HSBC Profit Squeezed by Costs, Higher Impairment Charges
The London-headquartered bank recorded a $2.1 billion impairment linked to its holding in Bank of Communications Co. At the same time, the firm said expenses jumped 10% to $8.9 billion.
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Yahoo
24 minutes ago
- Yahoo
Sticky by design: Why embedded finance is the SaaS retention strategy nobody talks about
Customer retention has become the defining challenge in SaaS. As the industry matures and product categories become saturated, differentiation is no longer about who can ship features fastest; it's about who can keep users coming back, and right now, many can't. Recent Weavr research found that 51% UK-based product managers cited retention as their primary business concern. This problem isn't exclusive to underperforming companies, since even well-funded platforms are struggling to maintain loyalty in categories like CRM, marketing automation, and procurement, where competition is fierce and switching costs are low. So, what's driving the churn? In 43% of cases, product managers say users leave not because they dislike the software, but because it forces them to jump between disconnected tools to get basic jobs done. This insight is critical as it means that business efficiency - in terms of delivering better outcomes (desired results, fewer errors, less fraud) with less effort now trumps functionality or pricing. This is where embedded finance (EF) offers SaaS platforms a powerful, under-utilised advantage. The friction no one wants to own We've all felt it. You're using a business platform to manage projects or suppliers or customers - and then you hit a wall. You need to pay a bill, issue an invoice, top up a card, or approve an expense. Suddenly you're in a different tab, logging into another system, rechecking data, and praying the sync holds. It's not just annoying, it's a risk for error, and dare we say it, for fraud too. For instance, the highly effective fraud attack known as CEO fraud relies on the human in the loop taking advantage of financial activities that are disconnected from SaaS workflows such as paying an invoice. Every time a user toggles between systems, there's an opportunity for dissatisfaction, inefficiency and poor outcomes. In other words, a reason for churn and competitors know this. Many have built their onboarding messages around the promise of 'fewer integrations' or 'one workspace to rule them all.' However, here's the irony: a lot of that fragmentation isn't due to bad product design. It's because finance - billing, payments, lending, card issuing, reconciliation - have traditionally sat outside the domain of software. Most SaaS teams either punt those workflows to third party platforms and, or leave them to their customers to handle manually. The result? A disjointed experience that feels less like a product and more like a toolkit. In a crowded SaaS marketplace, that's often the difference between growth and churn. Embedded finance as a retention lever Embedded finance changes that equation. It allows platforms to offer fully integrated financial capabilities inside their own user flows - without becoming banks or fintech companies themselves. Think of a SaaS platform for managing temporary staff. Instead of asking employers to manually process payments through external banking apps or payroll systems, the platform can embed a payment execution feature that disburses wages directly through pre-approved logic and connected accounts. These aren't just features; they're strategies for stickiness. By embedding finance, you remove points of friction, reduce context-switching, and eliminate operational dead ends. Users stay longer because their workflows are complete - not because they've been locked in, but because they're getting more done with less hassle. And nothing makes customers more reluctant to leave than having to go back to disjointed processes. Keeping users in the ecosystem One of the strongest predictors of retention is frequency of use. If your product becomes the default place where users handle their day-to-day tasks, it becomes much harder for competitors to win them over. This is where embedded finance excels as it doesn't just streamline a specific task, but it's also capable of expanding the scope of what your platform can be used for. A procurement platform that lets buyers not only manage suppliers but also approve budgets and issue virtual cards becomes a control centre, not just a reporting tool. An HR platform that handles not just employee data but also benefits disbursement and expense reimbursements becomes an essential workflow hub. The more users rely on your platform to operate, the more value they derive from it. That value compounds over time, reducing the likelihood that they'll defect to a newer or flashier competitor. Retention is the new growth In today's economic climate, retention isn't just a defensive metric - it's a growth strategy. Retention is recurring revenue without customer acquisition cost. According to Bain & Company, increasing customer retention by just 5% can boost profits by up to 95% depending on the sector. For SaaS businesses under pressure to do more with less, it's an obvious place to invest. Yet while most product managers obsess over feature releases, roadmap alignment, and funnel optimisation, few look at the financial touchpoints in their product experience. Even fewer ask: what if we stopped outsourcing payments and made them part of the product? The resistance is understandable. Finance is complex, regulated, and historically hard to embed. However, that's changing. Modern embedded finance platforms offer ready-to-integrate infrastructure that abstracts the hard parts - from compliance to licensing - while giving product teams control over the user experience. As a result, financial functionality no longer has to be tacked on at the edges. It can be woven into the product flow, natively and securely, at the moments users expect it most. From fintech feature to product strategy Too often, embedded finance is dismissed as something for fintechs or marketplaces. But its real power lies in the broader SaaS world, where it can transform user value and switching costs, ultimately reducing churn, and deepening platform utility. It's time we stopped thinking about EF as just a payment button or a lending module. It's a design strategy for building products that keep users engaged, productive, and loyal. Especially in sectors where switching is easy and attention is scarce, that edge is not just useful, it's essential. Alex Mifsud is CEO and Co-founder, Weavr "Sticky by design: Why embedded finance is the SaaS retention strategy nobody talks about" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24 minutes ago
- Yahoo
Diageo ups cost-savings target
London-listed Diageo is now looking to achieve around $625m in cost savings in the next three years, as part of its latest bid to bolster growth. It marks a $125m increase from the original $500 in cost savings plan laid out through its 'Accelerate' initiative in May. At the time, then-CFO Nik Jhangiani said the Accelerate plan would see 'a shift in how we do business', including developing a 'more agile global operating model'. Now interim CEO following the departure of Debra Crew last month, Jhangiani said in prepared remarks on Diageo's full-year 2025 results today (5 August) that the business had "identified further savings since May". "Accelerate is not just about cutting costs, it's also about driving better growth, prioritizing where we invest, and building stronger capabilities," he said. Commenting on what the "further savings" might entail, he told reporters the "main areas of focus" were on "trade investment in A&P spend to drive for more efficient and effective spend". He added: "I would actually more focus on the trade investment, the non-working element of our A&P spend, and the commercial A&P, where I truly see, as we talk through commercial execution excellence, we need to link up our investments in a more structured way, through the line." The interim chief executive said there would also be "continued focus around supply chain agility". When asked whether the cost-savings initiative would include job cuts, he stressed: "Yes, there will be some, but that's not what this is about. This is about really freeing up resources and dollars where we can reinvest for the business, right?" He added: "This could ultimately actually be about more numbers in terms of head count, as we look at more feet on the street, for example, including here in our home market." Questioned on when Diageo might pick its next official CEO, Jhangiani said he expected a decision approaching "the end of October at the latest". For the year ended 30 June 2025, Diageo saw organic adjusted net sales grow 1.7%, or $338m, and decline 0.1% on a reported basis to $20bn. Reported net profit slid 39.1% to $2.54bn. Adjusted operating profit before exceptional items was down 0.7% at $5.7bn, while reported operating profit dipped 27.8% on the previous year to $4.34bn. In its 2026 fiscal year, the business said has forecasted organic net sales growth to sit "at a similar level" to 2025, with organic net sales declining "slightly" in the first half of the year. It also anticipates organic operating profit growth to sit in the "mid-single-digit" range, "skewed to the second half". Regional performance By region, Asia-Pacific was the only market where Diageo booked a dip in organic net sales, which dropped 3.2%. Reported volume however grew 3.7% to 77.7 million equivalent units. Volume was also up 3.9% organically. The Asia-Pacific market "has been a little more challenging", Jhangiani told Just Drinks, which he attributed to the the Greater China region, Southeast Asia and "global travel". "That comes back to the fact that footfall and travel has been down, and obviously consumers, even there in that environment, are being a little more cautious, right? In terms of their shop," he said. Jhangiani noted that Diageo was also seeing competitors "heavily discounting", which it was not as it looks "to continue to protect and build our brand equities". He added that the "activation and love" for Johnnie Walker whisky he had seen in Thailand was "a clear example of where we're seeing pockets of growth". He also pointed to the growing buyer and consumer interest in smaller format products in Shanghai. "I think we're encouraged by some of the activity, and we need to start leveraging some of those best practices across the markets," Jhangiani said. Diageo booked flat growth across its other markets in 2025. In North America, organic net sales were up 1.5% at $8bn, but reported volumes dipped 1.2% to 49.5 million equivalent units. They were down 0.8% in organic terms. Reported net sales in Europe reached $4.8bn, growing 0.4% on a reported basis and by 0.3% organically. Jhangiani added that the US and China were "weaker from a consumer environment perspective, and probably pockets of Europe". Reflecting on how the group was approaching Europe, he spoke about Diageo's Southern Europe region, which it had previously managed as one market. The group has developed individual market teams, Jhangiani explained in his prepared remarks, which are expected to help it "capitalise on these distinct growth opportunities and be more consumer and customer-centric". "Diageo ups cost-savings target" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
24 minutes ago
- Yahoo
Former fund manager Woodford facing ban and £46m fine
The City watchdog has provisionally banned former star fund manager Neil Woodford and fined him and his former fund company almost £46m. The Financial Conduct Authority (FCA) said it planned to prevent Mr Woodford from holding senior manager roles and managing funds. The watchdog also aimed to fine him £5.89m and Woodford Investment Management (WIM) £40m related to its collapse in 2019. Money latest: Aldi 'loses cheapest supermarket title' Mr Woodford's flagship fund, Woodford Equity Income (WEI), was wound down after investors tried to withdraw cash faster than the fund could pay out, amid concerns over its high exposure to illiquid and unquoted shares. The FCA determined that Mr Woodford and the fund "made unreasonable and inappropriate investment decisions" between July 2018 and June 2019. The fund's sale of liquid assets and acquisition of illiquid ones meant WEI was unable to meet rules in place at the time, whereby investors should have been able to access their funds within four days. "WIM and Mr Woodford did not react appropriately as the fund's value declined, its liquidity worsened and more investors withdrew their money," the FCA said. "The FCA has concluded that Mr Woodford held a defective and unreasonably narrow understanding of his responsibilities." Steve Smart, its joint executive director of enforcement and market oversight, added: "Being a leader in financial services comes with responsibilities as well as profile. Mr Woodford simply doesn't accept he had any role in managing the liquidity of the fund. "The very minimum investors should expect is those managing their money make sensible decisions and take their senior role seriously. "Neither Neil Woodford nor Woodford Investment Management did so, putting at risk the money people had entrusted them with." Both Mr Woodford and WIM have referred the case to the Upper Tribunal for appeal. He was yet to comment. Mr Woodford was once considered the star stock picker of his generation. He launched his own investment business after building up a reputation for delivering stellar returns while at Invesco Perpetual. At its height in 2017, the Woodford Equity Income Fund had a value of over £10bn, but by the time of its suspension in June 2019, this had sunk to as low as £3.7bn. While a redress scheme enabled investors to get some cash back, around 300,000 people lost money through the fund's collapse.
