Mortgage rates were little changed leading up to Wednesday's Federal Reserve announcement, with the benchmark 30-year fixed mortgage rate inching lower to 4.18%, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.22 discount and origination points.

The larger jumbo 30-year fixed was unchanged at 4.14% and the average 15-year fixed mortgage rate slipped to 3.39%. Adjustable mortgage rates were slightly lower, with the 5-year ARM dipping to 3.46% and the 7-year ARM retreating to 3.62%.

While mortgage rates were little changed in the days leading up to the Fed meeting, they are actually one quarter%age point lower now than when the Fed hiked interest rates at their last meeting in March. Weakness in first quarter economic growth and geopolitical concerns surrounding North Korea, Syria, and an election in France all contributed to bringing mortgage rates lower. But with the Fed's glass-half-full economic outlook, dismissing the economic sluggishness at the beginning of the year as temporary, it is evident that the Fed remains inclined to continue raising interest rates. Mortgage rates are likely to trend higher through the balance of 2017 as interest rates rise, but as we've seen recently, there are likely to be plenty of ups and downs as economic sentiment swings back and forth.

At the current average 30-year fixed mortgage rate of 4.18%, the monthly payment for a $200,000 loan is $975.70.

Survey results

30-year fixed: 4.18% -- down from 4.19% last week (avg. points: 0.22)

15-year fixed: 3.39% -- down from 3.43% last week (avg. points: 0.21)

5/1 ARM: 3.46% -- down from 3.48% last week (avg. points: 0.28)

(Source: Bankrate.com)

The UK’s private sector outsourcing market recorded its strongest quarterly performance in five years in Q1, with businesses agreeing deals worth £2.42 billion, according to the Arvato UK Outsourcing Index.

The research, compiled by business process outsourcing (BPO) partner Arvato and industry analyst NelsonHall, revealed the largest private sector spend since Q4 2011 (£4.04 billion) as companies ramped-up investment in digital transformation.

Of the £1.74 billion spent by businesses on IT outsourcing (ITO) in Q1, 68% (£1.65 billion) was invested in introducing new technology projects, compared with £217 million in January to March last year.

The findings show continued commitment to improving customer experience also led to an increase in spending on BPO deals in Q1. Companies signed customer service outsourcing contracts worth £437 million in the first three months of 2017, with the overall value of private sector BPO deals more than doubling year-on-year to £682 million (Q1 2016: £284 million), according to the research.

Debra Maxwell, CEO of CRM Solutions, Arvato UK & Ireland, said: “The strong start to the year illustrates the resilience of the UK outsourcing market to political and economic pressures, with companies increasingly seeing value in procuring external expertise and experience. From improving customer experiences to delivering new efficiencies across the front and back office, continuing to innovate is crucial to stay ahead of the game, and business leaders are turning to outsourcing partners for selecting and implementing the technology that can help differentiate them in increasingly competitive markets.”

Overall, the findings revealed outsourcing contracts worth £2.73 billion were signed across the UK public and private sectors between January and March, representing a 13% year-on-year rise.

The research found that services outsourced in the UK are being increasingly delivered onshore. No deals agreed in Q1 are to be delivered fully overseas, compared with six% in Q1 2016 and eight% in the period October to December last year.

According to the research partners, a decrease in government spend was partly responsible for the drop in contract volume from 49 agreed in Q1 2016 to 22 in the same period this year, as public sector organisations adopt a ‘wait and see’ approach in the wake of Brexit and the upcoming General Election. Government departments spent £304 million on outsourcing in Q1, compared to £1.6 billion in January to March 2016.

Telecoms investment rise driven by customer services

The telecoms sector accounted for 18% of all UK outsourcing deals agreed between January and March, according to the findings.

The value of contracts signed by businesses across the industry more than doubled year-on-year, with agreements worth £514 million procured in Q1 compared to £217 million in the same period in 2016.

The research reveals significant investment in improving customer experience is behind the rise. Companies in the sector agreed deals for customer service worth £274 million in the first three months of the year, up from the £126 million spent in Q1 2016.

Debra Maxwell added: “The telecoms sector is an intensely competitive marketplace and exceptional customer service is now a key differentiator. Providing a seamless customer journey across digital and traditional channels is key, and a growing number of operators are partnering with third party experts to deliver outstanding experiences.”

The Arvato UK Outsourcing Index is compiled by leading BPO and IT outsourcing research and analysis firm Nelson Hall, in partnership with Arvato UK. The research is based on an analysis of all outsourcing contracts procured in the UK market during Q1 2017.

Other headlines from the Q1 2017 Index include:

• Overall 89% of spend came from the private sector, with 11% coming from government bodies.
• A total of £846 million was spent on business process outsourcing (BPO) deals, representing 31% of the overall UK outsourcing spend.
• The value of ITO contracts accounted for 69% of the UK market, with contracts signed last year worth £1.88 billion.

(Source: Arvato UK & Ireland)

Adaptive Insights has released its most recent  global CFO Indicator report, taking a closer look at the reporting process and how CFOs can free their teams to deliver the value-added analysis desired by key corporate stakeholders. Alarmingly, CFOs report that their teams continue to spend very little time on strategic tasks—just 17%—and remain reliant on the standard processes and technologies that negatively impact their ability to deliver actionable information.

The CFO Indicator Q4 2016 report reveals that while 85% of CFOs say their teams have direct access to the financial and operational data needed to generate accurate reports, it is the non-value-added tasks—like data gathering, verifying accuracy, and formatting reports—that take time away from the strategic analysis desired by top management and other stakeholders. Most CFOs also cite data integration as the biggest technology hurdle to gaining actionable reporting information, given the increasing need to report on both financial and operational data typically housed in disparate, unconnected systems.

“Our survey validated the ongoing challenges CFOs face today—the need to provide greater strategic value while balancing the increasing volume and sources of data,” said Robert S. Hull, founder and chairman at Adaptive Insights. “Reporting efficiency plays a critical role here as CFOs want their teams to spend more time on strategic tasks yet recognise both the technology and process challenges associated with today’s reporting activities—namely, time-consuming, error-prone manual data aggregation. CFOs must address these challenges now if they expect to fulfill their roles as strategic partner to company management teams.”

The key findings in the report show that:

•  Only 17% of the finance team’s time is dedicated to strategic activities. This number is down from the CFO Indicator Q2 2016 survey when the question was first asked and shows no progress for CFOs who also said they had a goal to double this activity by 2020.
  •    60% of CFOs cite data integration as the primary technology hurdle standing in the way of gaining actionable information for reports, necessitating manual data aggregation that eats up time and leads to inaccuracies.
  •    68% of CFOs expect a continued rise in report volumes. This rise will only serve to magnify process shortcomings, requiring CFOs to reassess their reporting platforms.

Manual data aggregation eats up time, causes errors
This quarter’s report shows more than half of CFOs (54%) say they generate reports by exporting data out of their ERP systems and into a Microsoft Office® application such as Microsoft Excel®, Microsoft Word®, or Microsoft PowerPoint®. Of those that report an inefficient process, 64% take this approach. For those who generate their reports directly out of their ERP system (21%), 41% periodically found their numbers to be inconsistent from report to report.

Because the lack of a centralised reporting system introduces inconsistencies in metrics, data, and calculations, finance teams must spend an inordinate amount of time verifying the accuracy of their reports. The report advises that to mitigate risk and save valuable resources, CFOs will need to solve the data integration issues standing in the way of gaining actionable information.

(Source: Adaptive Insights)

US mortgage rates jumped last week, with the benchmark 30-year fixed mortgage rate moving to 4.35%, according to Bankrate.com's weekly national survey. The 30-year fixed mortgage has an average of 0.25 discount and origination points.

The larger jumbo 30-year fixed climbed to 4.34%, while the average 15-year fixed mortgage rate rebounded to 3.51%. Adjustable mortgage rates also moved upward, with the 5-year ARM notching higher to 3.51% and the 7-year ARM stepping up to 3.73%.

Mortgage rates moved higher following increases in two different inflation measures – the Producer Price Index and the Consumer Price Index – and Fed Chair Janet Yellen's testimony to Congress that waiting too long to raise interest rates "would be unwise." With this week's move, the benchmark 30-year fixed mortgage rate reset a new high water mark since May 2014. The two inflation readings and strong results on retail sales for both December and January indicate an economy gaining momentum. Coupled with near full employment and the prospect of government stimulus, Janet Yellen reiterated the need to raise interest rates further. The timing however, remains uncertain. But within a 24-hour span following Yellen's initial comments to the Senate Banking Committee and the release of the retail sales and consumer price data, the odds of a March rate hike doubled from 13% to 26% according to trading in Fed funds futures.

At the current average 30-year fixed mortgage rate of 4.35%, the monthly payment for a $200,000 loan is $995.62.

SURVEY RESULTS
30-year fixed: 4.35% -- up from 4.27% last week (avg. points: 0.25)
15-year fixed: 3.51% -- up from 3.49% last week (avg. points: 0.22)
5/1 ARM: 3.51% -- up from 3.46% last week (avg. points: 0.26)

(Source: Bankrate.com)

Following years of sluggish economic recovery, business leaders believe 2017 stands to usher in a long-awaited acceleration in growth. According to ‘America's economic engine - Breaking the cycle’, Deloitte's 2017 report on business and economic trends in the privately-held and middle-market segment, 83% of executives surveyed after the November election are confident that the US economy will improve over the next two years (compared to 65% last year). In fact, 39% of respondents expect the US economy to grow in excess of 3.5% over the next 12 months.

The executives surveyed are equally optimistic about their company's success and performance in the year ahead, particularly across key business metrics such as employment, productivity, profits and capital investment. 78% of respondents expect revenue growth in excess of 5%.

"Our postelection survey paints a positive picture for breakout growth in 2017, pointing to a strengthening economy and potential improvement in business conditions year-over-year," says Roger Nanney, vice chairman, Deloitte LLP, and national managing partner of Deloitte Growth Enterprise Services.

In addition, the survey revealed that two-thirds of respondents believe the US election results will boost the US economy; another 63% believe the new administration will have a positive impact on their company's operations.

Optimism tempered by heavy dose of uncertainty
While postelection promises have buoyed confidence in the economy and in company growth among private company and middle market executives, the results also show increased uncertainty: 70% feel more uncertain than they did a year ago about the main factors driving their future business prospects.

"Certain economic and geopolitical issues are among the obstacles these executives cite in the survey," says Bob Rosone, managing director, Deloitte Growth Enterprise Services, Deloitte LLP. "However, the respondents appear hopeful that these challenges might be addressed with policy changes by the new administration."

According to the survey, business leaders see increased regulatory compliance (33%), keeping up with the pace of technology (33%), and rising health care costs (32%) as the top three obstacles to their company's growth. Executives also emphasized skills shortages as a growing concern, increasing by 10 percentage points from last year as a roadblock to economic and business growth.

When asked which government measures would help their businesses grow the most over the next 12 months, the No. 1 response cited was reducing corporate tax rates; keeping interest rates low, rolling back health care costs, and supporting infrastructure needs were all tied for the next most important measure.

Technology and talent continue to drive mid-market investments
Technology yet again tops the list as the key investment priority for surveyed companies over the next 12 months. Business leaders are particularly looking to focus their technology investments on cloud computing (42%), data analytics (40%), and customer relationship management (34%). They indicated the greatest potential returns from technology investments like these may be business process improvement, employee productivity and customer engagement.

Employee development and training also continue to be a key investment, as 72% of survey respondents indicated they have difficulty finding new employees with the right skills and education. For this reason, training (47%), increasing full-time employees (44%), and increasing compensation (33%) were cited as the top investments in talent over the next 12 months.

Mid-market companies tap M&A and IPO to remain in growth mode
According to the survey, private and mid-market companies are also looking to mergers and acquisitions (M&A) and initial public offerings (IPOs) to reach their business goals. While global M&A and IPO activity slowed sharply in 2016, more companies from the survey expect to pursue deals and go public in 2017.

More than half (53%) of the companies surveyed say they will likely pursue M&A as an acquirer, up from 39% a year ago. Furthermore, 45% of companies say they will likely be an M&A target, up from just 21% last year. Two of the main factors that respondents believe will drive M&A activity in their company over the next 12 months are increased availability of capital and renewed confidence in the economy.

As for pursuing an IPO, 28% of companies reported that they would likely go public in the next 12 months, nearly doubling the number of companies from last year (15%). Reasons cited include broadening the exposure of the company's brand and products, the cost-effectiveness of equity capital, and the need for additional capital to fuel growth.

Companies look to global markets to help address challenges
The survey reiterated the importance of the global economy as US mid-market companies are increasingly looking overseas to expand their operations, boost their productivity, and develop new products and services.

More than half of the companies surveyed expect to increase their revenues generated outside of the US, with 29% predicting revenue increases between 26 and 40% over the next 12 months. Canada, Western Europe, and Asia Pacific are expected to be the top three contributing markets. Additionally, nearly 60% of mid-market companies expect to have 11% or more of their workforce outside the US, compared to 42% currently. This will be an important trend to follow as the skills gap consistently emerges as a growing concern.

"As mid-market companies plan for overseas expansion and closing the skills gap, new policies and regulations around trade could have a significant impact on economic activities abroad," concluded Nanney. "The good news is that companies in this segment are confident and looking for opportunities to improve their businesses in an ever-changing landscape.”

(Source: Deloitte)

With global cybercriminal risk at an all-time high, the findings of a new survey conducted by global consulting firm Protiviti show positive progress for organizations – an increasing number of them have boards of directors and management that are actively engaged with cybersecurity and adopting best practices in their IT departments. Protiviti's 2017 Security and Privacy Survey shows that current board engagement levels are at 33%, compared to 28% in 2015.

"While the increase in boards of directors' and company management's engagement with information security is a positive sign, it's imperative that leadership keeps closer tabs on the state of their organizations' cybersecurity programs," said Scott Laliberte, a Protiviti managing director and leader of the firm's global IT security and privacy practice. "Particularly as new technologies are introduced and new approaches to generating revenue are deployed, it's increasingly important to reexamine existing data security and privacy processes on a regular basis - ensuring that the right systems and people are in place to keep pace with changes."

Key findings from Protiviti's survey include:

• Having an engaged board and a comprehensive set of security polices make a huge difference – In assessing the results for companies in which the board has a high level of engagement in information security, these organizations rate considerably higher than other companies in nearly all facets of information security best practices. The same holds true for organizations that have all of the core information security policies in place (as recommended by Protiviti). When it comes to security, these foundational qualities distinguish top-performing organizations from the rest of the pack.
• A concerning number of companies – nearly one in five – cannot confidently identify or locate their most valuable data assets. Protecting these "crown jewels" requires a data classification scheme and effective policies that are supported across the enterprise.
• People, as well as policies, are key to an effective security program. Security policies are best supported with training programs and communications for employees, who are often responsible, unintentionally or otherwise, for enabling data and security breaches. Organizations should focus on promoting a culture of security policy compliance.
• Vendor risk management must mature – As the use of cloud-based storage and external data-management vendors increases, the importance of vendor risk management grows. Notable gaps currently exist between top-performing organizations and other companies when it comes to overall knowledge of vendors' data security management programs and procedures – areas that might stand between an organization's crown jewels and cyber-attackers.

The percentage of companies that have adopted what Protiviti considers   and recommends – as five core information security policies to have in place are:

• An acceptable use policy (80%)
• A records retention/destruction policy (78%)
• A data encryption policy (70%)
• A written information security policy (69%)
• A social media policy (59%)

However, there is significant progress to be made because only 38% of surveyed companies have all five information security policies in place today.

The Protiviti 2017 Security and Privacy Survey delivers insights on the specific security policies and qualities that distinguish top-performing companies from other organizations. The survey also offers trends to watch for and identifies prime action items technology leaders can take to strengthen their companies' security capabilities.

(Source: Protiviti)

A year ago, few chief executives could have predicted the turbulent global environment their organizations would face at the start of 2017. Mushrooming geopolitical and social tensions, policy flux, financial market volatility, and labour market imbalances have coalesced in a level of business uncertainty unseen since the end of the Great Recession in 2010. At the same time, new opportunities for sustained growth and competitive advantage are opening in many regions and sectors. How are CEOs positioning their companies to succeed through the world of shocks, uncertainties, and disruptions likely in the coming year?

It all starts with their people. According to CEO Challenge 2017, a global survey and report released today by The Conference Board, business leaders worldwide are focused on creating more agile, aligned, transparent, and responsive companies able to weather the storm of internal and external uncertainties. More than 500 chief executives participated in this year's survey. Their responses revealed a set of common organizational priorities shared across industries and geographies, including: fiscal discipline, an engaged and resilient workforce, strong and inclusive leadership, and the need to develop and nurture talent with expanded twenty-first century skills.

"In the eyes of this year's CEO Challenge respondents, organizational culture and quality talent are the critical enablers of success," said Rebecca Ray, Ph.D., a co-author of the report and Executive Vice President, Knowledge Organization at The Conference Board. "CEOs are clearly awakening to the dangers of static processes, rigid roles, and outmoded thinking at a time when their most pressing challenges all demand leaders and workforces committed to openness, innovation, and agility."

"Despite the rapid technological advances of the past decade, real productivity gains from this era of digital transformation have yet to emerge," said Bart van Ark, Ph.D., another report co-author and Executive Vice President, Chief Economist & Strategy Officer at The Conference Board. "This year, we're seeing CEOs respond to this disjuncture. Internally, they're emphasizing the mindsets and core skills needed not only to implement new technologies, but master them in a manner that enhances efficiency and growth. Whether the challenge is technical, political, or otherwise, the key question for organizations in 2017 is this: Are we driving change and disruption, or are they driving us?"

The Conference Board CEO Challenge® 2017 is the latest in a survey series first conducted in 1999. From lists of choices vetted by a panel of CEOs and other experts, respondents detailed the critical strategies they are employing to improve performance in each of six areas: Human Capital, Customer Relationships/Corporate Brand and Reputation, Operational Excellence, Innovation and Digitalization, Regulation and Risk, and Sustainability.

Alongside these perennial strategic challenges, survey participants were also asked which "hot-button issues" were likely to demand enhanced vigilance and tactical responses in 2017. Worldwide, the potential for global recession was the most cited concern, followed by the need to develop next-generation leaders, cyber security, failure to attract/retain top talent, and global political uncertainty. From these responses, seven big-picture themes emerged:

• Pressure is building from ongoing political, policy, and economic uncertainties.
• In a tightening labor market, an open and inclusive culture that lets talent thrive is critical.
• Innovation is being democratized. Companies that produce innovators will be those based on inclusive, collaborative, internally and externally networked cultures.
• For most CEOs, digital transformation is a longer-term challenge that will play out over the next decade, not an urgent risk to competitiveness in the next 1-2 years.
• The fruits of digital transformation have been elusive, with only around a third of CEOs reporting strong impact on revenue or productivity.
• Customer centricity is a growing priority, and demands high-tech, high-touch, and high-value strategies.
• Relative economic development shapes leaders' worldviews. CEOs in mature and developing economies diverged on a number of strategies and hot-button issues for 2017.

(Source: Conference Board)

A majority of real estate industry leaders polled plan to increase their US investments this year, as they expect continued growth in the US real estate market in 2017 and beyond, according to KPMG's 2017 Real Estate Industry Outlook Survey: Real Estate Expansion Lives On.

52% of real estate executives polled believe that improving real estate fundamentals in 2017 will be the biggest driver of their company's revenue growth. 91% of investors are bullish on access to equity capital, with 25% expecting an improvement in 2017 and 66% believing that the positive trend will remain the same. 51% of survey respondents also indicated that foreign investment in US real estate will increase in 2017.

"A growing US economy, coupled with healthy real estate fundamentals and strong access to financing and capital, make real estate leaders optimistic about a continued 'boom' in the US market," said Greg Williams, National Sector Leader, Building, Construction & Real Estate, KPMG LLP. "Although prices of Class A assets in the US are high and yields are lower, the promise of reliable returns leads to sustained interest in the sector overall, especially when compared to other global markets."

2017 Strategic Initiatives for US Real Estate Companies According to the survey, 41% of real estate company executives are planning for a significant investment in organic growth in 2017, including product development, pricing strategies and geographic expansion.

"We anticipate continued growth in the open-ended fund and debt fund spaces, as these vehicles may enable investors to obtain a stable yield, diversification, and, if they invest in an open-ended format, higher levels of liquidity," said Phil Marra, National Real Estate Funds Leader, KPMG LLP. "We also expect to see an influx of new investment in real estate, both from existing investors as well as new entrants."

58% of survey participants also indicated that they are pursuing cost-related strategies to improve bottom-line results, including the implementation of new technology to address inefficiencies and process improvements.

Three Uncertainties Real Estate Executives will face in 2017:

• Regulatory: The new US administration's intent to lower taxes, deregulate business and increase infrastructure expenditures, may lead to job creation and consequently to increases in homebuilding and home sales. The promise to bring companies back to the US may increase demand for office space, manufacturing facilities, data centers and other property types.

• Interest Rates: Higher interest rates may impede first-time home buying, but a healthy economy may lead to sustained job growth and potentially to increasing activity in the multi-family, retail and industrial sectors.

• Cybersecurity: Approximately half of the survey respondents said that their organizations are not adequately prepared to prevent or mitigate a cyber-attack. Cyber threats facing the real estate industry include: Tenants' vulnerability to intrusions through connected technologies such as smart alarms, stealing of tenants' personally identifiable information (PII) maintained by property managers, and targeting of internal systems for their data or even their cash, such as REIT's confidential information on financing deals.

(Source: KPMG)

Today's typical business intelligence (BI) user increasingly prioritizes mobile, fast, and customizable platform options, and platform providers are feeling the pressure to evolve quickly to meet the demand from customers.

A new survey from Clutch finds that 70% of data analytics users consider a mobile application crucial to their use of BI software. Even those users who said they don't consider a mobile application crucial have taken notice; nearly 60% of those users said they recognize mobile BI applications as increasingly important to their business.

User emphasis on mobility has grown significantly in a short amount of time. Clutch's 2016 BI survey found that only 41% of data analytics users even used a mobile phone or tablet to access their BI data--now almost double that number believe mobility is crucial to their use of the software.

Hyper-paced work environments, the need to perform complex analytics 'on-the-go,' and the stronger processing power of smartphones and tablets have all led to greater demand for easy-to-use and powerful, mobile BI platforms. Users now look for platforms that seamlessly transition between desktop and mobile, beyond the basic mobile capabilities that many BI organizations already provide.

"Simple dashboards on mobile exist in most BI tools out there," explains Yair Weinberger, CTO and Co-Founder of Alooma, a data warehousing and analytics platform. "But mobile BI software for data analytics users who want to research deeper, drill down into the data, or split the data according to some parameters or features, is still lacking."

Data analytics users who increasingly see BI as a fast, mobile, and constantly available tool, are also concerned with the reliability of speed and simplicity when they access their data. Accessing their data is "not simple" according to 31% of users, while 36% say they wait, on average, more than a day to gain access to their data.

Less than 20% of respondents say they typically only wait a few minutes to gain access to their data. In the business intelligence industry, a time delay of hours or more to access data can pose a problem for employees attempting to collaborate quickly and efficiently with colleagues.

The desire to have more control over data accessibility may be why 85% of data analytics users are likely to use open source software in the future, according to the Clutch survey. Open source software offers users the opportunity to operate on the cutting edge of BI technology and play a more direct role in their data analysis.

However, experts say they are confident that commercial options will remain competitive as a time-saving, safer, more supportive software option. "The open source software community doesn't have an advantage when it comes to the constant, quality support that commercial options offer," says Derick Bai, Global Vice President of Engineering at DrivenBI.

(Source: Clutch)

National Write Your Congressman (NWYC) has found small business owners voicing high levels of optimism for the incoming administration's plans for the US economy and their own business prospects in its Q4 2016 Index. NWYC, an organization that gives small businesses a voice in American government, issued its Quarterly Index measuring small business owners and operators' sentiment towards Congress and their confidence in the US government.

The Q4 2016 Index found its membership of small business owners expect the most direct and positive impact on their 2017 business results from five specific components of President Trump's first 100 days agenda: tax reduction, health care reform, regulation relief, elimination of corruption and energy production.

The renewed sense of optimism is based on small business owners' opinions that the overall business climate, long-term success of their business and revenue growth will improve as new the administration takes power.

"Every day, NWYC listens to small business owners across the country and this quarter's Index shows what we hear in the field -- that owners are encouraged by President Trump's first 100 days agenda and have a specific mandate for their members of Congress," said Randy Ford president of National Write Your Congressman. "The uptick in our members' confidence in the fourth quarter of 2016 is encouraging as we work to make their voices heard to Congress."

NWYC's poll represents the opinions of more than 1,000 NWYC members across 46 states in the construction, services, manufacturing and agriculture industries.

"As the engine driving the US economy, small business owners are revved up for a powerful first quarter and NWYC will be working alongside our membership of construction workers, farmers, machinists and financial service providers to make sure their voices and opinions are heard by Congress," said Ford.

(Source: NWYC)

According to a survey of nearly 1,000* senior finance professionals, non-financial data may be the game-changer for forecasting success. This finding was revealed as CFOs admitted that non-financial data capture ranked only fifth in their top five priorities, despite the proven benefits when planning, budgeting and forecasting.

The Future of Planning, Budgeting and Forecasting Survey, carried out by the FSN with members of its Modern Finance Forum was commissioned by Advanced, the UK’s third largest software and services provider, to understand how financial decision makers can get ahead with better data-driven decision making.

The findings revealed that CFOs who make better use of non-financial data are:

• more than 1.7 times more likely to forecast earnings within plus or minus 5%
• two times more likely to be able to forecast beyond the 12 month time horizon
• two and a half times more likely to be able to respond to market change

“The survey shows the latent potential of non-financial data to transform the accuracy of business forecasts. It’s no exaggeration to say that it is a game-changer yet CFOs rank it a lowly fifth in their priorities for the forecasting process,” says Gary Simon, FSN’s chief executive officer and the leader of the Modern Finance Forum on LinkedIn.

“The current business climate is characterised by huge business uncertainty yet the effective use of non-financial data allows businesses to extend their planning horizon, improve forecasting accuracy and improve decision-making.”

“It’s clear that many CFOs are missing a trick when it comes to recognising the value that a connected business can offer. Connected CFOs will ensure every board member - but especially the CEO - has an integrated and real-time view of the projected financial performance of the business. However it is vital that this financial insight is inextricably linked to the operational performance of the business, informed by areas such as people skills and the development and impact of digital transformations for example. This is the silver bullet to give every organisation the best chance to drive efficiencies, productivity and growth across every aspect of the organisation, comments Andrew Hicks, CFO at Advanced.

A full infographic reveals further results from the research, such as the top four priorities for CFOs being:

• Greater simulation and scenario planning
• Engagement with more non-financial stakeholders in the PBF process
• Shift to rolling forecasts
• More sophisticated analytical techniques

*There were 955 people of the Modern Finance Forum who responded to the survey were senior finance professionals covering 23 countries and 13 industry sectors.  Approximately half of the respondents were from organisations with more than 1,000 employees.

(Source: Advanced)

Insurance services represent an opportunity for banks to improve customer experience and increase customer loyalty.

Consumers have an average of four different insurance products split across three providers, with 63 percent saying they would prefer to deal with a single provider, according to a new survey by Collinson Group.

Following the rise of price comparison and aggregation services, the way people buy insurance has fundamentally changed – competition is fierce, prices are lower and consumers use multiple providers. However, Collinson Group research amongst 2,500 loyalty programme members has found that customers would value a more streamlined way to buy insurance through a single provider. Banks can capitalise on this opportunity by offering insurance products through loyalty initiatives, or value-added packaged accounts and credit cards – improving the customer experience, boosting loyalty and generating incremental revenue.

When asked why they would prefer insurance products with a single provider, 79 percent cited convenience. More than half (51 percent) said they would expect better prices for staying loyal and 39 percent said they would expect to receive added benefits or rewards for staying loyal to one provider.

When asked why they use multiple providers, more than a third (37 percent) said their provider doesn’t offer different products, and more than a quarter (27 percent) said they don’t feel there is any benefit for staying loyal.

An additional Collinson Group’s global study of more than 6,000 affluent middle class customers further emphasises the opportunity for banks, showing a high perceived value of insurance products. The findings found that 72 percent of affluent middle class customers highly value health insurance, 66 percent travel insurance and 63 percent lost cards assistance. Banks should also consider other non-traditional assistance products such as identity protection, to help in the modern age of cyber-crime. The research found that 57 percent of customers rated identity theft protection as a highly valuable service, and that fears over data security influences what brands or products they use. Offering identity protection insurance is another way banks can show commitment to customers.

Mark Roper, Commercial Director of Collinson Group said: “Banks have an opportunity to boost loyalty and make consumer’s lives easier by including insurance products in loyalty programmes or within packaged accounts and credit cards. Given the data banks hold on consumer spending, using this information at the right time to offer highly personalised, timely and relevant insurance products would be valued by customers and can also generate incremental revenue for banks.

“Due to their substantial buying power, banks can achieve economies of scale to deliver value across insurance products and pass this back to their customers. They can offer insurances at the low prices their customers expect due to  a group risk approach, packaged as part of a bank account or credit card. This will provide differentiation and builds on or leverages existing loyalty to the bank’s core products –bank accounts or credit cards.

“With effective integration, banks could offer travel insurance to a customer that has just booked a flight, or car insurance when they buy a new car. This will be well received by customers who indicate in the research that relevant offers are welcome, and by consumers that like the idea of a ‘one stop shop’ but need to feel that the provider offers great value and quality products. Banks should be capitalising on this consumer need by seizing the opportunity to create more meaningful and deeper emotional relationships with their customers, and grow their bottom line.”

(Source: Collinson Group)