The solution to increasing sales for physical stores is to use public domain traffic for marketing promotion and private domain traffic for conversion management, achieving the interaction of the entire traffic flow online. Wangfujing’s various projects across China have already established capabilities of both online and offline interactive marketing and interactive omnichannel supply. The retailer uses online platforms to achieve strong conversion at a low cost. Since the resumption of the operation, Wangfujing’s nationwide shopping malls have reached an average of five million Yuan (£0.5m) daily sales, both online and offline.

By using consumer data, retailers can better identify customers’ needs and achieve accurate diversity of brands in the store. It is essential to use a digital operating system for cost control, because the increase in traffic cost is inevitable, as the cost of both customer flow and freight flow are rising. Thus, retailers compete for efficiency. Whether the same product can produce higher efficiency in a store depends on their operational capabilities. Dongbai (东百) Commerce, a conglomerate based in Fujian, has achieved good results from its department stores’ operations by using digitalisation and refined data management during the epidemic. Its sales of big international cosmetics brands are in the top five in China and the overall sales of beauty products were in the top 20 nationwide in the first quarter.

Social retailing means “being social” first, and then retailing. Only when a good relationship is established with the user can they believe that what you recommend is worth buying. The core of a live broadcast is to recognise each product user and influence their purchase intention. In addition to the strong selling ability that live broadcasting offers, it also helps to recognise each customer who buys the brand. Thus, live broadcast is deemed to create greater value than merely increasing online traffic.

Repositioning brands

Some retailers are repositioning their brand and seeking new opportunities in the slowing-down market resulting from the epidemic. Retailers who implement these strategies are undertaking such activities as optimising sales channels, redesigning the commodity cycle, and engaging customer relationship management. Hongu (红谷) is a leather product brand with 18 years of history. The company has adjusted its brand positioning variously in different cities. It has closed 40 stores that made the lowest profit in China. Hongu realises that sales recovery in the first- and second-tier cities is slower than in the third tier and even smaller cities. Chinese consumers have now started to pay more attention to value for money, influenced by the epidemic. Accordingly, Hongu made a quick response in the supply chain by cancelling 50% of spring orders and promptly recovering a series of products with high cost-effectiveness, fully utilising the flexibility of the supply chain. It is also increasing live broadcast efforts, distinguishing online product positioning from offline brands, and operating sales channels involving all employees. By April 2020, its sales revenue had recovered to 88% of that of the same period in 2019. Hongu will target the third- to fifth-tier cities for new opportunities in the next step.

Some retailers are accelerating channel diversity by using online to guide offline services. Supin (素品), a fashion retailer based in Guangzhou, has upgraded the entire brand to its online platform, using offline stores as the display outlet of the online platforms, and online platforms to generate customers to shop in stores. During the epidemic, Supin has reconsidered its brand positioning and development strategies to meet the needs of consumers. It uses a one-week wardrobe plan to offer matching items and provide dressing solutions. In April 2020, the retailer’s sales had recovered to 80% of those of 2019.

The future of retailing in China

The “home economy”

During the epidemic, everyone was forced to stay at home most of the time. The Chinese call this the decade of the “home economy”, meaning that, during this period, consumers spend more time using mobile phones and electronic products, including games, video sites and social media. Simultaneously, Chinese consumers have redefined the importance of health and other more relevant and advanced needs. For example, Decathlon China’s indoor fitness equipment sales increased significantly during the epidemic. The online sales of these types of products exceeded the total online and offline sales during the same period last year. Indoor fitness activities also push consumers to have higher expectations for community/social interaction and improvement of living space. These phenomena provide a good opportunity to understand better where the biggest challenges and opportunities are in the future, especially in terms of the product line.

Chinese consumers have also started to prefer to spend quality time with their families, a change from their busy lifestyles before the epidemic. Therefore, products that are favoured by a small number of family members have become popular. That is, Chinese families will have higher expectations and greater demand for products and services that help to maintain or improve the quality time they spend with their families. In the future, this trend is expected to continue. As a result, many retailers have gradually returned their attention to the community and neighbourhoods, and the use of digitalisation to generate private domain traffic is becoming important. Watson (屈臣氏), a cosmetic convenience store based in Hong Kong, plans to strengthen its connection with each community and each block of residential buildings, generating one-to-one connections between online and physical stores.

The shopping environment

During the outbreak, Chinese consumers formed an awareness of the space that is necessary for the protection of health in the shopping environment, and this is likely to persist for a long time. The planning and design of new projects need to consider this psychological change in consumers, and existing projects need to be readjusted accordingly. From format matching to brand placement, it is necessary not only to measure the maximum operating income but also to consider the aggregation effect of the new format and the environmental impact on consumers. Physical stores are expected to upgrade towards improvement of space, environment and service. The advantage of physical stores is about the experience and the environment. It is sensible that shopping centres provide a bigger environment, and individual brands offer smaller environments. Both types of environment must interact and integrate. It is no longer possible for each store in the centre to conduct its own business separately. Hence, shopping malls can take the initiative in the upgrade process, and other brands in the same mall can jointly create attractive themes and scenes to enhance shopping experiences and to drive all the businesses to grow.

Customer relationship management

Chinese consumption is in the process of transformation. Such shopping behaviours as seeking value for money and pragmatic consumption are rising and consumption for showing off and random consumption are decreasing. A deep attachment to customers is becoming more important. Therefore, it is especially important to maintain good relationships with customers and communities in order to generate new business opportunities under the impact of disruption. To improve retail performance and the capability to respond to sales pressure, it is vital to strengthen customer engagement through enhanced intersections. That is, the epidemic has raised the importance of the customer relationship management (CRM) system. Retailers need to make their community / social marketing solutions as precise as possible to engage the minds of online consumers. One of the key strategies that retailers in China are using is acquiring accurate customer data in public domain traffic and then converting them to private domain traffic, aiming to market products and manage customers accurately.

Product development

The live broadcast has become a process of resource generation. It is the most popular method of promotion and is worth attention in the current retail situation. In addition to considering the value of the traffic and achieving good results through live broadcast, it is important to create good products and good broadcast content, as well as deliver high-quality after-sales service, forming a full chain of capability. With the development of technology, although the methodology of marketing has been shifting, good products and excellent operational capabilities remain important fundamentals for success.

Moreover, the products that satisfy human health needs, social needs and the need for a better life may be more popular in the future. A retailer will become more competitive by adjusting their product development strategies accordingly and continuously seeking a new market breakthrough.

Final remarks

This epidemic is a comprehensive test, but it also provides an opportunity to adjust retail businesses quickly and to develop new business opportunities in the future. The epidemic in China has required a broad range of changes for retailers, from employment to service delivery. For example, the flexible ways of using labour during the epidemic may become a new mode for hiring. Wal-Mart China has been considering what the most appropriate approaches could be in terms of labour utilisation. It plans to create a more reasonable employment mode according to the different positions and business categories required in the future. Many retailers in China recognise that the epidemic was a great opportunity to identify, train and develop the talents that emerged during the outbreak crisis. These talents are decisive, taking responsibility and committing to meeting customers’ expectations. Other countries, including the UK, are coming out of the outbreak gradually. Retailers in different countries may be able to adapt or modify the retail strategies implemented in China to prepare for the consumption changes in retailing for longer-term growth in both domestic and foreign markets.

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About the Author

Dr Lisa Qixun Siebers ([email protected]) is from The Institute for Retail Studies, Stirling Management School, University of Stirling, Scotland, UK.

How to Make Money with Photography

June 1, 2020

Most people think that photography requires deep, well-learned skills, a good sense of creativity, and putting lots of hours into work to achieve the desired goals for that perfect cut. Well, it’s true! Nothing in life comes easy. You have just got to work even harder to achieve your dreams. One thing to note is that we are living in a technologically advanced society. Unlike in years past when cameras were left to a selected few, more than half of the world’s population owns a smartphone. These devices come loaded with a ready to use camera that has everything you need when it comes to editing, sharing, and saving. So, come to think about, and in one way or the other, everyone’s a photographer. Have you taken a closer look at the last selfies you took? That’s how photography works! If you want to get started in photography, you will need a tripod, a portable LED light and the appropriate software.

All it takes is for one to grow the love for photography and voila! It’s as simple as stealing candy from a baby. And the best part is that you can make a living out of great photography. With professionalism and delivery in your work, you might as well not need a second job.

Let’s take a look at how you can make money with photography.

1. Sell Your Photos on Websites

This is one of the best ways in which you can invest your skills as a photographer. In essence, selling your photos will only require that you be creative and invest heavily in some great marketing strategies. Also, you’ll need to train yourself to deliver quality shots. This may include taking extensive photography classes, especially market-oriented ones. This way, you’ll have the hacks it takes to monetize your passion. Chris, a seasoned photographer at Parker Photographic says that among the things that will help take your skills a notch higher is to continue learning and improve on areas that need polishing. And the best way is to find the tools that other photographers are using. This is the only way your pictures will get accepted by the website owners. It’s also important that you also familiarize yourself with the industry and have a smooth flow when engaging with interested consumers.

2. Start a Photography Blog

With the spread of the internet, most bloggers today are earning a lot of money by monetizing their skills through their blog sites. Take time to learn and improve your writing skills and with good delivery and engaging articles, you can start blogging for your gallery. Active blogging requires rich content that people will enjoy. This, whilst exposing visitors to your gallery. While blogging about various topics, don’t forget to take a peek at how people perceive your creativity and how other photographers are faring within the industry.

3. Enter Creativity Contests

Creativity contests are not just about putting up a show, but they are platforms where photographers can share ideas, network, and sell their pieces. These are also platforms through which you can showcase your work and market yourself. In the process, you may gain interested clients whom you may have the opportunity to work on high-paying gigs. In addition to this, you’ll get to meet like-minded artists who will help to boost your outreach and in a way, help you to create a diverse audience for your creations.

4. Charge for Editing Pictures

Did you know that you can make quick cash by just editing pictures? If you have a hand in it and people love the edits you make, then start making a living out of it by charging the editing services. Start selling your skills for a worthy price. You can start by testing the waters with friends and family to see just how much they’re willing to pay. When you get the hang of it, spread on to broader markets.

5. Teach Photography

There is always someone, somewhere eager to learn a new skill and what better way than to make a back out of it by teaching someone else how to become a better photographer? The best part is that today, you can create your teaching tutorial, create a photography teaching channel on YouTube, or hold classes right at your place. These are the same people who’ll become instrumental in spreading a good word about you and this will help grow your audience base.

As you can see, there are various ways you can monetize your skills as you work to become an accomplished photographer. The most important thing when it comes to making money through photography is marketing. You just have got to let people know your work, how they can reach you, and the charges. It doesn’t get any better than this!

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Bringing Innovation to Your Business with Low-Code Platform

May 29, 2020

Businesses all over the world start understanding the need of adapting to changes. Innovations are keep coming and force small and big businesses to follow trends in order to compete. Digital innovation is something that businesses all over the world admired and have started practicing for the last decade. One of the trends is CRM that startups as well as organizations with big names exploit for more sales, improved relationship with customers and successful competition on the market.

One of the features of the CRM is low-code which has made communication with customers easier, more convenient and successful. Creatio.com is one of the leading services that features low-code platform for accelerating sales and marketing. It’s a great innovation that changes the style of work organization, helps to save much time and achieve goals more efficiently.

Keep reading the article to learn about low-code innovation and how it benefits modern businesses.

Why Low-code Innovation is Vital For Your Business?

The organizations that have already integrated low-code technology into work saw amazing benefits and can’t imagine their further development without it. With the help of low-code technology, businesses can create apps themselves. There is no need to hire app developers and designers since low-code has all the necessary tools for building a professional app. The solution includes visual interface and plugins to build a professional app for mobile devices and enjoy the ready-to-use product within weeks or days.

Low-code has a vital feature for businesses. It features flexibility which allows businesses to quickly adapt to changes. With the technology, you can modify apps without having skills and experience in IT. Some IT specialists believe that low-code limits customization flexibility. However, it’s a myth. An advanced low-code platform offers all the necessary tools for improved customer experience. The technology allows quick implementation of updates or making changes within weeks or even hours. Flexibility means staying up to date and if your business offers the app according to the latest CX trends, the customers will admire you.

Making an idea a reality is incredibly easy with no code technology. Businesses that promote the innovation by partnering with a Webflow agency have more time to develop ideas rather than spend most of their time on tech solutions. A recent study showed that businesses spend around 60% of time on tech issues. Low-code solution eliminates such a problem and leaves more time for organizations to be creative.

Every single business is obliged to have a nice, clear, helpful and convenient app. By using low-code anyone from HR can use the technology to create a customer engagement app for mobile devices that will help customers to learn in details about your services and products, stay updated and make quick orders.

To resume the article, let’s review the main advantages of low-code technology:

Reducing expenses
Executing apps in much shorter time
Improving customer service
Adapting to trends
Modifying software in short time
No need of IT skills and experience

These are the six main benefits that low-code technology offers startups and businesses with big names. Digital transformation is vital and luckily with such solutions as low-code learning and adapting to changes is easy and exciting.

Low-code development platforms replace IT specialists, save time and budget. It’s a fantastic innovation that allows to keep up with changes and trends. The technology allows creating apps so much quicker without compromising the quality of the product. Modern businesses can compete on the decent level by developing apps that meet the requirements of customers. A low-code platform is a link between an organization and customers. By delivering an outstanding product, businesses can keep customers pleased which is the main priority of every growing organization.

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Hiring A Lawyer After A Car Accident

May 28, 2020

If you pass your test as soon as you can, you will be a driver for around 50 or 60 years. During that time, you are likely to witness at least 3 or 4 accidents.

So, it makes sense to know what to do should you be involved in one. Including, how to track down and hire an LA car accident lawyer if you may need one. Or one that practices in the area where your accident occurred.

Seek information as quickly as possible

The first point to make is the importance of seeking someone with experience of your type of accident as soon as possible. After an accident, things move quickly. Without speaking to a lawyer, it is all too easy to do or say the wrong thing.

You need to be careful about what you say to the other driver, witnesses, even the police. In all likelihood, the other party’s insurance company will also try to get in touch with you. Plus, usually, the terms of your policy require you to ring and speak to your own insurance company as well. During all of these conversations, it is all too easy to make a mistake and end up making it look like the accident was your fault.

The best approach is to ring one of the car accident lawyers in your area that offers 24/7 consultations. They will be able to quickly tell you what to do and what not to say.

Experience matters

It is worth hiring a lawyer that has plenty of experience of handling vehicle accident cases, such as Kansas city car accident lawyer. Legally speaking, they are far more complex than most people realize. If things are handled poorly the financial consequences for you can be dire.

In particular, if someone in the other vehicle has been badly hurt. There are limits to how much compensation your insurance company will pay. If the other person has been severely injured, you may well end up being personally sued.

Not to mention the fact that if you have been injured, you will want someone with the appropriate experience to represent your interests. A car accident lawyer should be able to ensure that you are awarded the compensation that you deserve.

Look for a lawyer you feel comfortable with

Regardless of why you need to hire a lawyer, it is vitally important that you find it easy to communicate with them. If you struggle to understand what they are telling you, things are not likely to work out well for you. It is important to feel comfortable with the person that you hire.

Discuss fees before you hire them

Before you hire anybody, you should discuss their fees. Lawyers should be clear about how much they charge. Usually, they will offer you a choice of ways to pay.

Check their qualifications

It is also wise to take a look at the relevant Bar Association website to verify that they are properly qualified. Most countries have a central organization that keeps track of who is qualified to practice there. You can find the right one for American lawyers by clicking here.

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Planning An Infrastructure Upgrade? Here Are Signs You Should Do It

May 27, 2020

IT and networking infrastructure is something that every business needs to have today, no matter what its size or scale may be. F1 IT Support Sydney state that whether you manage the system in-house or have a support partner, there is a need to assess the infrastructure periodically and decide whether you need an upgrade right now. Proficient IT support services offer management of on-premises servers, cloud environments and network infostructure. If this isn’t a part of your IT services or within your in-house team’s capabilities, you should reconsider your IT solutions. Obviously, one that does not offer the scalability, flexibility, and agility that helps you stay competitive in their market is not worthwhile. A revamp would be the best decision if that is the case but you may still want upgrades at the earliest signs of being behind the competitors. Here are the signs which indicate that you need an upgrade for your IT and networking infrastructure sooner rather than later.

Sign #1: Your network is slower than it should be

Outdated networks are seldom capable of supporting the technology demands of the modern workforce, whether in terms of performance, security, or features. Moreover, it can even impact the customer experience in the long run. If your employees do not seem to be happy enough with the existing hardware and software applications in your business, it is certainly time to move up the ladder. Your investment will definitely be worthwhile as it will elevate employee productivity and customer experience.

Sign #2: There isn’t enough storage space

If the infrastructure doesn’t offer you enough storage space to fulfill your needs, you shouldn’t delay an upgrade any longer. Lack of storage space can compromise the speed of the systems and cause frequent server crashes as well. While there are risks of losing your critical business data in such incidents, your employees also end up wasting time when there is network speed issues time and again. Upgrading the system can go a long way in minimizing such hassles and ensuring the adequacy of storage.

Sign #3: IT solution expenses are on the rise

The ever-rising maintenance and repair costs of the business IT infrastructure indicate that now is the best time to consider a move to a better version. Rather than spending more on repairs, upgrading to a state-of-the-art IT platform sounds like a better choice. While you will end up saving dollars on repairs that don’t yield any long term benefits, there is also the advantage of going modern with a brand new system in place. Although it will be a steep up-front investment, you will actually end up saving.

Sign #4: You are not really confident about the security

As cyberthreats become more sophisticated than ever before, the risks to the organizational infrastructure are growing as well. The older it is, the more vulnerable your business data and applications become. An upgrade would surely be a wise decision if you are not confident about security because this is a risk that you cannot afford to take. Every breach is like a blow to your customer trust and business reputation, so a proactive approach can save you on both fronts.

Sign #5: Your IT manager seems to stay in the maintenance mode

Unless you modernize your infrastructure, you cannot expect the outdated one to cope with the new demands. Even if you try running new technologies, it will not be able to bear the strain and will require frequent maintenance. Obviously, your IT managers will have to be on their toes all the time. Rather than doing so, they would suggest an upgrade as a smarter alternative. Moving to a modern infrastructure can significantly simplify the network deployment and operations for your IT manager and reduce their maintenance workload as well.

Sign #6: Your employees are suffering from productivity blues

Are your employees experiencing an increase in their workloads lately? Are they burdened with cumbersome infrastructure management tasks? Does a significant part of the workday gets wasted due to IT issues? Do you notice a fall in productivity and a spike in employee dissatisfaction and turnover? These signs should ring warning bells because you may end up with an unhappy and non-productive team if you don’t go ahead with an upgrade right now. With a revamp, they will get a futuristic system to work with, which will translate into greater productivity and better retention of the team. It certainly is a win-win situation for your business!

These are the danger signs that definitely need your attention right away. And that’s not all, you also need to respond quickly with an IT infrastructure and networking revamp for your business. The move will surely bring extensive benefits despite the investment. Moreover, you can collaborate with a managed IT support partner such as Sphere IT in London for a better and cost-effective solution that gets you effective results without spending a fortune.

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