7 Matching Annotations
  1. Apr 2020
    1. Great strategic investments + avoiding taxes + stiffing supplies with a longer payment cycle = cheaper capital + huge and growing FCF

      Free cash flow (yellow line) is a bit like profit, except it doesn’t assume that Amazon has to pay for everything in the same time frame it sells it. And thanks to how Amazon’s payment cycle works, it usually gets money for selling an item long before it has to pay for that item. Last quarter, for example, it took Walmart on average two days to receive payment for goods after it paid its suppliers, while Amazon on average received payment 20 days before it paid its suppliers, according to cash conversion cycle data from the financial research platform Sentieo.

      Amazon keeps profit and free cash flows artificially low by investing money right back into its business in the form of capital expenses, like building data centers, upgrading distribution networks, and creating wind and solar farms. It can do so without having to borrow money, which means it won’t incur interest costs.

    1. An amazing read/insight into how Ping An, the world's #1 insurer is using big data to reduce costs (>$750M/y) and save customers time (62% of claims handled automatically)

      In 2017, Ping An, China’s second-largest insurer and its biggest non-state-owned company by revenue, rolled out a “Superfast Onsite Investigation” system—enabling policyholders to submit claims by simply opening a smartphone app and answering a few questions. But the app’s niftiest feature offers the option to not even wait for an inspector. Instead, customers can snap photos of a damaged vehicle and send them to a Ping An computer, which can respond with a repair estimate in three minutes or less. If the customer accepts the estimate, then wancheng! (“Done!”) Ping An can transfer funds immediately. Last year, Ping An’s customers used this feature to settle 7.3 million claims, or 62% of the total. The service saves the company more than $750 million each year by reducing bogus claims and human error. But its simplicity belies the extraordinary sophistication of the artificial intelligence and data-processing operations that make it possible. To generate accurate estimates, Ping An matches photos of vehicle damage against a database of 25 million parts used in the 60,000 different auto makes and models sold in China. The system assesses whether those parts can be repaired or must be replaced, then calculates the cost of parts and labor in more than 140,000 garages. Ping An integrates all that information with face-, voice- and image-recognition tech and a complex matrix of anti-fraud rules. Ping An chief scientist Xiao Jing says it took a team of A.I. experts, data scientists, and insurance managers three years to design, develop, and integrate the new service. It is, he exults, “the only one of its kind in the world.”

      These products and services have a vital feature in common: They match online data, generated by China’s digitally native consumer masses, with a vast storehouse of “offline” data and insight amassed over three decades in the insurance business.

      Ping An’s leadership foresees the day when the company’s technology businesses contribute as much as half of its earnings, up from only 6% today, and compete head-to-head with pure technology plays like Alibaba Group and Tencent Holdings.

      Ping An earmarks 1% of revenue for investments in innovation. Over the past 10 years, the group has plowed more than $7 billion into research and development, and Ma has vowed to invest $15 billion more in the decade to come. That endowment has nurtured 11 technology affiliates, of which two—Good Doctor and Auto­home, a platform for car buyers—are publicly traded and three are privately held “unicorns” with multibillion-dollar valuations For now, only two of those five are profitable. Even so, the combined value of the group’s tech ventures tops $70 billion. (See the “Star Pupils” sidebar.)

      Schulte estimates that the BAT (China’s troika of Baidu, Alibaba, and Tencent) processes at least 10 times as much data every day as Ping An has acquired in its entire existence. But Ping An executives argue that quality matters more than quantity. The data its businesses collect is richer than that gleaned by the BAT, they claim, because it involves big-ticket transactions relating to health, wealth, and property—among the most meaningful decisions in customers’ lives.

  2. Jan 2020
    1. Best Fintech Startup Ideas of 2019

      If you are thinking to start your own FinTech startup, then you must, first, find a team of extraordinary FinTech App and Software Developers. Build a FinTech application based on any of the ideas discussed here or something new that is on your mind.

  3. Dec 2019
    1. Fintech isn’t the easiest industry to target. It is still growing, and every now and then new features and innovations come to upgrade the industry. So you need to be ready for the change. But remember, if you ride the change the right way, you can be on the top.

  4. Nov 2019
  5. Jun 2019
  6. Jul 2018