Have millennials no use for Insurance Industry?
The recent research revealed that Millennials don’t find boring the insurance industry, as it in the United States is the largest industry in the world concerning revenue. After a dip in 2009 due to the financial crisis, the annual revenue of the industry has risen to $1.2 trillion. The insurance industry offers the five essential career priorities for Millennials: work-life balance, career progress, development opportunities, financial stability and an active community with social ties. That survey exposed that a career in insurance offers this new generation many desirable benefits. A vast majority of respondents (81 percent) confirmed their interest in the insurance industry as insurance professionals for as long as possible.
Well done, Wells Fargo
The worst thing that can happen to you is to have your bank or credit card company open an account secretly in your name. That is exactly what Wells Fargo did to its customers. As federal regulators found out the San Francisco bank’s employees opened about 2 million unauthorized accounts and credit cards since 2011 that sucked more than $2.6 million in fees from customers. In such manner, bank employees could hit sales targets and receive bonuses. When Wells Fargo was first charged with fraud, it started firing employees involved in the misdoings. So far about 5,300 toiled employees were fired. But what is most interesting is Wells Fargo executive Carrie Tolstedt retired in July with $125 million bonus. John Stumpf, 63, the long-time chief executive of Wells Fargo, denies that there was an “orchestrated effort” to rip off his customers and says sorry.
RegTech is the Next Big Thing. Regulation is one of some services to receive the ‘Tech’ treatment in recent times. As with its bigger brother FinTech, the definition of RegTech will mean different things to different people in this developing area. While the name is new, the marriage of technology and regulation to address regulatory challenges has existed for some time with varying degrees of success. Bain & Co. has identified more than 80 emerging reg tech. Regtechs can provide brains, guts, and backbone to improve GRC (governance, risk, and compliance) processes in some ways. Leg techs provide tools to manage areas ranging from consumer protection to market conduct.
FinTech unicorns are too pricey. According to the recent valuation trends and the venture capitalists who invest in the space, striving to achieve a valuation of $1 billion or more may no longer be in a start-up’s best interest. FinTech companies have rising valuations what led to too pricey start-ups for larger enterprises to buy, but they don’t have business models that are flexible enough for a start up in the public markets.
Will robots be new advisors? Robo-advisors are growing rapidly. Condor Capital, a financial advisory firm in Martinsville, New Jersey, opened accounts at 13 large robot-advisors and created portfolios with a 60 percent mix of stocks and 40 percent of bonds and have been tracking returns after fees. Fees for the most popular robot-advisors are lower than the general 1 percent annual fee many human advisors charge.
Paul Parisi became a new general manager of PayPal Canada. Previously, he was a vice president and general manager of global commercial payments at American Express Canada.
Quote of the day. “The first mark of good business is the ability to deliver. To deliver its product or service on time and in the condition which the client was led to expect. This dedication to provision and quality gives rise to corporate reliability. It makes friends and, in the end, is the reason why solvent companies remain solvent.” Michel J. T. Ferguson,