FEATURE ARTICLE


Chamberlain S. Peterside, Ph.DThursday, June 3, 2004
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[email protected]
New York, NY, USA

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EDUCATING AND EMPOWERING MINORITY INVESTORS
...UTILIZING E-FINANCE PORTALS AS EFFICIENT TOOLS


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necdotal evidence suggests that minority consumers and investors are not early-adopters of technological innovations or market opportunities. The penetration rate of Internet amongst minorities is still low. Much of the stock market bubble of the 1990s eluded the minority communities partly, but not necessarily due to their fault. Some of the problem lies in the prevailing stereotypes and lack of adequate knowledge of the process of systematic wealth building.

The Internet is a new and powerful medium that is revolutionizing the business world. According to an e-finance report by Ezra Zask, "Radio was in existence for 38 years before 50 million listeners tuned in. It took 13 years for television to reach the same audience level. It even took 16 years after the first personal computer came out to reach 50 million mouse clickers. But ones it was open to the general public, the Internet crossed that threshold in 4 years and the number of users doubled to 100 million by the end of 1997. Traffic on the Internet itself is doubling every 100 days".

A new terminology known as e-finance has emerged to describe the process by which companies are now attempting to capture and serve a new online community cost-efficiently and conveniently. Through this means companies are able to:

  • Reach potential customers fast, deliver information and gain instant feedback;
  • Enable existing customers conduct basic financial operations at their convenience;
  • Track customer buying and behavioral pattern to customize services;
  • Add new improved service offerings seamlessly;
  • Decrease operational cost and rapidly improve efficiency.

    All these translates to a win-win situation for both consumers and service providers; hence the efforts are resulting to unprecedented cost savings and price competitiveness, which could then be passed on to customers in form of cheaper prices and free services.

    Due to the so-called "Digital Divide" a lot of ethnic minority investors are currently not taking advantage of technological innovations in service offerings and information delivery to become more financially empowered, yet recent statistics show the growing purchasing power within the minority communities in the US, surpassing a $1,5 trillion as at the end of 2003.

    The real challenge for a lot of consumers however still remains how to gain access to the tools and gadgets and the lack of information on the benefits of these resources. Dismal income base, low risk appetite, cynicism and the general lack of trust of entrenched status quo are also contributing factors.

    One of the realistic measures for addressing this problem is to continually strive to reach this group of less-advantaged investors through trusted community organizations and minority-owned firms that can educate investors and deliver information in a user-friendlier and less intimidating manner.

    A recently launched financial portal: www.MyCompletefinance.com� was conceived and created with the average minority investor in mind. It contains a wealth of resources, advice and tools, which are easy to use free of charge. The portal also offers indispensable financial knowledge that is easily digestible. Through a network of affiliates; the portal provides quick access to numerous sources of real-time information and financial products from major institutions to enhance the planning experience of individual investors and business owners.

    Chamberlain is the Founder & President of New Era Capital Corp, a New York based financial services firm. He was formerly a Financial Advisor in the Global Private Client Group, of Merrill Lynch.