World Bank Financing

Financing option

Anywhere in the world, big projects can always count on financing from the government. This is however faced with problems of reporting and constant delays in obtaining the funds, as such, the administration of the city of Mangalore are in a position to apply for funding from India`s national government. Additionally, the intended reservoir meets all criteria set out by the World Bank if it has to give out a loan. The AP Integrated Irrigation & Agricultural Transformation project in India is a good example of a project funded by the World Bank (The World Bank, 2019). For civil engineering dissertation help, understanding the intricacies of project financing is a very paramount aspect. This project was intended at enhancing productivity in agriculture, climate resilience and profitability of small holder farmers across districts that had been selected in Andhra Pradesh. The total cost for this project was US$ 245.80 Million. World Bank loans usually have low interest rates attached to them and this is the reason why they are normally appropriate for funding projects in poor countries.

PFI Option

The Private finance initiative (PFI), is a means through which public-private partnerships are created and which firms that are private are normally contracted for purposes of managing and completing projects. Through a PFI, the private sector can be relied on to construct and manage the Mangalore reservoir project. The project can be funded through the sale of senior debts and/ or bonds. Any bank that would undertake to finance the Mangalore project by any of these means would get repaid by the consortium from the money that is received from the government during the lifespan of the construction of the reservoir. From the view of the private sector, the reason why PFI borrowing is considered to be low risk is that public sector authorities are not very likely to default.

The Skye Bridge found in Scotland is a good example of a FPI funded project. The tolls that are received from the users who cross it are used in servicing the debts that were incurred in its construction and also in its management. A total of £39 Million was used to construct the bridge and in this amount, £12 Million was obtained from a government grant. By June 2003, it is estimated that tolls amounting to £27 Million had been collected, around ten years since the bridge was opened up.

Sources of Finance for the Mangalore Project

The management of the Reservoir will apply for funding from the World Bank. The project will help the economy of the country to grow through increased fishing activities and even the use of the water for purposes of irrigation. In addition, the reservoir will also increase the opportunities of women for example in the fields of agriculture while also helping the poor in the society (The World Bank, 2012). The project is also expected to positively help in the conservation of the environment.

FinTech solutions stimulate Financial Inclusion which is a clear illustration of the positive feedback that exists between the economy and financing (Puschmann, 2017). If the citizens of Mangalore are to gain new access to financial services through FinTech, they will no doubt be in a position of expanding their businesses, which currently could be hampered by access to payment services that is constrained. Through this, FinTech could contribute to the improvement of the lives of the locals.

FinTech solutions have the potential of personalising financial services. Of late, smartphones and cell phones have characteristics of tools that are personalised and with FinTech, it is today possible to utilise big data for analysis of individual customers once the Dam will be fully operational and when water and other services will begin being distributed. Through the combination of the new FinTech tools with analytic methodologies, it will be possible to provide services of a more customised nature to the different customers (McWaters, 2015).

Additionally, new FinTech technologies could also be used to explore the many frontiers of financial services in existence through customization that is of a dynamic nature (Fenwick, McCahery, and Vermeulen, 2017). A good example is that the incentives of policyholders of being cautious sufficiently can be impaired by the purchase of an insurance policy. In this regard, it is expected that block chain technologies will enable smart contracts for different purposes. FinTech solutions could be used to make the decision on which of the financing options to take.

Today, FinTech solutions have the potential of globalising the basic financial services and this basically happens through enhancement of financial inclusion. Across India today, smartphones and cell phones have been widely spreading and possibilities for the provision of basic financial services have been opened up by these new instruments.

With the numerous upsides, there are however, issues that are brought about by FinTech solutions that are related to financial stability, settlement and payment. It is as such always important to carefully out into consideration how FinTech solutions can potentially change the structure of different financial services (Alt, Beck, and Smits, 2018).

Making Investment Decisions
Methods of investment appraisal

Different investment appraisal methods include; 1The payback Period Method, 2 Profitability Index Method, 3 Internal rate of return Method, 4 Accounting Rate of Return Method and 5 The Net Present Value Method. In the payback period method, the payback period is normally expressed in the years that a capital investments cash inflows take to equal the outflow of cash (Gotze, Northcott, and Schuster, 2016). The accounting rate of return method employs the normal accounting technique for purposes of recording any increments in the profits that are expected to come about from an investment through the expression of the net accounting profit that arises from the investment as a percentage of the invested capital. The net present value method discounts the net cash flows from the investment by the minimum required rate of return and goes further to deduct the initial investment and with such providing the yield that arises from the funds that were invested. In the event the yield is positive, then that is acceptable (Häcker, and Ernst, 2017). In the event the yield is negative, then the project is not capable of paying for itself and as such is not acceptable.

The Net Product Value appraisal method will be used for this project. To get the discount factor, the following formula is used 1/ (1+r) n Here, r=Rate of interest per annum, N = number of years over which we are discounting To get the net present value; NPV = (Cash Flow/ (1+i)t) – initial investment Here, I = discount rate or required return

The internal Rate of Return is normally a percentage discount rate that is normally used in appraising capital investments and which brings into equality the cost of a project and its future cash inflows. The profitability index method is a means through which the capital expenditure opportunities that exist in the profitability index are accessed. Normally, the profitability index is normally the present value of the cash flow that is anticipated which is divided by the initial outlay (Williams, 2016).

Investment decisions to consider

FinTech solutions could be of immense help to the management of Mangalore dam in the making of investment decisions and this is especially with the increased use of Artificial Intelligence solutions. Today, for purposes of shaping strategy, businesses can rely on data driven insights that are AI-powered. With such insights, a business is better placed to make decisions that are even more informed on where their resources can be directed at and how they can go about targeting different clients (King, 2014). Computer systems that make use of Artificial Intelligence are normally capable of performing tasks that required human intelligence traditionally at levels that are either superior or just comparable to those of humans. There exists several areas of FinTech development which include automated trading, financial record keeping, automated advice, analytical techniques and analysis of large datasets. Of late, automated advisory services have been provided by robo-advisory services which has led to an increment in the number of retail investors wherever applied. Services offered by these robots include portfolio optimization, asset allocation, tax strategies, rebalancing and trade execution.

FinTech solutions could help potential investors without even needing a human adviser. FinTech solutions like artificial intelligence and machine learning, data driven marketing and predictive behavioural analytics will take the guesswork and habit out of decisions that re of a financial nature. FinTech could also be used to fight fraud and this could be achieved through leveraging information about payment history so as to flag out transactions that are outside the norm. Robin Hood and Wealth Front are examples of robot advisors that provide algorithm-based recommendations that are based on the investment preferences of a company. Wealth Front has over the years built client trust through continuously offering management for free foe the first $5,000 invested with them. It is an all-in-one solution that could be helpful for any company or individual that would be interested in building free financial plans while paying a small annual advisory fee of 0.25%.

FinTech and Operational Decision Making
Impact of FinTech Solutions on Human Resources Management

FinTech tools have the potential of automating business processes for example Human Resource Management through the development of dashboards and insights to provide to the business and even through a shared service function. With these, HR managers would be in a better position to spend even more time with their employees and business partners. It is not a must that automation and human touch are mutually exclusive. Combining them strategically can bring about results that are unrivalled. In the process of recruitment, with automation, regardless of the number of candidates, each and every candidate is offered timely correspondence (Apiumhub, 2018).

FinTech tools could also be valuable in automating the repetitive tasks for recruitment which include the sourcing of resumes, conducting of interviews and final provision of feedback. Through this, HR managers and recruiters are put in a better position of focusing on the strategic works for example connecting with top talent, providing interview experiences that are more personalised and establishing programs for purposes of training and mentoring. Generally, FinTech tools help reduce the administrative load. Automating the different administrative tasks and further reporting has the potential of saving hours on a weekly basis and also leads to saving of large amounts of monies (McWaters, 2015).

There will with no doubt be a lot of human resources required to run the daily activities of Mangalore reservoir. FinTech tools will put the reservoirs human resource management team in a better position to connect with top talent in an easier way.

Different FinTech tools today help in budgeting. FinTech tools makes investing to be even more accessible. For example, there is a financial application known as Acorns which enables one to connect their bank accounts to their accounts. With this, each and every time a person swipes their linked debit or credit cards, the application automatically rounds up the layout and proceeds to move the change to the brokerage account, this is then invested into select exchange-traded funds. Acorn is a wealth management FinTech Application that in management of wealth (HayesCulleton Group, 2015). Today, there are financial technology applications that could enable the management of Mangalore reservoir to track each and every coin they spend and further get a real-time assessment of where they stand in terms that are financial. They could even be in a position to set aside money for specific purposes and from this, they will get updates whenever any present limits are exceeded.

FinTech and Customer Relations Management

FinTech tools assist customers in making sense of financial data. Today, many people are never capable of interpreting the graphs and pie charts they find in financial reports and dashboards. These tools are specifically designed in a way that they help people deduce meaning from financial data. Mint.com is an example of a FinTech start-up that was acquired by Intuit and which contains reports that are both interactive and colourful instead of the vanilla numerical tallies. With these people are capable of interpreting their spending habits in a visual way. With a proper application that will be interactive, properly coloured and easy to understand, the management of Mangalore reservoir should embark on developing a good website where the citizens of the city and any other interested parties can always visit whenever they want to get the reservoirs financial data. This will improve the openness of the management in the running of the activities of the reservoir.

FinTech developments have been driving new efficiencies, enabling firms to streamline their operations, redefining the processes and transforming the experiences of different customers through innovations. Decision making has always been one of the most significant activities for all businesses. Businesses are provided with Decision Support Systems and Artificial intelligence systems by FinTech solutions. These systems could be combined and used to create information through an online analytical process and this would go a long way in facilitating the tasks of decision making that would have required significant analysis and effort (CFA Institute, 2019). FinTech solutions simplify the way through which decisions in a business are made. These tools will help make quick decisions in a business by putting the management in a good position of slicing and dicing through massive data amounts. There exists data mining tools in data warehouses that have the potential of computerising the decision making process.

Additionally, a lot of speed too is brought about by the use of FinTech solutions to decision making. With processing capabilities that are sophisticated and vast amounts of information, one can be in a position of creating information that is quite useful in the making of decisions. The tools also support group decision making. A group decision system can at any time be used by employees for the purposes of making decisions in quick succession. A GDSS group decision support system is a decision support system type that has the potential of facilitating formulation of solutions to problems within a team whenever they arise. Through the integration of telecommunications, groupware and DSS capabilities, team decisions are facilitated by a GDSS. There are three processes that are included in group decision making and these include Brainstorming, Issue categorizing and analysis, Ranking and voting (Hill, 2019).

In the Brainstorming stage, the members of a group would be required to come up with different ideas. They could be identifying the threats, opportunities, weaknesses or strengths that are faced by an organization.

References

• Alt, R., Beck, R. and Smits, M.T., 2018. FinTech and the transformation of the financial industry.
• Apiumhub. (2018). How can FinTech help manage your company's finances. [Online] Available at: [Accessed 2 Jan. 2019].
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• Fenwick, M., McCahery, J.A. and Vermeulen, E.P., 2017. Fintech and the financing of entrepreneurs: From crowdfunding to marketplace lending.
• Gotze, U., Northcott, D. and Schuster, P., 2016. Investment appraisal. Springer-Verlag Berlin An. Häcker, J. and Ernst, D., 2017. Investment Appraisal. In Financial Modelling (pp. 343-384). Palgrave Macmillan, London. HayesCulleton Group. (2015). What is FinTech, and how it’s going to change the world of investing and financial transactions as we know it. [Online] Available at:
• King, A., 2014. Fintech: throwing down the gauntlet to financial services. Unquote" Analysis, (21), p.12. McWaters, J. (2015). 5 ways technology is transforming finance. [Online] World Economic Forum.
• [Accessed 2 Jan. 2019]. Puschmann, T., 2017. Fintech. Business & Information Systems Engineering, 59(1), pp.69-76. The World Bank, 2012. Getting to Know the World Bank. [Online] Available at:
• Williams, D. (2016). How collaboration with FinTech can transform investment banking. [Online] EY. Available at:

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