Money Masterpiece

Author: MMP

  • What is the Multiplier Effect? Examples and use cases

    The Multiplier Effect is an economic concept that describes the relationship between initial investment and subsequent economic benefits. In simple terms, it is the idea that a dollar invested today can have a greater impact on the economy tomorrow than if it were spent today. The Multiplier Effect has been used to justify everything from stimulus spending to tax cuts, and its proponents argue that it is a powerful tool for promoting economic growth.

    However, critics say that the effect is often overstated and that its real-world impact is often far less than advertised.

    The multiplier effect is an economic concept that refers to the amplified impact of an initial investment on the economy. The idea is that a single unit of currency can generate more economic activity than its original value, as it is re-spent multiple times throughout the economy. There are various ways in which the multiplier effect can occur.

    One example is when someone spends money on goods and services, which in turn generates income for other businesses who then use that income to buy more goods and services, and so on. Another way it can happen is when someone invest money in a business venture, which leads to job creation and increased spending by employees, all of which boosts economic activity. The size of the multiplier effect depends on a number of factors, including the level of consumer confidence, the level of government spending, and how open an economy is to international trade.

    In general, though, the larger an initial investment or injection of cash into the economy, the greater the potential for multiplicative impacts down the line. While there are numerous real-world examples of the multiplier effect at work, one notable instance occurred during World War II. As governments around the world ramped up military spending in order to fight Nazi Germany, this led to increased production across many industries and created millions of new jobs.

    The resulting increase in incomes and consumer spending helped spur global economic growth during what was otherwise a very difficult period.

    What Do You Mean by Multiplier Effects?

    Multiplier effects are the additional economic activity that is generated by an increase in spending. For example, if a company builds a new factory, it will need to purchase raw materials, hire workers, and buy equipment. This increase in spending will create jobs and income for other businesses in the economy, which in turn will lead to more spending and even more economic activity.

    Multiplier effects can be either positive or negative, depending on whether spending is increasing or decreasing.

    A multiplier is an economic term that refers to how much an increase in one economic activity will lead to an increase in another. In other words, it measures the indirect or secondary effects of a primary action or decision. Multipliers are important because they help policy-makers understand the potential impacts of their decisions on the economy as a whole.

    For example, suppose the government spends $1 million on infrastructure projects. This spending will directly create jobs for construction workers, but it will also have indirect effects on other sectors of the economy. The construction workers will then have more money to spend, which will boost demand for goods and services across the economy.

    The increased demand will lead to more jobs and higher incomes, and so on. This chain reaction is known as the multiplier effect. The size of the multiplier depends on a number of factors, including the level of consumer confidence, the state of business investment, and whether there is spare capacity in the economy (unused resources that can be brought into production).

    Generally speaking, when there is spare capacity and businesses are confident about future demand, multipliers tend to be larger. Multipliers are often used by governments to assess the likely impacts of their policies before making decisions. They can also be used by businesses to estimate how much extra sales they might see from changes in consumer spending or government policy.

    What is Multiplier Effect And Example?

    The multiplier effect is the name given to the phenomenon whereby an increase in spending leads to an even greater increase in economic activity. The original idea was put forward by British economist John Maynard Keynes in his 1936 book, The General Theory of Employment, Interest and Money. In simple terms, the multiplier effect occurs because when someone spends money, it creates a chain reaction of additional spending throughout the economy.

    For example, if you spend $100 on a new pair of shoes, the person who sold you the shoes will then have more money to spend. They may use that extra money to buy a new shirt, which then puts more money into the pocket of the person who sold them the shirt. This process continues until eventually all of the extra money has been spent and everyone in the economy has benefited from the initial $100 expenditure.

    The size of the multiplier effect depends on a number of factors, including how much people save out of their extra income and how much they spend on imports (which don’t provide a boost to domestic economic activity). Generally speaking, though, economists believe that the multiplier effect is relatively large – meaning that even a small amount of extra spending can lead to a significant increase in overall economic activity. One famous real-world example of the multiplier effect at work is President Franklin Roosevelt’s New Deal program in 1930s America.

    By increasing government spending during this period of severe economic hardship, Roosevelt helped spur a recovery that eventually led America out of Depression and back onto its feet again.

    What are the Uses of Multiplier?

    In economics, a multiplier is an economic variable that measures how much an increase in one economic activity will lead to an increase in another. The term is often used to refer to the multiplier effect, which is the impact that one change will have on many other parts of the economy. The multiplier effect occurs when an initial change in spending leads to a larger final change in output or income.

    The size of the multiplier depends on how much money is spent and how it is spent—whether it goes into savings or consumption, for example. Multipliers are important because they help us understand how changes in one part of the economy can affect other parts. They also help policymakers determine whether stimulus spending will be effective at boosting economic growth.

    What is Multiplier Effect in Tourism with Example?

    Multiplier effect is when an initial investment in the economy creates additional economic activity. This can be in the form of jobs, income or spending. The tourism industry is a great example of how the multiplier effect can work.

    When someone spends money on a vacation, that money then gets circulated throughout the local economy. It supports businesses like hotels, restaurants and souvenir shops. And as those businesses make money, they in turn reinvest that money back into the economy, creating even more jobs and income.

    This ripple effect continues until eventually the entire community benefits from the initial investment.

    The multiplier effect is a term used in economics to describe how an initial increase in spending can lead to a much larger increase in economic activity. The tourism industry is one of the sectors that can see a large boost from the multiplier effect. When tourists come to an area, they not only spend money on hotels, restaurants, and attractions, but they also often use local services such as transportation, tour guides, and shopping.

    This spending then leads to more jobs and income for locals, which in turn leads to even more spending. The ripple effect of this increased spending can have a significant impact on the economy of a region or country. The multiplier effect is especially important for developing countries where the tourism industry is often one of the largest sources of income.

    In these countries, even a small increase in tourist spending can have a big impact on economic growth and job creation. So if you’re planning your next vacation, remember that your spending could have a much bigger impact than you might think! By supporting the local economy through tourism, you can help create jobs and spur economic growth.

    The Multiplier Effect explained:

    Multiplier Effect Formula

    The multiplier effect is a macroeconomic tool that measures the indirect and direct effects of an increase in spending on final output. The formula for the multiplier effect is: Multiplier = 1 / (1 – MPC). Where MPC stands for marginal propensity to consume.

    The multiplier effect occurs when an initial injection of spending leads to a greater final increase in output. The size of the multiplier depends on the MPC; if the MPC is low, then the multiplier will be high. The reverse is also true; if the MPC is high, then the multiplier will be low.

    An example of how the multiplier effect works can be seen when considering two different economies, one with a high MPC and one with a low MPC. If both economies receive an injection of $100 million dollars, we would expect to see a greater increase in output in the economy with the low MPC than in the economy with the high MPC. This is because each time someone in the low-MPC economy spends money, they re-circulate it back into the economy multiple times before it finally leaves as savings.

    In contrast, someone in a high-MPC might spend their money once and then save most of what’s left, meaning that there are fewer opportunities for re-circulation. So basically,the Multiplier Effect Formula lets us know how much more our economy will produce based on extra spending .

    Multiplier Effect Calculator

    If you’re like most people, you probably think of the multiplier effect as something that only economists need to worry about. But in fact, the multiplier effect is something that affects all of us on a daily basis. So what is the multiplier effect?

    Put simply, it’s the idea that when someone spends money, that money doesn’t just disappear into thin air. It gets reinvested in the economy, and can ultimately lead to even more spending and economic activity. To see how this works, let’s say you go out to dinner with friends and spend $100 on food and drinks.

    That $100 doesn’t just vanish – it goes to pay the restaurant’s employees, who then go out and spend their earnings on other things. And so on and so forth. Each time that money changes hands, it drives a little bit more economic activity.

    In theory, this could go on forever – but in practice there are limits. Eventually the marginal propensity to consume (MPC) will kick in, which is the tendency for people to save rather than spend when they have extra income. The MPC varies from person to person – some people are quite frugal while others tend to spend everything they earn – but it averages out to be around 0.6 (meaning that 60% of extra income will be spent while 40% is saved).

    This means that our original $100 dinner would eventually lead to $160 worth of total economic activity once the MPC kicks in (0.6 x $100 = $60 which is added to the original $100 for a total of $160). And this is where the multiplier effect calculator comes in handy! With a multiplier effect calculator, you can input different values for things like initial spending, MPC, tax rates, and more to see how much total economic activity your spending could generate over time.

    So if you’re ever curious about how your spending might impact the economy down the line, be sure to give one of these calculators a try!

    What is the Multiplier Effect in Economics

    In economics, the multiplier effect is the expansion of a country’s money supply that results from commercial banks making loans. The money supply expands because each time a bank makes a loan, the borrower gets new money to spend. This spending then generates income for others, who in turn spend some of their new income, and so on.

    The result is that a small increase in the amount of money available for lending can lead to a much larger increase in the total amount of money in circulation. The size of the multiplier effect depends on two things: how much banks are willing to lend out (the “lending propensity”), and how much people are willing to borrow (the “borrowing propensity”). If both propensities are low, then the multiplier effect will be small.

    Conversely, if both propensities are high, then the multiplier effect will be large. The lending propensity is determined by reserve requirements set by central banks, which determine how much cash commercial banks must keep on hand relative to their deposits. The higher the reserve requirement, the less cash commercial banks have available to lend out, and thus the smaller the multiplier effect.

    The borrowing propensity is determined by factors such as consumer confidence and business investment trends. If consumers are confident about their future incomes and businesses are investing heavily in new projects, then they will be more likely to borrow funds for consumption or investment purposes.

    Types of Multiplier in Economics

    In economics, a multiplier is an economic term that refers to how much more output or income an economy can generate from a unit of investment. The most common type of multiplier is the fiscal multiplier, which measures how much additional income an economy can generate from a unit of government spending. Other types of multipliers include the monetary multiplier and the trade multiplier.

    The fiscal multiplier is calculated by dividing the change in GDP (gross domestic product) by the change in government spending. For example, if government spending on infrastructure increases by $1 billion and GDP increases by $2 billion as a result, then the fiscal multiplier would be 2 ($2 billion divided by $1 billion). This means that for every dollar the government spends on infrastructure, the economy generates an additional two dollars in output or income.

    The monetary multiplier measures how much more output or income an economy can generate from a unit of money creation. It is calculated by dividing the change in GDP by the change in the money supply. For example, if the money supply increases by $1 billion and GDP increases by $4 billion as a result, then the monetary multiplier would be 4 ($4 billion divided by $1 billion).

    This means that for every dollar created through quantitative easing or other forms of money creation, four dollars of economic activity are generated. The trade multiplier measures how much more output or income an economy can generate from a unit of exports. It is calculated by dividing the change in GDP by the change in exports.

    For example, if exports increase by $1 billion and GDP increases at least $3 million as a result (imports could also increase), then the trade multiplier would be 3 ($3 million divided by $1 million). This means that for every dollar worth of goods exported, three dollars worth of economic activity are generated domestically.

    Conclusion

    The multiplier effect is a term used in economics to describe the additional economic activity that results from an increase in spending. The impact of this spending can be multiplied across the economy, resulting in even more economic activity. For example, if a company builds a new factory, this will create jobs for construction workers, engineers, and other professionals.

    These workers will then have more money to spend on goods and services, which will create even more jobs and generate even more economic activity. The multiplier effect can also work in reverse, leading to less economic activity when spending is reduced.

  • 20 Retirement Planning mistakes and myths to avoid

    When it comes to retirement, there are a lot of myths out there. Perhaps the most prevalent one is that retirement is a time when you can finally relax and enjoy your golden years. Unfortunately, this simply isn’t true for most people.

    For many, retirement is a time of financial insecurity. With rising costs of living and limited Social Security benefits, many seniors are struggling to make ends meet. 

    There are many myths about retirement planning that can lead people astray. Here are 20 of the most common myths and why you should avoid them:

    1. It’s a “Selfish” Goal

    Some people are so much caring to others and careless to themselves that they find planning retirement is selfish.

    2. It’s too early to plan

    The sooner you start saving for retirement, the better off you’ll be. That’s because compound interest will have more time to work its magic and grow your nest egg. If you wait until later in life to start saving, you’ll likely end up having to save much more money each month to catch up.

    Not having a clear plan is another mistake that people often make when planning for retirement. It’s important to know how much money you’ll need to have saved in order to cover your expenses during retirement. Without a plan, it can be difficult to stay on track and make progress towards your goal.

    The sooner you start saving for retirement, the better off you will be. Even if you can only afford to put away a small amount each month, it will add up over time.

    3. Investing Too Conservatively

    Many people are risk-averse when it comes to investing their retirement savings. While it’s important to be mindful of preserving your hard-earned money, investing too conservatively can actually do more harm than good in the long run.

    Why? Because inflation will erode the value of your savings if they’re not invested in assets that have the potential to grow over time. As such, it’s important to strike a balance between safety and growth when choosing investments for your retirement portfolio.

    Over time, the cost of living will almost certainly go up, but your income may not keep pace. This means that the purchasing power of your retirement savings will decrease unless you take steps to account for inflation. Investing too conservatively is another potential mistake.

    If you invest too conservatively, you may not earn enough growth on your investments to keep up with inflation or reach your long-term financial goals. On the other hand, investing too aggressively can be risky and lead to losses if the markets take a downturn. Finally, another common mistake is withdrawing money from retirement accounts before age 59½ without paying the 10% early withdrawal penalty.

    While there are some exceptions (such as using the money for qualifying medical expenses), generally speaking, it’s best to leave your retirement savings untouched until you reach retirement age.

    4. Underestimating Longevity Risk

    One of the biggest risks facing retirees is outliving their savings. This is especially true for women, who tend to live longer than men on average.
    If you don’t plan carefully, it’s easy to underestimate how long your retirement might last and end up running through all of your savings too early. So, avoid this myth of living a few years and accumulate assets support to you in longer life ahead.

    5. I’ll Delay Saving For Retirement Until Later When It’s Easier

    6. Investing is too complicated and risky

    7. not able to visualize the “Retirement” goal

    8. Not able to save enough money

    Not saving enough money is one of the biggest mistakes that people make. Other common mistakes include not having a clear plan, not diversifying your investments, and taking on too much debt.

    Saving enough money for retirement is crucial, but it’s not always easy. A lot of people procrastinate when it comes to saving for retirement, and by the time they’re ready to retire, they don’t have nearly enough saved up. It’s important to start saving early and to make sure you’re contributing enough to reach your goals.

    9. Not contributing enough to your retirement savings –

    If you want to have a comfortable retirement, you need to make sure that you are putting away enough money each month. A good rule of thumb is to try and contribute at least 10% of your monthly income.

    10. Withdrawing from your retirement account too early

    It is important to resist the temptation of tapping into your retirement savings before you reach retirement age. Doing so can significantly reduce the amount of money that you have available later on in life.

    11. They see their kids as retirement corpus

    12. My Spouse Will Take Care Of My Retirement

    13. Social security will take care of retirement needs

    14. My Company Or Government Will Take Care Of My Retirement,

    My Company And Medicare Will Take Care Of My Health Insurance Needs During Retirement

    15. Need less income after retirement

    16. Medicare will cover all health expenses

    Failing to plan for healthcare costs One of the biggest expenses in retirement is healthcare costs, yet many people fail to plan for this expense adequately . Healthcare costs can include insurance premiums , out-of-pocket expenses , long-term care , and prescription drugs .

    If you’re not covered by Medicare , health insurance can be very expensive . Long-term care insurance is another important consideration , especially if you want to avoid becoming a burden on your family .

    17. Work until full retirement age

    18. Inheritance will cover the retirement needs

    19. Rely on Bonds than Equity

    Diversifying your investments is also important in retirement planning. Having all of your eggs in one basket is risky, and if something happens to the investment you’ve put all of your money into, you could be left without anything. Diversifying helps protect you against loss and gives you a better chance of seeing returns on your investment over time. Diversification is key when investing for retirement (or really any other goal). By investing in a variety of asset classes, you can help reduce the risk of losing money in any one particular investment.

    20. Making poor spending decisions in retirement.

    Just because you’re retired doesn’t mean you can suddenly start living like there’s no tomorrow. It’s important to be mindful of your spending in retirement so that your savings last as long as possible.

    Lower tax bracket after retirement

    Retirement Planning Myth Bonus: Retirement Planning Is All About Money

    retirement planning survey
    Wealth creation for retirement

    7 Mistakes to Avoid in Retirement

    There are a number of risks that come along with retirement, and it’s important to be aware of them before making the decision to retire. 1. Financial insecurity: One of the biggest risks of retirement is financial insecurity. Without a regular paycheck coming in, it can be difficult to make ends meet and cover all your expenses.

    This is why it’s so important to have a solid financial plan in place before you retire.

    2. Health problems: Another risk to consider is your health. As we age, our health can decline and we become more susceptible to chronic illnesses and injuries.

    This can make retirement much more difficult and expensive if you’re not prepared for it.

    3. Loneliness: Retirement can also be quite lonely for some people. If you don’t have a strong social network or close relationships, you may find yourself feeling isolated and alone after retiring from work.

    4. Boredom: Some people also find retirement quite boring without the structure and routine of work life. It’s important to have hobbies or activities lined up that will help keep you mentally stimulated during your retirement years.

    5 . Risk of long-term care needs: Finally, another risk associated with retirement is the need for long-term care services such as nursing home care or in-home caregiving services. This can be very costly and stressful for both retirees and their families. Overall, there are a number of risks to consider before retiring.
    6. Financial Stress: Money woes are one of the biggest sources of stress for retirees.

    7. Not Having a Plan: It’s important to have a solid plan for retirement, both financially and emotionally.
    Without a plan, it’s easy to get off track and end up stressed out or worse off than you intended.


    However, by being aware of these risks, you can take steps to mitigate them and still enjoy a happy, healthy, and fulfilling retirement.

    What is the 4 Rule Retirement?

    The 4% rule is a guideline for retirement spending that says you can withdraw 4% of your portfolio each year in retirement and not run out of money. The rule is based on the work of William Bengen, a financial planner who published a study in 1994 in which he found that a portfolio consisting of 50% stocks and 50% bonds would support withdrawals of up to 4% annually for 30 years, adjusted for inflation, without running out of money. Bengen’s study has been widely cited by financial planners as evidence that retirees can safely withdraw 4% of their portfolios each year.

    However, some critics argue that the 4% rule is too conservative and doesn’t allow for enough flexibility in retirement spending. If you’re using the 4% rule to plan your retirement, there are a few things to keep in mind. First, the rule is based on historical data and may not be accurate if future market conditions are different from what they’ve been in the past.

    Second, the rule assumes you’ll invest equally in stocks and bonds, but you may want to adjust your asset allocation depending on your risk tolerance. Finally, remember that the 4% rule is just a guideline – you may need to adjust your spending up or down depending on how long you live or what unexpected expenses come up in retirement.

    What Should You Not Do When You Retire?

    When you retire, there are a few things you should avoid doing in order to make the most of your golden years. Here are four things you should steer clear of:

    1. Don’t skimp on your health insurance

    One of the biggest mistakes you can make when you retire is to skimp on your health insurance. Even if you’re healthy now, it’s important to have comprehensive coverage in case anything happens down the road. No one knows what the future holds, so it’s best to be prepared with a good health insurance plan.

    2. Don’t forget about long-term care insurance Another type of insurance that’s important for retirees is long-term care insurance. This will help cover the costs of nursing home care or other types of assistance if you need it later in life.

    It’s something that many people don’t think about, but it can be vital in ensuring that you have the resources you need as you age.

    3. Don’t withdraw money from your retirement accounts too early It can be tempting to cash out your retirement savings when you first retire, but this is usually not a good idea.

    Withdrawing money from your account too early can trigger taxes and penalties, and it also means that your money won’t have as much time to grow. If possible, wait until later in retirement to start tapping into those savings so that they can last longer.

    4. Don’t neglect your estate planning documents

    Finally, don’t forget to update your estate planning documents once you retire. This includes things like wills, trusts, and power of attorney forms.

    How Much to Retire at 60

    If you’re looking to retire at 60, there’s a good chance you’ll need to have saved up quite a bit of money. How much exactly? It depends on several factors, including how much money you’ll need to cover your expenses and how long you expect to live in retirement.

    Assuming you want to retire comfortably and have your nest egg last as long as possible, most financial experts recommend saving enough money to cover about 80% of your pre-retirement income. So, if you currently earn 20,00,000 per year, you should aim to have around 16,00,000 per year in retirement income. Of course, this is just a general guideline – the actual amount you’ll need will depend on your specific situation.

    If you have lower living expenses or are in good health and expect to live a longer than average life span, you may be able to get by with less than 80%. On the other hand, if your costs are high or your health is not great, you may need even more than 80%. The best way to figure out how much money you’ll need in retirement is to sit down and do some serious planning.

    There are a number of online calculators that can help you estimate how much money you’ll need in retirement based on different factors like inflation rates and life expectancy. Once you’ve got a ballpark figure for how much income you’ll need each year, start working on ways to make it happen. If saving up that much seems daunting (or impossible), don’t despair – there are plenty of ways to make it easier.

    Start by taking advantage of any employer matching programs for 401(k)s or other retirement accounts. Every little bit helps!

    Is 20 Million Enough to Retire

    When it comes to retirement, there is no magic number. But for many people, 2 million is enough to comfortably retire. Here’s a look at why 20 million may be enough for you:

    1. You can live off the interest If you have 20 million saved for retirement, you can expect to withdraw about 8,00,000 per year (assuming a 4% interest rate). That should cover your basic living expenses and leave you with some extra cash to enjoy your golden years.

    2. You’ll have other sources of income In addition to your savings, you’ll likely have other sources of income in retirement, such as Social Security or a pension. This will help supplement your savings and give you more financial security in retirement.

    3. Your costs will go down in retirement Once you retire, your costs are likely to go down significantly. You’ll no longer need to save for retirement, so you can use that extra money to pay off debts or fund other goals.

    And, if you own your home outright, your housing costs will decrease as well. All of this means that 20 million may be more than enough to support yourself in retirement.

    Conclusion

    Retirement planning is a complex process, and there are many myths and mistakes that can trip people up. This blog post looks at some of the most common retirement planning myths and mistakes, including the belief that you don’t need to start saving for retirement until you’re in your 30s, that Social Security will be enough to cover your costs, and that you shouldn’t concern yourself with estate planning. The reality is that retirement planning requires careful consideration and a solid understanding of the various factors involved.

    If you want to ensure a comfortable retirement, it’s important to start early, plan carefully, and avoid making these common mistakes.

  • Poison pills in the business world

    A poison pill is a defensive tactic used by a company to make itself a less lucrative bid as an anti-takeover measure. The poison pill usually takes the form of a clause in the company’s charter that allows shareholders to buy shares at a discount if the company is acquired. The poison pill makes the takeover less attractive to the acquirer because it would have to pay a higher price per share to get control of the company. 

    What is a poison pill defense?

    A poison pill defense is a strategy that intends to prevent hostile takeovers of businesses. The target company or business adopts versatile poison pills to save it from the unwanted control of any business or person.

    History of poison pills in the business?

    The poison pill defense was first used in the 1980s and has been used by several companies since then. 

    Martin Lipton of Wachtell, Lipton, Rosen & Katz introduced the poison pill concept in 1982 as a tool to handle hostile takeovers. Lipton was a mergers and acquisitions lawyer. The poison pill concept became popular during the early 1980s in fighting the wave of takeovers by corporate raiders like T. Boone Pickens and Carl Icahn.

    Some companies have used the poison pill to fend off unwanted takeover attempts, while others have been unable to stop a hostile takeover despite having a poison pill in place.

    What are poison pills called?

    The poison pills are known as the “shareholder rights plans” formally. However, the concept is very common worldwide as a poison pill.

    Criticisms of a poison pill defense

    There are many criticisms of the poison pill defense.

    Some argue that it can be used to entrench management and make it harder for shareholders to hold them accountable.

    Others argue that the poison pill can block takeovers that would benefit shareholders.

    The poison pill defense is a controversial tactic, but several companies have used it successfully to ward off unwanted takeover attempts.

    What is the goal of a poison pill defense? A poison pill defense (also known as a defensive takeover) aims to prevent hostile companies from acquiring your company. For example, suppose your company is publicly-traded. You have control over the voting rights in the case of certain types of the hostile takeover — such as a takeover offer or an acquisition using a proxy (involving an investment bank and/or institutional investors). In that case, you will likely want to provide a poison pill defense. ”

    Why are poison pills used?

    Poison pills are used as a defensive tactic by a company to make itself less attractive to a hostile takeover bid. The poison pill usually takes the form of a clause in the company’s charter that allows shareholders to buy shares at a discount if the company is acquired. The poison pill makes the takeover less attractive to the acquirer because it would have to pay a higher price per share to get control of the company.

    How does a flip-over poison pill work?

    A flip-over poison pill is a type of poison pill that is triggered when a hostile bidder takes control of a portion of the company’s shares. Once the hostile bidder acquires this percentage, the poison pill is activated, and all shareholders can buy shares at a discount.

    This makes the company less attractive to the hostile bidder, as they would have to pay a higher price per share to acquire the company. The poison pill is an effective way to prevent a hostile bidder from acquiring a company. It creates a situation where the hostile bidder must buy shares at a higher price per share than they would have paid if the company did not have this type of protection.

    What is a poison pill price?

    A poison pill price is per share that a hostile bidder would have to pay to acquire a company if a poison pill is in place. The poison pill price is usually set at a higher level than the current market price of the company’s shares, making the company less attractive to a hostile takeover bid. Poison pills are often used to maintain the company’s share price or prevent a hostile takeover that would significantly change the company’s management. They are usually employed when one party attempts to acquire shares in a company, which may create a conflict of interest.

    Is a poison pill good for shareholders?

    There is debate on whether or not poison pills are good for shareholders. Some argue that they can be used to entrench management and make it harder for shareholders to hold them accountable. Others argue that the poison pill can block takeovers that would benefit shareholders. Ultimately, the decision on whether or not a poison pill is good for shareholders depends on the specific circumstances of each case.

    Types of Poison Pill Defenses

    There are different poison pill defenses, each with its strengths and weaknesses. Let’s explore what are they, how they work, and examples.

    Preferred stock plans were used as poison pills before 1984 to prevent a hostile takeover. The company would issue a dividend of preferred stocks to existing shareholders and allow voting rights. It usually made the entry challenging for hostile takeovers.

    The Flip-in poison pill is a strategy used by target companies to discourage hostile takeovers by allowing existing stockholders to buy shares at a discount. The dilution prevents the new buyer from pursuing the deal.

    The target company designs its employee stock-option plans to become effective at a higher price during an unwelcome bid. Thus, the acquiring company would not be able to quote a lower price for the shares. However, if the acquirer is ready to offer a very high price, the Back-end rights plan fails to prevent it. It is usually a process of delaying and hardly succeeds in encountering takeovers.

    Golden handcuffs are incentives for key employees to stay with the company for long. However, they can work as an anti-takeover mechanism. When any hostile bid occurs, the critical staff becomes free from their golden handcuffs. It makes the acquirer less interested in taking over the company.

    Target companies use the Super-voting rights plan to discourage hostile takeovers. When an investor obtains a large share block, preference shareholders get super-voting rights. As a result, the bulk share purchaser gets less voting rights and control over the company.

    The Flip-over poison pill strategy encourages the target company’s shareholders to buy shares at a discounted rate in the acquirer’s company. As a result, it dilutes the acquirer’s company control and makes the takeover quite costly. The most common type of poison pill is the flip-over poison pill. A flip-over poison pill is a type of poison pill that is triggered when a hostile bidder takes control of a portion of the company’s shares. Once the hostile bidder acquires this percentage, the poison pill is activated, and all shareholders can buy shares at a discount. This makes the company less attractive to the hostile bidder, as they would have to pay a higher price per share to acquire the company.

    Another type of poison pill is the poison pill that is triggered when a hostile bidder attempts to replace the company’s management after acquiring a part of the shares. This type of poison pill is designed to make it more difficult for the hostile bidder to take over the company by making it harder to replace the management.

    The white knight poison pill is triggered when a white knight bidder tries to acquire the company. The white knight is typically a friendly company to the target company and is seen as a savior from the hostile bidder. The white knight poison pill allows the target company to sell itself to the white knight at a discount, making it less attractive for the hostile bidder to acquire the company. There are several other poison pills, but these are the three most common.

    Pros and cons of Poison Pills

    There are some advantages and disadvantages to using a poison pill defense.

    Advantages

    One advantage of using a poison pill is that it can give the target company time to find a white knight bidder. A white knight is a friendly company to the target company and is seen as a savior from the hostile bidder. The white knight can help the target company avoid being taken over by the hostile bidder.

    Another advantage of using a poison pill is that it can make the target company less attractive to the hostile bidder. The hostile bidder would have to pay a higher price per share to acquire the company, making the takeover less attractive.

    Disadvantages

    One disadvantage of using a poison pill is that it can entrench management. The poison pill can make it difficult for shareholders to hold the administration accountable.

    Another disadvantage of using a poison pill is that it can block takeovers that would benefit shareholders. The poison pill can make it more difficult for shareholders to sell their shares to the highest bidder.

    Limitations of the Poison Pill Defense: What are the risks and limitations? 

    There are several risks and limitations associated with using a poison pill defense. One risk is that the poison pill can entrench management. The poison pill can make it more difficult for shareholders to hold the administration accountable.

    Another chance is that the poison pill can block takeovers that would benefit shareholders. The poison pill can make it challenging for shareholders to offload shareholdings at the best price.

    Another limitation of the poison pill is that it is only effective if shareholders approve of it. If the shareholders disapprove of the poison pill, the company may be forced to abandon it.

    Finally, the poison pill is only effective if the company has enough cash to buy back the shares at a discounted price. If the company does not have enough cash, the poison pill will not be effective.

    Is the Poison Pill Defense a viable strategy?

    The poison pill defense is a controversial tactic, but several companies have used it successfully to ward off unwanted takeover attempts. The poison pill can make a company less lucrative to any hostile takeover bid. 

    Are Poison pills legal in the real world?

    “The legality of poison pills had been unclear when they were first put to use in the early 1980s. However, the Delaware Supreme Court upheld poison pills as a valid instrument of takeover defense in its 1985 decision in Moran v. Household International, Inc.”

    Poison pills in action

    Let’s find some poison pills use cases in the real world over the last couple of years.

    Papa John’s

    In July 2018, the management of restaurant chain Papa John’s adopted the poison pill to prevent ousted founder John Schnatter from controlling the company. Schnatter owned 30% of the company’s stock. The price would go double if Schnatter and his affiliates acquires a stake in the company to 31%, or if anyone purchased 15% of the common stock without the board’s approval.

    Netflix

    In 2012, Netflix just days after Carl Icahn acquired a 10% stake stipulated that with any new acquisition of 10% or more, any Netflix merger, sales, or transfer of more than half of assets, allows for existing shareholders to get shares for half of the price.

    Twitter

    In the middle of April 2022, the board of Twitter adopted the poison pill by offering existing stockholders the opportunity to buy stocks at discount to prevent Elon Musk from taking control as he hinted to buy at 54.20 a share. With the new provision, stockholders qualify for the discount if anyone buys more than 15% of outstanding shares. Elon already has a 9.1% stake in Twitter.

    Conclusion

    The poison pill defense is a controversial tactic, but it has been used successfully by many companies to ward off unwanted takeover attempts. The poison pill can make a company less attractive to a hostile takeover bid. Do you know about nudges in the business world?

  • Rise Above All 2022 | 33 Success secrets you need to know

    Rise Above All-2022 is the largest public speaking, learning, and motivational platform in Bangladesh organized by Don Sumdany Facilitation & Consultancy. It hosts experts from diversified fields and sectors sharing their route to the top, struggles, inspiration, and aspiration to become a game-changer in their arenas. 

    The legendary successful speakers share their secrets to grow to the top of any area. The secrets are simple and open secrets that pave the way to greatness. We will explore all the tips the guests shared, the success and challenges the program faced and the impacts

    It is a golden opportunity to know their stories of success and failure, how they have come where they are now, and what it takes to stand out of the crowd and be extraordinary among the ordinary.

    Rise Above All-2022

    Rise Above All 2022 was fantastic event with 12 speakers, 12 formal Facebook live streaming, Goodybags with more than two thousand BDT offers, complimentary refreshments (coffee, chips), 28 sponsors, 2,000 audience, 150 volunteers, and wealth/mines of knowledge.

    It is the 6th arrangement; the first one was with 100 participants at EMK Center.

    Reasons to attend the Rise Above All 2022

    It is a rare opportunity in Bangladesh where you can interact with resource persons ranging from VC to State Minister, content creator to corporate leaders. Some of the reasons to attend such glorious programs include but are not limited to:

    1. Networking with industry leaders, entrepreneurs, professionals, potential employers
    2. Entrepreneurial ideas and hacks
    3. Self-employment ideas
    4. Exploring the true potentials in you
    5. Developing self-esteem, motivation, and preparation
    6. Dropping CV
    7. Employment opportunities
    8. Signing up for collaboration
    9. Business and startup ideas
    10. Finding ways to professional excellence
    11. Availing discounts and promotional offers from sponsors and partners
    12. Lifetime great experience
    13. Realistic advice from the experts
    14. Exploring the stories of the legend in the making
    15. Discovering the actual scenario in the world of business, entertainment, music, and other fields
    16. Engaging, exclusively entertaining
    17. Portal to knowledge
    18. Exploring the potentials of Bangladesh and how to utilize them

    Who attended the program?

    The program has wide implications and applications. People from all walks of life have something to relate to and learn. The major participants came from:

    1. Students
    2. Entrepreneurs
    3. Content creators
    4. Media personnel
    5. Service holders
    6. Job seekers
    7. Idea hunters
    8. Trainers
    9. Motivational speakers

    Ticket price: Tickets were available for Walton presents Rise Above All, 2022 online and offline. Ticket Price:

    • Regular price: BDT 1000 per ticket
    • For Early Birds: BDT 800 per ticket ( till 10th March)
    • For Group ( minimum 5 tickets): BDT 700 per ticket

    Sponsors and Partners

    • Title Sponsor: Walton
    • Powered by: Frutika
    • In Association with RTV

    Co-sponsors:

    1. Pulse
    2. Dan Cake
    3. Dabur
    4. Shwapno
    5. Maven Autos
    6. Lovegen

    Sponsor Partners:

    1. Ice-Cream Partner: Polar Ice-cream
    2. Wardrobe Partner: Fit Elegance 
    3. Grooming Partner: Kool
    4. Sanitization Partner: Sepnil
    5. Hospitality Partner: Sheraton
    6. Ecommerce Partner: Walcart 
    7. Career Partner: Kormo jobs 
    8. Apparel Partner: GoodyBro
    9. Photography Partner:
    10. Checkmate 
    11. Personnel Partner: Ikigai HR Service Limited
    12. Live Partner: Dhaka Live
    13. Logistics Partner: eCourier 
    14. Youth Engagement Partner: The Graduates
    15. Refreshment Partner: Nescafe 
    16. Radio Partner: ABC Radio 89.2FM

    Media Partners:

    Organized by: Don Sumdany Facilitation & Consultancy

    Lifetime Achievement Award 2022

    Every ‘Rise Above All’ event honors a business legend with a “Lifetime achievement award.” In 2022, this award goes to the most honorable, Sufi Mohammed Mizanur Rahman, the founder and chairman of the Bangladeshi successful conglomerate PHP Group of Industries. He is also the receiver of the country’s second-highest civilian honor, the Ekushey Padak (2020).

    Guests and Speakers

    1. Keynote Speaker: Nasrul Hamid, State Minister of Power, Energy, and Mineral Resources
    2. Vote of Thanks: Golam Murshed, Managing Director and CEO, Walton Hi-tech Industries

    Speakers in appearing order:

    1. Yasir Azman, CEO, Grameenphone Ltd. 
    2. Syed Alamgir, Managing Director, and CEO, Akij Ventures Limited
    3. Ayman Sadiq, Founder, and CEO, 10 Minute School
    4. Syed Ashik Rahman, CEO, RTV
    5. Raba Khan, Content Creator
    6. Iftekhar Rafsan, Content Creator
    7. Rubana Huq, Vice-Chancellor, Asian University for Women 
    8. Manish Chauhan, Co-Founder, Noize Jeans  & LoveGen
    9. Siam Ahmed, Actor
    10. Rubaba Dowla, Country Managing Director, Oracle Bangladesh

    Don Sumdany

    Don Sumdany opens the curtains with all necessary information, opportunities, and schedules. It was great that he presented his parents, spouse, and the prettiest 3-year old daughter. The key program points he briefed:

    • The best line of 12 speakers from a variety of sectors
    • 12 Facebook lives formally and many more informally
    • Goody bags with more than Tk. two thousand +offers
    • Free coffee and chips 
    • 28 Sponsors 
    • 2000 Audience 
    • 150 Volunteers  

    He thanked the audience for attending a place for networking instead of visiting tourist spots on this 3-day vacation.

    After ice-breaking sessions with Hi-five, message, chopping, and a bit of fun with dance, he explained the struggles to arrange such a program. Unavailability of the Sportstars and the 90% decline from the clients for the show were presented. 

    • 1. Success stories is rejection stories, 
    • 2. Be persistent 
    • 3. Improving you constantly (you can not manage such programs tomorrow, be always the better version of yourself, dreaming of bringing Arnold Schwarzenegger, Barack Obama)
    • 4. Select the proper association with the value-adding ecosystem, network, friends, mentors. Your association should be better than you, not necessarily in terms of money.
    • 5. Stop making wrong comparisons (Do not disappoint with social media Success)
    • 6. Magic happens outside the comfort zones. Do things out of the box
    • 7. Success is our duty, responsibilities; no way to miss it
    • 8. Love the work you do as a sport

    Robin Sharma, “If you are the first runner, you are on the wrong track.”

    Work so hard that you are a speaker in the ‘Rise Above All’ one day.

    Yasir Azman, CEO, Grameenphone Ltd

    Yasir Azman is a rare person to lead an MNC in Bangladesh. 

    Asked and listed about what to listen to him (Audience: success, struggle, love, humble story, daily activities, rejection, song) 

    He shares stories about his parents’ Doctor demand(however, he married a doctor), missing IBA after HSC in 1992, resorted to Abu Dhar Gifari College, B.Com, and finally completed MBA from IBA. Success formula he shares: 

    • Purpose, 
    • Passion, 
    • Hard work(together interrelated, magic happens, all possibilities in everyone) 

    Achieve special skills to reach your goals with passions Power of people essential 

    After IBA AMZ Grindlays 2010, he joined Ulenor(Udissa, India) to work on the least performing state and improve. 

    In Karnataka, after losing their license, he Secured 500 employees’ jobs first before his job application invited competition CEOs to recruit.

    To lead a society corporation, your must-have qualities are:

    • Honesty and Transparency: Leaders’ sustainable growth must require honesty, ethics, and transparency.
    • Empathy for people(Don’t put a devil shadow with a starship attitude) 
    • Constant learning(learn from juniors with respect) 
    • Result-oriented: Performance matters a lot.
    • Feedback Reward(reward and celebrate) cocreations, talking to every stakeholder’s Diversity Each can(believing)

    Q-A: Ethical leadership ensures sustainability, Firing employees happens, and the issue is how honorably, empathy and result-orientation do not clash as the result-oriented target is set not to fire but to align goals with proper logistics

    Syed Alamgir, MD, and CEO, Akij Ventures Limited

    Happy to share experience disruptive marketing strategies.

    Honors from Science Faculty, in Chemistry, MBA(IBA 6th batch) 

    What to share: struggles, lessons, failure stories

    Halal concept, a man with success magic Taking risks Disruptive Halal(soap hahaha), US(Halal corner in McDonald’s), Malaysia, BD Govt(Halal certification by BSTI), govt. officials, Shariah scholars Struggle: MBA(IBA-6th batch) 

    1. Sanofi Aventis(British Pharmaceutical16 years)

    2. Jamuna Group of Companies as Group Marketing Director(6-7 years)

    Agrabad in CTG friends informed none knew, Nurul Islam Babul offered incredibly, Challenging to join local leaving MNC, US retuned as everything is done ownself, worked on shoes to compete Bata to be no. two(Pegasus sneakers and keds), to support RMG’s first knitting, dyeing, and finishing of Jamuna

    Aromatic Cosmetics

    3. ACI as Executive Director and became Managing Director of consumer brands and introduced ACI Salt, ACI Flours, ACI Foods, Joint-ventures Dabor, Tata, Godrej, etc. 

    4. Akij Ventures Akij Dairy, Akij Foods and Beverage

    The Fantastic spray is in place.

    Akij Healthcare and Hygiene is coming soon

    Focus on local products. 

    Unilever MD in Sheraton thanked for international quality and similar pricing strategy; Lux soap need not be contested as your mom and his first wash with it. What foreigners can, we can too as for examples in soap (noodles, glycerine, perfume- soap manufacturers outsource all three and machine) 

    Noodles, rice less foam, animal cheap, Vegetable pricey, better foam, and no scent. Outsourced great at a higher price and waited for London restaurant(beef 100% halal-concept originated, even wife first called traveling India thought me mad as they thought soap is not eaten).

    Most IBA friends declined except one, Ruhul Amin, persuaded to establish own venture as it will succeed). 

    Then proceeded and published all soaps haram, suspense came, 300 trainees were very eager with the speech.

    2013, Kotler Foundation confirmed the concept had been included in the book Principles of Marketing(Page 67), and later, when Philip Kotler visited Bangladesh, he handed over the printed book.

    Initiated unlimited brands and the success rate is impressive.

    In ACI, two products(Savlon and Aerosol, joined 8 crores turnover, left 3,000 crores turnover, recruited 7,000 staffs, 9 awards from brand forums last year, ACI salt 13 crores packs) How to do such unbelievable? Firm believers (IBA best student) 

    ACI salts 11 crore loss in 5 years, then researched and declares ACI salt develop merits (great response and success). 

    Why Akij? It provides the best products with quality and innovative products from all ten sons; ten groups. 13 companies registered so far.

    Q-A: Customer satisfaction and retention strategy: The Best way to customer retention is finding with research and feedback that your products are in demand to customers and helpful to them.

    Tips:

    1. Adaptability and understanding (Dealing with medicine but leads electric items in Jamuna)
    2. Painstakingly hard work 
    3. Disruptive marketing( Halal soap, salt helps brain development)

    Syed Ashik Rahman, CEO, RTV

    Syed Ashikur Rahman has been with RTV since 2010 and contributed to RTV to reach new heights. RTV is one of the most popular Bangladeshi satellite and cable television channels owned by Bengal Media Corporation. Mr.Ashik shares his personal experience regarding his journey in the media platform and will be giving tips for a career in media.

    With inspiration from my mother, tuition started from school life and continued that helped me in leadership and self-study. After going abroad, I felt homesick and hardly missed any opportunities and vacations. Always felt like doing something for the country.

    RTV has worked on digitization since 2009, with many requests from the USA to manage their channels online.

    When the offer came for work in media back in 2004, one of the founders of Banglavision was profitable for the first time in Bangladesh with proper planning.

    He contributed a lot in accounting, marketing, software, award program, business talks. 

    Q-A: Why do we lag behind Indian channels?

    India is a country with huge people, and still many of them follow us. So during corona, we arranged folk song competitions with mobile. We have been able to impose ads from abroad. So we are highly qualified to compete in India. Our channels are unbeatable for dramas.

    Bangladesh suffers from R&D in the media industry. This is because the media deals with the smartest people and makes heroes easily and shortly. Skilled people are short in the industry.

    What are tips for youngsters loving the media profession?

    Be with time, beat the time with tech knowledge.

    What is the future for journalism students?

    Do not expect money first; quality will draw media to you. 

    Few suggestions:

    • Planning
    • Dedication (dedication to work makes CEO in RTV at 32 only)
    • Discipline
    • Keep trying
    • Learn and apply science (Fantasy fails in most of the cases)

    Ayman Sadiq, Founder, and CEO, 10 Minute School

    The 10-minute school guy Ayman Sadiq shares his versatile experiences and focuses on a Social media masterclass considering the demography of the audience-mostly students. Social media marketing skill may be an excellent skill for students to 

    Two factors play vital roles to increase the organic reach in facebook-User-generated content (UGC) and content multiplier

    1. User-generated content-UGC 

    A. Creating group perform better as the people also contribute the content creation ( page and group simultaneously) 

    B. Uploading notes(handwritten) from group people with few hundreds/thousands of shares

    C. Distribute to all platforms(blogs, books, scrapping audio-podcasts, quotes from video(multiplication by your team). It multiplies automatically and regularly.

    Mobile itself does the best jobs(Inshot, Canva) Content>Upload>Distribution Comments, special notes, pinning the first comment, special notes. 

    FB: 

    Share videos you can crosspost(vital point), repost, not reshare. Relevant videos in comment Instagram: Link on Bio Stories highlight- link Soundcloud: Distributing Hacks: Screenshot of most viewed videos 

    Why do you need: 

    1. Branding organizations/brands 

    2. Branding you Referal in hiring from FB and Linkedin 

    How are you branded? (what are the three words about you) 

    Implement the hacks today to be in use. 

    “We only suffer inner memory and imagination.”

    Raba Khan, Content Creator

    Facebook: 1.4 million subscribers

    Instagram: 0.5 million

    Raba Khan is Bangladesh’s famous social media content creator, singer, RJ, etc. She was enlisted in Forbes’s ’30 under 30-Asia’ in 2020. 

    She shared the story behind her glorious success and the struggles behind that.

    She expressed her confusion about what to discuss. She is a young lady Loving Toktoks, dramas, stories. Then started her own story: 

    Very loving family with freedom unlimited 

    It’s challenging when family supports you 

    First income from Mehendi in twelve grade 

    I was urged to prove to the family as well as money love, a bit arrogant Creative family (cultural too), extracurricular always, the family got shocked as students taking photos during O-level 

    Negativity can not touch me as she is associated with many positive people. 

    At 14 before O level, I started Relatives reacted negatively as media Radio RJ( as 16, TJ) 

    Five suggestions she leaves:

    • 1. Focus(experiment everything, writing, video, radio, singing, recent album মুহূর্ত) so, choose many and find what works, in real life, she is not relatable, she can monetize her time 
    • 2. Make sure that you do not work excessively 
    • 3. Ensure your mental health first( during starting, didn’t get directed) do what you are contented with 
    • 4. Love and understand you( benefits from interviews, reality shows) 
    • 5. Never talk bad about yourself in front of people (people may take advantage, one school friend took it)

    Rafsan, Content Creator

    Social media Statistics:

    YouTube: 1.0 million subscribers

    Facebook: 2.4 million subscribers

    Lots of Youtube watching

    Introvert

    Studied in IUB

    Real in life Weight 125 kg, without merit, making videos for others(, Ekramul friend encouraged me to make videos on foods before Burger King.

    • Be out of comfort zones(Life begins out of comfort zones). The First video in 2017(friends- garbage) didn’t stop.
    • Be what your passion leads. 
    • One key is common to leaders( speakers on the rise, too) consistency 
    • Teamwork matters(previously one in two months, now productive and motivated) 
    • People need not demean others as it affects personal life. 

    Q: How to avoid demotivation?

    Playing games

    Rubana Huq, Vice-Chancellor, Asian University for Women VC-Asian University for Women

    A lady with versatile experiences and exposures is Rubana Huq who was the first female president of BGMEA

    Don is a hopeful man; address him as a son(beta). 

    • Need to be humble enough
    • All is possible from my part and your part too; you must have courage and family support (as Don brings parents) 
    • Age always has wisdom.
    • Works in pleasure and in bad times thanks Allah as a believer(sleep at 2 am after lots of painstaking hard work
    • Believe in you and Don’t waste time with the shedding of tears, 
    • be strong-minded Dream of AUW 70 students from garments, 18 graduates; they are going to be entrepreneurs 
    • No dream dies for money University I could not for manage accommodation fee $12000(scholarship managed) NYU(Lubna Marium- Dancer, wife of Sufi vai, needed not money but inspired, ), now I am faculty, Fellow of Harvard
    • Be the man to be supportive as supports matter
    • Light by yourself walk with all.
    • Rise Above All should be above biases- request for Rise With All), who are you leaving, why, all-inclusive, not engaging, must be meaningful, impact, keep all with you-it does not define you Lots of millionaires but no Tata, Birla. 

    “Failure is deliberate”-Rezwana Hasan Bela- you are a victorious generation. 

    How BD can be Asian +1 is underway.

    Manish Chauhan, Co-Founder, Noize Jeans  & LoveGen

    Interestingly, Angshika Chauhan, daughter of Manish Chauhan had a presence who can sing songs in 5 languages. Don took the chance and two songs touched the hearts of the audience.

    Indian by birth, Bangladeshi by heart

    Very ordinary to relate( Was disorganized, lazy Punctual, disciplined, At 4/5, jumped, slapped thrice, thought and discovered skipping Don’t jump

    Don’t repeat the mistake

    Analyse the causes of issues 3 km to save 10 rupees( walking together, try to make pressures to pleasures) find pleasures in work Create a team(success comes from people)

    befriended with topper guy to know how he topped, You can associate with right people what you can not do well

    People in hostels were textile, ideas surrounding was textile, 

    try to be a good absorber- sponge Knowledge matters, not academics (electronic engineering serving in all posts in textile) Extraordinary in the job( spinning mill supervisor with 1600 rupees)

    Most workers come and go to save jobs 

    Do something that differentiates you, in six years to topmost post-2003 from 1997 heading 4000 people(doing projects, not jobs). The textile sector considers my case study.

    2003, in BD at 20,000, marketing yarn, USP(Unique Selling Proposition), study what existing and discovered amazing, 

    • Cut the competition
    • Reduce the queue by differentiated products

    In 2009, business career first business with a partner 

    In 2011, zero with $500 bank balance, worked as spring to jump(to absorb failures), Anurag supported, maintain relations, problems reduce, 1+1 becomes 11, be selfish(happy) to make and help be happy 

    The first production 2015 in BD 36000 to 3 mil in 2019, yearly 40-50% growth, targeting to be the largest by 2025, Training lots of freshers, 

    Fashion denim was by Turkish and Italian; we bet and succeeded.

    Lovegen is in association with Don for the local retail brand globally, community to involve people. 

    Biggest 5 tips to succeed:

    • 1. Sponge knowledge
    • 2. Spring 
    • 3. People’s guy 
    • 4. Be Successful
    • 5. Knowledge

    Siam Ahmed, Actor

    When approached, found me unfit as we disclosed all in interviews. 

    1. Never give up
    2. Explore but never take negative parts from social media
    3. Focus (as I reverted me in London and secured 89.50% marks best in 40 years)
    4. You can not satisfy all (one of my course teachers still marked me 61% as he was enemy to gents, my family demeaned me as taking acting as a career after studies, going to be a first-class citizen)
    5. Make sure that you are happy first before making family and others happy

    Rubaba Dowla, Country Managing Director, Oracle Bangladesh

    Rubaba thanks the organizers and the vibrant audience. She explains why her journey, corporate life, and struggles are not getting priority as they are available online from previous sessions. She instead shares 10 Rules of being the best version of yourself with the practical orientation from her personal and corporate life.

    1. Rule#1 Love yourself
    2. Rule#2 Love what you do
    3. Rule#3 Do not compromise (Especially for women)
    4. Rule#4 Create your own path
    5. Rule#5 Embrace failure
    6. Rule#6 Be a lifelong learner(Every day I ask what new I learned)
    7. Rule#7 Give wings to your dreams
    8. Rule#8 Be bold(confidence, fearless-limitless, be brave when you need to say yes or no, raise your voice to be heard for you and who do not raise voice)
    9. Rule#9 Surround yourself with positive people
    10. Rule#10 Do not forget your roots

    Nasrul Hamid, State Minister of Power, Energy, and Mineral Resources

    The keynote speaker presented some practical and futuristic aspects that showcase how Bangladesh advanced and how young people are prioritized. He focuses on three topics:

    1. Why you should bet on Bangladesh
    2. The government listens to the youth
    3. Lessons for the future

    One of the biggest ministries where the prime minister is the minister, ADB budget around BDT 30,000 crore, investment portfolio around $24 billion, 26 institutions, all big investments. It is no. 1 in ADB, APR with a fantastic team. The ministry moves with the political mandate from the prime minister to ensure 100% electricity by 2021.

    Digital Bangladesh and 100% electricity by 2021, Developing by 2026, Upper middle income by 2031, Developed by 2041, Delta plan for 2100.

    Bangladesh is the rarest country with the provision for electricity in the constitution, 100% electricity declaration, 100 years plan.

    The visionary father of the nation bought 4 gas fields for $4 million in 1975 on 9th August. Politicians rule the country as they foresee, he risked and we still benefit.

    1. A Detailed Masterplan in 2010 and revision every 5 years for electricity
    2. Tremendous development in gender equality
    3. Electricity supply uninterrupted
    4. Financial inclusion
    5. Freelancer growth
    6. Rooppur 13b
    7. Rampal 5b
    8. Moheshkhali LNG
    9. Matarbari powerplant 7b
    10. Padma Bridge 3.6b
    11. Express train
    12. Karnaphuli Tunnel
    13. Elevated expressways
    14. 100 EPZs

    Most of the big projects are going to be visible in the next 5 years. Remote southern sides are getting in touch.

    Many projects are being ready before the scheduled time and saving funds.

    March 21, 2022, is a milestone as 100% electrification declaration by prime minister Sheikh Hasina in a physical presence for any such occasion since corona lockdown.

    The government listens to the youth

    1. Mobile phone adoption
    2. 150 public and private universities
    3. Freelancer ID cards to more than 5 lacs
    4. Startup program through BHTPA
    5. 5G network
    6. National fibre backbone
    https://www.youtube.com/watch?v=llKVYS6u7Wk

    The 5 skills for a future career include:

    1. Design thingking/ Structured thinking
    2. Strategic Research and research methodology
    3. S-T-E-M Education
    4. Business communication
    5. Financial management and scaleup

    Golam Murshed, MD and CEO, Walton Hi-tech Industries

    Golam Murshed had the opportunity to make fun as the audience decreased. Expressed his urge for missing the crowd and the sessions of all the speakers. However, he felt good with the organic audience and requested honorarium raise for the guests.

    Then, shared the case study with Joshua Bell by the Washington Post. There Bell earned only 30-40 Dollars with his violin show without notice on a subway. People hardly knew and listened to him. The reasons

    1. Behavior: Home goers are not so much interested.
    2. Beauty
    3. Judgment: People were did not feel interested
    4. Perception: People were not aware that he was Bell

    Then comes the realistic experiences he shares:

    • Motivation does not work if you do not change your thought process
    • People comment/throw many unnecessary issues
    • A blend of both aged and young people are important for organizational advancement
    • Dream with young but utilize the experienced officials ( Relay race needs both past and next runners)
    • Age of our dreams is around 60 years and they change constantly with the contexts
    • We are running for the 30 years with the relay sticks as the responsibilities to give someone who will then run.
    • Responsibilities come automatically and we must deal with. As the birth place, parents can not be avoided, so the responsibilities. Love yourself and your responsibilities to organization, family, society, country
    • We may talk some from our experiences, not motivational speech
    • We usually forget the country branding (though leader, money, position thought as successful)
    • Do not follow someone blindly, take some applicable lessons
    • No thumb rules for life as it varies from person to person.
    • Love what you do and do what you love
    • When you feel best at your status quo, you are living dead as it hiders from creating, risking ang going out of comfort zones.
    • An early riser from the childhood to manage schools and coachings.
    • Never miss the breakfast
    • All of you are unique and capable of growing
    • Unicorn may come next year to boost startups

    Shares the story of learning speaking with Ayman Sadiq and fake pupils and claps.

    33 Practical success secrets revealed

    Here is the list of 33 Practical success secrets the legendary speakers revealed in their speeches. These are very easy-to-follow tips and tricks they shared from their long experience.

    1. Success stories is rejection stories, embrace failure, be a spring to come back after failure, rejections and stumbles, take risks
    2. Be persistent and consistent
    3. Be a sponge to absorb knowledge, improve you constantly, learn from juniors with respect, adaptability and understanding matter heavily
    4. Select the proper association with the value-adding ecosystem, network, friends, mentors. Surround yourself with positive people
    5. Stop making wrong comparisons (Do not disappoint with social media Success, glamor, criticism, explore but never take negative parts from social media)
    6. Magic happens outside the comfort zones. Think and do things out of the box.
    7. Success is our duty, responsibility; no way to avoid it
    8. Honesty and Transparency: Leaders’ sustainable growth must require honesty, ethics, and transparency.
    9. Empathy for people (Don’t put a devil shadow with a starship attitude, be a people’s guy, be humble enough) 
    10. Painstakingly hard work 
    11. As a content creator, take benefits of the User-generated content-UGC and Content multiplication
    12. Branding you and your organizations matters a lot
    13. Focus but do not forget to experiment everything (writing, video, radio, singing, choose many and find what works)
    14. Monetize your time , be what your passion leads. 
    15. Love and understand you ( benefits from interviews, reality shows) 
    16. Disruptive marketing strategies may make you hero quickly
    17. Teamwork matters(productive and motivated) 
    18. Works in pleasure and in bad times thank Allah as a believer
    19. Believe in you and Don’t waste time with the shedding of tears, be strong-minded, you must need courage and family support
    20. No dream dies for money
    21. Rise Above All biases, think all-inclusive, be not only engaging but also meaningful and impactful
    22. Cut the competition, reduce the queue by differentiated products and services
    23. Never give up
    24. You can not satisfy all
    25. Do not compromise (Especially for women)
    26. Create your own path
    27. Give wings to your dreams, dream big that keeps you moving
    28. Be bold(confidence, fearless-limitless, be brave when you need to say yes or no, raise your voice to be heard for you and who do not raise voice)Surround yourself with positive people
    29. Politicians rules the country as they can foresee and take risks
    30. You should bet on Bangladesh, the future of Bangladesh is full of potentials
    31. The government listens to the youth
    32. Responsibilities come automatically and we must deal with. As the birth place, parents can not be avoided, so the responsibilities. Love yourself and your responsibilities to organization, family, society, country
    33. A blend of both aged and young people are important for organizational advancement, age has wisdom, sit whenever any aged/sick come

    Rise above all 2022 success

    Managing the speakers

    Managing so many leading speakers from versatile industries is really a matter of great success, Don managed it rightly. However, the success stories are rejection stories as he discussed that the speaker management made him suffer a lot.

    Managing the sponsors

    As Bangladesh is not a place to spend money on mentorship, getting funds for the program was not a matter of joke. The sponsors showed their trust in Don and sponsored the largest learning event in Bangladesh.

    Managing the partners

    Arranging a successful program with more than 2,000 audiences is never so easy, it takes efforts from various parties. Partnering with the relevant stakeholders is very vital and managed well.

    Managing the audience

    A houseful audience looks and feels good but the hectic and creative steps behind the scene matter a lot. Managing such a big audience requires the marketing expertise of the hosts.

    So big dreams

    The vibrant young audience with whole-hearted shout proved that they found their dreams with the motivational leaders. Many of the going to be entrepreneurs were happy to see and interact with the business leaders with tremendous success.

    Rise above all 2022 challenges

    The learning event was a huge success in almost all aspects. However, it suffered from many challenges that could easily be avoided with a good event management strategy. These are not the blames to the hosts, the issues are raised to help them excel in those areas later on. The areas to develop include:

    Time management

    The program was expected to start at 10.00 am but started around an hour late. Similarly, it ended around 2 hours at 9.30 pm.

    No instruction

    The audience suffered from the lack of detailed instructions. It created a haphazard situation.

    Ticket Management

    Ticket management was a mess, especially for the online ticket collectors. They did not get any physical ticket though they had to queue for registration. Registration for them was repeated as all the data were available online and the hosts could collect the details with some clicks.

    Goody bags distribution

    Goody bags could not reach each participant ( online ticket collectors were more prone to miss). As it was a paid session with advance tickets, it was not expected to fall short of the goody bags.

    Microphone management

    As an open question-answer session, microphones were very critical to reach all areas properly but their availability suffered a lot.

    Too uncomfortable

    The Thai massage and chopping therapy may be too much uncomfortable for the audience with opposite gender counterparts. Many of the participants avoided the steps and that led to later avoidance of instructions from the organizers.

    Wrap up

    The 6th episode of the Rise Above All 2022 was a milestone and largest motivational learning and speaking session in Bangladesh. Don Sumdany Facilitation & Consultancy arranged such a unique event to bridge the industry leaders and newbies. The expert opinions, candid experience, practical tips, industry best practices, and many more value-adding aspects got revealed to ease the way ahead. The program was a great success with enormous motivation and lots of dreams for the audience. Waiting for the next episode of the rise above all (rise with all).

  • PGDCM Graduates awarded certificates | All about BICM you need to know

    Bangladesh Institute of Capital Market (BICM) is a leading think tank working in capital market research, education, and policy advocacy. It is the first and only institution in Bangladesh that focuses exclusively on capital market issues. The institute offers diploma, certificate, and executive training programs in capital market subjects. It has also conducted numerous research studies on various aspects of the capital market. It is an affiliated institution under the University of Dhaka.

    Certificate Award Ceremony 2022

    The Bangladesh Institute of Capital Market (BICM) awards certificates to its 89 Postgraduate Diploma in Capital Market Program (PGDCM) Graduates from its 6th to 17th evening and a few day batches. On March 5, 2022, it was a great program at the BICM the multipurpose hall room in Dhaka. The article will lead you to all about BICM with the programs and courses it offers for the sustainable development of the capital market and the economy of Bangladesh.

    All the officials and faculty members of BICM were present there, along with its Executive President, Professor Dr. Mahmuda Akter as the hosts.

    The guests and resource persons

    Chief Guest: Mr. Sheikh Mohammad Salim Uddin, Secretary, FID, MoF

    Special Guests:

    1. Professor Dr. Muhammad Abdul Moyeen, Dean, Faculty of Business Studies, University of Dhaka, and Director, BICM
    2. Professor Dr. Shaikh Shamsuddin Ahmed, Commissioner BSEC and Director, BICM

    Event Chair: Professor Dr. A.S.M. Maksud Kamal, Pro-VC(Academic), University of Dhaka

    Other guests

    1. Dr. Osman Imam, Professor, Department of Finance, University of Dhaka
    2. Mr. Kamaluzzaman, former Commissioner, BSEC
    3. Md. Saifur Rahman, Executive Director, Bangladesh Securities and Exchange Commission (BSEC), was also present.

    Md. Saifur Rahman is an Adjunct/Part-time faculty member and a very favorite personality to students for his practical orientations to capital market-related rules and regulations.

    With the live anchoring of Assistant Professor Md Habibullah, ACCA, and active participation of the students, it was a program that will be evergreen in participants’ memory.

    https://youtu.be/1aYW9Axez4Q

    The Certificate Award Ceremony was followed by dinner at the institute.

    Issues addressed by the guests

    Executive President Professor Dr. Mahmuda Akter presents all the developmental and proactive efforts BICM has been taking over the years to uphold the capital market in Bangladesh. 

    Professor Dr. Shaikh Shamsuddin Ahmed, Commissioner BSEC and Director, BICM, addresses the following aspects:

    1. PGDCM is the core and flagship program by BICM
    2. Gain knowledge before investing in stock market
    3. Special programs ensure employment with specific skills.
    4. Mid and Higher managerial support possible with specialized knowledge
    5. BICM to focus more on practical aspects
    6. There are fewer resource persons to present informative dialogues on war, inflation, and SWIFT communications.
    7. Proper knowledge drives away rumors.
    8. BICM to focus on learning/uses of tech in the capital market(T+1, blockchain)
    9. BSEC is always cooperative with BICM
    10. Facilitating the financially poor students get intellectually rich.

    Mr. Sheikh Mohammad Salim Uddin, Secretary, FID, MoF addresses the following aspects:

    1. Seasonal beauties and the pacing of people with natural changes
    2. Money keeps people unstable
    3. Capital market is like a flying bird or running horse.
    4. Graduates are to dedicate themselves to the sector.
    5. Graduates will play vital roles for the roads to SDG, Developed nation.
    6. Demographic dividends of Bangladesh to harvest with skills and dedications.

    Professor Dr. A.S.M. Maksud Kamal, Pro-VC(Academic), University of Dhaka addresses the following aspects:

    1. Declares graduation
    2. Congrats on hard-earned certificates
    3. Emphasizes using knowledge for making a difference
    4. Knowledge is for value addition
    5. Learning adds value only when applies practically for personal, social, national, or even international great causes.
    6. Hails the roles of BICM in research, analytics, and capacity building
    7. High salaried managers come from local people
    8. Warns of avoiding the demographic trap of Srilanka by acquiring and applying knowledge
    9. Sustainable development bases on training, knowledge, and capacity

    The program got coverage in various print media and channels including the Business Standard, The Daily Star, . Capital market-related resource persons, regulators, academicians, and media personalities attended the program to give it a great vibe.

    Two graduates shared their experiences and expectations during the course and after completion. They lauded the impacts BICM has on them. Their career paths have been reported to be smoother than earlier.

    Wajid Hasan Shah, Director (Studies), BICM presented a vote of thanks to conclude the program.

    All about BICM

    BICM is Bangladesh’s first and only fully-fledged capital market institute. It is the institution for spreading education imparting training on the capital market. It was established on July 24, 2008. The Government of Bangladesh fully funds the institute. The Government approved the organogram of the IInstitutein 2010 and the compensation structure for the IInstitutein 2013. The policy direction of the IInstituteis given by a Board of Directors chaired by the Chairman, BSEC, and members are representing stakeholders, like Academicians, Exchanges, market intermediaries, and professional bodies. BICM offers diplomas, certificates, and executive courses in capital market subjects to develop skilled human resources for the country’s capital market. The institute also researches versatile branches of the capital market.

    BICM is the first and only Institute in Bangladesh that provides capital market education. It offers Certificate, Diploma, and Advance Diploma courses in Capital Market. In addition, BICM also provides training on various aspects of the capital market for the employees of different organizations.

    The main objectives of BICM are to promote institutional development and build human resources in the capital market. 

    The institute offers many courses, including a six-month diploma course, covering all aspects of the capital market. It also conducts short-term courses on specific topics, such as initial public offerings (IPOs), mutual funds, and derivatives. In addition, BICM publishes a quarterly magazine, “Capital Market Review,” which contains articles on current issues and developments in the capital market. 

    The institute has a well-equipped library that contains a wide range of books, journals, and magazines on the capital market.

    The courses are designed to provide participants with the skills required to work in these industries. In addition, the institute also conducts research on various aspects of the capital market.

    The BICM has several advantages over other institutes:

    1. It is the only institute that offers diploma courses in the capital market. It gives participants a competitive advantage when seeking jobs in these industries.
    2. The institute researches various aspects of the capital market, which helps improve the market’s functioning.
    3. The institute has a well-equipped lab for faculties and participants to practice their skills.
    4. A library with versatile books is an excellent source of study and research.

    Some aspects of BICM

    BICM is a research and training institute for the capital market in Bangladesh. The institute offers training programs for securities professionals, research capital market issues, and provides technical assistance to Bangladesh’s Securities and Exchange Commission. The University of Dhaka accredits the iInstitute’sMaster’s program. The BICM has been instrumental in developing the capital market in Bangladesh and helping it grow into one of the most vibrant markets in South Asia.

    Certification courses

    Postgraduate Diploma in Capital Market Program (PGDM)

    BICM offers its flagship diploma named Postgraduate Diploma in Capital Market (PGDCM) for market intermediaries, professionals, and graduates pursuing a career in the capital market. The program blends theory and practice on the capital market, instruments, techniques, and regulations. The program consists of 8 courses of 24 credit hours, in 9 months costing BDT 33,000. The program was a 1-year, 13 courses including internship and 36 credits costing BDT 47,000. Till now, 17 batches of this flagship Program have started.

    MAFCM

    MASTER OF APPLIED FINANCE AND CAPITAL MARKET (MAFCM) is a 2-year, 51 credits program that provides an in-depth understanding of financial markets. The program offers a unique blend of courses in finance, accounting, and economics which prepares students for careers in the financial industry. BICM offers the program in affiliation with the University of Dhaka.

    The MAFCM is a comprehensive and rigorous program that provides students with the knowledge and skills to work in finance, the stock market, and related sectors. The program covers various topics, including financial analysis, investment banking, portfolio management, and risk management. Students also gain practical experience through hands-on training in financial markets. The MAFCM is designed for students who want to pursue a finance or capital markets career.
    It is the first of its kind and only Master’s Program on Applied Finance and Capital Market in Bangladesh.

    Why MAFCM

    MAFCM program, students are expected to: 

    1. evaluate the use of relevant concepts in making financial decisions
    2. process financial information and problems 
    3. comply legal aspects in the capital market of Bangladesh 
    4. mastering ethical aspects
    5. understand new products and techniques 
    6. know financial services with the latest innovations 
    7. utilize Fintech applications
    8. ascertain valuations
    9. explain the role of different actors in sustainable finance and capital market

    Certificate Courses for Professionals

    BICM offers certificate courses on various aspects of capital markets designed for professionals, regulators, market intermediaries, and sector stakeholders. The courses cater to individuals with different levels of knowledge, from basics to advanced. Some of the areas covered in the courses include securities laws, capital raising and investment in the primary market, fixed income securities, mutual funds, financial statements analysis, understanding IAS and IFRS, corporate governance, insider trading, fraud and market manipulation, examination of the prospectus, and financial econometrics.

    Investor Education Program

    BICM conducts a regular investment literacy program free of cost for investors on the basics of the capital market investment. Recently, the BICM has started to offer the program online, which allows learners and trainers to communicate in real-time and interactively from various geographical locations.

    Customized Programs

    BICM also arranges a range of customized certificate programs for officials of BSEC, FID, BMDF, and many more. In addition, the institute has also offered programs for different stakeholders, e.g., journalists, women entrepreneurs, and university students.

    Workshops and Seminars

    The institute offers workshops and seminars as part of its Continuous Professional Development Program. These workshops and seminars cover contemporary developments in the capital market, regulatory issues, product structures, and more. Additionally, the institute offers seminars on investor protection, good governance, and other sustainable economic and capital market development topics.

    Exposure Visits

    The institute arranges exposure visit programs to international stock exchanges so that students can exchange knowledge, learn about advanced products, and observe operational mechanisms.

    Infrastructural Facilities

    The institute offers training, research, workshop, an enriched library, a multipurpose hall, classrooms, and lab facilities.

    Inter-University Capital Market Case Competition

    BICM has arranged Invest Maestros for the different public and private universities participating in this competition to disseminate capital market knowledge among University students.

    Collaboration

    ACCA

    Delegates of ACCA Bangladesh visit BICM for potential collaboration like joint training, certifications for the CPD of ACCA members, and other finance & accounting professionals.

    ICAB

    ICAB President Mahmudul Hasan Khusru FCA, and Prof. Dr. Mahmuda Akter, Executive President, BICM, signed a Memorandum of Understanding (MoU) on December 23, 2021) at the Council Hall of CA Bhaban in Dhaka.

    The objective of the MoU include:

    • Conducting research
    • Organizing webinars, seminars, training programs, workshops jointly
    • Collaboration for accounting, financial reporting, and auditing
    • Providing professional training in accounting, auditing, taxation, corporate governance, financial market, corporate laws, and relevant subjects.

    Why to choose BICM

    BICM) is the first and only institute in Bangladesh that offers specialized education on the capital market. BICM has been imparting theoretical and practical knowledge on the capital market since its inception.

    Affordable Fees: The cost of studying at the institute is cheaper than other higher education institutions in the country. The fees are designed to be affordable for students from all backgrounds, ensuring that everyone has an opportunity to learn about and participate in the capital markets. Additionally, the institute offers scholarships and financial aid to help students.

    Exceptional Faculty: The Exceptional Faculty in Bangladesh Institute of Capital Market comprises experienced professionals who have worked in the capital market for many years. They are incredibly knowledgeable in their field and provide valuable insights to students. Furthermore, they are always willing to help students with their studies and career planning. The faculty at the institute is truly exceptional and sets a high standard for teaching and learning.

    Diverse Course Offerings: Bangladesh Institute of Capital Market (BICM) offers a diverse range of courses to cater to the students’ needs. The courses are designed in a way that can help the students to understand the capital market and its functioning. The curriculum keeps pace with the current trend in the capital market. Moreover, different workshops and seminars are also arranged by BICM to provide more practical knowledge about the capital market.

    A welcoming and diverse Network: The Bangladesh Institute of Capital Market (BICM) provides graduates with a solid professional and social support system. The network includes current and former students and faculty, and staff. It offers opportunities for career development, networking, and socializing. In addition, the BICM alumni network is a valuable resource for graduates seeking to build their careers in capital markets.

    Excellent career prospects: The institute provides students with a strong foundation in financial concepts and practices, which helps them pursue careers in finance and other related fields.

    Modern facilities and equipment: The modern facilities and equipment in the Bangladesh Institute of Capital Market are unparalleled in their ability to facilitate the education and training of individuals seeking to work in the capital markets. From state-of-the-art classrooms and computer labs to a library stocked with the latest research materials and financial databases, the institute provides everything its students need to gain an edge in this rapidly growing sector of the global economy.

    The institute offers world-class education and training in this field. In addition, it has a well-developed research infrastructure that helps students stay up-to-date with the latest developments in the capital market. Moreover, the institute provides ample opportunities for students to gain practical experience through internship and job placement programs.

    The students of BICM get an opportunity to undergo internships in different reputable organizations operating in the capital market.

    Wrap up

    The Bangladesh Institute of Capital Market is a valuable resource for anyone looking to invest in the Bangladeshi capital market. The institute provides comprehensive education and research on all aspects of the market, making it ideal for investors to learn about the opportunities and risks involved in investing in Bangladesh. Moreover, the BICM can be a valuable ally for investors looking to capitalize on the growing Bangladeshi economy with its well-trained staff and extensive resources.

  • Bancassurance in Bangladesh | All you need to know

    Bancassurance is a term used to describe a business model in which a bank and an insurance company cooperate to offer products to their customers. The goal of Bancassurance is to provide customers with a one-stop-shop for all their financial needs. In addition to providing convenience, it also offers customers the opportunity to save money on fees.

    BB issued a circular to launch bancassurance on December 12, 2023, on the same day.

    Bancassurance in Bangladesh

    Bancassurance is a term used to cooperate between a bank and an insurance company. The bank sells insurance products to its customers, and the insurance company uses the bank’s distribution channels and customer base to sell its products. In Bangladesh, Bancassurance is about to start. Banks in Bangladesh are going to expand their product offerings to include more insurance products.

    Bancassurance is a combination of banking and insurance services offered by a single institution.

    Bangladesh is a rapidly growing country with a large population. To build a strong economy, the government is interested heavily in Bancassurance. The government can keep its finances safe and ensure that its citizens are not at risk by providing insurance.

    Learning more about how Bancassurance can help you in your business and personal life.

    How Bancassurance Can Benefit Businesses?

    To create a safe and secure environment for their customers, the government of Bangladesh is investing in Bancassurance. 

    This partnership allows the bank to offer insurance products to their customers. 

    The two businesses offer life insurance, health insurance, and property insurance to their customers. Bancassurance can benefit companies in Bangladesh by providing a way to provide their customers with various products, including insurance products. This can help the businesses attract and keep customers.

    The product is usually marketed through the bank’s branches and provides customers with an easy way to buy insurance products.

    The bank typically sells the insurance products, while the insurance company provides underwriting and claims processing. This type of arrangement can benefit businesses in Bangladesh in several ways.

    The main benefits of Bancassurance for businesses in Bangladesh include:

    1. Increased sales and revenue: Businesses can increase their sales and revenue by offering bancassurance products. 

    2. Increased customer acquisition: By offering bancassurance products, businesses can increase their customer acquisition and retention. 

    3. Decreased cost: Businesses can decrease their costs by offering bancassurance products. 

    4. Increased credit availability: By offering bancassurance products, businesses can increase the amount of credit. 

    5. Increased market reach: By offering bancassurance products, businesses can expand the market they serve and gain access to new customers and markets.

    Bancassurance can benefit businesses in Bangladesh in a few more ways. 

    First, it can help businesses grow by providing them with an opportunity to sell insurance products to their customers. 

    Second, it can help businesses to save money by allowing them to bundle their insurance products with their banking products.

    Third, Bancassurance can help businesses to save money on their insurance premiums.

    Fourth, Bancassurance can help businesses save money on the costs associated with underwriting and claims processing.

    Fifth, customers may avail of additional services.

    Sixth, Bancassurance can help reduce the risk of fraud or financial crimes.

    How Does Bancassurance Benefit Banks?

    There are many reasons why Bancassurance is lucrative to banks. The company has provided this insurance for many years because it has been able to keep its finances safe. The government can keep its finances safe and ensure that its citizens are not at risk by providing this insurance.

    bancassurance-startDownload

    Bancassurance can help to ensure that your business is there when times are tough, and you require support. You can have a team to help you through these times, and Bancassurance can help you keep your financial stability.

    Bancassurance is a business model that allows banks to offer their customers life insurance and other financial products. Banks can benefit from this arrangement by earning commissions on the sales of the insurance products and by earning interest on the deposits used to fund the policies. The bank can also benefit because it is the only institution that the customer deals with when buying insurance, leading to increased loyalty and repeat business.

    It provides customers with a wide variety range of products. By offering insurance products through the bank, the bank can benefit from increased customer loyalty, cross-sell opportunities, and an expanded customer base. In addition, the insurance company can benefit from the bank’s distribution network and reach a more extensive customer base.

    So, the benefits for banks incorporate:

    1. Increased customer base
    2. Increased profits
    3. Reduced costs
    4. Improved customer service
    5. Improved Customer Satisfaction
    6. Improved fraud prevention
    7. Increased cross-selling opportunities
    8. Increased Efficiency
    9. Enhanced Risk Management

    How Does Bancassurance Benefit Insurance Companies?

    Bancassurance, the collaboration between banks and insurance companies, offers several benefits in the context of Bangladesh. Here are specific advantages for insurance companies in the Bangladeshi market:

    1. Enhanced Market Penetration:
      • Bancassurance provides insurance companies in Bangladesh with a valuable opportunity to expand their market reach. By leveraging the extensive branch network of banks, insurers can access a larger customer base.
    2. Cost-Effective Distribution:
      • Establishing separate distribution channels can be expensive. Bancassurance allows insurance companies to utilize the existing infrastructure of partnering banks, resulting in cost savings related to setup and maintenance.
    3. Customer Trust and Credibility:
      • Banks are often regarded as trustworthy financial institutions by the Bangladeshi population. Partnering with banks enhances the credibility of insurance products, instilling trust among customers.
    4. Financial Inclusion:
      • In a country like Bangladesh, where segments of the population may be underserved or financially excluded, Bancassurance can contribute to financial inclusion. Access to insurance products through banks brings financial services to a broader demographic.
    5. Cross-Selling Opportunities:
      • Bancassurance partnerships facilitate cross-selling opportunities. Insurance companies can collaborate with banks to bundle insurance products with other financial services, providing customers with comprehensive financial solutions.
    6. Regulatory Compliance:
      • Bangladesh has specific regulations governing the financial services sector. Bancassurance ensures that insurance products comply with these regulations, as banks are well-versed in regulatory requirements and can assist in adherence.
    7. Tailored Product Development:
      • Working closely with banks allows insurance companies to tailor their products to the specific needs and preferences of the Bangladeshi market. This customization can result in more relevant and attractive offerings for customers.
    8. Technology Integration:
      • Many banks in Bangladesh are adopting digital technologies. Bancassurance partnerships enable insurance companies to leverage these technological advancements for streamlined processes, efficient customer service, and digital distribution.
    9. Risk Diversification:
      • For insurance companies in Bangladesh, diversifying distribution channels is a risk mitigation strategy. Relying on Bancassurance alongside other channels provides a diversified approach to market exposure.
    10. Increased Awareness and Education:
      • Banks, being key financial touchpoints, can play a crucial role in increasing awareness about insurance products. Bancassurance allows for collaborative efforts to educate customers on the importance and benefits of insurance.
    11. Localized Marketing:
      • Banks have a deep understanding of local markets and customer preferences. Through Bancassurance, insurance companies can benefit from the localized marketing expertise of their banking partners.
    12. Long-Term Strategic Partnerships:
      • Bancassurance partnerships in Bangladesh can foster long-term relationships between banks and insurance companies. Building strong partnerships contributes to stability and continuity in the distribution of insurance products.

    What are the types of Bancassurance?

    Bancassurance refers to the distribution of insurance products through banks. It is a partnership between a bank and an insurance company to provide a wide range of insurance products to the bank’s customers. There are several types of Bancassurance models, each with its own characteristics. Here are some common types:

    1. Pure Distribution Model:
      • In this model, the bank acts as a distribution channel for insurance products.
      • The bank’s role is limited to selling insurance products, and it does not get involved in the underwriting or policy management.
    2. Referral Model:
      • Under the referral model, the bank refers its customers to the insurance company, and the insurance company takes care of the sales process.
      • The bank earns a commission or fee for every successful referral.
    3. Co-Branding Model:
      • In a co-branding Bancassurance model, both the bank and the insurance company share their brand names on the insurance products.
      • This model leverages the trust and credibility associated with both the bank and the insurance provider.
    4. Joint Venture Model:
      • Some banks and insurance companies form a joint venture to create a separate entity that exclusively handles Bancassurance activities.
      • This model allows for a more integrated approach, with both partners actively participating in the management and operations.
    5. Integrated Model:
      • In an integrated Bancassurance model, insurance products are integrated with other banking products and services.
      • Customers may, for example, have insurance coverage linked to their bank accounts, loans, or credit cards.
    6. Product bundling Model:
      • This model involves bundling insurance products with other financial products offered by the bank.
      • Customers may receive a package deal that includes banking services, loans, and insurance coverage.
    7. Online Bancassurance:
      • With the rise of digital banking, many Bancassurance activities have moved online.
      • Customers can purchase insurance products through the bank’s online platform or mobile banking app.
    8. Micro Bancassurance:
      • This model focuses on offering insurance products with lower premiums and coverage tailored to specific customer segments.
      • It is particularly relevant for reaching the underbanked or those with limited insurance coverage.

    The choice of Bancassurance model depends on the strategic goals of both the bank and the insurance company, the regulatory environment, and the preferences of the target market. Each model has its advantages and challenges, and successful Bancassurance partnerships often involve a deep understanding of customer needs and effective collaboration between the bank and the insurance provider.

    What are the products of Bancassurance?

    The products offered by bancassurance companies vary but often include banking products such as checking and savings accounts, credit cards, mortgages, and insurance products such as auto, home, and health insurance.

    Bancassurance is a practice where banks and insurance companies offer products from both industries to their customers. The products available through Bancassurance can include anything from car insurance to life insurance, and banks often promote these products to get customers to buy multiple services from the same institution. Proponents of Bancassurance argue that it offers customers convenience and simplicity, while critics say that it can lead to higher prices and reduced competition.

    Who started Bancassurance?

    Bancassurance started in the 1980s in French and developed both in France and Spain. Some credits Barclay’s Life, an insurance subsidiary, formed in 1965 in the UK for pioneering of Bancassurance.

    Finance News: Latest Financial News, Finance News today in Bangladesh
    Infographics by the Financial Express

    In Bangladesh, Bancassurance Guidelines for Banks has been finalised on May 24, 2022.

    Major bancassurance players in Bangladesh?

    In Bangladesh, this sector will be overgrowing due to the increasing demand for insurance services from the people. The leading players in the bancassurance market are the banks and the insurance companies. The banks provide the products and services of the insurance companies to their customers, while the insurance companies use the bank’s network to reach a more extensive customer base.

    Banks and insurance companies will play in the bancassurance field under the FID, IDRA, and Bangladesh Bank.

    Chief Bancassurance Officer (CBO)

    The role of the Chief Bancassurance Officer (CBO) is to lead the development and execution of the bank’s bancassurance strategy. In addition, the CBO works with the CEO and senior management to identify and assess opportunities for Bancassurance, develop product and distribution plans, and manage the relationship with the insurance company. In Bangladesh, the CBO is a new position that is being created in response to the growth of Bancassurance.

    Eligibility to lead the wing as CBO

    • A Master’s degree and 12 years of experience in banking or insurance
    •  will lead the wing as CBO. His grade will be within the five but below the CEO of the banks. 

    The wing, however, can not force the customer to take the insurance policy. It can offer retail and SME insurance products but not corporate customers. In addition, the officers cannot provide misleading information to the bank clients to sell the products.

    Bancassurance is a business model banks and insurance companies use to offer products from both industries to their customers. It has become popular in recent years as a way for banks to grow their profits, and many countries have seen an increase in bancassurance businesses. Bangladesh is one of those countries, and the bancassurance industry is increasing.

    Find all about the bond market in Bangladesh.