The survey, which polled 9,658 US employees between December 2021 and January 2022, found that 44% of workers are “job seekers”. Of this figure, 33% are active job seekers who looked for new roles in the fourth quarter of 2021. Meanwhile, 11% of this figure planned to seek out new roles in the first quarter of 2022. 

The Great Resignation has proven a significant issue for US employers since spring 2021 when the economy began to recover as the worst of the coronavirus pandemic passed and demand for workers grew. In January 2022, 4.3 million Americans quit or changed their jobs, while employers reported 11.3 million job openings for the month.  

“It is, by many measures, the tightest labour market ever,” said Julia Pollak, chief economist at ZipRecruiter. “Employers are having to play tug-of-war to get half an employee.”

“Flexibility and remote work are becoming more important [...] We’re already seeing that when asked to come back to the office, people are bolting to the exits in search of fully remote opportunities.”

Amid spiralling inflation, over half of  the workers surveyed cited pay as a top reason for seeking out a new job. The survey revealed that 41% of employees would leave their current position for a 5% pay increase.

In the bank’s latest survey of over 550 market professionals, it was uncovered that 58% of respondents expect a change of up to 10%. Meanwhile, 10% of respondents are forecasting a sharper sell-off in the equity market, and nearly 31% of investors believe that the markets will reach 2022 without seeing a decline. 

The survey revealed that the greatest risk to the current relative market stability was new variants of the Covid-19 virus that are vaccine-resistant. 53% of survey respondents said that this was the factor that concerned them most. Other prominent concerns included economic growth that is weaker than expected, higher than anticipated inflation, a central bank policy error, and waning vaccine efficacy. 

Other survey respondents also expressed concerns over the debt burden, geopolitics, fiscal policy being tightened too rapidly, and a tech bubble bursting.

The past year has seen global stock markets recover well from the pandemic due to central bank stimulus, government spending, and vaccine rollout programmes. Since the crash in March 2020, global markets have almost doubled, with the FTSE 100 is almost up 8% year-to-date.  

However, economists are concerned that the recovery seen so far is beginning to lose pace as the Delta variant continues to spread across the globe. Deutsche Bank’s survey found that 44% of global investors expect lockdown restrictions to continue as they have been, while 34% of respondents believe further restrictions will be introduced. 

]A survey of 600 financial services professionals commissioned by KPMG and the Financial Services Skills Commission, and carried out by Savanta, showed that 44% of respondents were considering a career change.

31% of those surveyed said that they planned to hunt for a new job within the coming 12 months in spite of the dire impact that the COVID-19 pandemic has had on the UK job market. A further 13% were looking to quit the sector altogether – a figure that rose to 16% for 18- to 30-year-olds.

The respondents’ stated reasons for wanting to change career paths included excessive regulation in the sector, in addition to overly long hours and commuting times.

Karim Haji, head of financial services at KPMG remarked in a statement that it “made sense” for workers in the financial sector to be reconsidering their roles as they spend more time at home, away from their colleagues and offices.

“With so many considering a career change, financial services must take this time to promote itself positively and wipe the slate clean when it comes to the associations people make with it, if it is to be genuinely competitive for talent,” he said.

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Haji also emphasised the importance of dispelling myths around the financial services sector, including its supposed “conservative employee policies”. Much of this work, he said, has been accelerated by the COVID-19 pandemic.

Savanta’s findings in the financial services sector were largely consistent with the wider economy. The firm polled more than 1,500 people across various industries and found that around 46% were contemplating new careers.

Some 55% of respondents of the survey carried out by deVere Group affirmed that they ‘regularly use financial technology to access and manage their money.’

883 people from the UK, Europe, Asia, Africa, Latin America and Australasia took part in the poll.

Of the findings, Nigel Green, deVere Group founder and CEO notes: “Even two or three years ago, that figure would have been significantly lower. The fact that today 55% of people polled globally use fintech solutions on a regular basis highlights the staggering rate of the digitalisation of our everyday lives.

“And it is speeding up. From self-driving cars, genetic bio-editing to AI, new technologies are beginning to impact every part of our lives. Our financial lives are no exception. We’re in a new age.”

He continues: “Fintech firms are filling the void left between what traditional financial services companies are offering and what customers are now expecting, especially in terms of customer experience.

“In broad terms, this means immediate, on-the-go, 24/7 access to, use and management of their money. It means personalised, on-demand services. It means lower costs.

“Fintech is already a major disruptive presence in the financial services marketplace. This trend is only set to grow as ‘digital natives’ - the first generation that grew up with the internet and smart devices – become ever more dominant in the workforce and in social and political roles.”

According to the data collected by deVere, emerging markets in Asia, Latin America and Africa are becoming the biggest growth areas for participation.

“This could be due to fintech typically offering more inexpensive solutions compared to traditional financial services. Also because these areas are home to many of the world’s 1.7 billion unbanked or underbanked population – those who don’t have access to or have limited access to financial institutions – and fintech allows this issue to be overcome,” affirms Mr Green.

Other standout trends: Around two thirds (67%) of those polled used fintech apps to send remittances and money transfers. 46% use financial technology vehicles to track investments and/or accounts. 28% use them for storing and managing cryptocurrencies.

The deVere CEO goes on to add: “Fintech – a major part of the so-called 'fourth industrial revolution' – is a positive force for three key reasons.

“First, it is meeting clear and growing client demand for on-the-go services.

“Second, it is speeding up the advance of financial inclusion across the world. Helping individuals and companies successfully manage, save and invest their money will only result in a better society for us all.

“And third, it gives firms the opportunity to diversify, cut costs, meet regulatory requirements and improve the client experience, which will help build long-term relationships and trust.”

Mr Green concludes: “The poll underscores that fintech is the new normal.”

Business telecommunications provider, 4Com has looked into Britons’ attitudes towards their co-workers to reveal just how willing the nation is to create meaningful relationships with those they spend so much time with day-to-day.

According to the research, our willingness to be social in the workplace differs from industry to industry. Finance comes in as the friendliest occupation with a huge four in five (81%) of workers saying they have made lifelong friendships with colleagues, refuting the idea that work is merely a place to get a job done, then go home.

Based on the percentage of people (per industry) who said they have made meaningful friendships at work, 4Com can reveal that the top five friendliest industries in the UK, are:

1. Financial services (81.1%)
2. Business to business (80.8%)
3. Health/healthcare (79.5%)
4. Education (77.9%)
5. Retail (77.9%)

But is having close friendships at work a help or a hindrance?

According to Consultant Psychologist and Clinic Director Dr. Elena Touroni from The Chelsea Psychology Clinic, close relationships at work can actually be good for productivity. She says: “When people get on well and develop friendships, there is a greater supportive and positive energy, which ultimately makes the experience of going to work more pleasant. Although it can be more complex in some instances, being in an environment that you enjoy generally has a positive effect on your overall productivity. Long story short: happier people work harder.”

This tallies with the experiences of financial services workers as the majority of those with close friendships agree that the relationship makes them more productive. Their top reasons for this are:

1. Because they make me enjoy my job more (72%)
2. Because I know I can ask them questions about things I’m not certain on (51%)
3. Because I can turn to them for advice  (40%)

Speaking about her best friend, Rachel from Leeds says: “I met my best friend two years ago at work. A few weeks after starting at the company, I went to the Christmas party where I met the other newbie, Charly. We clicked straight away, couldn’t stop talking and literally cried with laughter. We quickly became inseparable in and outside of the office.

“As we were both new to working in the industry, we helped each other tremendously. We had talents in different areas of the job and felt comfortable asking each other for help without the fear of judgment on things we weren’t yet confident in. This helped to ease any anxieties or worries about our own abilities and learn new skills. We stood side by side throughout the (many) ups and downs, in and outside of work, and although she’s moved to a different country, I know we’ll be friends for life.”

On the other hand, almost one in five (19%) of finance workers say they have never established a relationship with colleagues that go beyond the normal small talk. For them, the most common reason is simply that they are at work to do a job, not for friendship (40%), while a further two in five (40%) admitted having nothing in common with their workmates. This is most true however, for those in the public sector, of which one in four (25%) have never made meaningful relationships at work.

Consultant psychologist Dr. Touroni provides some insight: “Some people can find vulnerability in a work environment threatening, so preserving a boundary between personal and professional life helps them feel more secure. This self-protective mechanism is especially relevant when one is in a position of authority. Close friendships become a lot more complicated when a power dynamic is introduced, so it is often easier to maintain a level of distance with lower-level colleagues if you are in a position of seniority over them.”

Commenting on the research, Mark Pearcy, Head of Marketing at 4Com, said: “We spend a lot of time with our colleagues, more so than with our other friends and family, so it’s nice to see we’re building strong and meaningful relationships with these people. To help you make the most of your work relationships, we have put together a blog post with more findings from the study and some helpful tips.”

(Source: 4Com)

Two-thirds (66%) of UK consumers do not want to use a smartwatch app to make payments or purchase goods. That’s according to new State of Finance research from experience management company, Qualtrics, which examines financial technologies and payment preferences across the UK.

The finance-focused research, which surveyed over 1,000 UK consumers, also found that 81% of those questioned say that they have never used a smartwatch to pay for items.

Although the debit card has overtaken cash as the preferred form of payment, the research found that 97% of consumers still use cash at least some of the time. Surprisingly, over a third (36%) are still paying with cheques — almost double those who use wearables.

Commenting on these findings, Luke Williams, CX strategy lead at Qualtrics, said: “While it’s great to see both retailers and financial institutions investing in new and innovative forms of payment, it appears that consumers are not yet ready to transition away from cards and cash.

“Financial institutions need to think carefully about what payment approaches work for their customers and the technologies that will meet consumer demands. There is no substitute for offering experiences that consumers want to engage with, and payments are no different. The key is not imposing technologies that you think consumers should use, but listening to customers and tailoring your approach to their individual needs.”

(Source: Qualtrics)

The festive season is the time of year when consumers may have spent a little more than they intended, prompting many to head into the first few months of the new year with plans to bring finances into line.  Understanding their credit score can help consumers get to grips with their finances, however the latest research from Equifax reveals that over half of Brits have never checked their credit score with a credit reference agency.

Londoners are most content with their credit scores, with a third (33%) saying they were happy the last time they checked, closely followed by the South East (31%) and the South West (28%.)  Those living in the East of England are the unhappiest, with 11% saying they were not impressed the last time their checked their score. 1 in 10 of those living in the North West came in a close second when it comes to being unhappy with their credit score.

However, Equifax analysis of average credit scores across the UK seems to suggest a disconnect between consumers’ level of happiness or unhappiness with their credit score and their actual score.

Average Equifax Credit Scores by Region

This new infographic from Equifax can show individual’s how their area’s Equifax Credit Score compares with the rest of the UK.

“It is clear from our latest research that a significant number of individuals have never checked their credit score, which means that are not putting themselves in the best position when it comes to applying for credit” said Lisa Hardstaff, credit information expert at Equifax. “Not only should people get to grips with their credit scores, but they should also check their credit reports to understand what information is influencing their score. 

“The new year is always a time for new plans and potentially new financial applications. If individuals are planning on making an application for credit, they should check their credit report and score in advance. The credit report will give a record of their borrowing history, which could help them decide whether they need to improve or keep up their borrowing habits. And knowing their score and what range it falls in can help to give an indication of how lenders may view their creditworthiness.”

(Source: Equifax)

Limited partners in private equity funds should be wary of putting managers under pressure to deploy capital – that is the conclusion of new research published today by eFront, the world’s leading alternative investment management software and solutions provider.

eFront’s research shows that there is an inverse correlation between the level of capital deployed during the first year of a fund’s investment period, and its eventual performance.

Looking at US LBO funds of vintage years 2000 to 2010, on average, funds deploy more capital in the first year (29%) than during each of the following ones. Years 2 and 3 are roughly at par (20%) and the amounts decline consistently thereafter (Figure 1). At first glance, the recent increase in pressure from fund investors to deploy capital would not imply a radical change of behaviour from fund managers.

Figure 1 - Yearly and cumulated capital calls of US LBO funds (vintage years 2000-2010)

However, a deeper look shows that the amount deployed in Year 1 fluctuates, from 14% (vintage year 2010) to 38% (2000). Surprisingly, the capital deployment in Year 1 does not seem to be connected with macroeconomic conditions: the coefficient of correlation with US GDP growth is only 0.19. However, there is an inverse correlation, of -0.32, between the amount of capital deployed in Year 1 and the overall performance of funds (Figure 2). This correlation increases as funds mature, with older funds (2000-07) showing a stronger inverse correlation of -0.46.

Figure 2 - TVPI and 1-year PICC of US LBO funds (vintage years 2000-2010)

This analysis raises some important conclusions on drawdowns, demonstrating that under pressure from investors, fund managers might have less freedom to select the best opportunities over time. Even though fund managers usually have a pipeline of potential investment opportunities when they raise new funds, there is no certainty about when these opportunities will materialise. Putting pressure on fund managers to deploy capital could thus lead them to execute investments they would have normally decided to pass on.

Interestingly, Figure 1 shows that a significant amount of capital is called after the usual end of the investment period of LBO funds. In Year 6, 7% of the committed capital is called on average. The most obvious reason associated with an extension of an investment period is that fund managers struggled to deploy capital during the usual five years.

Figure 3 - Multiples on invested capital of European and North American secondary funds

Surprisingly, funds of 2000, 2001 and 2010, which deployed respectively 102%, 98%, and 90% after five years still called 15%, 11% and 9% of the committed capital in Year 6. In theory, at this point, the remaining capital to be drawn to pay the management fees during the divestment years would be insufficient. The logical conclusion is that fund managers decided to use the provision of their fund regulations, allowing them to recycle early distributions operated during the investment period to effectively invest up to 100% of the committed capital. This is clearly the case for 2000, 2001, 2008 and 2010.

Another explanation is that some fund managers might execute buy-and-build strategies. Fund regulations in effect prevent new investments after the investment period, but usually, allow reinvestments in existing portfolio companies, including to support acquisitions.

Tarek Chouman, CEO of eFront, commented: “This analysis debunks some common assumptions about drawdowns. One of them is that fund investors have put an increased pressure on fund managers to deploy more capital faster. Given the fact that most of the fund regulations cap the capital deployed in any given year at 25-30% of the committed capital, it is difficult to see how much further fund managers can go in that respect. What is also clear from the analysis is that having the freedom to deploy or not is an important tool to invest for fund managers.”

(Source: eFront)

The findings form part of a report into borrowing practices and frustrations with the consumer credit market. The research, conducted by Duologi, surveyed 1,000 UK residents and found that, on average, 34% of people think that UK businesses could be doing more to provide point-of-sale (POS) finance to their customers.

Despite many large brands already providing POS finance on purchases, more than two in five (42%) shoppers believe that retailers could do more in this respect.

Another 42% of people said that this payment model could be better utilised in the property industry for payments such as estate agent fees, conveyancing costs or added expenses for mortgage advisory services.

A further 32% of people believe that the education and training sector could do more to offer POS finance, with another quarter (24%) of people saying that the health industry should work harder to offer these options to help patients access a wider range of services and procedures like IVF.

Lastly, 32% of people stated that the travel industry’s POS finance offering could be made more accessible – not only for splitting the cost of a holiday, but also for fees like rail season tickets, which often offer a better deal when paid upfront.

The research also showed that almost a fifth of shoppers would want to borrow from as little as £100 – but that many brands only offer finance over a certain amount; therefore, limiting their ability to tap into this market.

Duologi credit director, Rob Cottingham, commented: “Currently, POS finance is used most widely in retail but consumer appetite for credit options across a wide range of sectors is evident, and many think that these industries should be doing more to offer POS finance. Given the ongoing growth of e-commerce, the ability for these retailers to provide credit both on and offline could prove crucial in the future.

“Clearly, there is consumer demand for POS credit – so for those brands that do already provide finance options but aren’t seeing results, it’s vitally important to promote it more heavily. Simple tools such as pop-up banners near till points, posters in the waiting room or a clearly-visible website header can alert potential customers to the benefits of finance solutions, providing a clear reason to purchase from that business in particular.”                                           

Backed by global investment firm, Oaktree Capital, Duologi offers merchants the chance to increase their sales, boost customer satisfaction and grow profitability through the delivery of tailored point-of-sale finance options.

(Source: Duologi)

Online research from Equifax, the consumer and business insights expert, shows that using a debit or credit card with a pin number is still the preferred method of payment for 42% of people in the UK. Contactless methods followed at 34%, with the vast majority of these respondents (31%) preferring a contactless card to using their phone or wearable technology (3%).

The survey, conducted with Gorkana, also highlighted that the majority of consumers (66%) are happy with the current £30 contactless payment limit and only 16% think it should be increased. Of the people keen to see a higher limit, 13% would like to see it increased by a maximum of £10, and 39% would like the limit to be set between £40 and £50.

When asked why they would use contactless rather than cash, 34% see the speed of the transaction as the main advantage and 21% said it’s more convenient than making a trip to a cash point. Only 16% of people feel that contactless payments are more secure than carrying cash.

The research found that 45% of consumers withdraw cash just once a month or less, yet 28% of people surveyed said they would never choose contactless payments over cash. Despite the rising popularity of using wearable technology like watches to make payments, 36% of Brits don’t expect this payment method will ever overtake cards.

Sarah Lewis, Head of ID and Fraud UK at Equifax, said: “The rise in popularity of contactless and wearable payment methods is a hot topic right now but our research shows that retailers and service providers are going to have to accept a variety of payment types for some time to come. Many consumers have been early adopters of contactless and wearable payments, and really value the convenience of these options, but others remain wary and prefer the more traditional means.

“Contactless payment is not without its risks and these results show that consumers are well aware of this. There has been talk about increasing the contactless payment limit but this would simply increase the incentive for criminals to steal contactless cards, resulting in higher levels of related fraudulent activity. Contactless and wearable payments will continue to grow in popularity, but the financial services industry has a lot of work to do to make customers completely comfortable with these options.”

(Source: Equifax)

Mortgage rates in the US fell for the third week in a row, with the benchmark 30-year fixed mortgage rate falling to the lowest level in more than six months, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has a rate of 4.09%, the lowest since November 16th 2016, and an average of 0.25 discount and origination points.

The larger jumbo 30-year fixed slid to 4.02%, and the average 15-year fixed mortgage rate dropped to 3.31%, also the lowest since mid-November. Adjustable mortgage rates were mixed, with the 5-year ARM inching down to 3.41% while the 7-year ARM nosed higher to 3.60%.

Between inflation rates stalling out, consumer spending softening and ongoing questions about a White House scandal and its implications for policy initiatives, there is just enough uncertainty to keep bond yields and mortgage rates on a downward trajectory. Mortgage rates are closely related to yields on long-term government bonds, which appeal to investors any time uncertainty, or low inflation, is in the air. With a looming employment report for the month of May, investors will be looking for some confirmation of more robust economic activity in the current quarter than the anemic 1.2% annualized pace of growth in the first three months of the year.

At the current average 30-year fixed mortgage rate of 4.09%, the monthly payment for a $200,000 loan is $965.24.
30-year fixed: 4.09% -- down from 4.13% last week (avg. points: 0.23)
15-year fixed: 3.31% -- down from 3.32% last week (avg. points: 0.22)
5/1 ARM: 3.41% -- down from 3.42% last week (avg. points: 0.30)

(Source: Bankrate)

Adaptive Insights recently released its global CFO Indicator report, which explores the pace of finance, its impact on agility, and what CFOs need to do to shorten their organisations’ time to decisions. Alarmingly, 77% of CFOs admit that major business decisions have been delayed due to stakeholders not having timely access to data and report significant delays with respect to tasks like reporting and ad hoc analysis.

“Corporate agility requires that organisations plan for multiple outcomes, particularly as economic conditions become increasingly uncertain, turbulent, and competitive,” said Robert. S. Hull, founder and chairman at Adaptive Insights. “CFOs can improve their organisations’ agility by accelerating the speed of scenario planning and analysis. By giving key stakeholders more immediate access to data, finance can dramatically improve decision-making—the key to maximising corporate performance.”

The report warns CFOs that the current pace of finance could threaten corporate agility and provides views on the practices that should be adopted to create a more forward-looking, agile environment.

Key findings in the report show that:

• The finance team is spending over half (53%) of its time on reporting and data gathering alone. This leaves many organisations looking back at history, rather than forecasting forward
• CFOs would like their teams to spend less time on report preparation and data collection (36%) and more time on forecasting and scenario analysis (40%). More and better analysis will lead to improved agility
• CFOs (49%) believe predictive analytics will most contribute to agility, followed closely by dashboards and analytics (45%). CFOs desire to transition away from historical reporting, and toward a more forward-looking approach

The need for speed…in reporting and ad hoc analysis

This quarter’s report reveals that key decisions around such things as capital expenditures, resource allocations, and investments have been delayed because stakeholders don’t have timely access to data. With shrinking product and innovation cycles—not to mention ever-increasing global competition—these delays can mean the difference between the success or failure of the business.

CFOs (47%) report that it is taking 11+ days to get reports into the hands of stakeholders, yet they (56%) would like it to take no more than five days. Ad hoc analysis is also taking longer than desired, as CFOs (60%) say this task takes up to 5 days, yet they would like it to take no more than a day. Reporting and ad hoc analysis represent two key areas that can be improved to enable better agility.

The impact of technology on agility

The desire to move toward a more analytics-driven organisation appears to be impacting CFOs’ decisions when it comes to implementing technology. Dashboards and analytics top the list of future purchases, with 45% of CFOs saying they will invest in this type of solution by 2020, followed closely by budgeting and forecasting tools (40%).

Discouragingly, it appears that most organisations continue to depend on point solutions that do not provide the integrated access to data that SaaS solutions can provide. CFOs report that, on average, only 33% of their organisations’ infrastructure is SaaS today with a desire to get to 60% by 2020.

(Source: Adaptive Insights)