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Tag: business operations

  • ASUS will not release any new smartphones this year

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    ASUS appears to be shifting its business operations away from smartphones. According to translations of recent quotes from Chairman Jonney Shih, the company does not plan to release new phone models in the future. The chairman did not confirm whether smartphones would be completely phased out, but he did acknowledge that possibility. Whatever direction ASUS takes, its existing phones will continue to receive software updates and warranty assistance. Shih suggested that its future plans may include a shift into AI-related projects such as robotics or smartglasses.

    Previous reports hinted that ASUS would not introduce any smartphones in 2026, but Shih’s recent comments indicate that the pause may stretch longer than a year. We’ve reached out to ASUS for additional comment and will update if the company shares any further information.

    ASUS had plenty of other updates emerging from CES at the start of the month unrelated to smartphones, such as dual-screen laptops and a pair of gaming smartglasses. So if it does decide to leave that product segment, there will still be other ASUS-branded gear on the market.

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    Anna Washenko

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  • Indiana’s recycling plant fire is mostly out, but evacuations remain as crews monitor air quality and clear debris from schools and homes | CNN

    Indiana’s recycling plant fire is mostly out, but evacuations remain as crews monitor air quality and clear debris from schools and homes | CNN

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    CNN
     — 

    A fire burning at a recycling plant in Richmond, Indiana, is mostly out, but hundreds remain evacuated from their homes as crews monitor the air for chemicals and collect potentially harmful debris from neighboring schools and homes, officials said Saturday.

    Richmond residents who live within a half a mile radius of the recycling plant – about 2,000 of Richmond’s 35,000 residents – have been under a mandatory evacuation order since Tuesday, when the massive inferno exploded at the plastic-filled recycling plant in Richmond, sending thick, black smoke over the area.

    When they can return home will mainly depend on whether it’s safe to breathe the air in their community. Officials had warned that the smoke the fire spawned was “definitely toxic,” forcing the closure of Richmond public schools for days as the US Environmental Protection Agency performed air sampling and monitoring tests in the area.

    An announcement was initially expected Saturday on when evacuation orders could be lifted, but Richmond city officials later said that no determination had been made. “We have another meeting in the morning to determine the best time to lift the evacuation order,” Mayor Dave Snow said Saturday evening.

    “Unfortunately, we are unable to provide an exact time when evacuation orders will be lifted. As air monitoring results come back from lab testing and they can be analyzed by our health experts, we are hoping to be able to allow residents to return to their homes,” Wayne County Emergency Management Agency officials said Saturday.

    Those downwind from the fire were asked to continue to shelter in place “if they feel they are in danger or find themselves in a smoke plume,” emergency officials said.

    More meetings and data analysis are needed before the evacuation order can be lifted, Richmond Fire Chief Tim Brown told CNN Saturday.

    As for the blaze itself, Brown said firefighters have knocked down 98-99% of the fire at the recycling plant as of Saturday.

    “Right now, there is no plume, there is no product being off-gassed from the fire itself,” Brown told CNN. “What we have coming off of it is mainly a white smoke or some steam. We have no plume. We have a slight wind, which is kind of pushing things out.”

    Inside the facility, there are hot spots and occasional small fires that will continue to smolder for days and produce smoke, soot or the smell of burnt plastic, emergency officials said.

    In the meantime, work is underway to clear debris scattered in the community from the toxic fire.

    Some samples of debris from the area tested positive for asbestos containing materials, Wayne County emergency officials said, citing preliminary tests by the EPA.

    “Because all debris has the potential to contain asbestos, it is important that a trained professional remove all materials suspected to be from the fire,” emergency officials said, asking residents to not disturb or touch any debris they find on their property.

    Asbestos is a naturally occurring, but very toxic, substance that was once widely used for insulation. When inhaled or ingested, asbestos fibers can become trapped in the body, and may eventually cause genetic damage to the body’s cells. Exposure may also cause mesothelioma, a rare and aggressive form of cancer.

    Crews in protective gear began collecting debris from three schools near the fire site on Saturday, including three in Richmond and one school in Ohio.

    Officials said that schools impacted with debris will be cleared first, and then contractors will begin to deploy drones to search rooftops for additional debris, according to the post.

    “After school grounds are cleared, these contractors will begin removing debris from residential properties, parks and/or public areas, and businesses,” city officials say in the post.

    The county said the EPA is bringing in federal contractors to assist with the proper cleanup and removal of visible debris in both Indiana and Ohio.

    A primary health concern to residents is particulate matter, which could cause respiratory problems if inhaled, Christine Stinson, who heads the Wayne County Health Department, previously said.

    At the fire zone’s center, the chemicals hydrogen cyanide, benzene, chlorine, carbon monoxide and volatile organic compounds, or VOCs, were detected, the EPA said Friday. They were not detected outside the evacuation zone, the agency said.

    Potentially harmful VOCs also were found in six air samples, the agency said, without saying where the samples were taken.

    Particulate matter also was found inside and outside the half-mile evacuation zone, as expected, the agency said.

    Additionally, one of two air samples taken a little more than a mile from the fire site detected chrysotile asbestos in debris, an EPA official said Thursday. Also called white asbestos, chrysotile asbestos can cause cancer and is used in products from cement to plastics to textiles.

    As for water quality, testing downstream of the fire site is underway and officials say they have “not found anything of immediate alarm, including any sign of fish kills.”

    Crews did find some ash and loose plastic debris, “but weir booms have been installed and are successfully capturing this material. Likewise, Indiana American Water has also been closely monitoring the drinking water and has reported no unusual readings or results from testing,” Wayne County emergency officials said.

    The cause of the fire remains under investigation and likely won’t be known for weeks, officials said. But local leaders have shared concerns since at least 2019 that the facility had hazards and building code violations, records show.

    The mayor has accused the plant’s owner of ignoring a city order to clean up the property, saying the plant was a fire hazard.

    CNN has sought comment from the plant’s owner, Seth Smith. The attorney who previously represented Smith in a related lawsuit declined to comment.

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  • 5 Internal People Every CEO Needs

    5 Internal People Every CEO Needs

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    Opinions expressed by Entrepreneur contributors are their own.

    Every leader knows the phrase, “It’s lonely at the top.” It’s true that leaders often experience loneliness. Many times, they are the only one who knows everything about every person and situation in the company.

    When a leader has no one to share their personal troubles or triumphs with, it can drain their energy and lead them to make poor decisions. They have no one to expand their thinking, share their ideas with or from whom they can receive insights and inspiration.

    No leader should ever find themselves alone in their struggles and decisions. Leadership is about having a team of people to provide help and support through the difficult moments of the hour. Here are five internal people every CEO needs on their team:

    1. An excellent executive assistant

    One key person that a leader needs on their team is an effective executive assistant. Executive assistants help executives by supporting the CEO with critical tasks and responsibilities and acting as an extension for information for the organization’s leader. Trust and effective communication are essential attributes of this person on the team.

    Many business owners can be tempted to forgo hiring an executive assistant because they would prefer to put those resources in other parts of the business. However, when the leader produces, the organization produces. The executive assistant enables the leader to be more effective and productive.

    Related: 5 Tips For Building a Strong Leadership Team

    2. A capable and prepared second in command

    A powerful benefit of having a second in command is that they can take the reins when needed. By nature, most leaders have a deep drive to create a better company but are often frustrated by a lack of time, people, or resources to help make their plans a reality. A second in command or an operations person can help bring continuity to the operation and insight into many parts of the organization.

    The leader should find responsible people who will help them think intentionally about the next steps of the organization. When leaders have people they trust to make decisions and lead well, it enables the top leader to spend their time working on the business and not just in the business.

    3. A strategic numbers person

    Every CEO needs a person close to them who understands and can interpret numbers. Numbers don’t lie, and numbers tell a story. Many business owners and CEOs are not gifted with the ability to know and understand the truths or the story that the organization’s numbers tell. Every CEO should manage by a few key numbers in the organization.

    Many businesses struggle to make and keep a profit. A strategic numbers person will help the CEO to manage key metrics and help the leader to make wise decisions that will ultimately make the company more profitable.

    Related: Why Entrepreneurs Should Choose Insights Over Instincts

    4. A operational and process expert

    Every business will have processes. The growing business will have a clear understanding of the critical processes that will set them up for success. These critical processes could include processes around payroll, customer and team members onboarding and offboarding and systems around procurement.

    One way to grow the organization’s processes and systems is by onboarding an operational expert to your team. This person might perform as a general manager or as an operations manager. Their primary task is to examine how things are done and work to improve efficiencies throughout the organization.

    5. A high emotional intelligent people person

    In business, it is always about the people. People will propel your organization forward or consistently bring it down. Working with people is difficult because people often are not a finished product. People need to be trained, developed and invested in to reach their peak performance. Having someone in the circle of the CEO with an eye for bringing out the best in people will be a key to achieving the business principle of “improve your team to improve your organization.”

    The people person will have a high emotional equivalent and be able to see multiple sides of an issue. People in life deal with a multitude of issues. Often those issues can be brought into the workplace, and good people can be left to underperform without a person who can walk them through how to overcome their problems and improve themselves and their personal performance.

    As companies grow, they will often develop an HR department. As the CEO continues to expand their team, they need to consider having a people person close to them to help them discern who can be trusted, how to handle difficult people issues, and what people policies will be necessary to build a robust team culture.

    Your team can make you better

    The CEO Team is critical to the leader’s success and the organization they lead. Many business owners understand the value of their team as it relates to their business but can neglect to build a personal team around them to help them achieve breakthroughs, uncover blind spots, and wrestle with day-to-day decisions professionally and personally.

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    Ken Gosnell

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  • Winter is more than halfway over, and many Northeast cities still await their first snow day | CNN

    Winter is more than halfway over, and many Northeast cities still await their first snow day | CNN

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    Editor’s Note: A version of this article originally appeared in the weekly weather newsletter, the CNN Weather Brief, which is released every Monday. You can sign up here to receive them every week and during significant storms.



    CNN
     — 

    While the western US has been piling up snowfall over the past several weeks, it has been the complete opposite across the Northeast and New England.

    We are more than halfway through meteorological winter, which runs from December through February, and cities such as New York, Philadelphia, Baltimore, and Washington, DC have yet to see measurable snow, defined as at least 0.1 inches.

    And it’s not just the coastal cities. Many locations across interior New England and the Northeast are seeing significantly below normal snowfall to date.

    “With the exception of some areas downwind of Lakes Erie and Ontario, and very small areas of interior New England, the East is certainly in a snow drought with some locations that normally have snow, down by as much as one to more than three feet,” the Weather Prediction Center Branch Chief Greg Carbin told CNN.

    Buffalo, New York was inundated with several feet of heavy snowfall earlier this winter.

    Carbin went on to explain there are two types of snow drought:

    • The first type is when there is an overall lack of winter precipitation, rain or snow, which contributes to drought conditions.
    • The second type is when overall precipitation amounts are near normal but instead of falling as snow, it falls mostly as rain.

    “Along the I-95 corridor from DC to Boston, the latter type of snow drought has been measured so far this winter,” Carbin said. “Precipitation amounts have been normal to slightly above normal, but it’s generally been too warm for precipitation to fall in the form of snow.”

    The period between snow events is likely to increase as the climate warms, and it may be especially true for coastal Northeastern cities. As the Northeast temperatures warm, the rain-snow line shifts farther north, leading to more rainy winter day along the coast and less snow, according to the US National Climate Assessment.

    And it’s not just the Northeast, winter (December, January, February) is also the fastest-warming season for 75% of 238 US locations, according to Climate Central’s data analysis.

    319

    Central Park in New York City has gone 319 days without measurable snow through Sunday, which currently ties for their third-longest streak. Central Park would have to be snowless through February 5, 2023, to break the record streak of 332 days set back in 2020.

    316

    Philadelphia, Baltimore, and Washington DC have all gone 316 days without measurable snow through Sunday, which rank 6th, 12th, and 19th respectively.

    1973

    Central Park is also approaching the latest date in the season for their first measurable snowfall since record keeping began in 1869.

    “The current record is Jan. 29, 1973, which went on to become the least-snowy winter in NYC history, with just 2.8 inches total snow accumulation,” Carbin said.

    “The pattern has been fairly consistent with the typical La Nina pattern across the Northeastern US so far this winter,” meaning the track of the storms and cold air have remained to the north and west of the Northeast, meteorologists at the National Weather Service office in New York City told CNN.

    Watch: Meteorologist Jennifer Gray explains the effects of La Niña

    La Niña, the counterpart of El Niño, is characterized by below-normal sea surface temperatures in the Pacific Ocean near the equator, a result of shifting wind patterns in the atmosphere, which has a direct effect on weather seen across the US in the winter.

    “There are of course variations in this pattern due to short term factors that are not predictable more than one to two weeks in advance, such as the arctic outbreak during Christmas,” the weather service office in New York City said. “But these variations have been brief.”

    The most active weather and heaviest snowfall in recent weeks have been focused across the West and California, where more than 15 feet of snow have fallen across portions of the Sierras from December 26, 2022, through January 17, 2023.

    “While the jet stream meanders and can occasionally quickly change to support snowstorms just about anywhere during the winter, this winter has been quite active across the West, with a weak but broad area of high pressure (and warmer than average temperatures) over the eastern 2/3rds of the contiguous United States,” Carbin said.

    There is a chance Central Park could see some light accumulating snow Wednesday but there is still some uncertainty in the forecast, the weather service office in New York City said.

    If the city does not see snow this week, their streak will stay alive. After Wednesday, the weather service is currently forecasting dry conditions through January 29.

    “We need to make up the whole seasonal snowfall since none has accumulated, which is 29.8 inches,” the weather service office in New York City said. “The record storm total snowfall is 27.5 inches on January 22 to 24, 2016, so that is very close to our seasonal snowfall. All it may take is one storm to get us back on track.”

    While this scenario is certainly possible, it is not very likely. There have only been seven storms on record to dump 20 inches of snow or more across Central Park in recorded history, according to the weather service.

    “February and March are months in which big snows have fallen in the cities of the Northeast, so there remains some hope for snow lovers,” Carbin said. “Although, the later in the season you get started, the more likely you are to finish the season with lackluster snowfall.”

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  • California cleans up from one storm as it prepares for another | CNN

    California cleans up from one storm as it prepares for another | CNN

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    CNN
     — 

    Days after California was hit by “the most impressive storm in nearly 20 years,” the state – fully saturated in many places – is gearing up this weekend for yet another series of atmospheric river events, with flooding, hail, powerful wind gusts and even funnel clouds possible in spots.

    TRACK THE STORMS HERE >>

    Another round of heavy rain already is falling Saturday on the Golden State, where extreme drought fueled by the climate crisis has given way in recent weeks to massive flooding amid a catastrophic sequence of ultra-wet atmospheric rivers – long, narrow regions in the atmosphere that transport moisture thousands of miles. Recent storms have killed at least 18 people and left tens of thousands at a time without power.

    Over 25 million people again are under flood watches across much of California’s central coastline, as well as the Sacramento and San Joaquin Valleys. Though this weekend’s rain tally will be lower than previous storms, the threshold for flooding also is much lower because the ground is fully saturated in many areas.

    “This atmospheric river is more progressive than some of the other atmospheric rivers that have occurred in recent weeks, which should help to limit the extent of the flooding potential,” the Weather Prediction Center said. “All that being said, just about all of California; from the coast and both the Shasta and Sierra Nevada on south to the Transverse Range feature soil moisture percentiles greater than 95%.”

    “Portions of the state have picked up 15-20+” of rain and >600% of normal rainfall in the last two weeks,” they added.

    And unfortunately, the rain chances don’t end there: Yet another storm will bring renewed rain chances and flooding to much of the state Sunday afternoon through Monday morning before drier conditions finally set in later next week.

    “A more intense surge of moisture is expected on Saturday ahead of a stronger Pacific storm system that will move inland through the day,” the prediction center said. “A broader slight risk of excessive rainfall is in place for both coastal northern California, where rainfall will continue from Friday, as well as upslope regions of the Sierra.”

    Rain and snow are also forecast to spread into the Pacific Northwest and Intermountain West Saturday into Sunday.

    Widespread rainfall totals through Monday will range between 2 to 3 inches along the coast and interior valleys, with 4 to 6 inches possible for the San Francisco Bay area and the nearby Santa Cruz and Santa Lucia mountains. This will likely lead to a few instances of flooding as well as mud, rock and landslides.

    “Rain is a certainty with (rain chances at) 100% areawide and with deep moisture and ample rainfall expected, flooding once again becomes a concern,” the National Weather Service office in San Francisco said.

    San Francisco already has recorded one of the top 15 wettest winters on record with more than a month to go. If it does end up picking up 4 to 6 inches of rain over the next three days, the city easily will crack the top five.

    A slight risk of excessive rainfall – Level 2 out of 4 – alert is in place, mainly due to extremely wet conditions preceding the forecast rainfall and leading to increased flooding concerns.

    “Forecast soundings have been showing quite a bit of instability over the Central Valley behind the front later Saturday afternoon and into the evening with hail likely to accompany stronger storms, and maybe some funnel clouds,” the weather service office in Sacramento said.

    River flooding is also a big concern, especially around the Russian River in Northern California and the Salinas River near Monterey. “Plan on additional disruptions to travel and mountain recreation through the weekend as periods of heavy snow return to the Sierra,” the weather service office in Reno said.

    Very heavy snow is also forecast for the Sierra, with 1 to 2 feet possible on Saturday and an additional 2 to 3 feet through Monday. “Heaviest snowfall days will be Saturday and Monday with less intense snow showers in between,” the weather service office in Reno said.

    Strong winds will also accompany this system, gusting up to 40 to 50 mph in the Sacramento Valley and up to 60 mph in the mountains. This could lead to downed trees and power lines staked in now-extremely saturated soils.

    “The system will be packing a decent amount of south winds and a high wind watch is in effect for the mountains of San Luis Obispo and Santa Barbara counties – the same strong winds will move into Ventura and LA counties Saturday evening,” the weather service office in Los Angeles said.

    The good news is that by week’s end, the forecast calls for much drier conditions across all of California, which will allow for the ground to dry out and river levels to recede.

    “It’s been a long time since California residents were happy to see an extended forecast of below-average precipitation,” CNN Meteorologist Brandon Miller said. “But after the past three weeks, they certainly are.”

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  • 5 reasons why the Republican claim about 87,000 new IRS agents is an exaggeration | CNN Politics

    5 reasons why the Republican claim about 87,000 new IRS agents is an exaggeration | CNN Politics

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    Washington
    CNN
     — 

    In its first vote on legislation, the new Republican-controlled House approved a bill Monday that would rescind nearly $80 billion for the Internal Revenue Service – with key GOP lawmakers making the exaggerated claim that the money would be used to hire 87,000 auditors who will target hardworking Americans.

    “House Republicans just voted unanimously to repeal the Democrats’ army of 87,000 IRS agents,” tweeted speaker Kevin McCarthy after the vote.

    “This was our very first act of the new Congress, because government should work for you, not against you,” he added.

    But Democrats approved the $80 billion in funding last year as part of the sweeping Inflation Reduction Act, intending to support the troubled IRS crack down on tax cheats and provide better service to taxpayers.

    The bill to rescind the funding, which passed along party lines, has little chance of becoming law, given the Democratic majority in the Senate and a pledge from President Joe Biden to veto the bill if it ever reaches his desk.

    But the vote highlights how funding for the IRS has become a political football. The issue is sure to come up when Daniel Werfel, Biden’s nominee for IRS commissioner, gets a confirmation hearing.

    Here’s why the Republicans’ oft-repeated claim about new IRS agents is exaggerated:

    The 87,000 figure comes from a 2021 Treasury report that estimated the IRS could hire 86,852 full-time employees over the course of a decade with a nearly $80 billion investment – not solely enforcement agents.

    And all those new employees can’t be hired overnight. The money will flow to the IRS over a 10-year period.

    “The reality is the $80 billion boost would be spread throughout the agency, with money flowing to enforcement, taxpayer services, operations, and modernization,” wrote Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center.

    The Inflation Reduction Act dictates that about $45.6 billion will go toward strengthening enforcement activities – including collecting taxes owed, providing legal support, conducting criminal investigations and providing digital asset monitoring. But the IRS has not specified how many auditors will be hired.

    More than $25 billion is allocated to support IRS operations, including expenses like rent payments, printing, postage and telecommunications.

    Nearly $4.8 billion can be used for modernizing the agency’s customer service technology, like developing a callback service.

    Roughly $3 billion is allocated for taxpayer assistance, filing and account services.

    Many of the new hires will be replacing staff that the IRS has already lost or is expected to lose through attrition in coming years.

    Last year, then-IRS Commissioner Charles Rettig told lawmakers that staffing has shrunk to 1970s levels and that the IRS would need to hire 52,000 people over the next six years just to maintain current staffing levels to replace those who retire or otherwise leave.

    The IRS is already using the new funds to ramp up hiring for work outside of its audit operations.

    In October, the IRS announced it had hired 4,000 customer service representatives to answer phones and provide other taxpayer assistance. At the time, the agency said it intended to hire another 1,000 staffers by the end of 2022.

    Many of the new staff will be in place at the start of the 2023 tax season, and nearly all are expected to be trained by Presidents’ Day in February, which is traditionally when the agency sees the highest call volumes.

    National Taxpayer Advocate Erin Collins expects IRS services for taxpayers to improve this year – in part due to the funding increase.

    Taxpayer service, like answering the phones and processing returns in a timely manner, has suffered as the IRS’ budget has shrunk by more than 15% over the last decade. Collins, who heads the independent watchdog organization within the IRS, last year called the IRS service “horrendous.”

    Only about one in eight calls from taxpayers got through to an IRS employee last year, according to her annual report released Wednesday.

    The IRS struggled significantly during the Covid-19 pandemic, allowing backlogs of millions of tax returns to pile up in the past two years.

    “The majority of new hires the IRS makes will be those who answer the phones, work on processing individual tax returns or go after high-end taxpayers or corporations who are avoiding their taxes,” wrote Rettig in an op-ed published by Yahoo!Finance in August.

    A Trump appointee, Rettig called the claim that the IRS is hiring 87,000 agents to harass taxpayers “absolutely false.”

    While audit rates are expected to go up for some taxpayers as the new funding flows to the IRS, the rates have also been declining for some time.

    Audit rates of individual income tax returns decreased for all income levels between tax years 2010 to 2019, according to the Government Accountability Office. They decreased the most for taxpayers with incomes of $200,000 and above, which are generally more complex.

    The Inflation Reduction Act says that the new investment in the IRS is not “intended to increase taxes on any taxpayer or small business with a taxable income below $400,000.”

    Still, there is some uncertainty about how exactly the IRS will decide how to ramp up audits.

    In an effort to shed some clarity, Treasury Secretary Janet Yellen affirmed the Biden administration’s commitment to not target low- and middle-income taxpayers.

    “I direct that any additional resources – including any new personnel or auditors that are hired – shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels,” she wrote in a six to Rettig in August.

    Yellen also directed the IRS to produce an operational plan within six months to detail how the new funding will be spent.

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  • Frontier Airlines no longer has a customer service phone line | CNN Business

    Frontier Airlines no longer has a customer service phone line | CNN Business

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    New York
    CNN
     — 

    Customers who need flight information or want to make changes to travel plans can no longer call Frontier Airlines and speak to an agent, the company confirmed to CNN Saturday.

    Starting last week, the ultra low-cost airline said it has transitioned to fully digital communications. Customers seeking help or information from the carrier must deal with an online chatbot, social media channels or WhatsApp. Those who need to speak to a live agent can use the carrier’s 24/7 chat tool.

    “We have found that most customers prefer communicating via digital channels,” spokesperson Jennifer F. de la Cruz said in a statement, saying they can now receive information as “expeditiously and efficiently as possible.”

    Frontier is known for its cost-cutting measures, such as charging for advance seat assignments and for carry-on bags that exceed the carrier’s size rules. (It checks their dimensions when you board).

    Customers who call the customer service phone number now are greeted with an automated message that says, “At Frontier, we offer the lowest fares in the industry by operating our airline as efficiently as possible. We want our customers to be able to operate efficiently as well, which is why we make it easy to find what you need at Flyfrontier.com or on our mobile app. We also have a chat service available 24/7.”

    Its low-cost flight competitors, Spirit Airlines and Allegiant Airlines, still use call centers staffed by live agents.

    It’s no wonder Frontier wants to get rid of customer service over the phone. The Department of Transportation in November said it is issuing $7.25 million in fines against six airlines for the “extreme delays” in providing refunds since the start of the Covid-19 pandemic to passengers. The only US carrier was Frontier, which was fined $2.2 million by the agency.

    Frontier recently launched an unlimited annual flight pass currently for $799 – though it comes with caveats, such as blackout periods concentrated around the holidays. Customers also can’t book a domestic flight more than a day in advance.

    It’s not the only carrier without a call center for its customers. Breeze Airways, an airline founded in 2018 by JetBlue’s David Neeleman, does not even have a call center phone number. Customers are advised to contact the carrier via Facebook Messenger, text, email or they can make changes to their flights on its app and website.

    – CNN’s Geneva Sands and Pete Muntean contributed to this report.

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  • What could the roll-out for instant payments mean for Switzerland? Three evolutions to consider – Banking blog

    What could the roll-out for instant payments mean for Switzerland? Three evolutions to consider – Banking blog

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    The wide-scale rollout of instant payments planned for August 2024 will require financial institutions to upgrade their payments systems, and the market participants may see fundamentals shift. Here we look at three evolutions and their impact on payments in Switzerland.

    In August 2024, SIX SIC (Swiss Interbank Clearing) Phase 5 will roll out instant payments (IP). Banks will be required to upgrade their payments systems to allow for real-time settlement, fraud detection, and liquidity management. IP will reduce operational costs via automation and capture additional revenue from corporate clients and customers with high payments value and volume. As a result, greater customer satisfaction, economic benefits, and new service offerings are expected.

    We look at three evolutions in which IP can change the payments landscape in Switzerland.

    This blogpost is the first in our series dedicated to “The future of payments in Switzerland – strategic outlook for financial and payments services executives”.  

    3 phases on how IP can change the payments landscape in Switzerland

    Evolution 1: IP becoming the norm in Switzerland – Banks upgrade their operating models and increase automation

    In the current system, inter-bank payments take at least one business day. The new IP system will enable immediate settlement, including payments of bills and large-value transactions. This will require banks to manage their liquidity in real-time and process related payments instantaneously, including exception handling, fraud detection, and regulatory compliance with AML regulations.

    To establish their business case for IP banks must factor in upgrades to their systems and operating model and implement the required automation of their payment processes.

    Savings are expected from reduced operating costs due to the enhanced automation of payment processes. To further support the business case, banks must analyse the pricing structure for their IP services and assess how to include them in retail account packages under predefined limits (in volume and value) while charging a convenience fee for transactions with higher volume or value. For corporate clients, additional sources of revenue can be found from use cases where IP packaged with cash management solutions can be sold at a higher value.

    Evolution 2: IP acting as an enabler for point of sale and online payments – POS and e-commerce IP-enabled solutions

    Retailers in Switzerland currently rely on card transactions and mobile payment methods such as TWINT for both point of sale and online transactions. The new IP technology will impact these payment methods: fintechs could be encouraged to build account to account payment offerings with IP charging lower fees. Switzerland’s payment processors (SIX and financial institutions) could respond to this threat by assessing whether combining a request to pay (R2P) service, such as eBill with IP should become a preferred solution, shifting payment at the point of sale to clients’ e-banking channels. To enable this a new solution for both online payments and point of sale (POS) systems would be designed.

    Banks could also benefit from gathering data from IP about customer behaviour through data analytics of anonymised aggregated data.

    Evolution 3: IP expediting new banking digital solutions – IP becomes an enabler for online offerings

    For the retail market, there are currently already several digital banking and investment services, operating in Switzerland. Using IP for these services customer onboarding attrition can be reduced, given the ability to onboard and instantly fund a new account online. Fintech banking platforms in the Swiss market such as Neon, Yapeal, Revolut, N26 should consider its implementation. Traditional banks, such as Credit Suisse’s CSX, UBS’s 4Key, Bank Cler’s Zak and Post Finance, will need to assess how fintech’s use of IP could compete with their own digital offerings. or N26 and investment management fintechs such as Kaspar& and traditional banks digital offerings, such as Credit Suisse’s CSX, UBS’s 4Key, Post Finance and Bank Cler’s Zak should study how to optimize their customer journeys with IP to enable instant onboarding.

    Similar evolution is expected on the corporate and private banking market: IP can enable solutions to be built by fintechs and banks to enable real-time cash management for corporates, funds, and high-net worth individuals powered by open banking platforms such as Swiss SIX’s bLink offering.

    Finally, the ongoing work on central bank digital currencies (CBDCs) by both the Swiss central bank (Project Helvetia) and the European central bank (Digital Euro) is a long-term driver for Banks to assess how best to implement their payments operations and architecture to future-proof themselves for upcoming CBDC release: IP functionalities are a required step in that journey.

    What now?

    Each of the three evolutions aims to provide a better customer experience, new offerings, and optimized costs. Still, their success depends on the strategic outlook of the payments’ stakeholders in the Swiss market for the following years. First-mover advantage and studying a long-term payments strategy will support navigating payments challenges successfully:

    • Future-proofing the payments system architecture and upgrading it to support IP
    • Digitalising operations with a focus on achieving fully digital front-to-back flows and
    • Using customer data to identify long-term trends and incorporating them into building innovative payments strategies/offerings
    Sergio cruz blog

    Sergio Cruz, Partner, Consulting

    Sergio is the lead Partner of Deloitte’s Business Operations practice in Zurich and has more than 25 year of experience in Consulting. He focuses on large scale front-to-back digitalisation programs in financial services and has worked on several large assignments both in Switzerland and abroad, covering the implementation of regulatory requirements and the definition as well as implementation of target operating models and process optimisations.

    Email | LinkedIn

    David Klidjian_3 (002)

    David Klidjian, Director, Consulting

    David is Deloitte Switzerland’s Core Business Operations Banking lead and a Director in the Consulting practice in Zurich, with global experience gained in consultancy and the banking industry. He has a macro view across banking products, services, regulations, and systems, as well as detailed knowledge of key processes in private banking, compliance and capital markets/sales and trading. He has advised clients through impactful, multi-year business transformation in top tier private and investment banks in Switzerland, the UK, the US, and APAC.

    Email  | LinkedIn

    David frei

    David Frei, Director, Consulting

    David is Deloitte Switzerland’s Payments Lead and a Director in the Business Operations Consulting practice in Zurich, with global experience gained in Consultancy and the Banking industry. He has vast experience and a macro view across retail and banking payments, financial service products, consumer, payments costs, regulations and systems as well as detailed knowledge of key processes in Acquiring, PSP and omni-channel/e-commerce payments. He has advised large clients through impactful payments transformation and digital payments projects in Switzerland and Europe.

    Email| LinkedIn 

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  • Amazon debuts new shopping portal for customers on government assistance | CNN Business

    Amazon debuts new shopping portal for customers on government assistance | CNN Business

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    New York
    CNN Business
     — 

    Amazon on Monday launched a new shopping portal called Amazon Access that is designed for shoppers receiving government assistance.

    The shopfront features SNAP EBT on Amazon, information about the Amazon Layaway program that all shoppers can use to pay for their orders over time and spotlights discounts and coupons for any customer on essential grocery items.

    Amazon already offers some services for low-income customers, such as discounted Amazon Prime membership. It also accepts Supplemental Nutrition Assistance Program or SNAP benefits for groceries purchased through Amazon Grocery, Amazon Fresh and Whole Foods. The company said the new portal is meant to be a centralized hub that puts these individual benefits all in one place.

    “Given the tough economic climate with many facing rising costs on essential needs, we want our customers to know about all the accessible offerings available on Amazon, no matter their circumstances,” said Nancy Dalton, head of community partnerships for Amazon Access.

    Amazon

    (AMZN)
    also announced it has renamed its discounted Prime membership to Prime Access. Eligible customers can sign up for the service on Amazon

    (AMZN)
    Access.

    Neil Saunders, retail analyst and managing director at GlobalData Retail, said the new portal could be useful for lower-income shoppers.

    “It is something positive Amazon can point to, which shows it is helping hard-pressed consumers during a more difficult economic period,” said Saunders, adding that Amazon “should be able to generate some incremental sales out of consolidating the benefits into a new shopfront.”

    At the same time, he didn’t think Amazon Access would help boost Prime membership numbers significantly.

    “Amazon sees this as a way of growing Prime at a time when it is near to saturation in the US, as there are still many lower income consumers who do not have access to the program,” said Saunders. Former Amazon CEO Jeff Bezos said in an April 2021 letter to shareholders that the company has more than 200 million Prime members worldwide.

    Earlier this year, Amazon said the price of its annual Prime subscriptions would increase from $119 to $139 per year in the United States and its monthly subscription would also increase from $12.99 to $14.99.

    The company said it was increasing the cost because of “expanded Prime membership benefits,” such as added Prime Video content and expanded free same-day shipping, as well to compensate for the rising costs of labor and transportation in its distribution network.

    –CNN’s Clare Duffy contributed to this report.

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