Finance
Could Generational Change Be The Next Wild Card For Financial Services? | PYMNTS.com
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.
Finance
UK finance minister to revive regular economic talks with China in January trip, sources says
By Joe Cash
BEIJING (Reuters) – Britain’s finance minister Rachel Reeves will visit China on a two-day trip in January to revive high-level economic and financial talks that have been frozen since 2019, three people with knowledge of the plan said.
Reeves is scheduled to meet China’s vice premier He Lifeng, the country’s economy tsar, on Jan. 11 in Beijing to restart what had been annual talks known as the Economic and Financial Dialogue (EFD), they said.
If those discussions show progress, the two sides could look to re-launch what had been a regular and wider meeting known as the Joint Economic and Trade Commission (JETCO) later next year, the sources said.
British businesses have also pressed to restart meetings of the UK-China CEO Council, a group established by then-Prime Minister Theresa May and then-Premier Li Keqiang in 2018, one of the sources added.
Reuters reported on Thursday that HSBC Chairman Mark Tucker will lead a business delegation that will visit China next month in a bid to boost trade and investment with a particular focus on financial services.
Reeves will also go to Shanghai, where she will meet with British companies operating in China on Jan. 12, according to the sources, who asked not to be named because they were not authorized to discuss the plans.
Britain decided to suspend most economic dialogues with China in 2020 after Beijing imposed a national security law in Hong Kong, the former British colony. Since then, spying allegations, the war in Ukraine, and the sanctioning of lawmakers have increased tensions between the two countries.
The Labour government, in power in Britain since July, has made improving ties with China one of its main foreign policy goals after a period under successive Conservative governments when relations plunged to their lowest in decades.
In 2022, then-Prime Minister Rishi Sunak, a Conservative, declared the end of a “golden era” of relations with China that one of his predecessors, David Cameron, had championed.
Over the preceding decade, British and Chinese officials had met annually for high-level trade and investment talks, holding an EFD almost every year and a JETCO every two years.
Those talks resulted in the London-Shanghai stock connect scheme, Britain joining the Beijing-based Asian Infrastructure Investment Bank, and joint investment into green technologies, including the UK’s Hinkley Point C nuclear power plant.
(Reporting by Joe Cash)
Hello! It’s Rebecca here with your final Australia Briefing of 2024. And what a year it’s been. From the re-election of Donald Trump and the ongoing slowdown in China, to the blockbuster IPOs and corporate scandals closer to home — 2024 will go down as one for the ages.
Before we all revert to the sanctity of our beach towels, I thought I’d load you up with a selection of my favorite pieces from Bloomberg’s Australia newsroom this year. A stockpile of stories, videos and podcasts to help you while away those days by the pool, at the campsite, or wherever the onset of summer takes you…
Is ‘Bluey’ Ending? Disney’s Worried Biggest Kids Show Ever Is at Risk — Essential reading for anyone with a kid, or honestly, a pulse. Did you know that Americans watched 731 million hours of Bluey in 2023, more than NCIS, Grey’s Anatomy, Gilmore Girls or that perennial of the broadcast, cable and streaming eras, Friends? That’s almost as much as my kids.
Australia Has a Top Pension Program. Why Are Many Retirees Still Struggling? — It’s official: Australia’s retirement system is the envy of the wealthy world. So why aren’t we all diving Scrooge McDuck-style into a vat of cash?
Malaria Rates Surge After Mosquito Net Changes Complicate Global Fight — Travel to the depths of Siar Village, Papua New Guinea with our reporters as they explain why the world is losing its fight against malaria.
World’s Top Retailer Is Now Trying to Save Air New Zealand — We report a lot on the former CEO of this airline, you may know him as the New Zealand PM. But what do you know about the new one?
Investing for the Ultra-Rich: Family Offices Are Booming in Perth, Australia — Twiggy lives there, and so does Gina — but those two reasonably well-off citizens aside, why is Perth a magnet for family offices?
Finance
Arrow Financial Strengthens Board with Four Industry Veterans, Adding Banking and Finance Expertise
James M. Dawsey, President of MLB Construction Services, LLC, will bring financial and operational expertise to the Arrow board, drawing from more than 45 years of experience in construction management and operations oversight. He has extensive expertise in reviewing financial statements, cost control and profit-and-loss oversight for his five companies. His proven ability to ensure financial strength and operational efficiency will provide valuable insight to the board. He currently serves on the board of directors of Glens Falls National Bank and Trust Company, Saratoga National Bank and Trust Company, Upstate Agency, LLC, Local Union 157 and the Eastern Contractors Association.
Dr. Kristine D. Duffy, President of SUNY Adirondack, has more than 35 years of
Philip Morris, CEO of Proctors Collaborative, brings extensive expertise in cultural facilities and development to the board, with nearly 50 years of experience renovating more than 20 buildings for cultural purposes and raising more than
Daniel J. White, a Certified Public Accountant, brings a wealth of experience to the board, having served as the former Office Managing Partner for KPMG LLP’s
“We are thrilled to welcome Jim, Kris, Philip and Dan to the Arrow Financial Corporation Board of Directors,” said David S. DeMarco, President and CEO of Arrow Financial Corporation. “Their diverse backgrounds and expertise will greatly enhance our board’s capabilities. We are confident their leadership and insights will help guide our organization as we continue to grow, innovate and serve our community with excellence.”
About Arrow Financial Corporation:
Arrow Financial Corporation is a multi-bank holding company headquartered in
View original content to download multimedia:https://www.prnewswire.com/news-releases/arrow-financial-corporation-appoints-four-new-board-members-302335965.html
SOURCE Arrow Financial Corporation
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