Forex Robots – The Sales Copy Says Huge Profits But the Truth? Most Destroy Equity Quickly

Every forex robot promotes a track record of gains and yet well over 95% failure to deliver so here is the sales copy translated so you can find out the ones that will not make money and find the minority which do …

Here is the sales copy and translation

1. A track record of spectral gains

On paper yes, in real trading not at all. Try and find a track record which does not have the worlds "simulated" and in "hindsight" on it in the risk warning – a word from experience, you will have a long search. The track records you see of $ 100,000 a year are not real dollars there paper dollars done looking back with all the facts and price data to hand. The reality of trading forex though is you do not have that luxury of knowing the closing prices.

That's why you can get financial freedom for $ 100.00 or so – its not real life though!

2. A formula that occurs and re occurs for consistent gains

The formula works once on paper and never works again and the system takes a bath. The vendor simply bends the system to fit the data (a concept known as curve fitting) and curve fitting is always the death of a trading system in real time trading, as the data never replicates itself exactly again the system fails.

3. Designed By a Boffin

Usually an ex banker, mathematician or other boffin. Why does that ensure success? Trading systems that tend to work tend to be simple and being clever or having an education mean nothing in forex trading – its results and that's it and I know plenty of simple traders who make money and plenty of clever ones that do not.

4. Earn Money Without knowing anything

You can try and earn money but if the systems worked as the vendors say, ie there is no work involved, begs the question – Why bother selling the system, why not trade it and keep quite you could make yourself a millionaire or better and not worry about a few hundred bucks from a sale.

You do not get anything in life for nothing and it's the same in forex trading

5. You have nothing to lose

On the fee maybe not, on the account probably yes!

Demo accounts (unless you want to trade them for a long time) are no real use, as you need a year to judge a system and also there is no pressure, so its not a real trading experience and after reading this article why bother, you know the facts.

Forex robots sell in there thousands and very few work and most simply fail miserably in the market and its no wonder when they have never been traded. The hypothetical track record simply is not questioned by buyers – but why not? That's the acid test and keep in mind you cant spend paper money.

If you want to make money at forex trading understand, it's not easy and you do not achieve success with no effort.

You can make gains but you need to get a solid forex education, a simple system, that's robust, logical and you understand and can trade with discipline. You are then on the road to currency trading success.

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Data Entry Online Jobs Without Investment

One of the most popular jobs that many people do nowdays is data entry online jobs. With this job, there are many people who have helped raise their family's income despite the global recession. It will give you the opportunity to have income while staying at home. The things that you need are a computer and a reliable internet connection. It does not matter what profession you are in as long as you know how to do some writing jobs and data entry.

These kinds of jobs are not always permanent jobs. Thus, the work does not come with benefits like health insurance, paid vacation and the like. When you work online, you are considered an independent contract worker. This means that you are a free agent. You will be hired based on a project and your contract will last until the project is finished. When the required job is done, it's time for you to find another job.

The pay for data entry job is based on per data sheet completed. The cost per sheet usually ranges from 10 to 20 cents. However, this varies heavily on the type of employer you have. It is expected that as data entry workers, you will also do some other tasks like data collection, change documents into new formats or edit images.

The most important thing when you try to work for online jobs is to watch out for scams. There are so many of them online (especially for data entry jobs) because lots of people are into them due to the fact that they are easier to do. Do your own research and find out the company's legitimacy before you give out personal information. Do not be fooled and unknowingly subject yourself to identity theft.

Be very suspicious when a prospective employer asks you for your financial information. Do not give out your credit card numbers or any forms of financial information when an employer asks you. This should be a red flag signaling you that the company is a hoax. Other scam propaganda requests you to send them a certain amount in exchange for a starter kit so that you may be able to start working for them. When you come across these frauds, run away from them.

It is important that in all your online jobs, you only get those legitimate ones so that you will not be taken advantage of. Check the name of the company first if they are genuine or not. Once you establish your work online, success is within your reach. Data entry jobs will no longer be your only option but you can also get a good position online. Keep looking.

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Home Loans in the UK

Owning a home is the most important dream of any person. It is one of the basic necessities of life as stated by Maslow in his 'Theory of Hierarchy of Needs'. People generally desire to have a home which not only gives them shelter, but also should be the expression of their artistic tastes, and an object of pride. Owning a home is a matter of spending of life's savings. For some- related to the high e-learning group, it is not a problem; but for others arranging financing for their dream home is a very critical decision, they ever take in their life. To enable people to realize there dream, financial institutions and banks offer home loans to people.

Home loans play a very important role in the lives of UK nationals. Every year there are borrowings worth billions of pounds by the UK nationals for home loans. Now days, home loans have become a necessary part of life as it is not essential that one has the necessary amount of money to finance his immediate requirement for purchasing home. One can avail home loans, after signing a document with a financial institution on a specified amount of money to go with the purchase with that borrowed money. Lenders and financial institutions keep the house or any other residential property as collateral. In the UK, home loans are offered by innumerable financial institutions at various APR. The amount of loan approved usually depends on the income and assets of the borrower and his capacity to pay back the loan.

In the UK, home loans offered are of two types:

Fixed rate home loan

Variable rate home loan

Fixed rate home loans are offered to borrowers at a prefixed rate of interest for a specified time period. In case of upward fluctuations in interest rates in the market, customers enjoy the benefit of not paying any extra sum money on the increased rate of interest. Variable rate home loans, on the other hand are left to the mercy of lenders and government regulations. In case of upward trend, the borrowers have to tighten their budget.

With the ever increasing competition in the market, more and more financial institutions are offering home loans at lower APR along with customer oriented services. All companies claim to be the leading loan and other financial services provider with the best service. In order to tap the growing market companies and lending institutions are coming up with more innovative products to cater to the requirements of all the customers. With the advent of internet, the services offered have become more fast and efficient. Now one can compare the best rate offered in the market at the click of the mouse.

The complications in home owner loans fall when borrower defaults in the payment of the monthly installment. In many cases, it has been seen that lenders start charging more interest rate than the standard rate. Wise borrowers, in such situation, switch over to a new lender for better rate of interest and fee waivers. This is termed as remortgage. Remortgage is a very prudent way of avoiding heavy interest rate. There are innumerable agencies which suggest better remortgage options to the borrowers.

Moreover, with gradual shift from the sellers 'market to the buyers' market, the ultimate beneficiary is the customer. Companies even offer value added services to the borrowers to evolve brand loyalty. Companies are even leveraging strength from modern management practices and corporate governance. In the long run, company which offers the best financial solution with the right set of marketing mix will win the race.

For Detail email with the subject "Inquiry".

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Brown Seaweed

On this wonderful place called earth there are many bodies of water that brown seaweed thrives, however not all these places that it grows under the water is pristine and pure free of contaminants that can harm people if it is consumed by them.

It is for this very reason I chose to write this, I have traveled the world and many of the locations that the native persons are harvesting this brown seaweed are in shipping lanes and so forth. They do this because they are well aware of the truly life sustaining properties of it.

And they eat it in there daily diet in its raw form. Even though it is a little hard on ones pallet, they still do this because it is grate grateful to there body. You see it's briny and rubbery to the taste.

You see this brown seaweed gathers its vitamins and nutrients from the water and sun shining through the water as it grows, so anything floating in the water or in the soil it grows in is absorbed in the brown seaweed.

This is a concern of mine and others, because things like Mercury, lead and other things can be very harmful if consumed. So it is very important to get the brown seaweed from the purest places, one of those places is around the islands of Tonga.

There are no shipping lanes there at all, and it is the purest waters there are, the brown seaweed grows there in grape abundance. And you should know that the business that I'm in not only has it in a liquid form that 15 years was spent developing the cold process.

But also owns the rights to this process, And for your information not only can you buy brown seaweed bottled and mixed with mangos, papayas, apples and pears so it taste really good, It is way more potent than just eating it in it's raw form !

Furthermore you can get residual income while investing in your health from this very beneficial brown seaweed! The people of Tonga and Asia have known this for thousands of years! And now you know. Start using this knowledge.

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Importance Of Data Mining In Today’s Business World

What is Data Mining? Well, it can be defined as the process of getting hidden information from the piles of databases for analysis purposes. Data Mining is also known as Knowledge Discovery in Databases (KDD). It is nothing but extraction of data from large databases for some specialized work.

Data Mining is largely used in several applications such as understanding consumer research marketing, product analysis, demand and supply analysis, e-commerce, investment trend in stocks & real estates, telecommunications and so on. Data Mining is based on mathematical algorithm and analytical skills to drive the desired results from the huge database collection.

Data Mining has great importance in today’s highly competitive business environment. A new concept of Business Intelligence data mining has evolved now, which is widely used by leading corporate houses to stay ahead of their competitors. Business Intelligence (BI) can help in providing latest information and used for competition analysis, market research, economical trends, consume behavior, industry research, geographical information analysis and so on. Business Intelligence Data Mining helps in decision-making.

Data Mining applications are widely used in direct marketing, health industry, e-commerce, customer relationship management (CRM), FMCG industry, telecommunication industry and financial sector. Data mining is available in various forms like text mining, web mining, audio & video data mining, pictorial data mining, relational databases, and social networks data mining.

Data mining, however, is a crucial process and requires lots of time and patience in collecting desired data due to complexity and of the databases. This could also be possible that you need to look for help from outsourcing companies. These outsourcing companies are specialized in extracting or mining the data, filtering it and then keeping them in order for analysis. Data Mining has been used in different context but is being commonly used for business and organizational needs for analytical purposes

Usually data mining requires lots of manual job such as collecting information, assessing data, using internet to look for more details etc. The second option is to make software that will scan the internet to find relevant details and information. Software option could be the best for data mining as this will save tremendous amount of time and labor. Some of the popular data mining software programs available are Connexor Machines, Free Text Software Technologies, Megaputer Text Analyst, SAS Text Miner, LexiQuest, WordStat, Lextek Profiling Engine.

However, this could be possible that you won’t get appropriate software which will be suitable for your work or finding the suitable programmer would also be difficult or they may charge hefty amount for their services. Even if you are using the best software, you will still need human help in completion of projects. In that case, outsourcing data mining job will be advisable.

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Why Is Bitcoin Cloud Mining the Way Forward?

Cloud mining allows you to access data centre processing capacity and obtain cryptocoins without the need to purchase the right hardware, software, spend money on electricity, maintenance, and so on. The essence of cloud mining is that it allows users to buy the processing power of remote data centres.

The whole cryptocoin production process is carried out in the cloud, which makes cloud mining very useful for those who do not understand all the technical aspects of the process and do not want to run their own software or hardware. If electricity is costly where you live – for example in Germany – then, outsource the mining process in a country where electricity is cheaper, such as the US.

Types of Bitcoin cloud mining:

There are currently three ways to conduct mining in the cloud:

1. Leased mining. Lease of a mining machine hosted by the supplier.

2. Virtually Hosted Mining. Creating a virtual private server and installing your mining software.

3. Renting hash power. Renting a certain amount of hash power, without having a dedicated physical or virtual equipment. (This is by far the most popular method of cloud mining).

What are the advantages of Bitcoin cloud mining?

– Not dealing with the excess heat generated by the machines.

– Avoiding the constant buzz of the fans.

– Not having to pay electricity.

– Not selling your mining equipment when it is no longer profitable.

– No ventilation issues with the equipment, which is usually heated a lot.

– Avoiding possible delays in the delivery of hardware.

What are the disadvantages of Bitcoin cloud mining?

– The possibility of fraud,

– Operations with bitcoins can not be verified

– Unless you like to build your own Bitcoin hash systems, it might be boring.

– Lower profits – Bitcoin cloud mining services carry expenses.

– Bitcoin mining contracts may allow cessation of operations or payments if the Bitcoin price is too low.

– Not being able to change mining software.

Risk of mining in the cloud:

The risk of fraud and mismanagement is prevalent in the world of cloud mining. Investors should only invest if they are comfortable with these risks – as they say, “never invest more than what you are willing to lose.” Research social networks, talk to old clients and ask all the questions you consider appropriate before investing.

Is cloud mining profitable?

The answer to this question depends on some factors that affect the profitability of investments. Cost is the most obvious factor. The service charge covers the cost of electricity, accommodation and hardware. On the other hand, the reputation and reliability of the company is a determining factor due to the prevalence of scams and bankruptcies.

Finally, profitability depends on factors that no company can predict or control: just remember the high volatility of Bitcoin in the last three years. When you buy a mining contract, it is better to assume a constant price for Bitcoin, since your other alternative is to buy bitcoins and wait for the price to rise. Another important factor is the capacity of the entire network, which depends on the number of operations per second. Over the past few years, power has increased exponentially. Its growth will continue to rely on the value of Bitcoin and innovation in the development of integrated circuits for particular applications.

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Get Help And Advice Online From Car Loan Articles

Car loan articles can be found online with a specialist motoring website and they hold a vast amount of useful information for those who are looking to finance a new or used car. A good site will offer articles on all aspects of car loans which all go towards you finding the best deal for your particular circumstances as well as offering hints and tips on choosing your new vehicle.

By having this knowledge, it means you can make an educated choice as to the right type of car finance for you.

When it comes to finding a loan there are many types to choose from so getting doing your homework is essential, so take advantage of articles aimed at car loans and you get to the best start possible. Articles are often laid out in specific categories which mean you can instantly find access to the information you are looking for.

Car loan articles will tell you all about the various options when it comes to financing your new or used car. Car loan articles giving information for the standard loan will explain the options you have and how to get the best deal possible on a secured or unsecured loan.

The secured loan means that you take the borrowing over a specific amount of time and then spread the repayments in monthly installments over this period. The beauty of this is that you are able to keep the repayments down to a level you can afford each month. However of course the longer you take the loan over, the more interest you will pay. If you have a less than perfect credit rating then this is usually the best chance of securing a loan for a car, as the car will be taken as security against the borrowing.

If you are considering buying a used car then get as much information as you can by way of car loan articles focusing on used car loans or unsecured borrowing. If you have an excellent credit rating and do not need to borrow a lot then you can get a loan without having to put up anything as security. The unsecured loan will usually come with an interest rate that is higher than that of the secured. However by allowing a specialist website to search within the car finance marketplace you can make great savings.

Any type of loan is confusing when it comes to the technical jargon and interest rates. Car loan articles will take the confusion away for you. They will explain clearly what APR means and the tricks that some lenders play to make you believe you are getting an excellent interest rate. For example, some lenders will quotes an interest rate that is for weekly terms and of course if the individual compares this against a monthly or yearly rate then it can seem extremely low. Taking the time to read through the articles and learning as much as possible about car loan and finance can save you a lot of money and of course, a specialist website will offer these resources for free.

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Different Methods of Mining Coal

Different methods of coal mining are adapted to dig out the natural coal from the earth. Among them, Surface mining method is applied for producing coal of about nearly 40% in the world. The coal deposits are found on the surface of the earth and make the mining easier for the coal-miners. The various types of coal mining are contour, mountaintop removal and strip mining.

Strip mining is adopted in areas, which has leveled landscape. The surface coal is exposed when the earth covering them is removed in strips. When the whole earth concealing is removed from the surface the coal that lay beneath is exposed. They appear in blocks and are usually extracted either by drilling or blasting. Once the strip is free of coal or goes empty, the strip mining process is continued with the next strip that lay adjacent to the former.

The contour mining is used to remove coal from the layer following the contours found along the ridges of a hill or landscape. The commonly used places for this type of mining are areas with rolling to steep terrain. This method may create landslides and erosion troubles. Using the freshly cut overburden to refill the mined areas rectifies these problems. Strip mining has its own limitations and when the process of strip mining reaches a specific stripping ratio, it may not yield you profit when continued.

Mountaintop removal coal mining can be understood by its name. Removing the mountaintops exposes the coal. This method also involves disposing of mining overburden that is associated with mountaintops removal in nearby valleys. This method is a combination of area and contour strip mining methods. This process creates adverse changes in the topography like creating head of hollow hills and filling valleys with mining wastes.

Latest open cast methods can reveal higher proportion of coal deposit than the underground mining methods.

Deep mining or underground mining is applied to dug out coal that lay underneath the surface of the earth. The primary underground mining ways are Continuous, Longwall, Shortwall, Retreat and Blast Mining.

Longwall mining method is adopted for about 50% of underground mining. This method involves a complex machine with a revolving drum that sways mechanically back and forth across the coal deposit. This method yields high production and ensures safety. This method has sensors that can detect the quantity of remaining coal in the seam and robotic controls contribute to the efficiency of the process.

Continuous mining method is applied for about 45% in underground coal mining. The machine used in this method has a huge revolving steel drum that is facilitated with tungsten carbide teeth to extract the coal from the seam.

Blast mining occupies less than 5% of the whole underground mining in USA. Explosives are used to break the coal seam in this method. The extracted coal is collected and transported to the central area using conveyors or shuttle cars.

Shortwall mining covers 1% and the method is somewhat similar to longwall mining. Retreat mining method employs pillar or coal ribs to support the roof of the mine. This is the most dangerous method as it involves risk of falling roofs that might trap or crush the workers in the mine.

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Co-Signing a Loan

When you co-sign any type of loan, you are taking on the risk the lender
would not; ensuring that the person you co-sign for is going to make the
payments. If they do not, you are going to be responsible for the owed debt.

When determining if you should co-sign a loan for someone, you need to consider
the following:

– Will you be able to pay the loan if the borrower goes into default? If
you can not, not only will your credit be adversely affected, you can be sued by
the lending creditor.

– When you co-sign a loan, your chances for obtaining approval for a loan for
your own personal use Declines because of your current obligation. More
specifically, the debt you co-sign for is considered your debt.

– If you secure the loan you co-sign for with some sort of personal
property, ie your home or car, you run the risk of having these items taken
away from you if the loan goes into default and you can not pay.

– If the borrower does not pay their loan, not only will you become
responsible for the debt, you are also going to be responsible for any of the
late fees and collections associated with the over-due debt.

You should also do the following when co-signing a loan:

– Get in touch with the lender and make sure that you will be contacted in
writing as soon as soon as the borrower is late on a payment. This will give you
time to get in touch with the borrower and fix the situation before the account
goes into collections. If the account does enter into collections, you will be
responsible for paying off the entire debt at one time.

– Get a hold of copies of all the stipulations and terms of the loan.

Some More Advice to Follow If You Are Going to Co-Sign a Loan

Prior to co-signaling, you should contact the creditor to see if your can
negotiate your liability if the loan goes into default. More specifically, you
can have your liability changed so that you only are obliged to pay only the
loan balance and not any other late fees. It is always a good idea to get any
final, negotiated Clauses in writing.

What Are the Benefits of Being a Loan Co-signer?

Co-singing a loan can be a good idea if you are certain that the borrower is
going to repay the money. For example, co-signaling makes sense if you are
the parent of a child with no credit, but a steady income, looking to buy a home
for the first time. You will help your child get the mortgage financing them
are looking for, while helping build their credit rating.

It is very common for someone's credit to be adversely affected as a result of
divorce. This will hurt their ability to get approved for loans and credit even
though they have a steady income. Co-singing a small personal loan in this
instance will help them re-establish their credit.

In conclusion …

As mentioned, there are instances when co-signing a loan is harmless.
However, the majority of the time, it is a very risky move. As a matter of fact,
studies have shown that co-signers end up paying the debt of the borrower 80% of
the time. When co-signing any loan for any purpose, friend of family, PROCEED
WITH CAUTION!

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Building a Kingdom – Case Study of Kingdom Financial Holdings Limited

This article presents a case study of sustained entrepreneurial growth of Kingdom Financial Holdings. It is one of the entrepreneurial banks which survived the financial crisis that started in Zimbabwe in 2003. The bank was established in 1994 by four entrepreneurial young bankers. It has grown substantially over the years. The case examines the origins, growth and expansion of the bank. It concludes by summarizing lessons or principles that can be derived from this case that maybe applicable to entrepreneurs.

Profile of an Entrepreneur: Nigel Chanakira

Nigel Chanakira was raised in the Highfield suburb of Harare in an entrepreneurial family. His father and uncle operated a public transport company Modern Express and later diversified into retail shops. Nigel’s father later exited the family business. He bought out one of the shops and expanded it. During school holidays young Nigel, as the first born, would work in the shops. His parents, particularly his mother, insisted that he acquire an education first.

On completion of high school, Nigel failed to enter dental or medical school, which were his first passions. In fact his grades could only qualify him for the Bachelor of Arts degree programme at the University of Zimbabwe. However, he “sweet-talked his way into a transfer” to the Bachelor in Economics degree programme. Academically he worked hard, exploiting his strong competitive character that was developed during his sporting days. Nigel rigorously applied himself to his academic pursuits and passed his studies with excellent grades, which opened the door to employment as an economist with the Reserve Bank of Zimbabwe (RBZ).

During his stint with the Reserve Bank, his economic mindset indicated to him that wealth creation was happening in the banking sector therefore he determined to understand banking and financial markets. While employed at RBZ, he read for a Master’s degree in Financial Economics and Financial Markets as preparation for his debut into banking. At the Reserve Bank under Dr Moyana, he was part of the research team that put together the policy framework for the liberalization of the financial services within the Economic Structural Adjustment Programme. Being at the right place at the right time, he became aware of the opportunities which were opening up. Nigel exploited his position to identify the most profitable banking institution to work for as preparation for his future. He headed to Bard Discount House and worked for five years under Charles Gurney.

A short while later the two black executives at Bard, Nick Vingirayi and Gibson Muringai, left to form Intermarket Discount House. Their departure inspired the young Nigel. If these two could establish a banking institution of their own so could he, given time. The departure also created an opportunity for him to rise to fill the vacancy. This gave the aspiring banker critical managerial experience. Subsequently he became a director for Bard Investment Services where he gained critical experience in portfolio management, client relationships and dealing within the dealing department. While there he met Franky Kufa, a young dealer who was making waves, who would later become a key co-entrepreneur with him.

Despite his professional business engagement his father enrolled Nigel in the Barclays Bank “Start Your Own Business” Programme. However what really made an impact on the young entrepreneur was the Empretec Entrepreneur Training programme (May 1994), to which he was introduced by Mrs Tsitsi Masiyiwa. The course demonstrated that he had the requisite entrepreneurial competences.

Nigel talked Charles Gurney into an attempted management buy-out of Bard from Anglo -American. This failed and the increasingly frustrated aspiring entrepreneur considered employment opportunities with Nick Vingirai’s Intermarket and Never Mhlanga’s National Discount House which was on the verge of being formed – hoping to join as a shareholder since he was acquainted with the promoters. He was denied this opportunity.

Being frustrated at Bard and having been denied entry into the club by pioneers, he resigned in October 1994 with the encouragement of Mrs Masiyiwa to pursue his entrepreneurial dream.

The Dream

Inspired by the messages of his pastor, Rev. Tom Deuschle, and frustrated at his inability to participate in the church’s massive building project, Nigel sought a way of generating huge financial resources. During a time of prayer he claims that he had a divine encounter where he obtained a mandate from God to start Kingdom Bank. He visited his pastor and told him of this encounter and the subsequent desire to start a bank. The godly pastor was amazed at the 26 year old with “big spectacles and wearing tennis shoes” who wanted to start a bank. The pastor prayed before counselling the young man. Having been convinced of the genuineness of Nigel’s dream, the pastor did something unusual. He asked him to give a testimony to the congregation of how God was leading him to start a bank. Though timid, the young man complied. That experience was a powerful vote of confidence from the godly pastor. It demonstrates the power of mentors to build a protégé.

Nigel teamed up with young Franky Kufa. Nigel Chanakira left Bard at the position of Chief Economist. They would build their own entrepreneurial venture. Their idea was to identify players who had specific competences and would each be able to generate financial resources from his activity. Their vision was to create a one – stop financial institution offering a discount house, an asset management company and a merchant bank. Nigel used his Empretec model to develop a business plan for their venture. They headhunted Solomon Mugavazi, a stockbroker from Edwards and Company and B. R. Purohit, a corporate banker from Stanbic. Kufa would provide money market expertise while Nigel provided income from government bond dealings as well as overall supervision of the team.

Each of the budding partners brought in an equal portion of the Z$120,000 as start-up capital. Nigel talked to his wife and they sold their recently acquired Eastlea home and vehicles to raise the equivalent of US$17,000 as their initial capital. Nigel, his wife and three kids headed back to Highfield to live in with his parents. The partners established Garmony Investments which started trading as an unregistered financial institution. The entrepreneurs agreed not to draw a salary in their first year of operations as a bootstrapping strategy.

Mugavazi introduced and recommended Lysias Sibanda, a chartered accountant, to join the team. Nigel was initially reluctant as each person had to bring in an earning capacity and it was not clear how an accountant would generate revenue at start up in a financial institution. Nigel initially retained a 26% share which assured him a blocking vote as well as giving him the position of controlling shareholder.

Nigel credits the Success Motivation Institute (SMI) course “The Dynamics of Successful Management” as the lethal weapon that enabled him to acquire managerial competences. Initially he insisted that all his key executives undertake this training programme.

Birth of the Kingdom

Kingdom Securities P/L commenced operations in November 1994 as a wholly owned subsidiary of Garmony Investments (Pvt) Ltd. It traded as a broker on both money and stock markets.

On 24th February 1995 Kingdom Securities Holding was born with the following subsidiaries: Kingdom Securities Ltd, Kingdom Stockbrokers (Pvt) Ltd and Kingdom Asset Managers (Pvt) Ltd. The flagship Kingdom Securities Ltd was registered as a Discount House under Banking Act Chapter 188 on 25th July 1995. Kingdom Stockbrokers was registered with the Zimbabwe Stock Exchange under ZSE Chapter 195 on 1st August 1995. The pre-licensing trading had generated good revenue but they still had a 20% deficit of the required capital. Most institutional investors turned them down as they were a greenfield company promoted by people perceived to be “too young”. At this stage National Merchant Bank, Intermarket and others were on the market raising equity and these were run by seasoned and mature promoters. However Rachel Kupara, then MD for Zimnat, believed in the young entrepreneurs and took up the first equity portion for Zimnat at 5%.

Norman Sachikonye, then Financial Director and Investments Manager at First Mutual followed suit, taking up an equity share of 15%. These two institutional investors were inducted as shareholders of Kingdom Securities Holdings on 1st August 1995. Garmony Investments ceased operations and reversed itself into Kingdom Securities on 31st July 1995, thereby becoming an 80% shareholder.

The first year of operations was marked by intense competition as well as discrimination against new financial institutions by public organisations. All the other operating units performed well except for the corporate finance department with Kingdom Securities, led by Purohit. This monetary loss, differing spiritual and ethical values led to the forced departure of Purohit as an executive director and shareholder on 31st December 1995. From then the Kingdom started to grow exponentially.

Structural Growth

Nigel and his team pursued an aggressive growth strategy with the intention of increasing market share, profitability, and geographic spread while developing a strong brand. The growth strategy was built around a business philosophy of simplifying financial services and making them easily accessible to the general public. An IT strategy that created a low cost delivery channel exploiting ATMs and POS while providing a platform that was ready for Internet and web-based applications, was espoused.

On 1st April 1997, Kingdom Financial Services was licensed as an accepting house focusing on trading and distributing foreign currency, treasury activities, corporate finance, investment banking and advisory services. It was formed under the leadership of Victor Chando with the intention of becoming the merchant banking arm of the Group. In 1998, Kingdom Merchant Bank (KMB) was licensed and it took over the assets and liabilities of Kingdom Securities Limited. Its main focus was treasury related products, off-balance sheet finance, foreign currency and trade finance. Kingdom Research Institute was established as a support service to the other units.

The entrepreneurial bankers, cognisant of their limitations, sought to achieve critical mass quickly by actively seeking capital injection from equity investors. The aim was to broaden ownership while lending strategic support in areas of mutual interest. An attempt at equity uptake from Global Emerging Markets from London failed. However in 1997 the efforts of the bankers were rewarded when the following organisations took up some equity, reducing the shareholding of executive directors as shown below: ïEUR Ipcorn 0.7%, ïEUR Zambezi Fund Mauritius P/L 1.1%, ïEUR Zambezi Fund P/L 0.7%. ïEUR Kingdom Employee Share Trust 5%, ïEUR Southern Africa Enterprise Development Fund – 8% redeemable preference shares amounting to US$1,5m as the first investee company in Southern Africa from the US Fund initiated by US President Bill Clinton, ïEUR Weiland Investments, a company belonging to Mr Richard Muirimi, a long standing friend of Nigel and associate in the fund management business took up 1.7%, Garmony Investments 71.7% -executive directors. ïEUR After a rights issue Zimnat fell to 4.8% while FML went down to 14.3%.

In 1998, Kingdom launched four Unit Trusts which proved very popular with the market. Initially these products were focused at individual clients of the discount house as well as private portfolios of Kingdom Stockbroking. Aggressive marketing and awareness campaigns established the Kingdom Unit Trust as the most popular retail brand of the group. The Kingdom brand was thus born.

Acquisition of Discount Company of Zimbabwe (DCZ)

After a spurt of organic growth, the Kingdom entrepreneurs decided to hasten the growth rate synergistically. They set out to acquire the oldest discount house in the country and the world, The Discount Company of Zimbabwe, which was a listed entity. With this acquisition Kingdom would acquire critical competences as well as achieve the much coveted ZSE listing inexpensively through a reverse listing. Initial efforts at a negotiated merger with DCZ were rebuffed by its executives who could not countenance a forty year old institution being swallowed up by a four year old business. The entrepreneurs were not deterred. Nigel approached his friend Greg Brackenridge at Stanbic to finance and effect the acquisition of the sixty percent shares which were in the hands of about ten shareholders, on behalf of Kingdom Financial Holdings but to be placed in the ownership of Stanbic Nominees. This strategy masked the identity of the acquirer. Claud Chonzi, the National Social Security Authority (NSSA) GM and a friend to Lysias Sibanda (a Kingdom executive director), agreed to act as a front in the negotiations with the DCZ shareholders. NSSA is a well known institutional investor and hence these shareholders may have believed that they were dealing with an institutional investor. Once Kingdom controlled 60% of DCZ, it took over the company and reverse listed itself onto the Stock Exchange as Kingdom Financial Holdings Limited (KFHL). Because of the negative real interest rates, Kingdom successfully used debt finance to structure the acquisition. This acquisition and the subsequent listing gave the once despised young entrepreneurs confidence and credibility on the market.

Other Strategic Acquisitions

Within the same year Kingdom Merchant Bank acquired a strategic stake in CFX Bureau de Change owned by Sean Maloney as well as another stake in a greenfield microlending franchise, Pfihwa P/L. CFX was changed into KFX and used in most foreign currency trading activities. KFHL set as a strategic intention the acquisition of an additional 24.9% stake in CFX Holdings to safeguard the initial investment and ensure management control. This did not work out. Instead, Sean Maloney opted out and took over the failed Universal Merchant Bank licence to form CFX Merchant Bank. Although Kingdom executives contend that the alliance failed due to the abolition of bureau de change by government, it appears that Sean Maloney refused to give up control of the extra shareholding sought by Kingdom. It therefore would be reasonable that once Kingdom could not control KFX, a fall out ensued. The liquidation of this investment in 2002 resulted in a loss of Z$403 million on that investment. However this was manageable in light of the strong group profitability.

Pfihwa P/L financed the informal sector as a form of corporate social responsibility. However when the hyperinflationary environment and stringent regulatory environment encroached on the viability of the project, it was wound up in early 2004. Kingdom pursued its financing of the informal sector through MicroKing, which was established with international assistance. By 2002 MicroKing had eight branches located in the midst of, or near, micro-enterprise clusters.

In 2000, due to increased activity on the foreign currency front within the banking sector, Kingdom opened a private banking facility through the discount house to exploit revenue streams from this market. Following market trends, it engaged the insurance company AIG to enter the bancassurance market in 2003.

Meikles Strategic Alliance

In 1999 the entrepreneurial Chanakira on advice from his executives and the legendary corporate finance team from Barclays bank led by the affable Hugh Van Hoffen entered into a strategic alliance with Meikles Africa whereby it injected some Z$322 million into Kingdom for an equity shareholding of 25%. Interestingly, the deal nearly collapsed on pricing as Meikles only wanted to pay $250 million whilst KFHL valued themselves at Z$322 million which in real terms was the largest private sector deal done between an indigenous bank and a listed corporate. Nigel testifies that it was a walk through the incomplete Celebration Church site on the Saturday preceding the signing of the Meikles deal that led him to sign the deal which he saw as a means for him to sow a whopping seed into the church to boost the Building Fund. God was faithful! Kingdom’s share price shot up dramatically from $2,15 at the time he made the commitment to the Pastor all the way to $112,00 by the following October!

In return Kingdom acquired a powerful cash-rich shareholder that allowed it entrance into retail banking through an innovative in-store banking strategy. Meikles Africa opened its retail branches, namely TM Supermarkets, Clicks, Barbours, Medix Pharmacies and Greatermans, as distribution channels for Kingdom commercial bank or as account holders providing deposits and requiring banking services. This was a cheaper way of entering retail banking. It proved useful during the 2003 cash crisis because Meikles with its massive cash resources within its business units assisted Kingdom Bank, thus cushioning it from a liquidity crisis. The alliance also raised the reputation and credibility of Kingdom Bank and created an opportunity for Kingdom to finance Meikles Africa’s customers through the jointly owned Meikles Financial Services. Kingdom provided the funding for all lease and hire purchases from Meikles’ subsidiaries, thus driving sales for Meikles while providing easy lending opportunities for Kingdom. Meikles managed the relationship with the client.

Meikles Africa as a strategic shareholder assured Kingdom of success when recapitalisation was required and has enhanced Kingdom’s brand image. This strategic relationship has created powerful synergies for mutual benefit.

Commercial Banking

Exploiting the opportunities arising from the strategic relationship with Meikles Africa, Kingdom made its debut into retail banking in January 2001 with in-store branches at High Glen and Chitungwiza TM supermarkets. The target was principally the mass market. This rode on the strong brand Kingdom had created through the Unit Trusts. In-store banking offered low cost delivery channels with minimal investment in brick and mortar. By the end of 2001, thirteen branches were operational across the country. This followed a deliberate strategy for aggressive roll-out of the branches with two flagship branches ïEUR­ïEUR one in Bulawayo and the other in Harare. There was a huge emphasis on an IT driven strategy with significant cross-selling between the commercial bank and other SBUs.

However, it was further discovered that there was a market for the upmarket clients and hence Crown banking outlets were established to diversify the target market. In 2004, after closing three in-store branches in a rationalization exercise, there were 16 in-store branches and 9 Crown banking outlets.

The entrance into commercial banking was probably held at the wrong time, considering the imminent changes in the banking industry. Commercial banking does provide cheap deposits, however at the price of huge staff costs and human resource management complications. Nigel concedes that, with hindsight, this could have been delayed or done at a slower pace. However, the need for increased market share in a fiercely competitive industry necessitated this. Another reason for persisting with the commercial banking project was that of prior agreements with Meikles Africa. It is possible that Meikles Africa had been sold on the equity take-up deal on the back of promises to engage in in-store banking, which would increase revenue for its subsidiaries.

Innovative Products and Services

KFHL continued its aggressive pursuit of product innovation. After the failure of the KFX project, CurrencyKing was established to continue the work. However this was abolished in November 2002 by government ministerial intervention when bureau de change were prohibited in an effort to stamp out parallel market foreign currency trading.

Sadly this governmental decision was misguided for not only did it fail to banish foreign currency parallel trading but it drove underground, made it more lucrative and subsequently the government lost all control of the management of the exchange rate.

In October 2002, KFHL established Kingdom Leasing after being granted a finance house licence. Its mandate was to exploit opportunities to trade in financial leases, lease hire and short term financial products.

Regional Expansion

Around 2000 it became evident that the domestic market was highly competitive, with limited prospects of future growth. A decision was made to diversify revenue streams and reduce country risk through penetration into the regional markets. This strategy would exploit the proven competences in securities trading, asset management and corporate advisory services from a small capital base. Therefore the entrance had low risk in terms of capital injection. Considering the foreign exchange control limitations and shortage of foreign currency in Zimbabwe, this was a prudent strategy but not without its downside, as will be seen in the Botswana venture.

In 2001, KFHL acquired a 25.1% stake in a greenfield banking enterprise in Malawi, First Discount House Ltd. To safeguard its investment and ensure managerial control, an executive director and dealer were seconded to the Malawi venture while Nigel Chanakira chaired the Board. This investment has continued to grow and yield positive returns. As of July 2006 Kingdom had finally managed to up its stake from 25,1% to 40% in this investment and may ultimately control it to the point of seeking a conversion of the license to a commercial bank.

KFHL also took up a 25% equity stake in Investrust Merchant Bank Zambia. Franky Kufa was seconded to it as an executive director while Nigel took a seat on the Board.

KFHL had been promised an option to gain a controlling stake. However when the bank stabilized, the Zambian shareholders entered into some questionable transactions and were not prepared to allow KFHL to up it’s stake and so KFHL decided to pull out as relationships turned frosty. The Zambian Central Bank intervened with a promise to grant KFHL its own banking license. This did not materialize as the Zambian Central Bank exploited the banking crisis in Zimbabwe to deny KHFL a licence. A reasonable premium of Z$2.5 billion was obtained at disinvestment.

In Botswana, a subsidiary called Kingdom Bank Africa Ltd (KBAL) was established as an offshore bank in the International Finance Centre. KBAL was intended to spearhead and manage regional initiatives for Kingdom. It was headed by Mrs Irene Chamney, seconded by Lysias Sibanda with the concurrence of Nigel after managerial challenges in Zimbabwe. Two other senior executives were seconded there. She successfully set up the KBAL’s banking infrastructure and had good relations with the Botswana authorities.

However, the business model chosen of an offshore bank ahead of a domestic Botswana merchant bank license turned out to be the Achilles heel of the bank more so when the Zimbabwe banking crisis set in between 2003 and 2005. There were fundamental differences in how Mrs Chamney and Chanakira saw the bank surviving and going forward.

Ultimately, it was deemed prudent for Mrs. Chamney to leave the bank in 2005. In 2001 KFHL acquired the mandate as the sole distributor of the American Express card in the whole of Africa except for RSA. This was handled through KBAL. Kingdom Private Bank was transferred from the discount house to become a subsidiary of KBAL due to the prevailing regulatory environment in Zimbabwe.

In 2004 KBAL was temporarily placed under curatorship due to undercapitalisation. At this stage the parent company had regulatory constraints that prevented foreign currency capital injection.

A solution was found in the sourcing of local partners and the transfer of US$1 million previously realised from the proceeds of the Investrust liquidation to Botswana. Nigel Chanakira took a more active management role in KBAL because of its huge strategic significance to the future of KFHL. Currently efforts are underway to acquire a local commercial bank licence in Botswana as well. Once this is acquired there are two possible scenarios, namely maintaining both licences or giving up the offshore licence.

The interviewees were divided in their opinion on this. However in my view, judging from the stakeholder power involved, KFHL is likely to give up the off shore banking licence and use the local Kingdom Bank Botswana (Pula Bank) licence for regional and domestic expansion.

Human Resources

The staff complement grew from the initial 23 in 1995 to more than 947 by 2003. The growth was consistent with the growing institution. It exploded, especially during the launch and expansion of the commercial bank. Kingdom from inception had a strong human resourcing strategy which entailed significant training both internally and externally. Before the foreign currency crisis, employees were sent for training in such countries as RSA, Sweden, India and the USA. In the person of Faith Ntabeni Bhebhe, Kingdom had an energetic HR driver who created powerful HR systems for the emerging behemoth.

As a sign of its commitment to building the human resource capability, in 1998 Kingdom Financial Services entered a management agreement with Holland based AMSCO for the provision of seasoned bankers. Through this strategic alliance Kingdom strengthened its skills base and increased opportunities for skills transfer to locals. This helped the entrepreneurial bankers create a solid managerial system for the bank while the seasoned bankers from Holland compensated for the youthfulness of the emerging bankers. What a foresight!

In-house self-paced interactive learning, team building exercises and mentoring were all part of the learning menu targeted at developing the human resource capacity of the group. Work and job profiling was introduced to best match employees to suitable posts. Career path and succession planning were embraced. Kingdom was the first entrepreneurial bank to have smooth unforced CEO transitions. The founding CEO passed on the baton to Lysias Sibanda in 1999 as he stepped into the role of Group CEO and board deputy chair. His role was now to pursue and spearhead global and regional niche financial markets. A few years later there was another change of the guard as

Franky Kufa stepped in as Group CEO to replace Sibanda, who resigned on medical grounds. One could argue that these smooth transitions were due to the fact that the baton was passing to founding directors.

With the explosive growth in staff complement due to the commercial bank project, culture issues emerged. Consequently, KFHL engaged in an enculturation programme resulting in a culture revolution dubbed “Team Kingdom”. This culture had to be reinforced due to dilutions through significant mergers and acquisitions, significant staff turnover because of increased competition, emigration to greener pastures and the age profile of the staff increased the risk of high mobility and fraudulent activities in collusion with members of the public. Culture changes are difficult to effect and their effectiveness even harder to assess.

In 2004, with a high staff turnover of around 14%, a compensation strategy that ring fenced critical skills like IT and treasury was implemented. Due to the low margins and the financial stress experienced in 2004, KFHL lost more than 341 staff members due to retrenchment, natural attrition and emigration. This was acceptable as profitability fell while staff costs soared. At this stage, staff costs accounted for 58% of all expenses.

Despite the impressive growth, the financial performance when inflation adjusted was mediocre. Actually a loss position was reported in 2004. This growth was severely compromised by the hyperinflationary conditions and the restrictive regulatory environment.

Conclusion

This article shows the determination of entrepreneurs to push through to the realisation of their dreams despite significant odds. In a subsequent article we will tackle the challenges faced by Nigel Chanakira in solidifying his investments.

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