It's Time to Prepare for Money Market Fund Reform
New Rules will Change the Liquidity Equation
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.READ MORE
Fraudsters frequently conduct extensive research to tailor their approach to match the target. Here are some tips for how to fight the threat.
Social engineering fraudsters frequently conduct extensive research on individuals or corporations to tailor their approach to match the target. Read about ways to identify your risks and fight back.
Outsourcing investment solutions can be a flexible alternative to in-house asset management and traditional consultant models.
Institutional investors need to achieve their investment objectives while managing risks and costs. A growing number are discovering that outsourcing all or some of their investment management functions can be the answer.
Planning must be aligned and well thought-out in order to have a seamless, efficient and harmonious business transition.
When and how to transition your business may be among the biggest financial decisions you will ever make. Replay the webinar to explore 5 key questions and evaluate your options to keep, sell or establish an ESOP.
The migration to chip cards and chip-enabled point-of-sale terminals in the United States has helped to mitigate fraud risk for cardholders, merchants and bank issuers.
Fraudsters are aware that they can’t counterfeit physical cards and use them in a chip environment anymore. As the online environment is less protected, card-not-present fraud is growing.
You can benefit from an organized and comprehensive support system through a single strategic provider.
Effective relationship managers (RMs) can bring you all of the bank’s relevant capabilities — capital raising, cash flow management, risk mitigation and international support, as well as business succession planning and execution of strategic alternatives, such as an ESOP, IPO or an M&A event.
Find out how the right foreign exchange strategy can mitigate risk and potentially help you grab opportunities.
Tariff announcements, whether real or threatened, have impacted the markets. Companies dealing in U.S. dollars should consider hedging strategies to manage the foreign exchange aspect of their international trade.
Some of these best practices may be obvious, but they make a good checklist for your internal fraud mitigation efforts.
Be sure that you are protecting your company from fraud by following proven best practices, diligently monitoring accounts for fraudulent activity, and reporting to your bank in a timely manner to increase the likelihood of recovering funds.
The idea of Medicare for All and a single-payer system is gaining momentum. What are the pros and cons of various approaches?
“Medicare for All” has one bill in the Senate and another in the House. Both propose a universal, single-payer model and would replace current employer and public coverage. Get the pros and cons of the various approaches.
Have you prepared for the day when you will pass your financial baton to a new generation of finance leaders? Start with the recruiting process.
Numerous business surveys demonstrate that many CFOs, especially in small to medium-sized businesses, have never developed a succession plan for their own job title.
How APIs can help you improve efficiency and power new opportunities to help you improve products, systems and operations.
What are APIs and why is their use growing? As consumers, we use them to order takeout or pay for a ride to the airport. In business, you can use them to tailor functionality and benefit from new technologies like faster payments.
Outsourcing could give you access to more resources to improve decision-making. We look at resources, rules and risk.
Outsourcing investment decisions can be an efficient way to meet the challenges of an increasingly complex defined contribution plan environment. But is it for you? We look at resources, rules and risk.
Get unique insights and ideas for navigating today's challenging foreign exchange environment.
A properly designed balance sheet hedging program can help reduce the negative impact of foreign exchange volatility on your earnings and cash flows. Foreign currency fluctuations are here to stay but there are ways to mitigate its impact on your profits.
Getting to compliance may yield valuable data that can be used to guide future leasing and financing decisions. Here’s how.
New standards may require significant changes in internal systems, processes and controls surrounding leases. But you can also collect valuable data to guide future leasing and financing decisions.
How to benefit from ideas and insights that can make a material difference in company performance.
Turn to your banker for ways to improve your ability to recruit and retain the right employees, maintain access to capital, manage your cash cycle efficiently, mitigate risk, and maintain and grow your wealth.
Treasury professionals believe that strategic, cybersecurity and financial risks will challenge them over the next three years.
Four hundred treasury professionals believe that strategic, cybersecurity and financial risks will challenge them over the next three years. Get results of the 2019 AFP® Risk Survey.
CFOs need to build financial teams that support the skills needed to become key members of the management team.
Beyond the basics, the finance organization needs to be a driver in implementing new technology to better manage financial and business information throughout the organization.
Before spending a lot of time and money traveling down that road, you should ask yourself these key questions.
Before spending a lot of time and money traveling down that road, you should ask yourself these key questions. You’ll want to consider your competitive position, cost of capital, control, culture and process.
Find out how to separate a bank that creates and maintains relationships from one that is a relationship bank in name only.
It’s important to separate a bank that is consistent in maintaining relationships from one that is a relationship bank in name only. Here are five questions to ask yourself when it’s time to change your banking relationship.
Capital leases offer more than stabilized cash flow and preserved capital. Find out about unique payment structures.
If your business encounters pressure on cash reserves, or you want new and creative opportunities to turn your treasury department into a liquidity generating machine, consider capital leasing.
Our economic and investment strategists share their perspectives on how the November election results could impact financial markets and your portfolio.
Watch this webinar to understand the political backdrop in the United States, tariffs & anxiety over international trade, interest rates, the Fed and more.
Companies and their card issuers can reduce exposure to commercial payments fraud.
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.
Geese prices are flying high, while the labor market is tight for Lords-a-Leaping. French hens are holding steady.
PNC's quirky and highly anticipated Christmas Price Index predicts the seasonal price of the gifts listed in the "Twelve Day of Christmas." Find out what the 35th annual analysis says about swans, gold rings and turtledoves.
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.
Many payers find themselves well-situated to play a central role in solving healthcare's thorniest problems. Review the research.
The U.S. healthcare industry is under tremendous pressure to reduce costs while improving health outcomes. Payers are reimagining themselves for a more influential role in the evolving healthcare environment.
The U.S. economy and market performance have been strong so far in 2018. Will the markets like the
Attend this exclusive webinar featuring PNC economic and investment strategists, plus guest speaker, Daniel Clifton of Strategas Research Partners, to hear how the November election results could impact the financial markets, and your portfolio.
Find out how your portfolio could benefit from both active and passive investment in different ways and at different times.
One of the most debated topics in the investment management industry is the active-passive decision. Find out how your portfolio could benefit from exposure to both in different ways and at different times.
Find out how important it is to work with a bank that is consistent in creating and maintaining
Most banks claim to be “relationship” banks. But are they? Is yours? And why does it matter? It’s important to be able to identify a bank that is consistent in creating and maintaining relationships.
Real-Time Payments (RTP®) has the potential not only to offer faster payments but also to improve the way you communicate with tenants and vendors.
Real-Time Payments (RTP) has the potential not only to offer faster payments but also to improve the way you communicate with tenants and vendors. View this webinar replay to learn about this new technology and how it will affect your business. RTP is a registered trademark of The Clearing House Payments Company, LLC.
This webinar focuses on the evolution and ongoing development of emerging payment channels.
Digital innovation is driving transformation in the treasury management industry — the momentum is real, and new opportunities are emerging. Unlike other activities that have been revolutionized by modern technology, the U.S. payments space has remained largely unchanged. Until now, that is. PNC Public Finance Disclosure
Cash balances remain high, acting as a buffer against market uncertainties, according to the 2018 Liquidity Survey by the Association of Financial Professionals.
The Association for Financial Professionals (AFP) conducts a survey each year on current and emerging trends in organizations’ cash and short-term investment holdings, investment policies and strategies. Here are some key statistics from this year's study.
Do you take your car in for a state inspection or visit your doctor for an annual physical? Check out these reasons to give your finances the same kind of consistent attention.
Regular account or plan reviews can help you prioritize your goals and create an actionable plan to avoid potentially costly investment mistakes. With that in mind, here are five additional reasons you should review your financial situation annually.
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.
The dynamics of business succession planning are broad, and they must be aligned and well-planned in order to have a seamless transition that meets your business and personal goals.
As you begin the journey toward a business transition, are you inundated with well-intentioned advice? Who should you turn to? Your attorney? Your accountant? A family member? Each may see your situation through a narrow and different lens which may produce contradictory guidance. Here are five questions to help get you started.
A see-saw of tax, regulatory and trade decisions has kept business leaders shifting back and forth from optimism to caution. The result is that cash balances remain high.
The Association for Financial Professionals (AFP) conducts a survey each year on current and emerging trends in organizations’ cash and short-term investment holdings, investment policies and strategies. Here are some key statistics from this year’s study.
Now that your taxes are out of the way, add these eight relatively easy tasks to your late-spring-cleaning list.
Once or twice a year, there are a few things that need to be done around your home. Change the batteries in the smoke detectors. Replace the furnace filters. And perform a handful of rather important financial tasks.
Covenants are additional terms in a loan agreement, typically used to set financial guidelines for a company.
Covenants are additional terms in a loan agreement, typically used to set financial guidelines for a company. Can you use your covenants to enhance the success of your business?
Taking the type of equipment, financial state of the business and other factors into account can deliver bottom-line benefits.
Are you spending enough time analyzing how to pay for that vital acquisition? Taking the type of equipment, financial state of the business and other factors into account can deliver bottom-line benefits.
This webinar will provide background on the threats and best practices for protecting your Commercial Card program.
Being engaged in your work and working hard isn't the same as compulsive working that comes at the expense of your well-being and interpersonal relationships.
Being engaged in your work and working hard isn't the same as compulsive working that comes at the expense of your well-being and interpersonal relationships. Discover surprising ways to strike a balance.
AR and VR enable users to interactively use computer-generated information and data.
The introduction of artificial intelligence (AI), machine learning, robotics and other cognitive tools into the workplace ushers in a new age of industrial automation. It promises greater efficiencies, reduced costs, higher profit margins and other tangible benefits to companies investing in these technologies.
We examine the shape of employer-sponsored healthcare plans, why companies struggle, and how they are coping with exploding healthcare costs.
Willow Research and PNC Healthcare conducted a study of senior level executives at U.S. companies who offer healthcare benefits to their employees. We examined the contours of employer-sponsored healthcare plans today, what companies are struggling with, and how they are coping with exploding healthcare costs.
With many banks still wary of investing in growing companies, ABL can provide strategic support with plans for growth, plus mergers, acquisitions and general refinancing.
With many banks still wary of investing in growing companies, ABL can help with short- and long-term capital needs. It offers companies strategic support with their plans for growth, plus mergers, acquisitions and general refinancing.
We provide some approaches to effectively and efficiently control your healthcare costs while still offering competitive and attractive benefits programs for your employees.
While both employers and employees typically benefit from lower premiums with an HSA-Qualified Health Plan, it is also important for employers to help employees prepare for their greater responsibility and decision-making roles in how their healthcare dollars are spent.
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.
How can faster payments support your objectives of meeting payment deadlines, improving customer satisfaction, reducing costs, and streamlining your internal
Faster payments can help you meet deadlines, improve customer satisfaction, reduce costs, and streamline your internal processes. The first step is to understand emerging payment types and how they can answer your business needs.
It may be helpful to think of your treasury management provider as a specialist who collaborates with you to help optimize the value of your working capital.
There is no one-size-fits-all approach to treasury management. And while upfront costs and expenses for technology and professional support need to be considered, the return on that initial investment is likely to be positive, both short and long term.
The right questions can lead to a comprehensive vision and better solutions for your business.
The right questions can lead to a comprehensive vision and better solutions for your business that take into account the long term as well as the short term, and the local as well as the global. At PNC, digging deep to find relevant ideas is in our DNA, and it’s the reason we’re able to provide critical guidance others often miss.
Your lawyer, your accountant, your banker. Most companies know they need this trio of professionals in order to meet their business and financial goals.
Your lawyer, your accountant, your banker. Most companies know they need this trio of professionals in order to meet their business and financial goals. But too often, management turns to their banker only when they need financing or an upgrade to their treasury management tools.
Less than one-third of family-owned businesses survive the transition from one generation to the next. Start planning now with thought-provoking insights.
More than 50% of business owners in the United States expect to turn over their company to the next generation in the next five years, yet less than one-third of family-owned businesses survive the transition. Start planning now with thought-provoking insights.
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.
Buy-sell agreements are key to business transition planning. Proper documentation can allow for continued success of the business by avoiding conflicts between business owners.
Buy-sell agreements allow you to express your goals as to how your business interests should be transferred in the future while creating contractual limits intended to allow those goals to be met.
The equipment financing decision goes beyond determining how to pay for an item. It is a decision that needs to be made in the context of a company's overall financial situation.
There are many factors to consider in deciding the best option for obtaining the equipment businesses need to move forward. Here are six of the top issues.
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.
A recent study found strong evidence of the ubiquity of business aviation at America’s leading firms. More than 90% of firms recognized for excellence used corporate aviation assets.
Business aircraft allow organizations to better leverage what is almost always their most important assets: their people. They do this by saving employee time and creating productive environments in transit, two things that are nearly impossible leveraging other forms of transportation.
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.
People are living longer, presenting a number of financial opportunities and challenges. Find out how to plan for the long term.
People are living longer and more dynamic lives than ever before. While planning for a robust second act, so too must you build out your financial plans to allow you to have the resources to do all the things you want to do in retirement. Providing for what are likely to be much longer twilight years also means providing for the challenges of reaching old age.
Accounts receivable remains the lifeblood of most companies. Here are some of the latest techniques and technologies for improving working capital performance.
New technologies allow companies to better integrate payment streams. This allows the business to benefit from controls visibility and technology not only with traditional paper receipts through a traditional lockbox but also electronic payments through a virtual lockbox or an electronic bill presentment and payment system.
The price of gold rings and lords a leapin’ increased this year as did the pear tree – but not the partridge. Visit pncchristmaspriceindex.com for fun and educational features.
The PNC Christmas Price Index predicts True Loves will be on their merry way to a more robust and satisfying holiday shopping season this year. To purchase the gifts included in the classic holiday song “The 12 Days of Christmas,” it will only cost 0.6 percent more than in 2016, according to the 34th annual holiday economic analysis.
Health savings accounts can help fund medical expenses in retirement. If you wish to retire early, they can help cover health care expenses before you are eligible for Medicare.
If you wish to retire before age 65, a major roadblock may be the ability to pay for medical expenses before you are eligible for Medicare. While premiums for health insurance other than Medicare are generally not qualified expenses, you can use HSA money for deductibles associated with the health insurance plan you do obtain as well as co-pays and prescription drug costs.
Whether your goal is to diversify while staying actively involved in the business or to execute on a complete sale of the business, an ESOP can accomplish either.
ESOPs provide owners with the ability to attain liquidity and address transition objectives in a tax advantaged manner. ESOPs provide flexibility and intangible benefits that are difficult or impossible to achieve with alternative exit strategies.
Many studies corroborate the notion that employee ownership yields positive outcomes for the company and benefits that employees can readily recognize.
ESOPs provide owners with the ability to attain liquidity and address transition objectives in a tax advantaged manner. ESOPs provide flexibility and intangible benefits that are difficult or impossible to achieve with alternative exit strategies.
There’s still time to address year-end tax and financial planning. Here are nine possible tax-saving actions you can implement now.
Sometimes you don’t get to your financial planning as early as you would have liked. The good news is, it’s not too late to take some action. Here we provide a quick review of a few valuable income tax and estate planning strategies you might still use before year end.
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.
More than $8.72 trillion has been invested in the United States in Responsible Investing strategies. Learn best practices.
The PNC Institutional Advisory Solutions® Investment Strategy Team has formalized its views on responsible investing for institutional investors. This summary discusses those views and key considerations for asset owners as they evaluate integrating responsible investing into the management of their portfolios.
The convergence of mobile technology and digital commerce is leading to real time payment innovation around the world.
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.
Cash balances continue to remain high; there’s a large investment in bank products and organizations have no plans to invest in prime money market funds. Could that change?
While much of the talk around money funds asks why corporates left, AFP’s survey attempted to dig a little deeper. We asked practitioners what might entice them to come back. Would it be a stable NAV? Is it a certain number of basis points? Is it the uncertainty around it?
It’s important to review your plans so they reflect your current status and wishes. Use our checklist to identify documents you might easily assess on your own.
Your advisors can help you map out the provisions of your will and any trust(s) and compare them with the beneficiary designations of any retirement plans, life insurance, and any other resources that might pass by any form of contract. Compare the results to confirm that, in total, they accomplish what you want.
Real-time payments can help accelerate payments to speed up delivery, improve incoming cash flow or support cash on delivery payment terms.
Real-time payments represent a new phase in the evolution of digital payments. In the U.S., PNC Bank, along with other members of The Clearing House, is leading the way with the development of a Real Time Payments network -- the first new U.S. payment network in over 40 years. It’s a totally new payment type.
Changes to the NACHA Operating Rules, which govern the use of ACH, now enable ACH participants to speed delivery of more time-sensitive ACH transactions.
Same Day ACH has been especially beneficial when businesses experienced a delay in creating their direct deposit payroll files. Activating Same Day ACH allowed the files to be processed immediately and their employees were paid on time.
The 60% stock and 40% bond portfolio may no longer be sufficient to generate the returns required to meet the long-term goals of institutions and individuals.
As interest rates have decreased, investors have had to assume greater portfolio risk and asset class diversification to keep pace with their objectives. In 1995, an investor could earn a 7.5% return with a simple 100% fixed income portfolio. By 2015, investors needed a drastically more diversified portfolio, with fixed income shrinking to 12% of the total portfolio.
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?
Are you facing international cash management challenges without uniform internal systems – and with thinly-spread local staff?
According to a 2016 Ovum survey of 200 treasurers in 23 countries, only 13% of multinational corporates can see their real-time global cash position. Treasury teams need to achieve a greater degree of centralization and regain control of their company’s most important asset: cash.
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.
When you plan for the cost of new equipment, don’t forget to plan for the significant portion of the total equipment expense called “soft costs.”
Finding a lender with a strong specialty in equipment financing and who understands more than just the invoice amount is key. As long as soft costs stay within certain parameters of the total investment, you can fold them into your affordable monthly equipment payment, preserving your cash for more important needs.
Trade negotiations, including changes to NAFTA and the uncertainties presented by Brexit make the need for foreign exchange risk mitigation more urgent than ever.
Evaluate current risk management practices, including the establishment of a hedge policy. Ensure that your internal policies and controls correctly account for risks. Update your management reporting systems to correctly list your FX exposures and hedging activity.
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.
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.
Is your suppliers’ reluctance or refusal to accept electronic payments a barrier to increased usage? Here are some tips for driving increased commercial card acceptance.
Integrate supplier calls into your Accounts Payable (AP) department to introduce commercial card as a payment option that creates benefits for both parties. Incorporate commercial card payment information into standard communications (e.g., emails, check communications) with suppliers. Contact suppliers regularly to engage them directly on commercial card acceptance.
Between 2009 and 2015, commercial card volume almost doubled, as more companies switched from checks to electronic payments.
However, the rate of growth in commercial card volume has been slowing in recent years and fell to just 8% in 2015. This slowdown can be attributed to a number of factors, including organizational inertia, reluctance to overhaul legacy payment systems, or the belief that suppliers will not accept electronic payments.
PNC’s economists forecast that the Federal Reserve will continue to raise interest rates throughout 2017 and beyond.
In order to reduce the impact of rising rates on borrowing costs, companies should develop and implement a comprehensive plan to manage their interest rate exposure. PNC speakers provide a perspective on how external factors may affect your financing costs and what you can do to regain control.
One of the operational areas that offer considerable potential for technology-based transformation is the payments system.
Your financial institution should support you in recruiting suppliers to accept electronic payments, continually monitor the effectiveness of optimization efforts, identify issues with supplier recruitment, and activation of suppliers who have agreed to accept electronic payments.
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.
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.
Three key areas of focus emanating from the new Administration and Congress are positive for the economy and growth: cutting taxes, infrastructure investment and less regulation.
As was revealed in the just-released 2017 AFP Risk Survey, one of the top three risk factors having the greatest impact on organizations’ earnings in the next three years was “U.S. political and regulatory uncertainty.”
Despite the prospect of a higher interest rate environment, access and availability in the debt capital markets remain open and attractive in both floating and fixed-rate segments.
Banks maintain a solid appetite for new loans as we enter 2017; however, it remains to be seen if banks begin to become more selective in their investment decisions in the overall context of a rising rate environment coupled (potentially) with a less rigid regulatory environment.
2016 included a number of significant political and economic events that will usher in changes during 2017.
PNC’s Harris Williams & Co. subsidiary (www.harriswilliams.com) is a leading M&A advisor with experience across a wide range of industries. Bill Watkins, Managing Director, and Larissa Rozycki, Vice President, discuss results from 2016 and the rationale behind predictions for 2017 M&A activity.
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.
Technological advancements have led to shortened product development times, faster products to market, better distribution systems and streamlined purchasing.
While banks and FinTech providers can at one level be seen as competitors, there is increasing recognition by both sides of the strengths and limitations each possesses. This mutual recognition of their relative strengths and limitations is leading to increased collaboration between the two.
FinTech’s significance is underscored by the exponential growth in venture capital investing in the sector in recent years.
Going forward, FinTech is expected to impact a broad mix of financial service categories, including payments. Many financial service providers are preparing for this new reality by making strategic investments in and partnering with FinTech firms, as well as developing their own solutions.
Distributed ledger technologies record transactions in a decentralized network. The record of each transaction is shared across a network of computers.
While FinTech firms are helping to accelerate the pace of technological advancement within the industry, banks are investing in new technologies to provide better/faster/cheaper and more secure services to their client base.
Along with consistent growth, U.S. insurance firms are facing pressure on their bottom lines due to increased competition, low interest rates and regulatory changes.
By automating claims payments, insurance firms can reduce their reliance on checks and add disbursement options including ACH, prepaid cards and even same-day or real-time mobile solutions. Insurance firms can also improve receivables processing as well by accepting premium payments and contributions to annuities or other investment accounts in a variety of formats.
Long a trusted resource for financial institutions, SWIFT also supports corporate treasurers as they face expanding roles and shrinking resources.
SWIFT provides messaging standards that define a common means of structuring data for a broad range of financial purposes, from cash management and foreign exchange to trade finance. Additionally, SWIFT provides a highly secure proprietary communication platform and products such as SWIFT FileAct, which supports the exchange of bulk files between corporates and banks.
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.
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.
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.
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.
Choices about caring for your elderly loved one have to be made in context of what they could mean to your long-term future.
The conflict of caregiving duties with work activities is intense: Six in 10 caregivers who worked full-time in 2015 also reported having to reduce hours or take a leave of absence. Some workers find they are able to better manage when they take advantage of workplace accommodations such as telecommuting, flexible hours and paid sick days.
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.
When outside capital is needed, good cash flow and working capital management will make it easier to find and less expensive no matter what the economic cycle.
Companies that make working capital efficiency part of their organization’s culture have the opportunity to generate more of their working capital internally, thereby lowering costs, improving their performance and boosting their competitive position.
If you are one of the growing number of companies doing business in China, recent moves to liberalize its currency can have substantial
bottom-line benefits for you.
Although U.S. companies have historically believed that negotiating international agreements in USD insulates them from exposure to currency volatility, it also puts them at a competitive disadvantage compared to companies that transact in local currency.
Changes to the NACHA Operating Rules will allow ACH participants to speed delivery of transactions that are more time sensitive than traditional ACH transactions.
Employers who want more flexibility in timing payroll, insurance carriers committed to fast payout of claims and reimbursements, individuals who need to get money to family members quickly, and billers wanting to offer a same day bill payment option are just a few of the groups looking forward to Same Day ACH.
Around the world, the momentum behind the move to real-time payments (RTP) — or “Immediate Payments,” as they’re often termed — is unstoppable and growing.
The U.S. has been conspicuous in its absence from the list of countries embracing RTP. That’s changing fast, with a surge of activity and initiatives under way to bring payments in the U.S. up to speed with the rest of the world. These moves involve a broad range of players, and an approach specifically geared to the unique needs and requirements of the U.S. market.
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.
In our fast-moving world, payment systems must evolve to keep pace. Quicker payout, more flexibility, better control and improved cash flow are what customers expect today.
With encouragement from the Federal Reserve, the industry is responding to the demand for faster payments. Three leading organizations are already rolling out new payment options.
Many companies have found growth opportunities elusive and are focused on maintaining operational efficiency.
The increasing speed of doing business, the rise of globalization, the continued drive to identify and capture efficiencies, and the need to optimize relationships with suppliers and customers are driving companies to incorporate new technologies into their business processes.
Whether you have made the decision to sell your business or are just exploring your options for the future, understanding the road ahead can mean the difference between success and disappointment.
Business sales are complex transactions that are influenced by many variables. Planning ahead can increase the likelihood of success and potentially enable you to navigate tax considerations. An experienced investment banker who is familiar with your industry can ensure that your business is positioned to achieve maximum value and that the sale process is managed properly.
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.
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.
Many companies are interested in realizing the potential bottom-line benefits of payables automation but are unsure of how to introduce it. These 10 steps can help.
Among the steps companies can take toward payables automation are reaching out to their bank's treasury management officer, crafting a strategy, obtaining active buy-in from senior management, designating an executive sponsor and forming a payables auotmation project team with representation from various units.
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.
In navigating through the sluggish growth environment of recent years, U.S. companies have increasingly focused on improving efficiency throughout their organizations.
Many companies have found significant opportunities for efficiency gains by introducing automation into their accounts payable opertaions. In addition to helping with efficiency, automation can offer a number of other benefits, including reduced costs and greater visibility into their pending financial obligations.
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.
In addition to expanded opportunity, international investing helps reduce portfolio risk through diversification. Allocations to non-U.S. stocks can reduce portfolio volatility.
International equity plays a critical role in a well-balanced portfolio. International stocks are a large and growing share of the global investment universe and offer investors the potential to capitalize on faster long-term growth trends abroad. There are also investment opportunities in industry segments that are dominated by non-U.S. companies.
Professionals such as physicians, attorneys and business owners are at risk for liability and litigation. Those who are assumed to have deep pockets can become high profile targets.
Asset protection planning is an important part of a comprehensive estate and financial plan addressing an individual’s risks now and in the future. Proper asset protection planning requires time, consideration and knowledge to fully integrate the planning holistically and effectively.
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.
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.
Companies are beginning to recognize the importance of having an investment policy that provides clear direction on how investments will be managed and how much risk is acceptable.
A solid investment policy 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.
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.
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. While every company is different several elements should be part of every policy.
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?
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.
Given the many reasons that companies may need an escrow account, it's important to screen escrow service providers to make sure they meet the needs of all parties.
When companies engage in mergers, acquisitions or real estate transactions, all eyes are on closing the deal. However, choosing an escrow agent — often a mandatory step in the process — is frequently low on the priority list, even though a successful close may rely on it.
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.