Behavioral Economics and Behavioral Finance Manifesto

Steve Shu Consulting

In this post, I want to share my thoughts on design values related to behavioral economics and behavioral finance (which going-forward in this post I’ll simply refer to as behavioral science for brevity). With that as backdrop, here’s my Behavioral Economics and Behavioral Finance Manifesto (much like I did with my Management Consulting Manifesto back in 2011 ). Behavioral Economics General Management Innovation Behavioral Finance Behavioral Science Nudge

BCG report: Ending the Era of Ponzi Finance

Consultants Mind

The Boston Consulting Group even went so far as to call … Continue reading → Learning BCG Boston Consulting Group Consulting Economics Era of Ponzi Finance Management consulting Not sure how this happens, but the entire developed world is in debt. Europe, the US, and Japan have borrowed so much money that they are headed towards ruin.

Finance vs Strategy

Tom Spencer

A successful firm will need to pursue sound strategy and, at the same time, stay on top of its finances. Business Strategy consulting finance Management Consulting The financier cares about the next 3 months or less. The strategist cares about the next 3 years or more. The financier wants the deal to close as soon as possible so that he can earn his bonus.

Global Finance Resets

McKinsey

The decline of cross-border capital flows signals a stronger global financial system, write Susan Lund and Philipp Harle in International Monetary Fund. MGI in the News

Democratizing digital finance: An interview with PayPal CEO Dan Schulman

McKinsey

By working to be a better champion of its customers, PayPal has seen its transactions and customer base grow and satisfaction among employees swell. Insights on Financial Services

Bots, algorithms, and the future of the finance function

McKinsey

Automation and artificial intelligence are poised to reshape the finance function. Knowing what to automate and managing the disruption can lead to a new era of productivity and performance. Our Insights

The Digital Revolution in Trade Finance

BCG

Revenues from trade finance now total approximately $50 billion a year. Simultaneously, regulation is making trade finance more costly to supply. Part of the answer lies in the digital revolution unfolding in trade finance. Article Tuesday, August 30, 2016.

Why Finance Needs More Humanity, and Why Humanity Needs Finance

Harvard Business

Mihir Desai, professor at Harvard Business School and Harvard Law School, argues for re-humanizing finance. He says the practice of finance, with increasing quantification, has lost touch with its foundations. But he says finance can be principled, ethical, even life-affirming. Desai is the author of the new book, The Wisdom of Finance: Discovering Humanity in the World of Risk and Return. He also writes about finance and the economy for hbr.org.

Health system financing: Tips for emerging markets

McKinsey

Many countries with emerging economies are considering health system financing transformation. Five no-regrets tips can help them build a strong foundation for their future health system. Insights on Healthcare Systems & Services

Taking conservation finance to scale

McKinsey

Environmental projects are woefully underfunded. Improving their risk-return profiles and structuring larger investment products could unlock private capital to narrow the gap. Our Insights

Disruption in European consumer finance: Lessons from Sweden

McKinsey

Strong earnings in European consumer finance have drawn the attention of attackers, including large retailers and fintechs. To maintain their position, banks must focus on the customer and transform their operating models. Insights on Financial Services

How are consumers feeling about their finances?

McKinsey

In many countries, consumer sentiment has improved since 2015. Consumers have become more bullish about their ability to spend. Insights on Consumer Packaged Goods

The Brazilian experience in financing infrastructure

McKinsey

A former finance minister makes the case for openness and discusses “de-risking.”. Our Insights

Navigating risks in project finance

McKinsey

When it comes to infrastructure and capital projects, managing risks and incentives correctly can be a major enabler for opening up new funding streams and creating bankable project pipelines.

The debate over private infrastructure financing in the United States

McKinsey

Financing costs are higher, but the results are worth it. Our Insights

Looking beyond finance

McKinsey

Global leaders in infrastructure development confront a multi-trillion dollar gap in investment. New analysis from MGI estimates US$69 trillion of investment will be needed between now and 2035, write Jan Mischke and Diaan-Yi Lin in The Business Times of Singapore. MGI in the News

The promise of digital finance

McKinsey

Digital technologies, starting with mobile phones, can rapidly fix problems encountered when savings are stored outside the financial system and foster faster, more inclusive growth, write Laura Tyson and Susan Lund in Project Syndicate. MGI in the News

How digital finance could boost growth in emerging economies

McKinsey

Delivering financial services by mobile phone could benefit billions of people by spurring inclusive growth that adds $3.7 trillion to the GDP of emerging economies within a decade. Employment and Growth

Car Deals: Must Be Subprime, Must Finance Through Chrysler Capital

MishTalk

The fine print is rather amusing: Must be subprime and must finance through Chrysler Capital. Reader Bian emailed an ad for huge discounts on cars. more…). Economics

What is book-to-bill ratio?

Consultants Mind

Learning FinanceThe post What is book-to-bill ratio? appeared first on Consultant's Mind.

What digital finance means for emerging economies

McKinsey

In emerging economies, using a smart phone to provide access to financial services, could help boost the economy, write James Manyika, and Rodger Voorhies in Fortune. MGI in the News

How Blockchain Is Changing Finance

Harvard Business

The unstoppable force of blockchain technology is barreling down on the infrastructure of modern finance. Our global financial system moves trillions of dollars a day and serves billions of people. But the system is rife with problems, adding cost through fees and delays, creating friction through redundant and onerous paperwork, and opening up opportunities for fraud and crime.

Finance and HR: The Executive Partnership That Transformed a Company

Strategy+Business

The relationship between a chief financial officer (CFO) and chief human resources officer (CHRO) can turn a company around. Between them, they control the major sources of capital available to a company: human, financial, and often information technology.

China Faces "Minsky Moment" on Ponzi Financing

MishTalk

Inquiring minds are tuning into a report on the Ponzi finance setup in China. Our analysis indicates that China’s economy has arrived at that unstable state where speculative and Ponzi finance appear to dominate. Most assume China can grow at 7% a year, a notion that I have challenged on many occasions. Morgan Stanley agrees. Please consider Morgan Stanley: China''s Minsky Moment is Here.

Speculative Financing in Technology Companies Strikes Again

MishTalk

The last bubble is seldom reblown, but what about bubbles twice removed? In what seems like a reply of 2000, … Continue reading → Economics

How Blockchain Applications Will Move Beyond Finance

Harvard Business

See More Videos > See More Videos > The same applies to trade finance and financial assets, where companies such as Digital Asset Holdings (run by JPMorgan veteran Blythe Masters ), Blockstream, and Chain are trying to revolutionize how assets are issued and traded. To understand the transformation that’s being brought about by blockchain technology, it’s useful to start with its largest implementation to date: bitcoin.

Michael Pettis Calls Surplus Trade Statements by German Finance Minister “Utter Lunacy”

MishTalk

A few days ago I pinged global trade expert Michael Pettis with my post Germany’s Finance Minister Blames ECB For … Continue reading → Economics

Spanish Government Threatens to Seize Catalan Finances to Stop Referendum: Juncker in Hot Water

MishTalk

In its latest move to stop an October 1 independence referendum, the Spanish Government is Poised to Seize Catalan Finances. Finance Minister Cristóbal Montoro said a mechanism had been approved for the state to take control of the autonomous region’s finances.

How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business

If you’re not a numbers person, finance is daunting. Even if you don’t need to know a lot about finance to do your day-to-day job, the more conversant you are on the subject, the better off you’ll be, according to Richard Ruback, a professor at Harvard Business School and the coauthor of the HBR Guide to Buying a Small Business. Stop avoiding finance because you’re afraid of numbers. “Finance and accounting are very simple.

Universities and the conglomerate challenge

McKinsey

Strategy & Corporate Finance InsightsComplex business combinations have been unwinding for years. Will the bell toll for universities?

How to take the measure of innovation

McKinsey

Strategy & Corporate Finance InsightsBy combining two simple metrics, companies can gain valuable insights into their innovation performance.

What is the DuPont Method?

Consultants Mind

Learning Finance Investment(geek alert) The DuPont Method is one of my favorite things from B school. Yes, it’s a way to calculate return-on-equity, but it’s also a great way for a consultant to get smart on a company quickly.

Germany’s Finance Minister Blames ECB For German Trade Surplus; Why the Eurozone Will Destruct

MishTalk

Fireworks are going off in Germany again in yet another battle between Wolfgang Schaeuble, Germany’s finance minister, and the ECB. Schaueble … Continue reading → Economics

Boomer Parents and their Millennial Kids: Study Regarding Care and Finances

MishTalk

Fidelity has an interesting Family Finance Study about the attitudes and expectations of boomers and their millennial children regarding retirement finances and healthcare. To qualify, parents had to be at least 55 years of age, have an adult child older than 25 and have investable assets of at least $100,000. Children qualified if they were at least 25 years of age, had at least $10,000 saved in an IRA, 401(k) or other investment account.

Are today’s CFOs ready for tomorrow’s demands on finance?

McKinsey

Survey results show that as their role expands to include ever more nonfinancial demands, CFOs know they must build new skills to lead. Our Insights

French MEPs Introduce “You-Tube Tax” to Maintain “Virtuous Circle of Financing Creation”

MishTalk

French MEPs (Members of European Parliament) introduced a proposal to create a “virtuous circle of financing creation” via a “You-Tube Tax” on online advertising. My counter proposal is a high tax on politicians, political activities, and of course socialists. more…). Economics

Demystifying AI and machine learning for executives

McKinsey

Strategy & Corporate Finance InsightsIn this interview, Tamim Saleh cuts through the hype around artificial intelligence with guidance for executives about where and how to employ AI in their businesses.

IMF Chief Worried Over Public Finance, Urges Countries to Spend More

MishTalk

IMF chief Christine Lagarde is worried that public finances around the world threaten to undermine the global recovery. Despite deteriorating … Continue reading → Economics

Eurogroup Finance President Accuses Southern Europe of “Spending Money on Booze and Women then Begging for Help”

MishTalk

Jeroen Dijsselbloem, Dutch finance minister and president of the Eurogroup finance ministers, is in hot water today over derogatory statements regarding peripheral Europe. This compounds Dijsselbloem’s already significant problems as his party was trounced in the recent Dutch elections. Spain and Portugal now seek his ouster in addition to an apology. more…). Economics

In Conversation: Eric Ries on the Finance of Innovation

Strategy+Business

In the fourth video interview of this five-part series, Eric Ries, author of The Lean Startup, describes his system of innovation accounting--and how it can convert learning into dollars. For more related insights, read "Why Eric Ries Likes Management" at [link

The Criminal Finances Act 2017: What UK Enterprises Engaging Independent Professionals Need to Know Now

MBO Partners

What UK enterprises need to know about the Criminal Finances Act 2017

What’s behind the pharmaceutical sector’s M&A push

McKinsey

Strategy & Corporate Finance InsightsThere are lessons for other industries in the way pharma companies use mergers to innovate, work more efficiently, and bolster product portfolios.

The ‘Rail plus Property’ model: Hong Kong’s successful self-financing formula

McKinsey

What can other cities learn from Hong Kong’s approach to transit? Our Insights