ATTENTION:

a 'Consumer Financial Education' newsletter

We are excited to announce that starting in the 2nd quarter we will be producing a new newsletter dedicated to providing financial education to unbanked and underbanked consumers. Our goal with this product is to empower individuals to take control of their financial future by providing them with the knowledge and tools they need to make informed decisions. The newsletter will cover a range of topics, including budgeting, saving, investing, and more. We believe that presenting this product to your customers will demonstrate your commitment to their financial success. We'll keep you apprised of our progress. We invite you to contact us with any questions.

dan@afspassociation.com

Workers’ financial stress at critical levels, new poll finds

A workplace well-being survey underscores the extent of worries over emergency funds, retirement saving, and student debt.

Financial stress among employees has reached alarming levels, with nearly 9 out of 10 workers feeling the strain, according to a new survey.

The report from financial benefits provider SoFi at Work, titled “The Future of Workplace Financial Well-Being: 2024 Employer & Employee Perspectives,” gathered insights from 1,500 human resources leaders and employees and highlights the growing concern over personal finances and the need for employer support.

The survey found nearly half of workers are anxious about various aspects of their finances, including a lack of savings for emergencies (cited by 48 percent of workers) and their retirement savings (45 percent). This comes despite record-high budgets for salary increases in 2023.

“In many ways, this data proves what we instinctively know: The economy is weighing heavily on everyone’s minds, and financial stress is affecting employees’ day-to-day lives and work performance,” Michael Bourgeois, vice president and business lead at SoFi at Work, said in a statement.

Read more at InvestmentNews

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

The #IRS began accepting tax returns last Tuesday. Taxpayer help has expanded this year with more in-person hours, better service and improved tools. Read: https://ow.ly/bb7k50QvqRN

#IRS has kicked off the 2024 tax filing season. This year, the tax deadline is April 15, 2024, for most people. Gather all information you need to prepare a complete and accurate tax return before you file to reduce errors. See: https://ow.ly/bb7k50QvqRN

The 2024 tax filing season is now underway. #IRS reminds taxpayers the deadline to file a 2023 tax return and pay any tax owed is 4/15/24. Taxpayers living in Maine or Massachusetts have until 4/17/24, due to the Patriot’s Day and Emancipation Day holidays. https://ow.ly/bb7k50QvqRN

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

How Banks Can Unlock the Complete Value of Automation

The value of the automation is widely understood in the banking industry, but not all institutions realize its full value. Focused on overcoming short-term obstacles or prioritizing lower costs, many ignore or underestimate automation’s ability to actually accelerate growth.

Executive Summary

Facing talent shortages, growing workloads and shrinking budgets, many financial services organizations are looking to automation to improve efficiencies and operations. SMA Technologies, a workload automation software company, surveyed 580 U.S.-based executives from the banking, credit union and insurance sectors to learn more about integrating automation technologies into their operations.

Despite the positive trends, SMA’s research found several disconnects between financial services organizations’ ambitions and outcomes. Many say they have insufficient budgets, limited resources and a lack of talent to implement automated solutions.

To overcome these barriers, financial services organizations should gain executive buy-in and support, adopt better training, seek low-code adoptions and adopt a change management culture that prioritizes innovation.

Read more at The Financial Brand

IRS expects to collect billions more in unpaid and overdue taxes

The IRS said it is poised to reap hundreds of billions of dollars of additional tax revenue by going after overdue and unpaid taxes, far beyond what was previously anticipated, thanks to funding from the Inflation Reduction Act (IRA). 

The new analysis, released Tuesday by the Treasury Department and the IRS, estimates that tax revenues are expected to rise by as much as $561 billion from 2024 to 2034, thanks to stepped-up enforcement made possible with money from the Democrats' IRA, which became law in August 2022.

The estimates come as some Republican lawmakers have sought to cut IRS funding, warning that the tax agency could ramp up audits of middle-class Americans. However, IRS and Treasury officials have stated the IRS is focused on tracking down wealthy tax cheats and businesses with unpaid or overdue tax bills. 

"This analysis demonstrates that President Biden's investment in rebuilding the IRS will reduce the deficit by hundreds of billions of dollars by making the wealthy and big corporations pay the taxes they owe," National Economic Adviser Lael Brainard said in a statement.

Read more at MSN.COM

How U.S. Banks Must Navigate the Surge of Credit Card Fraud

Banks are on the front lines when credit card incidents occur — facing direct and indirect losses that cause both reputational and financial damage. However, armed with innate understanding of how fraudsters strike, banks can develop tactics and techniques that mitigate the damage to both their organizations and their customers. Here's how.

The rising tide of credit card fraud is a growing concern for banks. As highlighted in a recent report from BackgroundChecks.org, major U.S. cities are seeing alarming increases in fraud incidents year after year. Banks that don’t take proactive measures against credit card fraud risk drowning in the swelling waves of financial and reputational damage. But with the right defenses in place, they can stay afloat — and protect their customers from harm.

In this article, we’ll dive below the surface to understand credit card fraud, equip banks with advanced security measures and empower consumers to swim safely in the turbulent waters ahead.

Read more at The Financial Brand

Which generation is best with debt? Here are average credit card balances of Americans by age — the numbers are stunning. Find out how you stack up

Gen X is feeling the crunch.

Times have been hard on the bank accounts of many American households, with inflated prices and higher interest rates. So, it's perhaps little surprise U.S. credit card debt has topped the $1 trillion mark.

The average American with credit card debt owed $7,932 on their credit cards in 2023, according to New York Life’s latest Wealth Watch survey — a pretty significant increase from $6,321 the previous year.

Don't miss

• Anything can happen in 2024. Try these 5 easy money hacks to help you make and save thousands of dollars in the new year (they will only take seconds)
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Read more at MoneyWise

These Black-Owned Banks Just Received Millions To Help Serve Underbanked Communities

27% OF BLACK PEOPLE IN THE US ARE UNDERBANKED. THIS REFERS TO THEIR LACK OF CHECKING ACCOUNTS AND DEPENDENCY ON PREDATORY PAYDAY LENDERS. KEYBANK IS AIMING TO SHIFT THAT FROM THE INSIDE OUT.

Just 16% of Americans are considered to be “underbanked,” but 27% of Black people are underbanked. This refers to their lack of savings or checking accounts and dependency on predatory payday lenders, and currency exchanges for their money services.

KeyBank is aiming to shift that from the inside out.

The Ohio-based financial institution recently announced its placement of $50 million in deposits with six Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), including four Black-owned banks. This is an effort to to “help clients and communities thrive,” according to the organization.

Read more at ESSENCE

Why Financial Trauma is More than Just a Buzzword for Banks

A recent survey shows a majority of adults say they have experienced some kind of financial trauma. Banks need to rethink their existing product offerings to help clients better address their financial stress.

“Therapy speak” — or the colloquial inclusion of common psychological terms — has sparked a broad discussion on social media. At its best, “therapy speak” puts language to common challenges people face and can help to normalize the conversation surrounding topics that are considered taboo.

One example is “financial trauma,” a broad-reaching term in the new lexicon referring to stressors that impact how we view and interact with money. Financial trauma refers to issues as commonplace as growing up in a household where money wasn’t discussed, to more serious challenges like losing a job or going through a divorce, says Rod Griffin, senior director of public education and advocacy at Experian.

“It can be anything that creates financial stress,” Griffin says. “It can affect you emotionally and psychologically.”

Read more at The Financial Brand

ADVERTISE

Employees are spending the equivalent of a month’s grocery bill on the return to the office–and growing more resentful than ever, new survey finds

Despite the benefits of remote work for employees, many organizations are abandoning it in favor of returning to the office full-time–or part-time in a hybrid model. A recent survey from BetterUp shows that the number of primarily remote roles has been cut in half–and one out of four organizations cite improved connection and culture as the business rationale behind mandated office returns.

However, our research found that returning to an office often is a major disruption to one’s routine, foundational work, and overall life experience. We surveyed 1,400 full-time U.S. employees who were mandated to return to in-office work and found that they had higher burnout, stress, and turnover intentions. They also had lower trust in their organization, engagement, and productivity levels. Our results indicate that if the return-to-office transition is not handled with a high level of humanity, sensitivity, and empathy, workplace culture suffers, and the workforce's sense of belonging plummets.

Read more at FORTUNE