Fighting Payments Fraud
Trends & Tactics
Payment fraud trends evolve in the same manner that payment innovation evolves. Certainly, fraudsters look to identify and exploit areas of vulnerability in both established and emerging payments systems, but they will also gravitate quickly to new areas when previously vulnerable sectors of the payments ecosystem have been made more secure.READ MORE
Tips for planning for the life cycle of your equipment.
Effectively managing your company's capital equipment program is closely tied to managing the long-term growth and profitability of your company. Obtaining the right equipment at the right time and managing its useful life in conjunction with the needs of the entire organization can make a big difference in your company's long-term financial performance.
Eliminate results that perpetuate stereotypes and misdirect projects.
Many experts believed artificial intelligence (AI) and machine learning would usher in an era of efficient, transparent and sound decision-making. However, bias continues to be a problem because humans create the technology and incorporate their prejudices and unconscious beliefs into it.
Staying on top of trends can help you be more proactive in your field.
As a financial professional, you have to cover all the accounting basics, and you might have a hand in strategy – but do you really want to be doing the bare minimum? Get in the game by understanding what is coming next. Here are the most prominent trends that financial professionals need to watch in order to stay relevant.
Zero-based budgeting forces companies to revisit decisions made in the moment.
Companies grow and evolve. They respond to the market and adjust the best way they know how to — at the time. The problem is that few companies ever revisit the decisions that they made in the heat of the moment — and they should. Zero-based budgeting forces companies like yours to do just that.
Companies are putting sustainability at the core of their business models.
The concept of “sustainability” was once seen as not much more than a trendy buzzword. Businesses assumed it simply meant trying to find ways to be greener, such as recycling or reducing waste. But a cursory nod to green initiatives is no longer enough.
In order to manage the impact of potentially rising rates, companies should consider developing and implementing a comprehensive plan to mitigate their exposure.
This webinar replay discusses how short term interest rate increases may affect the U.S. Treasury Curve, how to manage impact of rising rates, and plans to mitigate company exposure.
Smart contracts can unlock the power of blockchain technology, providing a platform that can remove friction, reduce paper and speed transactions across many industries.
Could smart contracts benefit your business? Smart contracts are blockchain-enabled contracts that have the potential to revolutionize the way we do business. Similar to paper contracts, smart contracts define operating rules between parties, but a key differentiator is that they can also systematically enforce those rules.
There are seven common principles a business owner family can use to successfully transition to a financial family. These principles are outlined in this paper.
After the sale of a family business, the business owner family must transition to a financial family. An important element of a family’s successful transition is an understanding that the business purpose that drove and united the family. Without a common purpose, the family does not have a common goal or focus.
See how edge computing can impact everything from elevators to self-driving cars.
As the internet of things connects more machines and devices than ever before, the very structure of the internet is being challenged. Every device generates massive amounts of data, and routing that data to a corporate cloud or data center takes considerable bandwidth and time for processing and analysis.
Data lakes are much bigger and unstructured compared to data warehouses.
Many companies are turning to a “data lake,” a storage repository capable of holding vast amounts of raw, disparate data in its native form until it is needed. Data lakes are much bigger and unstructured compared to data warehouses, the typical large repository used by most companies.
Changes make it easier for employees with disabilities to navigate the workplace.
Since the passage of the Americans with Disabilities Act (ADA) in 1990, companies have added physical accommodations to their workplaces such as ramps, nearby parking, wider doorways and accessible restrooms. These changes make it easier for disabled employees to navigate the workplace and interact with co-workers.
Why industry insiders see blockchain as a natural fit to improve payment processing.
Industry insiders see blockchain, a distributed ledger system, as a natural fit to improve the trustworthiness and payment processing of the advertising supply chain, especially for digital and video advertising.
This webinar will provide background on the threats and best practices for protecting your Commercial Card program.
In some industries the skills gap is severe and there are few available job candidates.
Companies continue to struggle to find employees with the right skills for today’s jobs. The U.S. economy is at full employment, and in some industries the skills gap is severe and there are few available job candidates.
Popularity of virtual assistants has spurred the creation of voice-activated devices for work.
Researchers estimate Amazon could gain more than $10 billion in revenues from voice-activated internet sales over that same time period. The popularity of virtual assistants (VAs) in the home has spurred technology companies to create voice-activated devices for workplace environments.
Are you exposed to future rate increases related to longer term debt? A forward starting swap can help to manage interest rate exposure.
As interest rates continue to rise, borrowers may be exposed to future rate increases related to longer term debt. A forward starting swap can help to manage interest rate exposure and align their interest rate risk with their risk tolerance.
For businesses struggling to compete on pay, there are other ways to attract and retain talent.
Companies continue to struggle to find employees with the right skills for today’s jobs. The U.S. economy is at full employment, and in some industries the skills gap is severe and there are few available job candidates.
AI, analytics and machine learning are revolutionizing supply chains.
The success of Amazon’s operations has created higher expectations across the board for transparency and speed on every purchase transaction. Customers want to be able to place orders at any time of the day, track the movement of their purchases, and get delivery in just one day or even a few hours.
Leaders must develop training and support to ease workers’ transition to automation.
Twenty-three percent of current work activity hours could be automated by 2030, displacing 39 million U.S. workers and forcing 13% of the workforce to switch occupational categories. Many jobs will be eliminated and new roles will be created.
A comprehensive retirement plan checkup can help plan sponsors identify existing or potential issues that could result in significant compliance problems or negatively impact plan participants.
Performing an annual review helps confirm that a plan is meeting applicable requirements under the Employee Retirement Income Security Act of 1974 (“ERISA”) and related Internal Revenue Service (IRS) and Department of Labor (DOL) regulations and guidance, which is one of the essential responsibilities ofa plan fiduciary.
It's important to review your existing planning documents, such as estate planning documents, pre- and postnuptial agreements, and business buy-sell agreements.
The recently adopted tax reform legislation will have a substantial impact on family wealth management decisions. Here we provide an introduction to key tax provisions contained in the new tax law and explore the opportunities and challenges they present.
Whether you are buying or selling across borders or entering a new international market, you’re likely to face credit, country, counterparty and currency risks.
This webinar outlines the key instruments for mitigating risks, examines strategies for navigating the complexities of international trade, demystifies industry terminology and clarifies components of trade documentation.
Improving customer retention rates can boost profits. Learn how to build loyalty.
Consumers today have high expectations and easy access to online product information and customer reviews. They quickly switch brands if they have a negative experience or perceive they could have a better experience. Customers freely use social media tools to share bad customer experiences and warn friends and family away from a particular brand.
We focus on three key areas for plan sponsors thinking about enhancing their pension risk outcomes.
2017 proved to be another volatile year for pension plan sponsors. The market environment combined with several regulatory updates may provide plan sponsors with some potential opportunities for 2018.
President Trump signed the Tax Cuts and Jobs Act (TCJA) into law on Friday, December 22, 2017 — and it has undoubtedly left its mark on the municipal finance market.
During this webinar, we discuss the major elements of the Tax Cuts and Jobs Act and their effect on municipal finance, including municipal bond supply and demand, and relative value relationship of municipals to other instruments. We also cover a look-back at the impact of these dynamics during the first two months of 2018 and expectations for longer-term effects. PNC Public Finance Disclosure
Discussion includes a look-back at the impact of these dynamics during the first two months of 2018 and expectations for longer-term effects.
Many U.S. companies continue to actively seek ways to increase energy efficiency.
Researchers have found companies with high environmental, social and governance ratings tend to outperform the market in the mid- and long-term ranges. As many boards and corporate executives are finding, sustainability initiatives can be very good for business.
Blockchain is a technology platform that promises to revolutionize financial transactions.
Distributed ledger technologies record transactions in a decentralized network, which means that the record of each transaction is shared across a network of computers, as opposed to at a single entity (e.g., a bank or clearinghouse).
While interest rates have been low for years, rising interest rates bode well for overall economic health — and may even hold good news for businesses.
Understanding and capitalizing on the opportunities that exist in rising rate environments can make businesses stronger. Focusing on the next best moves for your business, both in terms of borrowing and strategic investment, can help you stay ahead of the competition and make the best decisions for the future of your organization.
RFID is viewed as a functional way to connect tangible items to the digital world.
Wide area RFID systems are new applications using base readers mounted overhead to monitor the movement and location of inventory. The expansion of low-energy Bluetooth beacons and readers enables companies to track inventory as it moves through an individual site or supply chain. BLE also can be used to help navigate people or objects through a location.
Many U.S. companies with operations based in Britain wonder how Brexit will affect them.
With Brexit, seamless free trade access through Britain will end, and U.S. companies will need to establish new operations and offices in other EU countries. What’s more, as U.S. companies follow the Brexit process, many find they have new exposure to risks brought on by the upcoming separation.
AI promises greater efficiencies, reduced costs, higher profit margins and other benefits.
Most early investment in AI is being made by large technology companies, such as Amazon, Google and Facebook, that have invested heavily in digitization. The United States, China, South Korea and the United Kingdom lead in AI development and have created national strategic plans with substantial AI aspects.
Is it better to reward star performers on a team, or the entire team’s efforts?
Companies want their work teams to be effective and achievement-oriented. Well-functioning teams can lead to faster completion of goals and successful wins, as well as foster company loyalty, positive morale and higher productivity.
Companies with lower engagement scores tend to have a sizable engagement gender gap.
As they take on more responsibility and have more direct interaction with senior executives, employees tend to develop a greater emotional commitment to the organization and its goals. But researchers have found companies with lower overall engagement scores tend to have a sizable engagement gender gap among employees in senior positions.
Evaluate investment options and anticipate future rate changes in order to set an optimal cash position and strategy.
Many financial decision-makers see today’s rising rates as either a brand-new phenomenon or an operating environment that they haven’t faced for more than a decade. Corporates will be required to analyze their short-term cash and cash position differently in order to prepare for the long haul.
You can't afford to wait for clarity when determining European strategies in the face of an uncertain Brexit environment. This seminar will arm your company with the tools it needs.
Improve your understanding of the economic impact and potential disruption to trade flows. Identify possible negotiation outcomes surrounding passporting rights and data privacy. Review foreign exchange concerns including currency volatility. Recognize the potential impacts on employees, customers and vendors.
The internal experience can help you find and retain qualified candidates.
The U.S. unemployment rate is at its lowest level since 2000, and the shortage of skilled workers has seldom been so severe. As baby boomers continue to retire, companies are struggling to find workers to replace them. ManpowerGroup found that 40% of global companies report having difficulty finding qualified candidates.
The U.S. dollar has been experiencing increased volatility. Find out how to manage the impact of the changing value of the dollar and other currencies.
What is the best way to develop a risk management plan for your business? What resources are available for assistance with the financial and market variables that will impact a risk management plan? What is the best way to identify the appropriate hedging instruments to use? What are the outcomes of an effectively implemented risk management plan?
Make targeted hires who are recognized leaders in their discipline or industry.
Digital transformation requires technical staff with more advanced skills and multidisciplinary experience to understand the digital needs of the business at a deeper level. Technical staff must know and understand legacy IT systems and be able to creatively undertake the challenges inherent in digital conversion.
The trend toward wind, solar and other renewables has taken hold.
Despite potential obstacles, the renewable energy industry has gained significant momentum, to the point where it has eroded coal’s share of the electricity-generation market. The U.S. Energy Information Administration says the share of U.S. electricity generated by renewable energy sources, not including hydropower, steadily grew to 15% in 2016 from 10% in 2010.
We believe buy-sell funding has a “Goldilocks zone” of sorts in that parties to a buy-sell agreement will seek to find an optimal funding level.
Acquiring an appropriate amount of life insurance coverage, properly structuring ownership and beneficiary designations, and aligning the type of life insurance policy with the terms of the buy-sell agreement are critical to implementing a successful funding strategy.
A key to effective wealth management and family wealth transfer is recognizing the risks that threaten you and your family’s wealth and developing strategies to minimize them.
Recognize the risks that threaten you and your family’s wealth and develop strategies to minimize them. Disability, divorce and predators are just a few of the risks families face. A well-designed and well-administered trust is one of the most effective tools for managing life’s risks and achieving wealth goals.
This year, more workers may be tempted to explore other career opportunities.
Many workers, especially millennials, don’t want to be managed in a traditional way. They want coaches who help them develop professionally and leaders who challenge and engage them. They want the flexibility to work from home and determine their schedules. Many want opportunities to pursue their passions and engage their creativity.
Only 22% of retirement plan sponsors are currently benchmarking the Income Replacement Ratio for their participants. And that can leave a major gap in participant retirement readiness.
The income replacement ratio is the percentage of pre-retirement income that an individual is likely to need to maintain their standard of living in retirement. Adding it to traditional benchmarking metrics can improve how plan providers, along with plan sponsors, communicate and educate plan participants.
Hedging allows treasurers to protect profits and cash flow by locking in revenues, costs and global intercompany transactions, but accounting treatment can be uncertain.
Equity markets are highly volatile. Global currency markets have also been experiencing larger than normal swings. Fortunately foreign exchange hedging products such as forwards and options are available to protect against the potentially adverse impact of currency fluctuations.
Many organizations are exploring how to better manage their retirement plan’s investment lineup, control risk, and keep costs down.
Is now the right time to consider outsourcing your defined contribution plan’s investment selection and monitoring? If you’ve already decided to outsource, how do you determine whether a nondiscretionary 3(21) or discretionary 3(38) fiduciary service is best suited to your needs?
Companies must implement secure and efficient payment processes in the face of a complex and an evolving web of customs, laws and regulations that varies from country to country.
Best practices cover payment instructions, understanding local rules, tax implications, using local currency, and collaborating with your bank.
Even cross-border payments sent via SWIFT will land in a local payment system where unique banking practices may delay funds’ availability and result in fees to the beneficiary.
Companies need to implement secure and efficient payment practices in the face of customs, processes and regulations that vary from country to country. To avoid delays and extra costs, understand payment rules, regulations and networks.
Check fraud tops the list of fraud methods criminals use, according to the latest AFP Payments Fraud and Control Survey. Why is this latest survey especially worrying?
75% of organizations experienced check fraud in 2016. 74% reported that their organizations were exposed to business email compromise. Nearly half of survey respondents reported that the incidents of fraud attempts increased in 2016.
RPA software programs mimic the keystrokes humans make to complete rote processes.
RPA software sits on top of legacy information technology systems or more complex intelligent automation applications. Because it’s less complex, RPA is easy to implement for fast returns in efficiency and cost savings. It can be integrated smoothly with legacy systems for enterprise resource planning, customer relationship management and business process management.
The Internet of Things links devices and people, often without human intervention.
The Internet of Things generates data to improve operations and anticipate actions. Sensors, software, the cloud, computers and other devices can seamlessly merge physical and digital technology for greater efficiency, improved service and better process management.
Savvy companies understand that employees arecustomers too.
Researchers have learned it is profitable to view the overall employee experience in relation to the overall customer experience. Consulting firm Aon Hewitt found organizations ranking high on employee engagement realize a 4% increase in sales growth and a 2% increase in operating margin.
Pension plan sponsors are faced with a volatile political and macro landscape that presents significant opportunities and risks.
There is uncertainty around the timing and potential size of Federal Reserve rate hikes, the potential impact on the longer end of the curve, the policies of a new administration, and the ability of the economy to maintain the positive momentum of the last eight years.
Even though the Liquidity Coverage Ratio is targeted at banks, your banking relationship — and therefore your business — may be affected.
The Liquidity Coverage Ratio (LCR) was created by banking regulators to enhance the banking industry’s ability to absorb shocks resulting from financial and economic stress and to strengthen the industry’s processes for monitoring and managing liquidity. Over the long term, the LCR rule will benefit your business by increasing the strength of the banking industry.
Pension plan sponsors face a volatile landscape that presents significant opportunities and risks, especially if they have a legacy defined benefit plan, or are considering a merger.
Healthcare systems are complicated organizations, managing their liabilities to maintain credit ratings in a competitive environment. Pension risk is a liability many systems face and several strategies available are highlighted in this article.
Today’s rising interest rate environment may make it possible to improve your return on short-term cash.
Investment policies should include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course or become more conservative.
Corporate financial managers must consider the impact of interest rate forecasts, future GDP estimates and potential tax reform on corporate cash strategies.
A number of short-term investment options have become part of the consideration set because of the rising market. They include variable net asset value prime money market funds, separately managed accounts and conservative ultra-short bond funds.
Noncompete agreements can dissuade employees from going to work for a competitor.
Proprietary knowledge is critical to business success and companies go to great lengths to protect intellectual property and trade secrets. For instance, many companies require employees to sign noncompete agreements upon their hiring to protect intellectual property from exiting the firm if the employee decides to leave.
PNC’s economists are predicting increases in 2017 and 2018. A new administration in Washington and political changes in Europe may also affect interest rates.
What does the future hold for interest rates? How will the new interest rate environment affect your borrowing strategies and how can you mitigate the risks? We asked Tina Hwang from PNC’s Capital Markets group to weigh in.
“3-D printing,” is being adopted by many industries, from aerospace to chocolate.
Some economists view the rise of 3-D printing as a new industrial revolution. It can significantly cut the time to test and develop new products, speed delivery of custom parts and components, allow a higher degree of customization, and aid in refining prototypes for new, more complex products and designs.
Companies like Amazon and Google set the tone for customer experience standards.
This customer-centric approach is driven in large part by digital technology and social media that have empowered customers and changed the rules for purchasing goods and services. For example, researchers have found 75% of online customers expect service within five minutes of making contact with any vendor or supplier.
Uncertainty regarding U.S. economic strength, global considerations and unanticipated events will likely result in continued market volatility over the near term.
We follow a consistent and disciplined approach to investing, seeking diversified sources of return. In our opinion, investors are best served if they work with their advisor to focus on their long-term goals, with an asset allocation that is appropriate for the risk profile and return objectives of their unique circumstances.
Employers must merge full-time, part-time and contingent workers into a cohesive team.
Growing ranks of contingent workers include consultants, freelancers, independent contractors, agency temps, day laborers and the self employed. individuals. These workers are not regular employees of a business but are engaged on an interim basis. They do not qualify for full-time work schedules, regular wages or company benefits.
Customers are open to using electronic and artificial intelligence (AI) applications.
Chatbots are increasingly being used to augment customer service. These technology applications use AI to process language, enabling them to understand human speech. They can decipher verbal or written questions and provide responses with appropriate information or direction. Many customers first experienced chatbots through dialogue boxes on company websites.
The team needs to be clear about the objectives and their roles in creating success.
To ensure the success of an innovation team, it’s best to go beyond professional credentials alone and consider drawing from a wide mix of personalities, experiences and skills. With roles and responsibilities clearly defined, innovation teams can bring about changes that profit their organizations.
Many employees and managers agree that annual reviews don’t fit today’s workplace.
Some analysts estimate that more than one-third of U.S. companies have thrown out the traditional annual performance review altogether. These businesses are experimenting with dropping traditional employee rating systems and replacing annual reviews with other ways to evaluate and reward performance.
Cyber criminals are finding new and subtler ways to infiltrate legitimate businesses to conceal or advance their objectives.
As a financial institution that is focused on creating long-term, collaborative relationships with its customers, PNC believes strongly that the USA PATRIOT Act requirement to know our customers, their ownership, business purpose, suppliers and customers benefits our national security — and your security as well.
As 2017 begins, stock and oil prices are moving higher and economic outlooks for 2017 are being revised.
Economic growth will be faster in 2017-2018 with assists from consumer spending, construction spending, business investment and Federal government spending, more than offsetting weakness in U.S. exports as the dollar continues to strengthen and growth outside the U.S. remains slow.
Large companies and municipalities are utilizing these bonds.
A CAT bond is a high-yield debt instrument intended to provide funds in case of a specified natural disaster. These insurance-linked securities can be used to distribute risk from natural events across a wider scope. Pricing is based on CAT modeling that analyzes potential exposure to weather and other catastrophes.
Operations and supply chains can be disrupted any time from anywhere in the world.
Business continuity and disaster recovery plans can serve as the first response in the wake of a disruptive event. A well-documented business continuity plan can help organizations anticipate likely scenarios, outline response actions and react rapidly, thus increasing the likelihood of resuming normal operations quickly and with the least interruption.
Stocks and bonds are expensive relative to history, growth remains sluggish, and corporate earnings have been unable to gather sustainable momentum.
We remain in a difficult market to forecast, particularly regarding the complex interactions between what we see as the weak fundamental backdrop and how current monetary policy might affect the dollar, interest rates, and investor risk preferences.
As e-commerce moves towards 10% share of total retail sales, mobile commerce is expected to grow exponentially in the coming years.
Widespread consumer adoption of payment technologies can lead to demand in the commercial space. For these reasons, trends in consumer payment innovation can be early indicators for changes in commercial payments.
Do political trends influence interest rates during an election cycle?
Companies should be armed with a comprehensive risk management policy and exercise discipline in implementing their hedging strategy regardless of the political environment and market conditions. Prepare to implement your hedging strategy in a timely manner.
Seven trends are altering the $3.2 trillion healthcare sector in new ways.
Projections show positive signs of economic stability, yet a degree of uncertainty lingers with some corporate executives. Additional interest rate hikes are widely expected in 2016, and the U.S. dollar continues to be strong against major world currencies, both of which could increase borrowing costs and reduce revenues.
Gender bias exists in hiring, performance reviews and opportunities for advancement.
Although both women and men struggle to balance work and family commitments, the majority of childcare, caregiving and household responsibilities fall to women. Pulled in two directions, many women are at a disadvantage in the workplace compared to their male peers.
The controls that come with the latest commercial payment methods enable CFOs, controllers and program administrators to exercise greater control over payment systems and practices.
The potential benefits associated with strong controls can be significant in terms of cost savings and peace of mind. Conversely, failure to implement appropriate payment controls can subject an organization to unnecessary financial risk.
States target unclaimed property to gain revenue to address their budget shortfalls.
Unclaimed property held by a company may include unclaimed payroll checks, outstanding vendor checks, supplier credits, accounts receivable credits, gift cards, rebates and customer deposits. It also may include abandoned bank accounts or stock trading accounts, unpaid insurance claim payouts, unclaimed pension benefits, and real property.
A sound security plan can protect access, safeguard company data and mitigate risks.
IT security experts note that cloud servers face many of the same threats as in-house servers, as well as some additional risks. These include data breaches, shared vulnerability attacks, malicious insider threats, denial of service (DoS) attacks and data loss.
You can find relief by improving management of invoice processing through payment.
Invoice automation can help you optimize the use of employee resources, significantly decrease the cost of processing invoices, help you capture vendor discounts more reliably and increase scale within your back office.
Outsourcing enables company executives to remain focused on their core businesses.
Outsourcing remains attractive for many companies because it offers several advantages in addition to cost savings, particularly in addressing talent gaps and shortages, exploiting Big Data capabilities and implementing new technology quickly. Yet many companies struggle to transition their IT and noncore operations effectively to an outsourcing model.
It’s getting easier to digitally market products and services to customers.
To remain competitive in today’s market, companies need to provide customers with mobile access to their products and services. Apps can simplify online and mobile purchases and help consumers find useful product information. An app that is easy to use can increase order quantities and improve customer loyalty and engagement.
It's clear that corporations and individuals need to understand the risks and opportunities as an uncertain situation evolves.
Britain's Brexit vote upended expectations with 51.9 % of voters backing the "leave" campaign versus 48.1% backing "remain." The result sent shock waves through the markets and created an unstable political environment in the United Kingdom in the weeks following.
When planning for risk, start with the easiest and least expensive measures and work through the options, weighing whether each measure can address each risk appropriately.
Those who are perceived to have deep pockets present attractive litigation targets. Professionals and business owners are well aware of their risks. Many of these professionals can face malpractice claims, breach of contract claims, and personal injury claims, but there are a multitude of additional risks that professionals and employers confront.
Longer duration debt may cost more, but it can help you
weather an economic downturn.
External factors impacting companies’ businesses and balance sheets can create a mismatch of assets and liabilities, if the latter come due too quickly. So the extra time provided by longer maturities can help companies through rough patches.
Chart provides detailed information on Money Market Fund regulation considerations at a glance.
Intended to preserve the benefits of money market funds while increasing transparency and strengthening investor confidence, new regulations effective in October 2016 will require a re-evaluation of your cash management strategy.
The federal election will affect policy and conditions for business and investing for at least the next four years. This uncertainty may not be helpful for upward market momentum.
It’s too soon to make predictions about what’s in store for investors during the next presidential term. However, review of current conditions and past patterns makes it likely that investors could see quite a bit of market volatility for the near term.
Industries face digital disruption due to fast adoption of mobile devices and apps.
Companies in the media, telecommunications, consumer financial services, retail and technology industries are the first being affected by digital disruption. But nearly every other industry will soon be impacted by new digital technologies that challenge their business strategies and how they interact with their customers.
New SaaS companies are relying on expensive financing around such as venture capital.
SaaS companies can lack the key measuring sticks that banks use to determine creditworthiness, namely inventory and receivables. Their inventory tends to be cloud-based and therefore a nontangible asset, and receivables are subscription-based and often amortized.
Honesty and transparency between lender and the borrower can deliver good outcomes.
Sometimes unflattering information such as shareholder lawsuits, past criminal activity, asset impairment, etc. are held back. This approach can affect your credibility and that of your management team.
The industry experienced increased fraud activity in advance of EMV with data breaches hitting high-profile brands.
Improve your awareness of Card-Not-Present (CNP) fraud with the adoption of EMV. Understand how PNC’s fraud strategies and intelligent neural network can help prevent fraud while balancing risk with the cardholder experience. Understand how PNC’s fraud strategies and intelligent neural network can help prevent fraud while balancing risk with the cardholder experience.
Intrinsic rewards motivate knowledge workers' creative thinking and risk taking.
It seems logical to pay incentives to employees for innovation in product development and research. However, behavioral economists have found that the opposite is true with knowledge workers such as software engineers, product developers, data analysts and consultants whose jobs are to develop original ideas and applications.
Technological innovation can improve the match of skilled workers to labor needs.
As more companies turn to digital labor platforms, global labor markets will draw in more workers and begin to optimize human resources processes and efficiencies. By 2025, $2.7 trillion could be added to global gross domestic product from digital labor platforms and employment could potentially increase by 72 million full-time equivalent positions.
The healthcare cost trajectory has significant implications for companies and employees today --and on retirement prospects for individuals down the road.
Changes in healthcare are monumental. It’s hard enough for employers to understand the new landscape. It can be even harder for employees, leaving a significant gap in understanding between the two groups, particularly when it comes to retirement planning.
Create an education program that incorporates both financial and physical wellness for your employees.Communicate with your employees to identify key topics of concern.
Employers can play a significant role in helping their employees achieve a financially secure retirement by addressing the least understood threat to their retirement dreams — the cost of healthcare. The failure to plan adequately for the increase in demand for healthcare in retirement and their projected costs may upend even the best-laid plans.
Blockchain is a decentralized electronic ledger that grows as data is added.
Blockchain uses cryptography to enable each user to add to the ledger in a secure way. As a new transaction occurs, both parties must verify its authenticity by consensus before it is recorded in a block. This eliminates the need for a central authority to monitor and validate transactions, instead relying on the consensus of the participants.
The buying habits of the world’s population are undergoing a major shift.
Companies may need to rethink their business models. Future success will be built on an approach, where growth is based on per capita spending rather than on increasing the number of customers, and products and services appeal more to the needs of urban populations and new age groups.Companies also need to consider how they can add or expand services.
Successful innovators share certain traits that make success more likely.
This in-depth research found that inventive companies tend to possess eight essential qualities in varying degrees that form an “operating system” for successful, sustainable innovation. Here’s a summary of those traits.
In September 2015, the 10-year swap spread turned negative, and today, all swap spreads with a tenor of 5 years and greater are negative.
Current negative swap spreads present an opportunity for market participants favoring fixed rate debt. The bank markets traditionally price over LIBOR, and the bond markets price over Treasuries. By electing to pay a fixed swap rate, a market participant enjoys the benefit of negative swap spreads through a lower swap rate paid for the life of the contract.
Learn how to better manage intercompany payments, reduce transaction costs and improve intracompany reconciliation.
Multinational corporations face many challenges in managing growth across multiple continents, currencies, and accounting systems. Treasury managers can facilitate cross-border settlements among affiliates, increase productivity and generate cost savings with a multilateral netting solution.
A variety of changes and challenges are affecting the ability and willingness of middle-market companies to finance new initiatives.
One of the troubling uncertainties is whether the Federal Reserve will continue to increase short- term interest rates throughout 2016. Rising rates will affect borrowers’ cost of capital and likely reduce their demand for funding.
Rapid advancements in technology have fueled faster change.
Harvard Business School professor Clayton Christensen describes disruption as the process in which a smaller company with limited resources successfully challenges more established and larger industry leaders. He notes that disruption “displaces an existing market, industry or technology and produces something new, more efficient and worthwhile
Millennials need the right work environment to become a high-performing generation.
Millennials want to be challenged as they progress through their careers, and that usually plays out in mobility — the average tenure of Millennials is two years. Many are not willing to hang around if they feel their job offers little personal growth or career benefit. Instead, they are unafraid to strike out for better opportunities.
You could deploy more and/or better revenue-producing equipment in service this year?
The Section 179 deduction can allow businesses of certain sizes (subject to specific limitations) to deduct up front, rather than depreciate over a number of years, the cost of equipment such as computers, vehicles, manufacturing equipment, farm machinery, office furniture, etc. Combined with the benefits of bonus depreciation and the incentive to acquire equipment and stay on the cutting edge of technology by continuing to buy equipment, this deduction can have a positive impact on your flexibility and growth.
Participation in the syndicated loan market was down 6% in 2015 compared to 2014.
Thomson Reuters reports that most of the new money supported M&A transactions, reaching an all-time record of $546 billion. Corporates borrowed $211 billion, and private-equity sponsors borrowed $120 billion. Investment-grade lending increased by 4%. Factors include high acquisition prices that took private-equity sponsors out of the market.
Data integrity can be compromised through cyber threats that manipulate data.
Quiet, insidious attacks may come in the form of planted malware or selective hacks that seize, modify or delete data or transactions in ways that benefit the perpetrators. For example, an attack could change a bank account’s direct deposit setting to channel deposits to another account.
2016 revenues are expected to increase in 16 manufacturing industries.
Projections show positive signs of economic stability, yet a degree of uncertainty lingers with some corporate executives. Additional interest rate hikes are widely expected in 2016, and the U.S. dollar continues to be strong against major world currencies, both of which could increase borrowing costs and reduce revenues
Workplace wellness programs: What's the real ROI?
Employee wellness programs are a $6 billion industry in the United States. These programs have been touted for helping employees improve their health and prevent disease while lowering healthcare costs. Approximately 50% of all companies with 50 or more employees now offer wellness programs.
Indirect taxes are based on trade flows and transactions.
Because each country uses a unique mix of indirect taxes, companies are challenged to stay on top of tax requirements and liabilities. Government tax administrators may change their policies and rates very quickly in response to economic needs, and they expect international companies to respond immediately or face penalties.
Mobile wallet is a consumer-to-business payment technology that has become better known since the release of Apple’s iPhone 6/6 Plus and the Apple Pay™ mobile wallet.
A combination of the desire to reduce card fraud and the popularity of smartphones has led to the emergence of “mobile wallet” solutions for point-of-sale (POS) payments. However, the payments industry remains in the midst of the “mobile wallet wars,” as market entrants battle it out to see which technology approach and provider or providers will carry the day.
Challenges need to be addressed as the Internet of Things transforms our world.
We are in the early stages of transforming into an interconnected world of people and machines. Yet growth has been rapid, fed by the availability of broadband technology and the decreasing cost of connecting devices through the Internet. More equipment and devices are being designed and built with sensors and Wi-Fi capabilities and smartphone use continues to surge.
Many American workers are not prepared to retire, no matter what age.
A study by the Board of Governors of the Federal Reserve System found only about 25% of individuals they surveyed were actively saving for retirement. The Fed study noted that the shift from defined-benefit plans to defined-contribution plans has placed greater personal responsibility on employees to plan and save for their own retirement.
Corporate leaders are now viewing machines as talent to be fostered.
Human-machine collaboration allows humans and machines to combine their strengths and compensate for each other’s limitations, leading to better outcomes. Intelligent machines can be partners that learn and improve their skills and abilities as they work alongside human workers. Meanwhile, advanced technology is extending human capabilities.
A shift to a circular supply chain can keep limited materials in use longer.
Most manufacturers use a linear supply chain that extracts raw materials, manufactures products and distributes them to customers. At the end of the products’ service life, little is done to recycle and re-use materials. However, as commodity prices continue to rise, many companies are beginning to re-think this traditional linear model.
It's no longer science fiction to use your palm or retina to verify your identity.
The use of biometric authentication is being accepted internationally, largely due to the adoption of smartphones. Technology research firm Gartner estimates that 50% of consumers in established markets will use smartphones or wearables for mobile payments by 2018, and analysts have forecasted that by 2024 biometric methods will be used to verify all online transactions.
Companies are evaluating the impact of increased interest rates on global trade.
The U.S. dollar strengthened throughout 2015 in anticipation of higher interest rates and stronger economic growth. Advanced and stable economies such as Europe, Japan and India welcomed the Fed’s move, but many emerging markets are struggling with the impact of the rate hike.
Millennials may lack the skills needed to meet today's global challenges.
The demand for advanced knowledge of science, technology, engineering and mathematics is projected to explode in the next few years. At the same time, 38% of global manufacturers report difficulties in filling vacancies for skilled trades. Even college-educated Millennials often lack the technical and soft skills required for 21st-century careers.
The TPP trade deal is the largest in history and covers 40% of the world economy.
TPP nations pose stiff tariffs and export barriers on U.S. goods and services. Passage of the TPP would phase out these barriers for more than 11,000 categories. Critics fear increased outsourcing of U.S. jobs and threats to legal protections. The hope is that passage of the TPP will improve U.S. competitiveness and help develop new markets.
Integrated teams of in-house staff and freelancers can work well together.
Many employers were initially suspicious of workers’ requests for greater flexibility, but the bet has paid off. A recent study found that some form of telework is offered by 88% of surveyed organizations, 82% offer flexible work hours, and 81% support part-time schedules.
Recent worldwide sluggish growth has tempered enthusiasm for global connectivity.
As an after-effect of the global recession, world trade is expected to increase only 3.3% in 2015 and 4.0% in 2016, still below the annual average growth of 5.1% since 1990. Prolonged sluggish growth in GDP, especially in the high-income countries, has been cited as the main reason for this slow recovery in trade.
The goal is to create “smart factories” that improve productivity and profitability.
Manufacturers of all sizes, all over the world, are being affected by this paradigm shift. Myriad stakeholders — manufacturers, suppliers, technology companies, universities, government agencies and laboratories — are working to seamlessly link intelligent machines, advanced analytics and workers in the next generation of manufacturing processes.
Companies must do their part in maintaining the integrity of the trade supply chain.
About 80 percent of illicit financial flows from developing countries are now channeled through trade-based money laundering (TBML), according to Global Financial Integrity (GFI), a research and advocacy organization.
Whether you use EFT or Virtual Cards, electronic payments can get funds to providers quicker, at a lower cost and with less risk than paper checks.
Like many other sectors, the healthcare industry is continually looking for ways to improve efficiency and productivity. Electronic payments can support these goals by reducing costs, improving payments accuracy (resulting in fewer disputes) and optimizing working capital.
Business leaders must be flexible and responsive in navigating increased volatility while remaining focused on their organizations’ long-term
With change accelerating faster than ever before in human history, four major global disruptions are occurring that will have significant impact on businesses. Although these trends have been well-documented, what is not well-understood is the full extent of their impact or the collective effect of these trends as they collide and merge.
The explosion of the Internet, social media, technology devices and apps is creating a tsunami of data. The challenge for businesses is how to make the best use of the information.
Big data is being used to better understand consumer habits, target marketing campaigns, improve operational efficiency, lower costs, and reduce risk. International Data Corporation (IDC), a global provider of market intelligence and information technology advisory services, estimates that the global big data and analytics market will reach $125 billion in 2015.
With the growing adoption of electronic payments and emergence of new payment methods, the payments landscape will continue in its evolution over the next few years.
New technologies will play an increasingly important role in the management of payments. Trends include the continued decline of paperbased payments, the emergence of new payment methods, and the growth of corporate financial management technology.
An estate plan should be dynamic with changes being made as your life changes. This article may offer some guidance as to when you should review your estate plan.
With greater wealth comes a greater potential need to plan. Estate taxes may now be an issue and you may want to explore various estate planning strategies to reduce your taxes or minimize the impact of those taxes. You may also want to establish trusts for children and grandchildren to better plan for their future.
Private equity firms have capital and corporate buyers have access to low-cost funding. It’s a sellers’ market for middle-market companies as baby boomer owners get ready to retire.
The market for middle-market acquisitions remains hot by historical measures, although it’s showing signs of cooling. The Lead Left, a capital markets newsletter focused on the middle-market space, reports that private equity funding fell in 2014 from the year before. Assuming the critical issues around monetizing a business have been addressed, why wait any longer?
PNC Healthcare commissioned Shapiro+Raj to explore changes in the healthcare environment and their impact on providers, payers, and employers. Here are the findings of that study.
Millennials will shape the future of American healthcare. They seek change throughout the system. They embrace retail and acute care clinics. They take the most responsibility for their own healthcare. They spend more time researching online, finding providers and getting others’ opinions and they will force much more change compared to Boomers and seniors.
The strength of the dollar, a favorable interest
rate environment and an abundance of cash on
hand may make this a good time for domestic
companies to invest outside the U.S.
Companies considering a cross-border merger or acquisition should evaluate the currency risk during the due-diligence stage of the deal to ensure that currency rate volatility does not adversely affect the target price.You can perform a “Value at Risk” analysis to quantify the currency risk between now and closing.
The discipline that guided companies through leaner times should remain central to prudent T&E expense control as business travel picks up in response to increased sales.
With business activity increasing, it can be easy to let cost containment policies slacken. This is especially true for travel and entertainment expense policies, as business travel picks up in response to increased sales, hiring and training activities.
Integrated payables or “payables outsourcing” enables a business to send instructions for initiating multiple payment types to its bank in a single, consolidated file.
Integrated payables allows for end-to-end automation of the payables process. You can receive back from your bank acknowledgments, confirmations and information reporting online or via secure file transmission. Integrated payables also facilitate migration from paper check disbursements to electronic payment alternatives.
Company growth often hinges on having the right talent in place and building bench strength. Many companies have found it smart to develop leaders at all levels of the organization.
Millennials are much more likely to job hop than Baby Boomers, who changed jobs infrequently throughout their careers. On average, Millennials change jobs every two years. As a result, moving forward, a human capital strategy that engages, recognizes, develops and retains talented employees will be critical to business success.
U.S. employers are having a hard time finding qualified workers. Many jobs now require technical knowledge and specialized skills that prospective employees simply don’t have.
Unfilled positions can be costly. The impact ripples through to lost production, poor customer service, delivery time delays, inferior work quality, low morale and higher turnover among those carrying heavier workloads. Business leaders and academics are rallying to address the skills gap with government program and a renewed focus on workplace development.
The business model for healthcare is reflecting changes driven by the Affordable Care Act (ACA), emphasis on cost containment, value, increased innovation and new technologies.
New care delivery options, robotics, remote monitoring, the use of big data, value-based models, the rise of health consumerism and an evolving healthcare workforce will transform the face of healthcare in the next 10 to 15 years.
Over the past eight years, we’ve seen more than a doubling in U.S. commercial card usage, which includes purchasing and corporate cards, along with small business card spending.
Growing business confidence and the improved outlook for the economy has led to increased travel and entertainment budgets to support traveling employees and sales executives. As these budgets grow, companies such as yours need to closely control their increased spending — another one of the many reasons for implementing comprehensive corporate card platforms.
Canada’s Office of the Superintendent of Financial Institutions has granted PNC Bank Canada Branch (“PNC Canada”) a full-service branch license.
Canada is the United States' largest export market and the second largest source of imports after China. Companies doing business in Canada face a number of challenges as they deal with customs documentation and adapt their operations for sales tax accounting, procurement procedures and even packaging and labeling. PNC can help.
One of the legacies of the financial crisis is that companies are increasingly focused on managing working capital. Supply chain finance programs can boost working capital metrics.
With supply chain finance, a buyer can enable its supplier to get paid faster while receiving financing from the buyer’s bank at the buyer’s lower cost of funding. In turn, the buyer can negotiate extended terms or a discount on the invoice. The buyer’s ability to extend terms with the supplier can help drive working capital metrics to new heights.
Foreign currency volatility has reduced earnings from both a transaction and translation perspective. Explore strategies for mitigating the currency impact on earnings and cash flow.
Find out how a strengthening dollar can create a headwind for companies doing business internationally. The recent spike in foreign currency volatility has taken a big bite out of earnings, from both a transaction and a translation perspective. This presentation helps explain these issues.
As international business grows more important to U.S. companies, it's vital to recognize that import and export activities are heavily regulated by the U.S. Government.
If you are conducting international business, if you are engaging in new types of transactions, if you are doing business with new entities or in new geographic regions, you may receive questions from government entities or your financial institution. Everyone involved is responsible for compliance and could face penalties or fines for noncompliance.
Your financial well-being, like your health, can benefit from regular checkups — but where to start? Here is a step-by-step plan to improve your financial fitness.
Pay yourself first. Create a budget. Pay down credit card debt. Prepare a personal net worth statement. Review your estate planning documents. Rebalance your investment portfolio. Review your insurance and your tax plan and seek guidance from a qualified wealth management professional to improve your financial wel being.
Currency markets are experiencing a significant amount of volatility. Hedging programs can help companies protect profits and cash flow.
While most companies start with hedging balance sheet exposures as they are more visible, more are now considering hedging forecasted exposures such as sales or expenses. Hedging anticipated cash flows depends on the company’s ability to forecast reasonably accurately, although uncertainties can be managed by hedging a percentage of your anticipated exposure.
Most businesses need both disaster planning and business resiliency strategies, but resilency can come into play almost every day.
Business resiliency plans ensure uninterrupted processing for essential functions. Most business interruptions fall into one or more of these 5 categories: hardware, facilities, network/telecom, software and people. With a strong business resiliency plan, you can be prepared and avoid the difficulties of recovery without one.
Fiduciaries have important responsibilities and are subject to strict standards of conduct. However, plan sponsors may not know who the fiduciaries to the plan are.
If you are involved in the administration of your company's retirement plan, it is important to understand what your role as a plan sponsor entails, as well as how to delegate parts of your fiduciary responsibility if you choose to do so. Even unintentional mistakes can lead to a breach of fiduciary duty that can have significant consequences.
Doing business with Brazil, Russia, India, China and South Africa can be challenging for companies accustomed to the certainties of mainstream currencies.
Although the BRICS proactively promote international business, their governments remain concerned that any sudden inflow or outflow of money could de-stabilize their economies. As a result, they have implemented restrictions on international transactions. Trade and capital payments are regulated and certain hedging practices are prohibited.
Business owners and corporate treasurers are reviewing their projections for funded debt levels over the next several years to manage their mix of fixed and floating rate debt.
A hedging solution called the yield curve efficient interest rate swap closely follows the expected future path of interest rates. The frequency and timing of the increases can be tailored to meet specific cash flow needs.
Many companies that had previously elected to hedge with an interest rate swap will be faced with early termination or make whole of their current interest rate swap.
In the face of moderate economic growth in the United States and overseas, short and long-term interest rates remain at historically low levels. There are many flexible and creative hedging solutions available. You should review the expected duration of your debt portfolio and consult with your capital markets profession to discuss your options.
Canada is a vitally important market for U.S. companies. The United States sells more goods to Canada than to all 27 countries of the European Union combined.
The ease and longevity of our relationship with Canada can make us forget that the enormous territory to the north is not just an extension of the United States. Like any other global market, Canada has its own customs, laws, rules, and regulations that require just as much attention and insight as those of our more distant trading partners.
Healthcare costs are forcing a new calculus on traditional retirement planning. They are rising faster than inflation and will consume a growing percentage of our spending as we grow older.
Individuals appear to be significantly underestimating what health care in retirement will cost them. According to a report issued by the Stanford Center on Longevity, “43% of middle-income Americans are paying more for healthcare with Medicare than they expected they would.” One reason for this may be that many are overlooking the prospect of long-term care.
Does your company have a well-thought out investment policy? Does your policy have clear, measurable objectives? Has it been written down and shared with the appropriate team?
Putting your investment policy in writing is the foundation of effective investing. Your policy should provide benchmarks to help you evaluate how well it is working and what changes may be needed to make it more effective.
When you contemplate the sale of your business, market timing, economic considerations, competitive trends, tax strategies and future capital requirements should be taken into account.
Merger and acquisition ("M&A") transactions can raise a series of important considerations that significantly impact business owners. When is the right time for an M&A transaction? What steps are required? When selling a company, how can business owners achieve liquidity and maximize value while still looking after the best interests of their company?
There are five threats to retirement that investors should be aware of. This article discusses those risks and how investors can seek to mitigate them.
Thinking about retirement is no longer a future event for many Americans; most recognize the need for careful planning throughout their working years. While it is a positive that Americans are expected to live longer, this can add to the already daunting challenges of funding a comfortable retirement.
How significant are the economic problems in Cyprus?
Cyprus is a small country that has been getting a lot of press lately regarding its ongoing economic problems. Its banking sector was significantly overloaded, forcing the country to seek bailout assistance, which was agreed to by the European Union (EU) and the International Monetary Fund (IMF) under a deal struck in March.
Companies need to define a risk management objective. What are you trying to hedge and why? Every company has different metrics that should be incorporated into their hedging decisions.
Companies buying, selling or capitalizing a foreign business often overlook currency risks. including impacts on valuation, financial statements, and capitalization. Get specific, actionable information on currency risk management, including pre-close exposure/hedging, managing the currency impact of capitalization decisions and financial statement impacts.
The wrong strategy, the wrong partner and poor management can knock you off track in China. Learn about challenges in the operating environment.
Often companies initially focus their strategy for China on the basic how to’s: How do I start a company? How do I find an agent? How do I open a bank account? These are important questions. But these are not the issues that can inhibit your success in China.
Biases are the basis for cognitive and emotional errors when we apply them in financial markets and they often result in financial losses.
Humans have an amazing capacity for reasoning, memory, action, feelings and emotions. But capacity alone does not ensure that we will develop the proper biases to employ every day in predictive scenarios. In some cases, these biases come hardwired in our brains and work against us when it comes to predicting market movements.
Smart managers are sweetening their employee benefits package with additional perks to help their company stay competitive in the market for good employees.
Essentially, a workplace banking program is a package of discounted financial services and special benefits your company can offer to employees as part of your overall benefits package. Typically, there is no cost to participate, only rewards for both your company and your employees.
Credit is available with competitive terms for companies that see their bank as a vital resource. Here are tips for keeping an open relationship with your banker.
Imagine that you run a mid-size company with deep ties to an industry challenged by economic conditions. After decades of success, growth has stalled -- and your income statement is beginning to show it. Open communication with your banker puts everyone in a better position to structure and negotiate the right credit solutions for the challenges at hand.