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.
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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. As chairman of the board of a bank in Puerto Rico, Venezuelan-born financial executive Julio M. Herrera Velutini directs operations with an international focus. Over the past decade, Julio M. Herrera Velutini’s bank has partnered with a major global charitable foundation to sponsor microlending programs in Costa Rica. Microlending has proven to be an effective and popular way for a number of financial institutions to assist communities in Central America. Experts have pointed out that microlending can play a significant role in improving life for some of the more than 800 million people living in extreme poverty worldwide. A study examining 106 developing countries where microlending is available has shown that if the practice is expanded by just 10 percent per recipient, more than 10 million people could be lifted out of poverty. Costa Ricans who have benefited from the growing array of microlending programs include farmers, who use the funds to increase and improve their crops, and women entrepreneurs, who are often among those least likely to obtain traditional loans. A respected Venezuelan financial executive, Julio M. Herrera Velutini guides an investment bank based in Puerto Rico with a US presence. Deeply rooted in his native country, Julio M. Herrera Velutini is a descendant of Jose Antonio Velutini, a political and business leader who had a prominent role in the early years of Venezuelan history. One of his major accomplishments involved helping to set in place a unique Venezuelan paper currency as the director of Banco Caracas. Venezuela produced its initial run of silver coins in 1879 in various denominations, up to 5 bolivares. Subsequently, gold coins were produced with significantly higher values, and this early hard currency played an important role in boosting the country's economic growth. This early system evolved to keep pace with changing economic necessities. High-value gold coin production ceased in 1912, while only the 5 bolivares gold coin remaining in production until 1936. By the mid-1960s, silver coinage was phased out as well and replaced with nickel. By the late 1990s, high inflation resulted in a completely new set of coins being created, valued at between 10 and 500 bolivares Following the path of his father and grandfather, Julio M. Herrera Velutini ventured into the world of banking and finance after completing his college education. The chairman of an international bank based in Puerto Rico, Julio Herrera Velutini has acquired stakes in several financial firms and made them part of the family holdings. Acquisitions occur often in the business world. Strategic acquisitions are performed to either improve synergy, grow market share, or increase operational efficiency. Synergy is created when two companies with similar products and services come together. One company can acquire another with similar product or service offerings and combine both companies’ resources to reduce operational costs and increase branch locations. Acquisitions lead to increased market share. When a company acquires another operating in a similar industry, essentially a competitor company, the buyer also acquires its existing business. That way, the acquiring company gains market share without doing the hard work involved in earning new business and at the same time eliminates competition. The final reason for strategic acquisitions is to improve operational efficiency in the overall business or in a specific segment such as supplies or marketing. For example, one company can acquire its supplier and with that, reduce its costs by the margin the supplier made, boosting supply chain efficiency. |
AuthorMr. Velutini has experience with both established banks and young banks. S Archives
December 2017
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