Cultivating a culture of adaptability positions firms to thrive despite economic wild cards, Franklin Madison Chief Financial Officer Preston Porter writes in a new PYMNTS eBook, “Beyond the Horizon: How to Identify Unexpected Threats That Could Impact Your Business.”

Has unpredictability become the new normal? Stock market fluctuations, shifting consumer behavior and rising unemployment are coming together to create a complex operating environment. Some might call it a perfect storm.

Others might see it as a challenge — the kind that breeds resilience and illuminates opportunities for change.

What to Prepare for as We Wrap Up 2024

As a provider of insurance programs to banks and credit unions, we’re always looking ahead. We’re keeping our eyes out for any market changes that might make waves for insurance and financial institutions.

One topic that’s been hotly debated since the pandemic is the possibility of a recession. Even if we aren’t officially in a recession, consumer perception of the economy matters. Right now, as many as 3 in 5 Americans think the U.S. is in a recession. A perceived recession, coupled with stressors like volatility in the S&P 500 and increased unemployment, can cause spending to take a hit.

Economic Factors to Watch

Interest rates: Rising rates have increased the cost of debt over the last few years, pumping the brakes on home and auto loans and traditional revenue streams for financial institutions. Though the Fed recently signaled a rate decrease, it is unlikely to result in material changes in lending markets. Now, there’s more focus on generating non-interest income. For Franklin Madison, the need for non-interest income creates opportunity since financial institutions have a greater appreciation for insurance commissions generated from our programs to replace lost income.

Inflation: The costs associated with the direct mail marketing of our programs — paper, ink and postage — have increased by more than 30% over the last three years. Addressing this wild card continually requires cost management and innovation. Successfully integrating a full-suite digital platform with our direct mail has enabled us to produce better results while keeping costs down as we see inflation return to historical norms.

Unemployment: Though the unemployment rate has risen to over 4% from historical lows, it’s unclear if the trend will continue. Increased unemployment typically is a lagging indicator of a looming recession. Insurance and protection products tend to be in high demand during times of uncertainty.

Along with shifts in the economy, we’re also tracking consumer behavior:

Generational needs: Credit unions have seen generational needs changing as members age and younger people look for new solutions. For us, this creates an opportunity to help credit unions become more member-centric by offering in-demand products. As a recent PYMNTS Intelligence report found, 44% of consumers want to buy insurance products from their financial institution. 

Introducing new insurance products can speak to generational needs, as well as life circumstances. We now offer an entire suite of supplemental insurance, including products such as cyber insurance, to address emerging risks like cyberattacks.

Flexibility: Our Key to Navigating Wildcards

There’s no doubt that things change fast in our industry. We stay flexible in choosing the insurance carriers we work with and the products we provide. We also adapt by leveraging AI to create consumer-centric solutions. Our flexibility comes from the top down and extends to our diverse workforce, cultivating a company-wide culture of adaptability. This approach positions us to thrive, no matter the wild cards that come our way.

JONESBORO, Ark. (KAIT) – The city of Jonesboro presented its plan to improve the lives of residents in the city to the Finance Committee on Tuesday, Sept. 10.

The Finance Committee’s agenda included a resolution to begin the formal pricing process for future bond ordinance legislation.

It was forwarded to the city council.

Jonesboro Chief Administrative Officer Brian Richardson said the investment plan would be funded through a revenue bond.

“It is simply taking a revenue stream that we already receive that the state allows to allocate that money towards future debt. The revenue bonds come from franchise fees that businesses pay to the city of Jonesboro,” he said.

What exactly is in this Capital Investment Plan?

Just over $25.5 million was to be invested over the next three years in several projects. The plan was tabled earlier this year.

Richardson said there were a few changes between this plan and the old one.

“So we took that that feedback, and really spent a lot of time developing and adding more and more detail to the proposed expenditures to”

Some of the biggest projects in the plan include:

· $6.5 million investment in a facility that will be next to the police department that will house E-911 service.

· $6 million to expand South Caraway Road to five lanes from I-555 to Fox Meadow Lane

· $5 million in trail connections.

· $2 million for a new sidepath on Race Street from Red Wolf Boulevard to Browns Lace.

· $250,000 for sidewalks and lighting.

· $3.25 million for aquatic and pool construction.

· $1 million for a Parks Master plan implementation.

· $500,000 for humanitarian outreach.

· $250,000 for upgrades at The Forum.

· $750,000 for a city-wide master growth plan.

· $250,000 for Land Bank & Development Incentives.

The city wants a revenue bond to fund $17.5 million of the projects and $8.25 million in ARPA (American Rescue Plan Act) fund to fund the projects.

The total cost would be $25.75 million.

Richardson said safety was a reason why they wanted to bring the plan forward now.

“The earlier that we start the process, the sooner these projects are done, the sooner that we can get pedestrian infrastructure on South Caraway Road, the better chance we have it saving a life out there,” he said. “We want to make sure that we build the quality of life in Jonesboro.”

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Shares of JPMorgan Chase fell after the bank cautioned forecasts for its net interest income may be too high. Wall Street is also eyeing second quarter results from meme stock GameStop, which will be released this afternoon. Yahoo Finance trending tickers include General Motors. (GM), Oracle Corporation (ORCL), and Ally Financial (ALLY).

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3:30 p.m. ET David Risher, Lyft CEO
3:45 p.m. ET Chris Cocks, Hasbro CEO
4:05 p.m. ET Joe Mazzola, Schwab Head Trading and Derivatives Strategist
4:15 p.m. ET Michael Ng, Goldman Sachs Senior Equity Research Analyst
4:40 p.m. ET David Konrad, KBW