Finance

How Europe’s Autoworkers Are Being Impacted By The Push For Electric Vehicles

Published

2 years ago

February 24, 2023

Harry Williams

How Europe’s Autoworkers Are Being Impacted By The Push For Electric Vehicles

The push for electric vehicles is on the rise. But what does this mean for Europe’s autoworkers, who have been part of a vital industry for decades? As automakers shift their focus to electric cars, many workers are finding themselves in a precarious situation and looking for solutions. In this blog post, we will take a look at how Europe’s autoworkers are being impacted by the transition to electric vehicles and what can be done to ease the transition. We will also explore how these changes could affect the global auto industry as well as other nations. So read on to learn more about this important shift in the automotive world.

European countries are investing in electric vehicles

As the world moves away from fossil fuels and toward electric vehicles, European countries are investing heavily in the shift. In Norway, for example, electric vehicles make up over 40% of new car sales. The country has been able to achieve this impressive feat by offering heavy incentives to buyers, including no taxes on electric vehicles and free public charging stations.

This increase in electric vehicle ownership is having a positive impact on the environment and on autoworkers’ jobs. Electric vehicles produce zero emissions, so they help reduce air pollution and fight climate change. And as more Europeans buy electric cars, the demand for autoworkers who can build and maintain them will increase.

Despite the benefits of this transition for workers and the environment, some people are still resistant to change. Some autoworkers are worried about losing their jobs as gasoline-powered cars become less popular. And some consumers are hesitant to switch to electric vehicles because they’re worried about range anxiety or high upfront costs.

But as battery technology continues to improve and charging infrastructure expands, these concerns are likely to fade. And as European countries continue to invest in electric vehicles, they’ll be well positioned to lead the way in this important global transition.

This is having an impact on autoworkers

Europe is making a push for electric vehicles, and this is having an impact on autoworkers. Many auto companies are investing in electric vehicle production, and this is leading to job losses for autoworkers. Electric vehicles require far less labor to produce than traditional gasoline-powered vehicles, and this is leading to large-scale layoffs of autoworkers across Europe. In some cases, auto companies are moving production of electric vehicles overseas to countries where labor is cheaper. This is all having a major impact on the livelihoods of autoworkers in Europe.

Some workers are being retrained, while others are being laid off

The auto industry is facing a major shift as electric vehicles become more popular. This is having a big impact on workers in the sector, with some being retrained and others being laid off.

Those who are being retrained are typically being moved into jobs that involve working on batteries or other components for electric vehicles. This can be a good thing, as it allows them to keep their jobs and learn new skills. However, it can also be difficult, as they may not have the same job security as before and may be working in unfamiliar territory.

For those who are being laid off, it can be a very tough situation. Many of these workers have spent their whole careers in the auto industry and don’t have the same skillsets that are needed for other sectors. This can make it hard to find new employment, especially as the industry continues to move towards electric vehicles.

There is concern about the future of the auto industry in Europe

There is no question that the auto industry is in the midst of a major transformation. The shift to electric vehicles is well underway, and it is having a profound impact on European autoworkers.

Today, there are more than 1 million electric vehicles on the road in Europe. That number is expected to grow to 7 million by 2025. And as demand for electric vehicles increases, so does the need for batteries.

In response to this growing demand, a number of battery factories have sprung up across Europe. But these factories are largely automated, meaning they require far fewer workers than traditional auto plants.

This trend is already having an impact on European autoworkers. In Germany, for example, employment in the auto industry has declined by 10% since 2007. And it is expected to fall by another 20% by 2030.

The future of the European auto industry is clearly shifting towards electric vehicles. And while this transition presents some challenges for autoworkers, it also presents some opportunities.

What does this mean for the workers?

Europe’s push for electric vehicles is having a big impact on autoworkers. Many workers are being laid off or have their hours cut as companies move to electric vehicles. Some companies are investing in training and retraining programs for workers, but others are not. This is causing a lot of uncertainty for workers.

Conclusion

We have seen in this article how Europe’s autoworkers are being impacted by the push for electric vehicles. As demand for traditional cars declines, so too does employment and job security in the auto industry. This transition is difficult and complex, but it is necessary if we are to shift towards a greener future that benefits all of us. It is important that governments invest in retraining programs for workers affected by the changes so they can be ready to embrace new opportunities as soon as possible.

Author

Harry Williams

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Finance

Top Trends in Financial Technology for 2024

Published

2 hours ago

September 19, 2024

Gil Villa

Reviewed
By Nora Mike

In 2024, the financial technology (fintech) landscape is evolving rapidly with technological advancements, shifting consumer expectations, and changing regulations. As digital financial services continue to expand, keeping up with the latest trends in fintech becomes increasingly important for businesses, investors, and consumers alike. This article explores the top financial technology trends for 2024, outlining how each trend is expected to impact the industry and reshape the financial ecosystem.

1. The Rise of Embedded Finance

Embedded finance is the integration of financial services into non-financial platforms and applications. Instead of accessing financial services through traditional banks, consumers can now interact with services like lending, insurance, or payments directly within apps they already use, such as retail platforms or ride-hailing services.

In 2024, embedded finance is expected to further blur the lines between financial and non-financial services. This allows companies to offer a seamless customer experience while potentially increasing their revenue streams. For consumers, this means easier and faster access to financial services without the need to interact with a standalone financial provider.

Photo by Karolina Grabowska: https://www.pexels.com/photo/calculator-and-notepad-placed-on-usa-dollars-stack-4386366/

Benefits of Embedded Finance

Convenience: Users can access finance options without leaving their preferred platform.
Customer retention: Businesses can offer value-added services, keeping customers within their ecosystem.
Growth opportunities: Startups and non-financial companies can tap into financial services without the complexity of becoming licensed financial institutions.

2. Artificial Intelligence and Machine Learning in Finance

Artificial Intelligence (AI) and Machine Learning (ML) are transforming the fintech landscape by enhancing automation, decision-making, and customer service. In 2024, AI and ML are expected to play a larger role in financial forecasting, fraud detection, and personalized financial advice.

For example, AI can help financial institutions analyze vast amounts of data to identify potential risks, while ML models can predict consumer behavior and offer tailored financial products. Robo-advisors, which use AI to provide automated investment advice, are also growing in popularity.

Key AI Applications in Financial Technology

Fraud detection: AI can analyze transaction patterns to detect fraudulent activities in real-time.
Personalized services: AI-powered systems can recommend customized financial products based on an individual’s financial behavior.
Automation: Routine tasks such as loan approvals or customer inquiries are automated, improving efficiency and reducing operational costs.

3. Blockchain and Cryptocurrency Expansion

Blockchain technology and cryptocurrencies continue to revolutionize the way transactions are conducted and recorded in the financial industry. In 2024, the adoption of blockchain for secure, decentralized, and transparent transactions is expected to grow, not only for cryptocurrencies but also in areas such as cross-border payments, smart contracts, and tokenization of assets.

While cryptocurrencies have faced regulatory challenges in recent years, blockchain’s underlying technology is being recognized for its potential to enhance efficiency and security in financial systems. Many financial institutions are now exploring how to integrate blockchain into their operations, from clearing and settlement processes to digital identity verification.

Blockchain Applications in Finance

Cross-border payments: Blockchain reduces transaction costs and settlement times for international transfers.
Smart contracts: Automated contracts that execute when predefined conditions are met, increasing efficiency and reducing legal costs.
Tokenization: Real-world assets, such as property or stocks, can be digitized and traded on blockchain platforms, increasing liquidity.

4. Open Banking and API Integration

Open banking refers to the practice of allowing third-party developers to build applications and services around a financial institution, through the use of Application Programming Interfaces (APIs). This enables the secure sharing of financial data with authorized third-party providers, giving consumers more control over their financial information.

In 2024, open banking is expected to continue growing as more countries adopt regulations that promote data sharing between financial institutions. This trend is driving innovation by allowing fintech startups to develop new solutions that improve consumer access to financial services, such as budgeting tools, lending platforms, and payment services.

Advantages of Open Banking

Enhanced competition: Traditional banks face competition from fintech startups offering innovative solutions.
Better customer experience: Consumers can easily manage multiple financial accounts and services from different providers.
Increased financial inclusion: By allowing third-party access to financial data, more people can gain access to credit and financial services.

5. Decentralized Finance (DeFi)

Decentralized Finance (DeFi) refers to a blockchain-based financial system that operates without intermediaries such as banks or brokers. DeFi allows for peer-to-peer transactions, lending, borrowing, and trading using smart contracts, without the need for traditional financial institutions.

As DeFi continues to evolve, 2024 will likely see the rise of more sophisticated decentralized applications (dApps) that offer services such as lending, borrowing, and derivatives trading on blockchain platforms. DeFi offers the potential for a more open and inclusive financial system, though it also presents regulatory challenges and risks related to security and volatility.

Growth of DeFi in 2024

Increased adoption: More users are expected to engage with DeFi platforms as they offer lower fees and greater access to financial services.
Risk management: DeFi platforms are improving security and risk mitigation, addressing concerns related to hacks and volatility.
New financial products: Innovative financial products, such as decentralized insurance and prediction markets, will emerge, enhancing the DeFi ecosystem.

6. Sustainable and Ethical Fintech

As sustainability becomes a global priority, the financial technology sector is increasingly focusing on sustainable finance and ethical fintech solutions. In 2024, there is a growing demand for green financial products, such as carbon credits and renewable energy investments, as well as platforms that promote socially responsible investing (SRI).

Ethical fintech platforms focus on transparency, inclusivity, and responsible lending, providing consumers with financial services that align with their values. This trend is driven by a new generation of consumers who prioritize environmental, social, and governance (ESG) factors in their financial decisions.

Examples of Sustainable Fintech

Green finance: Fintech platforms that help consumers and businesses track their carbon footprint or invest in sustainable projects.
Socially responsible investing: Platforms that allow users to invest in companies with strong ESG credentials.
Inclusive finance: Fintech startups focusing on underserved communities, providing access to credit and banking services in remote areas.

7. Regulatory Technology (RegTech)

With increasing regulation and compliance requirements, financial institutions are turning to Regulatory Technology (RegTech) to streamline processes and ensure compliance. In 2024, RegTech solutions will continue to evolve, helping companies navigate complex regulatory environments more efficiently through automation and data analytics.

RegTech solutions can monitor transactions for compliance, manage reporting requirements, and help companies stay up-to-date with changes in regulations. This reduces the risk of fines and penalties while enhancing the overall transparency of financial operations.

RegTech Innovations in 2024

Automated compliance: AI-driven tools that monitor regulatory changes and ensure ongoing compliance.
Data security: Advanced encryption and secure communication protocols to safeguard financial data.
Real-time monitoring: Continuous monitoring of transactions to detect compliance issues or fraudulent activities.

Comparative Table: Fintech Trends in 2024

Trend	Impact on Industry	Key Benefit	Key Risk
Embedded Finance	Integrates financial services into other sectors	Convenience for users	Potential overreliance on platforms
AI and Machine Learning	Enhances automation and customer service	Efficiency and personalization	Data privacy and ethical concerns
Blockchain and Cryptocurrencies	Improves transparency and security	Faster, cheaper cross-border payments	Regulatory uncertainty
Open Banking and APIs	Promotes data sharing and competition	Greater innovation and access	Data security risks
Decentralized Finance (DeFi)	Creates a decentralized financial system	Lowers transaction costs	Security and volatility issues
Sustainable and Ethical Fintech	Supports green and ethical finance	Aligns financial services with values	Limited regulation
Regulatory Technology (RegTech)	Streamlines compliance processes	Reduces compliance costs	Overdependence on automated systems

Analytical Table: Key Drivers and Barriers to Fintech Trends in 2024

Fintech Trend	Key Drivers	Barriers to Adoption
Embedded Finance	Consumer demand for convenience	Integration complexity with platforms
AI and Machine Learning	Need for automation and better data analytics	High cost of AI technology
Blockchain and Cryptocurrencies	Demand for secure and fast transactions	Uncertain regulatory framework
Open Banking and APIs	Regulatory push for open data	Consumer concerns over data privacy
Decentralized Finance (DeFi)	Desire for financial inclusion and transparency	Security concerns and lack of trust
Sustainable Fintech	Increasing focus on ESG and sustainability	Limited awareness and market maturity
Regulatory Technology (RegTech)	Complex regulatory environment	Lack of expertise in RegTech solutions

Conclusion

As we move into 2024, the financial technology sector will continue to experience rapid growth, driven by innovations in embedded finance, AI, blockchain, open banking, and sustainability. These trends are set to reshape the way financial services are delivered and consumed.

Author

Gil Villa

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Finance

The Benefits and Risks of Emerging Markets Investment

Published

14 hours ago

September 19, 2024

Gil Villa

Reviewed
By Mike Henery

The Benefits and Risks of Investing in Emerging Markets

The United States is the largest economy in the world by far, accounting for more Emerging Markets Investment than a quarter of the world’s gross domestic product (GDP) in 2022. Yet we make up less than 5% of the global population.

Most of humanity doesn’t enjoy the same standard of living that we do — at least, not yet. Developing countries are full of people working hard to offer their children the kind of life we take for granted in America. And every year, more of them succeed.

In investing parlance, these developing countries are called emerging markets. Investing in emerging markets isn’t just good for the conscience — it can also be a potentially profitable way to diversify your investment portfolio.

Image by : Yandex

What are emerging markets?

Emerging markets are countries with fast-growing economies. They’re also called developing economies or developing countries. Emerging markets are often contrasted with so-called “established markets” or “advanced economies” like the U.S., which tend to be wealthier and more stable, but slower-growing.

Five countries that make up the “BRICS” acronym — Brazil, Russia, India, China and South Africa — are some of the most prominent examples of emerging markets, and they’re good examples of why emerging markets are of interest to investors.

The U.S. economy grew about 58% between 2012 and 2022, the latest year for which complete international data is available

The slowest-growing BRICS economy, South Africa, grew about 86% over that decade . The other four all had growth rates above 100%.

Country
GDP growth, 2012-2022
United States
58.39%
Brazil
109.35%
Russia
125.32%
India
175.64%
China
123.69%
South Africa
85.86%

Source: Federal Reserve Bank of St. Louis. Data is current as of Apr. 5, 2024.

Index provider MSCI classifies 24 countries as emerging markets

. They’re listed below:

Brazil
Chile
China
Colombia
Czechia
Egypt
Greece
Hungary
India
Indonesia
Kuwait
Malaysia
Mexico
Peru
Philippines
Poland
Qatar
Saudi Arabia
South Africa
South Korea
Taiwan
Thailand
Turkey
United Arab Emirates

You may notice that certain notable emerging markets, such as Russia, are missing from the list above.

There is no universal standard for noting which countries are emerging markets, and indexers like Emerging Markets Investment MSCI often have geopolitical concerns to work around. Russia, for example, is an emerging market by most definitions. But it’s largely unavailable to Western investors for reasons related to the Russia-Ukraine war, so MSCI stopped tracking it in 2022.

Should I invest in emerging markets?

Investing in emerging markets might sound advanced or out-of-reach for novice investors, but there’s a strong argument for diversifying outside of the U.S. Even simple portfolios, such as those that contain only two or three funds, often include some exposure to international stocks. After all, a stock market crash in the U.S. might not hit international markets as hard.

In theory, faster GDP growth in emerging markets should also translate into faster stock market growth, but this doesn’t always work out in practice. Many of the ETFs listed above have underperformed the S&P 500 over the last five years, for a variety of reasons.

Some emerging markets, such as Kuwait and Saudi Arabia, have energy-dominated economies that tend Emerging Markets Investment to boom when oil prices are high, and decline when they’re low. Others, such as Poland and Turkey, have unique security risks because they border active war zones.

There’s a common thread between these underperformances: Emerging markets tend to be less stable than established markets. They may be faster-growing, but that fast growth is more vulnerable to interruptions, like shifts in global resource markets or armed conflict.

One way to manage this kind of risk is by investing in several emerging markets at once, through a diversified emerging markets ETF, rather than a country-specific one.

» Interested in ETFs? Check out the best ETFs by one-year performance.

9 top-performing emerging market ETFs as of August 2024

Below is a list of the nine best-performing emerging markets ETFs listed by Finviz, ranked by one-year return.

Ticker
Company
Performance (Year)
GLIN
VanEck India Growth Leaders ETF
41.39%
INCO
Columbia India Consumer ETF
39.90%
EPI
WisdomTree India Earnings Fund
36.88%
DGIN
VanEck Digital India ETF
36.44%
ARGT
Global X MSCI Argentina ETF
34.46%
NFTY
First Trust India Nifty 50 Equal Weight ETF
33.59%
SMIN
iShares MSCI India Small-Cap ETF
32.77%
FLIN
Franklin FTSE India ETF
30.91%
INDA
iShares MSCI India ETF
30.27%

Source: Finviz. Data is current as of Sept. 3, 2024, and is intended for informational purposes only.

Of course, it’s worth researching an ETF before you buy it, just as you would research stocks. Different Emerging Markets Investment emerging markets ETFs may have different holdings — and if you’re looking for exposure to a specific company in an emerging market, you may want to consider investing in it directly.

» More on index funds: Check out some of the best index funds in terms of long-term performance.

Investing in emerging market stocks

There are a few emerging market stocks that are directly listed on U.S. exchanges — largely bank stocks. For example, HDFC Bank, India’s largest bank, trades on the New York Stock Exchange under the ticker “HDB.”

Some others are available via over-the-counter (OTC) markets — although it’s worth checking an OTC emerging market stock’s trading volume on a website like Yahoo Finance or Google before buying it. Buying a low-volume OTC stock at a good price can be tricky.

Even large conglomerates like South Korea’s Hyundai (HYMTF) are largely overlooked by U.S. investors because they trade OTC. They may only change price a few times per trading day due to a lack of buyers and sellers. That can result in buy or sell orders going through at suboptimal prices, or not going through at all. Limit orders can somewhat mitigate this risk.

A third way to invest in individual emerging market stocks is to open an account with a Emerging Markets Investment broker that allows Americans to trade directly on foreign stock exchanges. However, only a few brokers offer this feature, and those that do may have special requirements for would-be foreign stock traders.

It’s also worth considering that you may be subject to the investment taxes and laws of the host country while investing directly in its stock market.

Neither the author nor editor owned positions in the aforementioned investments at the time of publication.

Frequently asked questions

Are emerging markets the poorest countries?

Emerging markets are often poorer than advanced economies, but on a global scale, they’re upper-middle-income countries, for the most part.

In economics terminology, countries with very low GDPs, such as Afghanistan or the Democratic Republic of the Congo, are referred to as “least-developed countries,” or LDCs.

Although LDCs may have the potential for rapid economic growth in the future, many are largely inaccessible (or extremely hazardous) to international investors today, due to some combination of lack of infrastructure, active conflict, or lack of a functioning legal or banking system.

Is investing in emerging markets the same as forex?

No — investing in emerging markets means investing in stocks from other countries, while forex involves trading the currencies of other countries.

Forex is a complicated and risky market that may not be appropriate for novice investors. But if you feel you’re capable of trying your hand at it, check out our list of the best forex brokers

Author

Gil Villa

View all posts

Finance

The Best Personal Finance Apps for 2024

Published

14 hours ago

September 19, 2024

Gil Villa

Reviewed
By Stacy Mike

The Best Personal Finance Apps for 2024

Meta Description Find the best budget apps for 2024. Discover free Personal Finance Apps available on the app store and google play with high store ratings. Learn about the features of these apps and how they can help manage your personal finances.

Understanding Budget Apps

Budget apps are cool tools that help you manage your money. They connect with your financial accounts, track what you’re spending, and show you where your money is going. Some apps even do more than that. They help you plan your finances and make smart decisions about your money

Top Choices for Budget Apps

There are many budget apps out there, but we’ve picked out the best ones for you. We didn’t include our own app in this list because we want to give you an unbiased view. These apps have great features and lots of people love them. Let’s take a closer look at some of them.

YNAB The Hands-On Budgeting App

YNAB is an app that helps you plan your money ahead of time. It uses a method called zero-based budgeting. This means you make a plan for every dollar you earn. As soon as you get paid, you tell YNAB how much you want to spend, save, and pay off debt. It’s a very hands-on app, but it has lots of resources to help you learn how to budget and use the app. The downside is that you need to be committed to keep up with it and it’s a bit pricey.

Benefits

– Connects with your checking and savings accounts, credit cards, and loans.

– Available on mobile, desktop, iPad, Apple Watch, and Alexa.

– Store rating 4.8 on iOS app store and 4.7 on Google Play.

Goodbudget The Envelope Budgeting App

Goodbudget is another great app that helps you plan your finances. It uses the envelope budgeting system, where you set aside money for different spending categories. It doesn’t connect to your bank accounts, so you need to add all the information manually. This could be a bit of work, but it can also help you be more aware of your spending.

Benefits

– Available on your phone and the web.

– Store rating 4.6 on iOS app store and 4.0 on Google Play.

EveryDollar The Simple Budgeting App

EveryDollar is a simple and easy-to-use app. It uses a zero-based budgeting method, but it’s simpler than YNAB. The free version requires you to enter all the information manually, while the premium version allows you to connect your bank account.

Benefits

– Allows you to connect your saving and investing accounts with the premium version.

– Store rating 3.8 on iOS app store and 3.3 on Google Play.

Empower Personal Dashboard The Wealth and Spending Tracker

Empower Personal Dashboard is an app that helps you track your wealth and spending. It’s primarily an investment tool, but it also has features that can help you track your spending.

Benefits

– Connects and monitors checking, savings, and credit card accounts, as well as IRAs, 401(k)s, mortgages, and loans.

– Store rating 4.8 on iOS app store and 4.3 on Google Play.

PocketGuard The Simplified Budgeting App

PocketGuard simplifies budgeting. It connects your bank accounts, credit cards, loans, and investments and Personal Finance Apps shows you how much you have left to spend after setting aside money for necessities, bills, and goals.

Benefits

– Tracks your net worth.

– Store rating 4.6 on iOS app store and 4.1 on Google Play.

Honeydue The Budgeting App for Partners

Honeydue is an app that helps you and your partner manage your finances together. You can both see your financial information in one place and set up monthly limits for different spending categories.

Benefits

– Allows you to sync bank accounts, credit cards, loans, and investments.

– Store rating 4.5 on iOS app store and 3.8 on Google Play.

How We Chose the Best Budget Apps

To create this list, we looked for apps that let users sync financial accounts, plan their finances, see their spending patterns, track bills, and share financial information with partners. We also checked the apps’ ratings on the iOS App Store and Google Play and read reviews from real users. We only included apps that had high ratings and lots of reviews. These ratings were last updated on Aug. 12, 2024.