London has long been a global financial hub. This history dates as far back as 50 AD, after the Romans invaded the north bank of the River Thames. Because of its status as a port, the city drew in merchants from far away lands to trade. This trend continued in the coming centuries and by the 1520s, the city had a population of 50,000 to 60,000. According to historical demographer Tony Wrigley, London attracted 8,000 immigrants every year from 1650 to 1750, and by the end of the 18th century, its population had ballooned to a million people.
These merchants wielded considerable influence in the city, securing special privileges and autonomy for themselves. To this day, the city has its own governing body called the City of London Corporation. Emboldened by their autonomy, the merchants set out to promote trade by establishing banks. The Bank of England was established in 1694 and, over time, it became a banking monopoly at the heart of the city. The London Stock Exchange was founded just over a century later. It was established by stockbrokers who did their business in a coffee house in Change Alley. The famous Lloyd’s of London insurance market was founded similarly, by marine underwriters who regularly met at a coffee house on Tower Street. In the 1830s, the United Kingdom invested in an expansive rail network that strengthened the city’s connectivity. Now a major port with a strong merchant base, a rich banking history, and access to marine and rail transport channels, the City of London emerged as a top financial hub in Europe. Interestingly, London’s rise coincided with the decline of the Dutch empire and the fall of Amsterdam as a key financial center. London borrowed many of the financial innovations begun in Amsterdam and gradually improved on them. At the time, only Paris rivaled London as a center for European commerce, but Paris lost its mantle in the mid 19th century after losing a war with Prussia. Following the defeat, the Bank of France lost its reserve status, leaving the Bank of England as Europe’s dominant settling house of exchange transactions. London reigned supreme as a global financial center in the last half of the 19th century, and in the first half of the 20th century before falling behind New York after World War II. It re-emerged in the 1950s thanks to a host of reforms that allowed it to capitalize on the Eurodollar market, attracting hundreds of foreign banks into the city. From the 1980s all the way to 2020, banks with offices in London had much higher cross-border exposure than banks in other countries including Germany, France, Hong Kong, and the United States. According to the Financial Times, as of the second quarter of 2020, banks with offices in the UK had $5.1 trillion of cross border liabilities and $4.9 trillion of cross border assets, far more than those in the United States, which had slightly less than $4 trillion in liabilities and over $3 trillion in assets. London is also the center of currencies and derivatives trading. It accounts for 43 percent of the $6.6 trillion traded every day in the foreign exchange markets and 50 percent of the $6.5 trillion traded in the derivatives market. Furthermore, portfolio managers in London manage $8.5 trillion in assets for people who saved in funds and to meet mandates as of 2020, making the United Kingdom the largest investment management center in Europe and No. 2 globally after the United States.
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With centuries of banking history, Britannia Financial Group has been headquartered in London for 35 years, with a presence in other global financial markets including Geneva, Switzerland, and the Bahamas. Presenting a strong balance sheet, Britannia Financial Group provides clients with extensive expertise in investment banking, securities, brokerage, and asset and wealth management products and services. With five fully regulated subsidiaries, the group serves a diverse range of international clients, including institutions, corporations, family offices, and ultra-high-net-worth individuals (UHNWs).
The first of the five subsidiaries is Britannia Global Markets (BGM), which had already served London-area clients for four decades before being acquired by Britannia in 2019. BGM is a member of prominent exchanges including the London Stock Exchange, the Dubai Gold and Commodities Exchange, and the London Metal Exchange. Providing access to a variety of global derivative markets, BGM advises investment clients on stock indices, interest rates, precious and base metals, agriculturals, energies, equities, and more. In addition, BGM offers clients multiple trading platforms and back-office and hedging services. Britannia acquired the second of its subsidiaries, Britannia Global Investments (BGI), in 2018. Also based in London, BGI is regarded as the pan-European brokerage division of Britannia. Providing investment services across equities, fixed income, commodities, forex trading, and corporate finance, BGI focuses on helping individual and institutional clients to trade and hedge efficiently, and to balance and offset their risk exposure even in challenging market conditions. BGI also serves in a strategic development capacity by identifying potential acquisitions, managing transactions, and spearheading projects to expand and enhance Britannia’s investment capabilities. The third subsidiary, Britannia Global Payments (BGP), is the group’s UK-based payments division. Founded in 2019, BGP is an Authorised Electronic Money Institution regulated by the UK Financial Conduct Authority. As part of the interconnected Britannia Financial Group, BGP helps clients manage their assets effectively and conduct domestic and cross-border payments. BGP’s web portal and mobile app offer a full range of investment and account management services through a single point of access, including multi-currency accounts, cross-currency payments, and foreign currency exchange services. The Group’s fourth subsidiary, Britannia Wealth Management (BWM), is a global wealth management platform founded in 2012. Headquartered in Geneva, BWM surpassed traditional wealth management services with sophisticated solutions to meet the needs of UHNWs, including risk profile management with continuous reporting. BWM is a member of the Association Suisse des Gérants de Fortune, which is regulated by the Swiss Financial Market Supervisory Authority. Britannia Financial’s fifth subsidiary is Britannia Bank & Trust (BBT), a privately held bank licensed by the Central Bank of the Bahamas. Established in 2019, BBT offers a variety of customized banking and trust services for its international clientele. In addition to full banking and fiduciary services, BBT provides a wide selection of asset management products, securities brokerage services, and wealth management services. It also administers trusts, private trust companies, and endowments for foundations. Britannia Financial Group continues to evolve to meet the diverse needs of its international clientele and adapt to the changing global financial environment. For more information about the group, visit Britannia.com. Knowing how to scuba dive gives you the freedom to explore underwater habitats all over the world. If you visit one of the world’s top scuba diving sites, you will have the opportunity to experience scenic underwater terrains and encounter many forms of marine life.
One of the world’s top scuba diving destinations is Costa Rica, known for its biodiversity on land and in water. There, you can catch glimpses of animals such as massive humpback whales and gentle manta rays. Off the country’s Pacific coast, you can explore Cocos Island, a national park and a United Nations Educational, Scientific, and Cultural Organization-designated World Heritage Site. Expect to see scalloped hammerhead sharks, whale sharks, and manta rays. Off Costa Rica’s Caribbean coast, you will find an abundance of colorful reefs and shipwrecks to explore. Isla Uvita, off the coast of Puerto Limón, is a popular place to see turtles, eels, reef sharks, and seahorses. French Polynesia, with turquoise waters and clean beaches, is another haven for scuba divers. Whether visiting Tahiti, Bora Bora, or another French Polynesian island in the South Pacific, you’re sure to be near a popular dive site. While diving in the Polynesian lagoons and narrow channels, you’ll come into close contact with various shark species, barracudas, and manta rays. In the fall months, you may have the chance to see a whale. The Philippines offer another diving option in the South Pacific. Made up of more than 7,000 islands stretching from the South China Sea to the Philippine Sea, the Philippines present nearly unlimited diving opportunities for scuba divers of all skill levels. A popular diving spot is Subic Bay, a former US naval base that allows you to see sunken warships up close. A second top diving spot in the Philippines is Boracay, a small island south of Manila. Known as one of the most beautiful islands in the world, Boracay features white sandy beaches and shallow, transparent waters that are popular for beginners. There, you can swim with colorful reef fish such as puffers and angelfish as well as moray eels, blue-spotted stingrays, and sea snakes. In the Southern hemisphere, Australia’s Great Barrier Reef is high on the list of the world’s top scuba diving spots. Designated a UNESCO World Heritage Site, Australia offers the world’s largest collection of coral reefs in many colors and shapes. As for sea life, the Great Barrier Reef is home to an assortment of fish, mollusks, sponges, anemones, and other species. You also may encounter whales, dolphins, and sea turtles. For something off the beaten track, consider a scuba diving trip to the Red Sea in Egypt. If you are a shipwreck enthusiast, you will enjoy diving to a depth of 100 feet to explore the sunken SS Thistlegorm, which is one of the most popular wreck dives in the world. The wreckage, submerged since 1941, is still equipped with trucks, rifles, armored cars, and more. The 420-foot wreckage also has become home to a variety of marine life. Given the year-round warm waters in the tropics and Australia, you can enjoy scuba diving no matter the season. With so many areas to dive worldwide, you will never run out of places to explore. With an extensive background in Venezuelan banking and finance, Julio M. Herrera Velutini leads a Puerto Rico-headquartered financial entity governed by U.S. banking regulations. Internationally focused, Julio M. Herrera Velutini maintains a strong interest in financial developments throughout Latin America. A recent article by the director of the International Monetary Fund’s Western Hemisphere Department drew attention to global financial market and economic trends that present significant opportunities for Latin America. With commodity prices strengthening, countries such as Brazil, Ecuador, and Argentina are finally emerging from recession. One outcome in 2017 was that region-wide growth exceeded projections and ended at 1.3 percent for the year. According to the IMF forecast, export-driven growth should continue to accelerate throughout 2018, with many countries gaining room for monetary-easing policies. With the economic strength of Central America, Mexico, and much of the Caribbean tied closely to the United States, analysts are closely watching Wall Street and policy movements in Washington, D.C. One major question is whether Venezuela can turn the corner and once again leverage the power of its commodity resources toward sustained growth. Julio M. Herrera Velutini belongs to a family whose influence on banking in Venezuela goes back generations. Additionally, Julio Herrera Velutini established an international bank in Puerto Rico that uses cutting-edge technology in the creation of financial products and services for its customers. His bank is an example of how many firms have embraced the concept of customer centricity. According to Deloitte, while other industries have undergone customer-centric transformations, the banking industry has not fully engaged in the approach. Undoubtedly there have been many improvements, but banks are encouraged to abandon a product and sales point of view and explore new ways to satisfy the customer. After the financial crisis a decade ago, banks of all sizes have refined their customer and market strategies, yet the focus on customer experience is not as widespread as previously thought. The fintech industry, with its emphasis on customer satisfaction, has shown that it does not just meet customer expectations but exceeds them. As such, banks would be wise to partner with or emulate fintech companies to better serve their customers. Yet technology is only part of the solution, as forming key partnerships, innovating, and creating a fresh approach to managing talent are other ways to achieve organizational agility while not losing customers to a fast-growing fintech ecosystem. Julio M. Herrera Velutini is a well-established financial executive who has extensive experience in Venezuelan banking and heads a Puerto Rico-based financial operation. At the core of Julio M. Herrera Velutini’s value proposition is banking that rests on a robust mobile platform and incorporates a full range of investment strategies. He is knowledgeable about the ins and outs of emerging market investments, which provide exceptional growth potential. A recent Forbes article brought attention to the continuing attractiveness of emerging markets, as political and economic reforms lead to a more stable outlook. In particular, traditional risk-associated issues such as low inflation-adjusted interest rates and current account deficits have markedly improved. While bond and equity valuations have increased following an overall strong 2017 performance, they still present attractive price points compared with developed markets and historical trends. India, Brazil, and Russia are areas of particular emerging market interest, with many companies expected to exert more focus on cost controls in ways that improve earnings, profits, and corporate dividends. Julio M. Herrera Velutini is an experienced banking professional who has worked in the Venezuelan and Puerto Rican markets for over two decades. Moreover, Julio Herrera Velutini’s family has been in the banking industry for several generations. Businesses involving families can be effective and efficient operations, but they can also present opportunities for conflicts. However, by implementing a few guidelines, family businesses can still run smoothly. Family businesses benefit from having a formal structure such as a board, council, or forum to discuss business matters. This governance system helps to separate the management functions of the business from business ownership. Time spent working on the family business and resolving business-related problems should be clearly defined and set apart from time spent interacting as a family unit. To reduce conflict in the family business, leaders should encourage each family member to express their concerns in a constructive manner while respecting each member's right to disagree. Just as they would treat employees or peers in a non-family business, leaders should strive to take points of view seriously and listen to each team member without passing judgment. Banking veteran Julio M. Herrera Velutini is the chairman of an international bank based in Puerto Rico. Through his company, Julio Herrera Velutini oversees the creation and support of online banking opportunities to customers. Online banking is experiencing rapid growth globally, according to a study conducted by Allied Market Research in 2017. The research firm placed online banking’s market size at $7.3 billion in 2016, and projected it would rise to $29 billion by 2023. This would represent a compound annual growth rate (CAGR) of 22 percent, growth which is currently led by a surge in online retail banking and increasing demand in emerging economies. Europe is the world leader in online banking, commanding 31 percent of the total market share in 2017, followed by North America at 26.1 percent. Between now and 2023, however, the Asia-Pacific region is expected to record the highest online banking CAGR at 26.1 percent, bolstered by a growth in internet penetration and a large population that is increasingly adapting to smartphone technology. The report highlights security and service delivery as the two major challenges to more rapid growth. Julio M. Herrera Velutini has extensive expertise in the Venezuelan and Puerto Rican financial sectors. Coming from a family involved in the banking industry for several generations, Julio M. Herrera Velutini has had a successful career in organizations that assist individuals and businesses with their financial needs. Choosing a bank is an important decision for a business of any size or type. Here are a few helpful steps for deciding which bank will best fit the needs of a business: 1. Consider the financial needs of the business. For example, does the company need specialized services such as access to small business loans or investment guidance? 2. Estimate the amount of money that will be moving through the banking account. Some banks offer incentives to maintain a certain bank account balance or provide services that help increase the profits of a business. 3. Compare a variety of banks for their fees, interest rates, loan rates, and additional services. Request specific information from each bank and learn what they offer. Arrange appointments to meet with bankers to ask further questions. 4. Re-evaluate the financial needs of a business occasionally to ensure it is receiving the financial support it needs from its bank. Coming from a long line of bankers, Julio M. Herrera Velutini is the chairman of an international bank based in Puerto Rico. In his position, Julio Herrera Velutini provides banking services to clients in both North and South America. Banks offer clients several different types of accounts today. For people looking to grow their savings, two types of bank accounts pay interest on deposits: savings accounts and money market deposit accounts (MMDAs). Both are insured by the Federal Deposit Insurance Corporation, but have unique advantages and disadvantages. Here’s a breakdown of each: i) Savings accounts These accounts are designed for liquidity. Users can access their money easily and make deposits and withdrawals. Money in savings accounts earns interest but at a small rate and many banks charge fees when money in a savings account falls below a minimum balance. The accounts do not have check-writing privileges and are suitable for holding emergency funds or for use as overdraft protection. ii) MMDAs These accounts direct deposits to investments such as treasury bills, commercial paper, and certificates of deposits. Banks pay interest on MMDA deposits, usually at a higher rate than savings account deposits, and this interest is only earned if a person’s account balance is above a high minimum amount. MMDAs have limited liquidity in that owners are allowed to write up to a certain number of checks a month, say three, and withdrawals can take days to complete. These accounts are suitable for long-term interest-earning savings such as for a child's college tuition. |
AuthorMr. Velutini has experience with both established banks and young banks. S Archives
December 2017
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