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.

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

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

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

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

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

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

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

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 Brazilian experience in financing infrastructure

McKinsey

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

The debate over private infrastructure financing in the United States

McKinsey

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

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.

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

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

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.

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

What is book-to-bill ratio?

Consultants Mind

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

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.

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.

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

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

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

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.

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.

Is #MeToo Backlash Hurting Women’s Opportunities in Finance?

Harvard Business

As someone who works in finance and is currently a student in the executive MBA program at the Wharton School, I’ve heard men say that they’re less likely to hire or associate with women as a result of the intensity of MeToo. Cláudio Policarpo/EyeEm/Getty Images. When my mother graduated from college in 1972, she interviewed at an investment bank where a manager told her that for certain positions, women were interviewed but never hired.

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

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

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

Finance Can Be a Noble Profession (Yes, Really)

Harvard Business

When I ask students graduating from Harvard Business School what they’re doing next, I often get some version of “I’m going into finance but…” Then they quickly explain that finance is just a way station on the route to nobler goals. Recently, I asked a few students how people react to their choice to go into finance, and I was greeted with nervous laughter. The usual reactions to misbehavior in finance are outrage or regulation.

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

Record 29% Say Obamacare Hurt Their Finances; Overall Only 44% Positive on ACA

MishTalk

As more and more “features” of Obamacare kick in, and as prices soar while coverage shrinks, mood sours on Obamacare. … Continue reading → 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 ‘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

Greek Finance Minister Proposes Greece for Puerto Rico Trade: Should US Accept the Offer?

MishTalk

Greek finance minister Wolfgang Schäuble has a sense of humor. Who knew Wolfgang Schäuble, Germany’s prickly finance minister, had a sense of humor? Today he said to U.S. Treasury Secretary Jacob Lew: I’ll Trade You Greece for Puerto Rico. At a news conference on Thursday, Schäuble chided U.S. policy makers, who have been urging Greece and its creditors to agree on a new bailout, saying they didn’t understand why a ban on bailouts is vital for the functionality of a currency union.

Enter the Carpetbaggers: Ukraine's New Finance Minister a US Citizen, New Economy Minister from Lithuania

MishTalk

Ukraine''s just-named "Finance Minister" is a US citizen, and Ukraine''s new "Economy Minister" is from Lithuania. citizen and chief executive of private equity group Horizon Capital, will take over as "Finance Minister". Ukraine has a new finance minister, Natalie Jaresko. Carpetbaggers Take Over Ukraine Now that Ukraine''s gold has been sold off, the only thing left to complete the plundering is to send in the carpetbaggers. That process is now underway.

Greece Empties IMF Reserve Account to Pay IMF; Liquidity "Terribly Urgent" Says Finance Minister

MishTalk

Greece emptied an IMF holding account to repay 750 million euros ($840 million) due to the fund, a Greek central bank official said, avoiding default but underscoring the dire state of the country's finances. Made a day early, the IMF payment calmed immediate fears of a Greek default, but Finance Minister Yanis Varoufakis said on Monday the liquidity situation was "terribly urgent" and a deal to release further funds was needed in the next couple of weeks.

Debiasing the corporation: An interview with Nobel laureate Richard Thaler

McKinsey

Strategy & Corporate Finance InsightsThe University of Chicago professor explains how executives can battle back against biases that can affect their decision making.