Business

Shoppers expected to spend $4.2 tln online in 2021, squeezing supply chain

In 2021, all global shoppers are expected to buy 20% more online than the last year. This causes increased pressure over thew supply chain as they struggle to keep up with a surge in demand. From Home Depot to Peloton, major retailers and vendors are under pressure from high transportation and storage costs for expensive-to-ship items like appliances, furniture and exercise equipment that are in high demand.

Over the past year, even big stores like Walmart, Target and Amazon.com ran out of essential products that are easy to buy in bulk with one click, but hard to keep stocked. Driven by demand in the United States, China and Britain, ecommerce sales will total an estimated $4.2 trillion this year versus $3.5 billion in 2020.

$876 billion in the first quarter of this year, were for the online sale of toys and video games to furniture. Due to the pandemic situation many retailers have kept many physical stores shut while investing heavily in online platforms. 65% of stores in Europe, the Middle East and Africa were open or operating on reduced hours since last month. At the same time digital sales in its most recent quarter rose 60%.

Even after the lockdown was over, many people still rely upon the online platforms for ordering things. Retailers and vendors including Walmart, Kraft Heinz and Mondelez prediction patterns are echoed by the analysts’ reports. This in turn is a heavy loss for companies which rely only upon physical stores, which already faces struggle due to the online platforms.

Following President Joe Biden’s $1.9 trillion COVID-19 relief bill, online sales surged 39% to about $200 billion in the first quarter, with growth spiking in the three weeks, in America. But not all places adopt this, especially in countries like Japan, there is only fewer people to shop online. This leads to only moderate ecommerce sales.

Related Topics:Online Spending Supply Chain Management

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LexisNexis risk solutions study reveals sharp rise of financial crime compliance costs

Decision makers inside banks, investment firms, asset managers and insurance firms identify the drivers impacting financial crime compliance. LexisNexis® Risk Solutions revealed that the results of its annual True Cost of Financial Crime Compliance Study for the U.S. and Canada. The total projected cost of financial crime compliance for the region is approximately $49.9 billion. The survey illustrates the sharp increase in financial crime compliance costs.

The study projects the average annual cost of financial crime compliance for U.S. financial institutions with $10 billion. Pandemic Continues to Spur Growth. The pandemic continues to negatively impact compliance operations. Sixty eight percent of U.S. respondents report longer times required to complete due diligence. Fifty five percent of U.S. respondents report reduced productivity compared.

More U.S. financial institutions now rank real estate and hospitality as top money laundering risk segments. Crime involving digital payments, trade-based money laundering and money mule schemes are on the rise. Digital currency is a growing problem for Canadian firms. Crimes involving digital payments have the greatest impact on compliance costs. Cryptocurrency crimes have the greatest impact on compliance costs for Canadian firms. The survey results demonstrate that financial institutions are battling a broader set of issues.

Survey respondents indicate that a lack of current and extensive data tops the list of Know Your Customer (KYC). Leslie Bailey, vice president of financial crime compliance strategy for LexisNexis Risk Solutions stated that the study shows clear linkages between the pandemic, digital crime and increasing regulations. Hence, financial institutions need to prepare for expanded compliance obligations and risks from emerging financial crime. Bailey added that digital transformation is a game-changer for financial crime compliance operations.

This will require a sophisticated approach that incorporates insight into digital behaviors. This study surveyed 145 decision-makers in the U.S. and Canada. Responses were collected in June 2019, August 2020 and June 2021. Organizations such as banks, investment firms, asset management firms and insurance firms. The total annual cost of compliance across firms was calculated using survey data. The spend amount was generated by multiplying the average percent allocated to financial crime costs.

Business

COP26 delegates agree on need to deliver on $100 BLN climate finance pledge

Delegates heading to the COP26 U.N. climate summit in Glasgow. These delegates agreed that they must deliver on the $100 billion per year pledge. COP26 president Alok Sharma said that, it is to help most vulnerable nations for tackling the climate change.

After many days of meetings at the pre-COP26 climate event, which happened in Italy, Sharma said that there was a consensus to do more. Which is to keep the 1.5 degrees Celsius target within reach, adding more needed to be done collectively in terms of national climate plans.

The COP26 conference in Glasgow aims to secure more ambitious climate action. This is from nearly 200 countries, those all that have signed the 2015 Paris Agreement for limiting the global warming, well below 2.0 degrees Celsius. And to 1.5 degrees, above pre-industrial levels.

Business

City’s exposure to Evergrande is very minimal-Hong Kong finance Chief

Hong Kong’s exposure to debt-laden developer China Evergrande Group is very minimal at 0.05%. This is of banking assets, South China Morning Post reported, citing the city’s finance minister. Financial Secretary Paul Chan told the newspaper that it is very minimal and won’t cause them any systemic risks. He added that he had arrived at the conclusion after a recent audit of the local banking sector’s exposure to the company.

Chan also said that the Hong Kong’s stock market was inevitably subject to some volatility. This is amidst a recent mainland crackdown on some industries. But still he believed any setback would be temporary. With liabilities of $305 billion, Evergrande has sparked concerns its cash crunch could spread through China’s financial system. This may reverberate globally and that is a worry that has eased with the Chinese central bank’s vow, to protect homebuyers’ interests. Evergrande has missed two bond interest payments. Bondholders have said this and its offshore debt, amounting to about $20 billion, trades at distressed levels.