Welcome to this week’s publication of the Market’s Compass Crypto Sweet Sixteen Study #157*. The Study tracks the technical condition of sixteen of the larger market cap cryptocurrencies. Every week the Studies will highlight the technical changes of the 16 cryptocurrencies that I track as well as highlights on noteworthy moves in individual Cryptocurre…
The fallout from the massive strike of about 33,000 unionized Boeing (BA) is workers is becoming more problematic every day.
It’s been over a month since the workers first hit the picket lines fighting for higher pay, retirement security, lower out-of-pocket health care costs, and other concerns. While the workers struggle to settle on a new contract with the aerospace company, analysts have estimated that Boeing is losing about $1 billion per month because of the strike.
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As Boeing’s pockets are being drained significantly from the strike, especially during a time when the company is also losing money due to safety and quality issues with its planes, it has resorted to making a harsh decision in order to save some coins: giving thousands of employees the boot.
Related: Boeing delivers hard-nosed message to employees amid strike
In a memo sent to employees on Oct. 11, Boeing CEO Kelly Ortberg revealed the company will be laying off 10% of its workforce, which is about 17,000 employees.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Ortberg in the memo. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
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The job cuts will affect “executives, managers and employees.” Ortberg also states in the memo that the company needs to be “realistic” about the time it will take to recover going forward.
JASON REDMOND/Getty Images
“We also need to focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment,” said Ortberg.
In an emailed statement to TheStreet, a Boeing spokesperson confirmed that the layoffs include “union-represented and non-union workers,” and it will take place over the next few months.
In addition to the layoffs, Ortberg said that the company will be delaying the production of its new 777X jet, which will now roll out in 2026 instead of 2025. It is also ceasing production of its 767 aircraft in 2027.
The move from Boeing comes after Boeing Chief Financial Officer Brian West warned employees in a memo on Sept. 12 that the strike will have negative impacts on the company. This includes hiring freezes, temporary layoffs, a pause on charitable expenditures, and other cutbacks.
“This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future,” said West in the memo.
(It appears that the strike won’t be ending anytime soon as Boeing and its unionized employees recently hit a snag in negotiations on a new contract.)
In late September, Boeing laid out its “best and final offer” to the striking workers which includes a 30% pay increase over four years, a $6,000 ratification bonus, annual bonuses, and an increased company contribution to employee retirement plans. Boeing gave the workers until Sept. 27 to conduct a vote on the offer.
Related: Boeing’s hardball play with striking workers backfires
The International Association of Machinists, the union that represents the workers, declined the new contract and criticized the offer for being a “show of disrespect,” claiming that the union was not given enough time to organize a vote.
“This tactic is a blatant show of disrespect to you — our members — and the bargaining process. Boeing does not get to decide when or if you vote,” said the IAM in a statement to its union members on X. “Boeing has misled the media by wrongfully stating the Union membership is required to vote on their latest offer. As you see in Boeing’s offer, they made it contingent on ratification by 11:59 PM PT on Friday, September 27, 2024. This does not give us enough time to present details to the membership or even secure all voting locations.”
Related: Veteran fund manager sees world of pain coming for stocks
Mercury simplifies your financial operations by powering them from the one thing a business needs: a bank account.* And now, Mercury offers Invoicing so you can send invoices, track what you’re owed, and get paid the way you want — all in one place.
Customize your invoices by adding your logo and preferred color scheme, view who owes you what and take action from there, and get paid via credit card, Apple Pay, Google Pay, wires or ACH.
(And that’s good news… because while I won’t judge a book by its cover, as a SaaS CFO, I’m a bit of an invoice snob.)
*Mercury is a financial technology company, not a bank.
Banking services provided by Choice Financial Group and Evolve Bank & Trust; Members FDIC.
“OK. So we’re on Newbury Street, right? And you’re telling me all they sell is cupcakes? Just cupcakes? 2,000 square feet? 2,500? Let’s call it 2,500. Three employees a shift, running two shifts per day, six days a week? That’s a lot of fucking cupcakes. Wow, OK I put it at minimally 3,000 cupcakes per month, or 625 per day. And that’s just to out run their overhead… purely back of the envelope, of course…
You think the owner’s around?”
To the chagrin of my wife, that’s a one-way conversation that happens all too often. I can’t walk into a local bakery, car wash, or book store without making their P&L up in my head.
“How much does it take to run this joint???”
“An entire store in the mall that just sells hot sauce?”
“I bet they make 70% profit margin on these taquitos”
Every business, whether a small vendor at a local fair or a global enterprise, faces the challenge of covering its overhead— the fixed costs that need to be paid before the business enters variable cost territory and starts seeing a real profit. For many, there’s a point in the month or quarter where they “outrun” their overhead, and each subsequent sale becomes pure contribution to profit. Every period the clock resets, and it’s a race to get to your unique inflection point, and push to accelerate sales once you get there.
My dad was a physical therapist growing up. He owned a practice where they made, on average, $50 per patient that came in. He had multiple PTs, front desk workers, and a business manager (all fixed salaries). And then he had to pay rent on the locations.
He knew that, on average, at 1,100 visits a week they broke even, and at 1,200 was where the real money was made. Once you were in that territory, there were a lot more dollars dropping to the bottom line.
Given that he, the owner, would pay himself from the profits left over, I would hear him talk about how it was a 20% net operating margin business if all went well. And he only had so many at bats to make money in a given month, depending on how the calendar shook out. On average there are 22.2 business days in a month, factoring in partial days for the impact of holidays and weekends. That’s basically your revenue capacity if you are in a service business. And similar to a boat leaving the shore with only half their passengers on it, if you don’t treat someone that day, you miss that revenue forever.
I remember there was this one TERRIBLE winter growing up. Snow days galore for multiple weeks. While kids were celebrating school cancellations, service business owners like my dad were sweating the impact on contribution margin. Cancellations from patients were rolling in left and right, as people either couldn’t get there due to the weather, or now had to watch their kids. The business was suddenly struggling to reach 900 visits per week, putting them deep in the red. For a 20% margin business, four snow days was a death sentence; it was literally 20% of his revenue capacity, and therefore all his profit.
I recently took a trip to the Minnesota State Fair. Being the sicko I am, I downloaded the vendor application online. I noticed “fried SPAM” and “fried Oreo” vendors were juggling fixed AND variable costs. They had to pay an upfront fee to secure booth space, representing a fixed cost, and they also paid a variable percentage on all their sales to the fair grounds. The turkey leg vendor explained how he thought about their sales in two stages: first covering the booth fee, and then maximizing profits for the rest of the event once that overhead was paid off. This mindset perfectly encapsulates the idea of “outrunning your overhead.”
Each business owner has quick rules of thumb to figure out when they go from being in the red to black.
For instance, I was speaking to someone who owned multiple auto mechanic shops. He looked at his revenue capacity by bay in the garage. Based on the fixed cost per mechanic to run it, and the allocated overhead for rent and the front desk worker, plus the shit they kept around the shop like towels and oil filters, he knew that after the lift had serviced, on average, 70 cars that month, he was making money. He even showed me the accounting software on his phone, which detailed the number of jobs done that day, lift utilization, and total billings.
I asked why he didn’t look at it based on days – if it’s a 40% margin business, why didn’t he say “on the 14th business day of the month, I’m in the clear”?
He explained the unique seasonality of the industry, where demand for getting cars fixed varied widely. Demand peaked in April, when people received their IRS refunds in the mail, sprinting in to get their squeaky brake pads fixed which had been delayed for so long. And business slowed down materially in January and February when people were paying off holiday credit card bills. Not all days were created equal; therefore, days would be a poor pacing heuristic for outrunning overhead.
And there are always hidden variables in every business in terms of what could go wrong when it comes to getting paid – like snow days.
Will the apples being delivered to the bakery go bad?
Will the high school kid not show up to work the fried dough booth at the fair, decreasing our capacity to serve?
Will the auto shop’s lift break and leave us with two bays instead of three?
And another quirk that any business owner intimately tied to the heartbeat of cash flows knows – the dreaded triple payroll months – there are 26 payrolls per year, so 2 months of the year have 3 payrolls instead of 2.
I realize these are not overly scientific ways to size up your business.
I’m not winning a Turing award for my work in fixed vs variable costs. But I do think this type of thinking forces any business owner, or finance professional, to better understand the unique rhythms of their business, and know if they are pacing for a good month or bad month before the period closes and the accountants dig in.
Yes, we will always close the books at the end of the month and check the official X’s and O’s. But in period I want to be as close to the pulse of the business as I can, and sometimes that lends itself to relying upon equations predicated on daily cupcake velocity.
As my dad says:
“I took calculus, I took geometry, but all you really need to run a business is add and subtract. A lot or rich people got there from adding and subtracting. It’s not complicated.”
He’s right – I ramble on about complicated metrics like LTV to CAC and Net Dollar Retention Rate each week. Sometimes it’s nice to remember that good business is simply making more money than you spend in any given period.
Are there any unique ways you look at outrunning your overhead? And do you do anything differently when you get there? Sound off in the comments.
I asked my local car wash owner about the percentage of customers on membership plans vs one time washes. I noticed most car washes set the membership breakeven to the end user at 2.5 washes per month. He said it’s the Planet Fitness model, where they hope you don’t show up, as the water bill is actually the most expensive cost of doing business. This has gotten much better over the last ten years with the advent of car wash technology that allows you to recycle the water over time. But it’s still a big variable cost.
He explained that he tries to price memberships where the recurring cash flows cover his overhead. Approximately 35% of his customers on a given day were members. And on average, they didn’t hit the 2.5 mark every month.
Well, except for a few power users, who he said were ALSO consistently on the cheapest plans. They, of course, came in every day, and were a drag on the business.
“Like that asshole in the 2011 Subaru WRX. He pays $15 dollars a month, and rolls through here every morning. Can’t stand that guy. Plus, that muffler sounds like a wet fart.”
I interviewed Tony Boor, CFO of Blackbaud, a leading software company supporting nonprofits and institutions across various sectors. Blackbaud generated over $1.1 billion in revenue last year and is one of the most valuable vertical software companies around. We covered:
Capital efficiency metrics
The company’s “layer cake strategy”
How to incorporate payments into your product
Thesis Driven covers the trends and topics driving the future of real estate, from new technologies to financing models to real estate sectors. Subscribers get 2-3 exclusive deep dives per week from writers covering categories including residential, office, industrial, and more. By focusing on macro trends and long-term opportunities, Thesis Driven is relevant for anyone looking to get smart on the real estate industry and the role of real estate in our economy.
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For the most part, homeowners are responsible for what falls into their own yard. So, if a storm causes your neighbor’s tree to fall in your yard, your homeowners’ insurance could help cover the cost of removing the tree and remedying the damage it caused on your property after your deductible.
The same is true in reverse: If a tree on your property falls in your neighbor’s yard, your neighbor should contact his or her insurance company to determine what type of coverage is available for damage or cleanup in their yard.
In most cases, neighbors are able to work things out without too much trouble. Depending on the extent of the damage, you may need to file a homeowners insurance claim. Your homeowners’ insurance may or may not cover the cost of tree cleanup, depending on your policy and the company you work with.
Good news: Homeowners insurance with our agency typically pays for the cost (subject to sub-limits) of removing fallen trees due to a covered peril, such as a storm.
If there’s ever an issue between neighbors, you can rely on your claims adjuster to help straighten everything out.
If a tree falls on your house, the first thing to do, if it’s safe, is to try to prevent further damage to your home and property. Make sure to take some photos to document what happened.
Then, call your insurance agent, who can explain your options and help you understand if and how to file a claim. When you file a claim, a claims adjuster will come by to evaluate the damage and explain how your homeowners’ coverage comes into play. It’s recommended that you call your claims adjuster before you contract to have the tree removed.
Sometimes trees fall on cars. If it’s unsafe or possible to remove the tree from the car yourself, you should call a professional to remove it. (Again, talk to your insurance agent and a claims adjuster first and take a few photos of the fallen tree on your car.) Depending on the damage and terms of your insurance coverage, the optional comprehensive coverage you may have under your auto policy could provide coverage for the loss.
Taking preventive measures can potentially help you avoid this situation in the first place.
Start by looking for signs of distress, such as dead limbs, cracks in the trunk or major limbs, leaning to one side, and branches close to a house or power line. Mushroom growth on the roots or bark can also signal trouble.
Homeowners should be aware of the health of their trees. It’s possible for you to be held responsible for resulting damage to your neighbor’s house or property if your tree falls due (in whole or part) to your own neglect. One of the best things to do is to regularly have large trees trimmed. (The Tree Care Industry Association lists accredited tree care professionals.)
Learn more about homeowners insurance from our team, or find one of our local insurance agents in your community.
ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.
The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time.
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Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.
Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.
![Rightmove. Wrong price [Members] – Monevator](https://i2.wp.com/monevator.com/wp-content/uploads/2023/05/Moguls-Main.jpg?w=696&resize=696,0&ssl=1 "Rightmove. Wrong price [Members] – Monevator")
on October 7, 2024
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The White Coat Investor Champions Program began in 2020 with the goal of putting The White Coat Investor’s Guide for Students into the hands of every first-year medical and dental student in the US. We see this program as one of the most important things we do as a company, because medical school is such an impactful time for students to become financially literate.
Even though the book is primarily focused on medical and dental students, we have expanded the program to include US-based PA, NP, CRNA, Pharmacy, Dental, and Medical/DO Schools.
When we began this program, we quickly realized that shipping books to individual students would not be cost-effective or sustainable. Instead, we enlist a volunteer “Champion” student from the first-year class of every eligible school physically located in the US to distribute all of the books for their class.
The Champion program typically runs from October through March of each year. You can sign up for our free monthly newsletter to be sure you don’t miss the announcement.
Though we originally limited Champions to the first-year students in Medical and Dental schools, we expanded our program in 2023 to include those in PA, NP, and Pharmacy schools. Now, in 2024, we’re also including those in CRNA school. While the majority of our Champions come from MD programs, we really want to get this book in the bands of everybody who’s just starting out in healthcare. So, if you’re in Dental, PA, NP, CRNA, or Pharmacy school, please sign up and get this valuable information into the hands of your classmates.
The Champion role is quite simple. Here’s all you have to do:
If you sign up to be the WCI Champion for your class, you receive the following:
Apply to Be a WCI Champion
Get free stuff and provide millions of dollars of value to your classmates!
It may have taken 40 years, but federal courts are finally pushing back on the legal theory that the CEOs of major corporations are simply too important to testify. Back in 1985, the apex doctrine was codified. In a personal injury has against Chrysler, top exec Lee Iacocca was shielded from having to sit for a deposition because he was a “singularly unique and important” individual.
Since then, C-suite individuals like Elon Musk and Mark Zuckerberg have invoked the doctrine to avoid testifying in various litigation. However, the tides are changing. As federal Judge Iain D. Johnston told Bloomberg Law, “Single moms, single dads, who’ve got part time jobs, are taking classes, are taking kids to daycare—is their time less valuable than the CEO of a major corporation sitting in a meeting? There should be a healthy skepticism of people’s self-importance.”
Biglaw partners are seeing that shift happening in real time.
David Fertig, a partner at BakerHostetler who’s litigated both sides of the apex doctrine, said the question in litigation is shifting to whether the apex witness has unique information relevant to a case, rather than if the CEO is too busy or otherwise important to be deposed. In some instances, legal fights ensue over limiting the scope and length of the deposition, rather than whether the deposition can happen, Fertig said.
“There’s increasing concern and public outcry for people of significant wealth and power to answer for corporate conduct,” Fertig said. “Courts have therefore shown some reluctance to the idea that merely by virtue of their status as senior executives, apex witnesses are immune from deposition.”
And Duane Morris partner Gerald Maatman Jr. said, “There’s no free pass anymore. There’s no presumption that just because you’re the CEO, you get to avoid depositions.”
When trying again to invoke the doctrine earlier this year, Zuckerberg wasn’t as successful as he was in the past. And he’s not the only CEO ordered to be deposed this year.
The tech titan’s change in fortune reflects a backlash against the apex doctrine by judges swayed by populist arguments that it unfairly favors the powerful. McDonald’s Corp. CEO Christopher Kempczinski, Microsoft Corp. CEO Satya Nadella, activist investor Carson Block, Madison Square Garden chief James Dolan, and now Zuckerberg all lost bids in the past year to duck depositions under the apex doctrine in federal courts.
It may not be as radical as plaintiffs attorneys might like — Robbins Geller attorney Jason Forge said “the entire concept is a disgrace” — but there’s still been significant progress pushing against the notion that corporate executives are (sigh) above the law.
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @Kathryn1@mastodon.social.
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Research reveals that older Australians have particular preferences when it comes to housing, where moving becomes less about downsizing and more about finding a home that meets specific needs for this stage of life.
As Australia’s population ages, the housing needs of older Australians are becoming increasingly important.
We are staring down the barrel of a major demographic shift, with 17% of the population in the 65+ age group, according to Australian Bureau of Statistics data. We will see this move to 25% by 2050, with one in four Australians aged 65 and older.
Baby Boomers are delaying moving out of their larger homes, often due to emotional attachments and the perceived lack of appealing alternatives, according to Temple & Webster’s research paper, Finding the Right Fit: The Future of Rightsizing in Australian Housing. This contributes to the nation’s housing supply crisis by reducing the availability of family-sized homes for younger families.
But there are specific reasons why they’re holding out, including stamp duty concerns.
“Stamp duties penalise people for rightsizing and making larger homes available for growing families. They also impose a substantial further burden on first-home buyers trying to save a deposit,” said Paul Ryan, PropTrack senior economist, in PropTrack’s September Housing Affordability Report.
The Rightsizing study drilled down into the other main reasons why older Australians remain in homes that are now too large for their needs. A specific set of requirements emerged from the data, suiting the concept of ‘rightsizing’ as opposed to downsizing.
MORE: Lap of luxury: 10 impressive apartment pools reshaping inner-city living
The concept of rightsizing is central to understanding the current and future housing needs of Australians, and was a key focus area of the study.
The white paper found one in four Australians plan to move house within the next two years, with 40% of respondents citing “rightsizing” as a key reason for relocating.
According to the research, Australians living in homes with two spare rooms are the most satisfied with their living situation. These households are the least likely to consider moving within the next two years, with 77% of respondents indicating that they consider their current home to be the right size for their needs.
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Multi-functional layouts with consideration of bonus rooms is a major factor in the decision to move, with the study finding two spare rooms is the sweet spot for most Australians. Picture: Supplied/The Block
However, the study challenges the traditional belief that more space is automatically better. Instead, it suggests that there is an optimal amount of space that contributes to housing satisfaction.
Households with one or no spare rooms often feel cramped and express a desire for more space, while those with three or more spare rooms tend to feel that their homes are too large, leading to a desire to downsize. It’s about getting the mix just right.
Homes with two spare rooms are found to be the optimum size, balancing the need for additional space with the desire to avoid excess, which can lead to a sense of dissatisfaction.
This places significant focus on the availability of suitable homes for older Australians that are the right size in all aspects for them.
The study found that practicality of the home, proximity to essential services, accessibility, and the availability of community amenities are four key concerns older Australians seek to have met before feeling confident enough to make a move.
Older Australians tend to prioritise practical features in their new homes, such as private garages, ample storage space, and proximity to essential services like hospitals and shopping centres.
The Temple & Webster study found that having a lock-up garage was the most important consideration for 66% of Australians aged 55 to 74.
While luxury features like large backyards and high-end finishes may be desirable for some, the majority of older Australians are more focused on the practicality and financial benefits of moving to a smaller, more manageable property.
A whopping 82% of respondents listed ‘I want an easier property to maintain’ as a reason for moving to a smaller abode, and ‘easier maintenance’ was the primary driver for Boomers considering a move to apartment living – 93% of 55 to 74-year-olds who currently don’t live in an apartment cited this as a reason to move to one.
For older Australians, being close to shopping centres, medical facilities, and public transport is a top priority, with over half (51%) of 55 to 74-year-olds saying that having a shopping centre nearby was a must-have for them. Proximity to public transport, hospitals, and parks is also highly valued.
This demographic is less concerned with staying in the same neighbourhood or maintaining a large outdoor space, and more focused on convenience and accessibility.
Despite the financial appeal of downsizing, the study found many older Australians expressed concerns about having enough space in their new homes. This included worries about the ability to accommodate guests, storage needs, and lifestyle changes that may come with a smaller living space.
Privacy is also a significant concern, particularly for those considering apartment living, where close proximity to neighbours can be an issue. The Temple & Webster study found that having adequate storage, parking, a garden and a spare bedroom were the top requirements for their new homes.
Spare rooms, storage needs and privacy are among the concerns for older Australians looking to rightsize. Picture: Supplied/Temple & Webster
“We know that many Australians are looking to move to housing that better suits their needs. Size is important, but so is affordability and proximity to services, and for many, their needs will be best met by moving into an apartment,” said Lucy Sutherland, director of insights & trends at Temple & Webster.
“At the same time, we see many people struggle with the notion of apartment living. What the study shows us is that by focusing on a few of Australians’ pain points such as lack of outdoor space and privacy, apartment living can be made much more attractive.”
Apartment living is becoming more prevalent, especially in urban areas, but the report highlights that nearly half of Australians are hesitant to consider apartment living due to concerns about space, privacy, and lack of outdoor areas.
To make apartments more suitable, future developments should include features like soundproofing, private outdoor spaces, communal gardens, and multi-functional layouts with the possibility of a spare room, while also fostering a sense of community.
Clever housing design and dwelling type mixes in new developments can help shift perception and increase the acceptance of apartment living as a viable option for families and older Australians.
Fortunately, in reality, many new developments are already including these benefits in their designs.
Mirvac’s Harbourside Residences is one example of developers catering to the need for larger apartments, with 45% of the residential tower dedicated to three-bedroom abodes with spacious floorplans. Picture: Supplied/Mirvac
The research found that the most popular living configuration is a three-bedroom dwelling with 39% citing this as their current home setup. The predominant group living in three-bedroom homes are couples with no children.
Developers like Mirvac, for example, are building residential apartments with a larger proportion of three- and four-bedroom dwellings aimed at the over 55’s demographic. Their Harbourside Residences has 45% of its 263 homes dedicated to three-bedroom units, hitting the ideal of two spare rooms.
Mirvac’s CEO of development, Stuart Penklis, has noted that rightsizers after low-maintenance living without compromising space are leading the enquiries into the project.
“We have been overwhelmed by the level of interest… We are seeing predominantly local interest from upgraders and rightsizers coming out of established suburbs where they are downsizing out of larger family homes,” Mr Penklis said.
Other Sydney projects, like Delano in Crows Nest and Highforest in West Pennant Hills, are low-rise developments with a mix of apartments and either townhomes or houses. Avra in Bondi Beach is another example, with exclusively three-bedroom apartments and a four-bed penthouse.
Most new developments are also emphasising integration of nature, through extensive landscaping and/or proximity to village greens or parkland.
The study calls for collaboration between government, developers, community organisations, and the private sector to craft a coordinated approach, one that is essential to creating sustainable housing solutions that meet the diverse needs of Australians, from young renters to older downsizers.
HashKey Global, a licensed digital asset exchange, has teamed up with Sumsub, a global verification platform, to improve its Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.
The partnership aims to reduce onboarding times and enhance compliance with evolving cryptocurrency regulations.
Over the last three months, Sumsub’s technology has helped HashKey address onboarding delays by automating its verification procedures for its 600,000 registered users.
This shift from manual verification to an automated system has allowed HashKey to process user verifications more efficiently.
Sumsub’s solutions also help mitigate identity fraud risks, which have been on the rise globally.
By incorporating features like document verification, face matching, and fraud detection, HashKey has improved verification speed while maintaining compliance with regulatory standards.
The integration is said to have reduced HashKey’s average verification time to as little as 20 seconds, with the entire onboarding process now taking about three minutes.
This has allowed HashKey to enhance its user verification process without compromising on regulatory requirements.
“Since our integration with Sumsub, we have processed hundreds of thousands of identity documents, with significantly quicker verification speeds and higher pass rates. We are excited to continue working closely with Sumsub to provide great experiences for our users.
As a regulated exchange, ensuring swift yet comprehensive onboarding is paramount to meeting compliance standards. Sumsub’s advanced verification capabilities have allowed us to scale our operations, reiterating our position as one of the more foremost compliant exchanges.”
said Ben El-Baz, Managing Director of HashKey Global.
“We are proud to work with HashKey, one of the leading names in the digital asset space. We have a strong track record within the industry and we’re pleased that this reassured HashKey of our ability to help them navigate evolving regulatory challenges within the sector.
We have always been committed to ensuring seamless, secure, and compliant verification solutions, and we are thrilled to be working together. We are aware that HashKey is actively expanding across global markets, therefore we’ll continue to support consumer safety on a regulated level, worldwide.”
said Inna Lyubashevskaya, Chief Customer Officer at Sumsub.
Mexico has become an increasingly attractive destination for investors. The country boasts several economic advantages, particularly its proximity to the United States. It’s also home to a youthful population that is well-equipped for the workforce — a median age of 29 with 45% of its citizens younger than 25. The Mexican government has developed programs to upskill its young citizens and prepare them for a tech-centric future. The country’s information technology market surpassed $2 billion in 2022. Outside the workforce, Mexico’s youth are significant drivers of consumer spending, forming the bulk of 126 million Mexican consumers whose purchasing power continues to increase.
Mexico also represents an excellent opportunity to invest in women’s future. For a country with a firmly embedded patriarchal culture in the form of machismo, powered by an exaggerated sense of masculinity, the country’s recent election of its first female president, Claudia Sheinbaum Pardo, who takes office this October, provides evidence of social change. Coupled with the country’s sizable youth population, this historic event could catalyze increased opportunities for women in Mexico. Investors can seize the opportunity for early investments in helping establish a gender-equal future for the country’s economy.
The demographics and the country’s historical moment make Mexico an exciting opportunity for investors.
Mexico has a massive economic advantage in its proximity to the United States, the world’s most powerful and influential economy. Sharing a 2000-mile border with the United States, Mexico can boast of being America’s #1 trading partner, with more than $614 billion in trade conducted in 2022. The simplified transportation logistics between the countries and the relative ease of importing raw materials and machinery have helped Mexico attain this enviable position.
Since 2020, the United States-Mexico-Canada Agreement has regulated the strong partnership between the United States and Mexico, providing a framework for generally seamless trade, reduced tariffs, and eased investment between both regions. The agreement also allows for duty-free imports, reducing logistics expenses by as much as 30%. Many companies produce their goods in Mexican facilities, taking advantage of these savings and subsequently importing their goods into the United States. Mexico also has substantial tax treaties with America, allowing for doubled tax exemptions on all income, a particularly enticing incentive for investors.
Mexico boasts other competitive advantages in the form of its wages and tax benefits. The country’s wages remain significantly lower than that of the U.S., Canada and most European countries. Reduced labor costs mean lower production costs, which benefits facility construction and promotes land acquisition. Meanwhile, their government also offers benefits for foreign investors, including tax credits for research and development activities, accelerated depreciation on capital investments, and exemptions on imports of equipment used in manufacturing. These wage and tax incentives have transformed Mexico into an attractive destination for companies looking to reduce operational costs and investors looking to generate maximum returns.
Mexico is home to a thriving startup economy that includes more than 2,000 active startups as of 2024, and the Mexican government is supporting them with various initiatives, including funding programs, incubators, and accelerators. Through this assistance, Mexico hopes to instill in its next generation the entrepreneurial spirit needed to further strengthen this startup ecosystem. Already, inspiring success stories have emerged. Kavak, a used car marketplace startup, became the country’s first “unicorn” in 2020, and Bitso, a cryptocurrency exchange platform, reached a valuation of more than $2 billion in 2021. Although these represent two of the most prominent startup successes, other Mexican startups are inspiring investors with their entrepreneurship and tenacity. Startup 99 Minutos specializes in providing fast and affordable delivery service, and Flat.mx, a real estate tech startup, has become the go-to application site for real estate in Mexico and a leading data layer for residential real estate.
Following a string of supply chain disruptions and incidents largely due to the COVID-19 pandemic, industries have seen a global shift toward “nearshoring,” the trend of production companies sourcing their inputs closer to their home countries. Mexico’s proximity to the United States has positioned it favorably for this trend. According to Morgan Stanley, nearshoring could increase the value of Mexican manufacturing exports to the US from $455 billion to $609 billion by 2030.
One crucial area for investment in Mexico is infrastructure. The Mexican government plans to invest $44 billion in infrastructure by 2025. Much of this will go toward transportation — investments that will improve the efficiency and proximity of transportation hubs, remodeling them into major consumer centers. Mexico currently hosts 77 airports, 117 maritime ports, and 27000 km of railway line.
Real estate is another key investment opportunity. With 80% of the population living in urban areas, investors are taking advantage of demand for residential, commercial, and industrial properties while the government focuses on developing affordable housing and modernizing infrastructure. Real estate is also driven by international tourism. Cities such as Tulum and Merida have become popular tourist centers sought after by investors. In Tulum alone, the price of a square meter sits at $1777. In addition to tourism, growing demand for warehouse development has prompted the government’s pledge to construct 100 new industrial facilities. Supplying power to each of them will present a challenge, but with Mexico’s investments in green energy the new government should be prepared to meet it.
Finally, the fintech sector has also shown promise to investors, particularly concerning Mexico’s environmental projects. In conjunction with the country’s clean energy commitments, demand remains strong for fintech solutions that support green initiatives, and the government’s regulatory environment has evolved to foster more support for fintech innovation. In 2018, the country introduced the Financial Technology Institutions Law to promote and regulate fintech innovation and technology. Since then, Mexico has cultivated a fintech ecosystem of more than 500 active companies and more than 400 startups, becoming Latin America’s most dynamic fintech environment.
With its large youth sector, thriving startup and fintech ecosystems, and a close relationship with the United States, Mexico represents a significant investment destination for those looking to diversify their portfolios and capitalize on the myriad of opportunities. Whether it’s advancing infrastructure, taking advantage of competitive labor costs and nearshoring, or investing in the future of Mexico’s fintech sector, endless opportunities are available to investors who are looking for it. With the information outlined here, you can begin your Mexican investment journey with knowledge of the country’s most prominent economic sectors.
