Banking

Get Rid Of Your Bank And Still Get Out Of Debt

Banks are hated because they are seen as running a vampire’s relationship with their customers. Most consumers dread taking a bank loan because most bank loans are tied to a property usually a house or other valuable property otherwise referred to as collateral. Another reason is that bank interest rate charges are usually high and can be affected by prevailing economic factors like inflation and exchange rates.

In case of a default on the part of the borrower he loses the property. A lot is going to change in the way we can access credit thanks to the internet and innovative business minds and peer to peer lending.

Consumers usually try to look elsewhere before approaching a bank for a loan in order to avoid loses in case of default in payment. Family members may chip in and friends too but they way it is with money most people are reluctant to do so in order to protect the precious relationship that may be damaged in case of non-payment.

The creation of cooperative credit unions helped a good section of the public to access loans on softer terms but qualifying for a loan was usually based on first being a member and having shares in the cooperative. Since most of these cooperatives were tied to one’s professional career it meant that those who were self-employed were basically left out. But cooperatives still have their place.

A new trend that is giving banks a run for their money though still not as widespread and similar to borrowing from family and associates is the concept of community lending or peer to peer lending. Peer to peer lending runs entirely on the internet but all the necessary verifications like credit checks are done to eliminate fraud.

The website allows a borrower to post their need and how much they are willing to pay as interest rate, a willing lender bids and the borrower chooses the winning bid. The website charges the borrower a fee plus the loan and the lender an annual fee on the amount. The middleman or the bank is eliminated and charges are kept low. Two well known sites are proper.com in the United States and Zopa.com in Britain. There are plans to build one in Canada too, which could be launched as soon as fall 2007.

As far as low interest rates go peer to peer lending is giving banks a run for their money. Canadian banks charge between 9 to 14.25 per cent on lines of credit but prosper.com loans can be as low as 7 per cent but they are not available in Canada. Most borrowers use them to pay off credit card debt and for other small investments. A disadvantage is prosper.com can only lend up to us $ 25,000 only and lenders may not ask for collateral in order to lower rates.

Get Rid Of Your Bank And Still Get Out Of Debt
From the Finance articles and news

Thursday, November 26th, 2009 Banking Comments Off

Choosing a Good Financial Recruitment Agency

If you’re looking for a job in banking, or a financial career of any sort you’ll know there’s a lot of competition out there. In 2007 a lot of the big banks have cut back on top recruitment of top level staff, an effect that has filtered down to all steps on the financial career ladder. However there’s still jobs available for the right candidate- whether graduate or trainee- right through to director level specialists and getting on the books of a reputable and specialist banking and financial recruitment agency is the best way to ensure your new or change of career in finance or banking is as successful (and easy) as possible. Below are some pointers on choosing a good agency.

Are they specialists?

Your search for a new job will likely start online and you’ll soon become aware there’s no shortage of job boards and virtual recruitment agencies out there claiming to specialise in all sectors of recruitment- but do they genuinely know the financial sector, and more importantly know about getting the best placements in banks and finance houses in the UK, Europe or Internationally? The first thing to do is talk to an agent- you’ll soon get a feel for what they know and where their priorities lie.

Are they committed to you?

Do you have dedicated recruitment specialist working on your behalf, someone you can pick up the phone and talk to, turn to for advice on interviewing or when it comes to choosing the job that’s right for you? Check whether you will have one point of contact- usually smaller, more specialist agencies will be better for this than the big multi-sector recruiters.

Can they get you a job?

At the end of the day this is what you care about- getting your dream job which will push your banking or financial career forward. You need an agency with access to the top positions at the top banks and financial firms, who can speak directly to their recruitment teams and recommend you for the right positions. A good financial recruitment agency will be able to demonstrate their track record of placing candidates at the top banks, just ask.

Once you’ve got a job offer what do they do?

A good financial recruitment agency will look to line you up with several interviews for jobs you are suitable for. If the agencies have done their job properly they should know the sort of role you are best suited too and so your success rate at the interview stage should be higher than if you are blindly promoting yourself. Hopefully you will have a number of job offers pretty soon- the agency then has the job of negotiating to get you the best employment package from your prospective employers and also advising you on what the vacancy will be best for your career.

Don’t forget, when you’re looking for a new job or change of career in the banking, leasing, asset finance or any financial sector an agency is a great place to start. But also remember the agency works for you, they should value you and your skills and work hard to ensure you get the career you want. If not, show them the door! Good luck in your hunt for a better job in finance.