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8 myths about Canadian credit scores newcomers need to know
Having a good credit history and credit score is fundamental for your long-term financial success in Canada. Your credit score is an indicator of your creditworthiness and you’ll need a good credit score to qualify for loans, mortgages, and even apartment rentals. As a newcomer in Canada, you might be unsure about how credit scores work or have some misconceptions about healthy credit practices. Here are eight myths about Canadian credit scores that newcomers need to safeguard themselves against in order to build a good credit score. Myth 1: Credit history from my home country counts in Canada Before arriving in Canada, you might already have a substantial credit history in your home country. Many newcomers believe that this credit history from their home country will transfer over to Canada, and that they will not need to start afresh. However, this is not true. Countries have different credit agencies and ways of calculating credit scores. As a result, your credit score and history from your home country are not transferable to Canada. Your Canadian credit history only starts after you arrive and get credit in the form of a credit card, loan, line of credit, or mortgage, from a Canadian financial institution. If you’re moving to Canada from the United States, the same credit agencies, Equifax and TransUnion, might be responsible for tracking your credit history in both countries. However, these agencies don’t share information across international borders, so you’ll need to start building your credit history from scratch in Canada. That being said, starting with no credit history is not the same as starting at the bottom of the credit scale. Once you start using and paying off your credit card bills, your credit score will likely start in the “fair” range. Myth 2: Money in my savings account counts towards my credit score As a newcomer, it is usually a good idea to set aside some money in a chequing or savings account for future expenses and emergencies. A high-interest s raavings account (HISA) can even help you grow your money. However, these funds have no impact on your credit score. Savings and chequing accounts are not listed on credit reports because no borrowing or debt is involved in these accounts. Since your credit score and history reflects your ability to repay debt, only financial products that involve credit, such as credit cards, loans, lines of credit, or mortgages, are included in your credit report. However, the money in your chequing and savings account can be used to pay off debt and maintain a regular payment schedule for your credit products, especially in times when your income isn’t enough to cover these payments. Ensuring you make regular debt payments will help improve your credit score. Myth 3: Credit scores don’t matter – I won’t take credit unless I need it Many newcomers come to Canada from countries that are credit-averse, where getting into any kind of debt is frowned upon. In such a case, you may either have limited experience with credit or your instinct may be to only take credit when you need it. In Canada, however, credit plays a crucial role in the economy and having a good credit history is essential for your financial success. A credit score is an assessment of your creditworthiness, or the likelihood that you’ll pay off your debt based on your past financial history. While you may not need credit today, building your credit history early will help you qualify for loans and lower int erest rates when you apply for a car loan, education loan or mortgage later. In fact, in some cases, you’ll also need a good credit score for your application to rent a home, obtain a cell phone plan, and even on an employment application. As a newcomer, getting and using a credit card is the easiest way to build your credit history. Start paying for routine purchases like groceries and household essentials with your credit card instead of cash to get comfortable with the concept of credit. Then pay off the balance of your credit card each month from your chequing or savings account. Myth 4: My credit score is based on my income Many newcomers think that you need to be rich to have a good credit score. In truth, however, your earnings are not directly factored into the calculation of your credit score and are not included in your credit history. Credit scores reflect your payment history, or how well you repay debt, rather than how much money you have available. A high income is no guarantee that you’ll use that money to pay off your bills. Regardless of your income, you should be careful about only taking credit that you can pay off in a regular, timely manner. Credit utilization ratio, or the percentage of your overall available credit that is currently being used, is another factor that impacts your credit score. RBC advisors typically recommend using up to 35 per cent of your credit limit, in order to build your credit score. Increasing your credit limit will increase the amount of credit you can use without having a negative impact on your credit score. Your earnings can have an indirect influence when you’re applying for new credit products or for an increase in your credit limit, as financial institutions will usually take both your income and credit history into account. Myth 5: Getting more credit cards is the best way to improve my credit score As a newcomer, it can be tempting to believe that getting multiple credit cards will help you build your credit score faster. However, that’s not necessarily true. Having multiple credit cards can either help or hurt your credit scores, depending on how you use them. While multiple credit cards will give you access to a larger total credit limit, your credit score will be determined by how you use that limit. If you’re using your credit cards wisely and paying off all the bills in full, on time, then having multiple credit cards can work to your advantage. Since your credit utilization ratio takes into account the limits of all your credit cards and other credit products, maintaining the same level of spending even after you get additional credit cards can lower your overall credit utilization and improve your credit score. However, having several credit cards can also create a situation where you end up spending more than you can easily repay. This can result in delayed payments, which in turn, lead to high interest and penalties. It can also negatively impact your credit score. You should speak with a financial advisor to better understand which credit card options may be right for your unique situation and whether you need multiple cards. Myth 6: Checking my own credit score will lower it When you’ve just started building your credit history, it’s important to keep track of your credit score to make sure it’s heading in the right direction. This can also help you identify and report errors or instances of identity fraud in a timely manner. However, many newcomers mistakenly believe that checking their credit score will negatively impact it. The fact is that when you check your own credit score or credit report, it counts as a “soft” inquiry and doesn’t hurt your score. However, a “hard” inquiry, such as by a financial institution or lender, can lower your score by a few points. Hard inquiries are usually initiated by banks, lenders, or mortgage providers to check your creditworthiness before they can issue a new loan, credit card, or other credit product to you. It’s important to note that when multiple inquiries for the same type of loan are made within a short period of time, such as when you’re shopping around for mortgage rates, they are typically counted as one inquiry. Some banks like RBC allow customers to check their credit score for free, at any time, using their online banking portal. You can also get copies of your detailed credit report through Equifax or TransUnion. Myth 7: I just need to pay the minimum balance on my credit card to keep my credit score up One common misconception that newcomers have is that carrying balance on a credit card improves your credit score. This is inaccurate and, if regularly practiced, can negatively impact your credit score. If you’re only paying off the minimum balance on your credit card for a particular month, it doesn’t count as a missed payment, so there may not be an immediate direct impact on your credit score. However, you’ll be charged interest for the remaining balance in the next payment cycle. Credit instruments like credit cards typically have very high rates of interest, and putting off paying balances in full can make it harder for you to pay off your debt later. In addition, most financial institutions and creditors look at how much you owe compared to how much credit you have available. Therefore, carrying a balance from one month to the next can increase your overall credit utilization ratio. This can adversely impact your credit score. That being said, if you’re in a situation where you’re struggling to cover expenses, prioritize debt payments based on the interest rates they carry. Wherever possible, make at least the minimum payment and pay off the remaining amount as soon as possible. Speak to a financial advisor to get advice that is specific to your financial situation. Myth 8: My credit score will be the same with every agency The two national credit reporting agencies, Equifax and TransUnion, have their own independent scoring criteria for calculation of credit scores. Although they take similar factors into account—your payment history, credit utilization ratio, duration of credit, etc., your score could vary slightly based on which agency’s report you’re looking at. When a financial institution or lender runs an inquiry on your credit score, they might look at reports from any credit reporting agency. It’s a good practice to keep a close eye on your credit reports with both major credit agencies to stay up-to-date on your financial position. A good credit score will be crucial as you navigate the financial system as a newcomer in Canada. The task of building a great credit score from scratch in a new country may seem daunting. But by knowing what can harm or improve your credit position and practicing healthy financial habits, you can uncover your path to financial success in Canada. Original article located here, published by Arrive. About Arrive Arrive is powered by RBC Ventures Inc, a subsidiary of Royal Bank of Canada. In collaboration with RBC, Arrive is dedicated to helping newcomers achieve their life, career, and financial goals in Canada. An important part of establishing your financial life in Canada is finding the right partner to invest in your financial success. RBC is the largest bank in Canada* and here to be your partner in all of your financial needs. RBC supports Arrive, and with a 150-year commitment to newcomer success in Canada, RBC goes the extra mile in support and funding to ensure that the Arrive newcomer platform is FREE to all. Working with RBC, Arrive can help you get your financial life in Canada started – right now. Learn about your banking options in Canada and be prepared.
How to protect yourself against financial fraud as a newcomer in Canada
As a newcomer in Canada, your financial security is of prime importance. However, fraudsters and scammers recognize that newcomers can be easy targets, as they don’t necessarily have the information needed to protect themselves against fraud. Being in a new country, you may not be aware of the ways in which financial fraud occurs, how to identify fraudulent situations, or where to report fraud. This article gives you an overview of the various types of financial fraud and scams that occur in Canada and provides valuable tips to help protect you against financial fraud as a newcomer. Recognizing common financial fraud and scams in Canada Phishing emails or text messages Phishing emails or text messages are often designed to look like they are from a source or website you trust, like your bank or an online store. The sender will ask you to click on a link or download a file, or will try to create a sense of urgency, such as saying there has been some suspicious activity from your account or that you need to update your payment information to keep your account active. Be sure to check the email address the email originated from. If the domain name doesn’t match the organization’s name, it’s likely a phishing attempt. Other red flags can be bad grammar, a generic greeting, or unsolicited attachments in the message. If you suspect that an email or text is fraudulent, call the organization to verify before clicking on any links or sharing any personal information. Generally, Canadian banks will never ask you to share personal information, such as account numbers or Social Insurance Number (SIN), over email or text message. Debit or credit card fraud Debit or credit card fraud happens when someone steals your credit card, PIN, or bank card information and uses it to make purchases or withdrawals from your account. Fraudsters can use different ways to get your credit card information, including stealing bank statements from your mailbox or garbage, hacking into company databases to steal information, prompting you to use your credit card on a fake website, or through phishing emails. You can prevent debit and credit card fraud by keeping your credit card and personal information safe. Check your bank statements or banking app regularly to ensure that you can identify all the transactions. If you think you have been a victim of credit card fraud, call the phone number on the back of your credit card immediately to get in touch with your bank and lock your card to avoid additional fraud. Immigration and citizenship fraud There are several private immigration consulting organizations that specialize in helping newcomers come to Canada. However, if you come across a website that asks you to pay for immigration or application forms or guides that are otherwise available for free on the Immigration, Refugees, and Citizenship Canada (IRCC) website, it might be fraudulent. You may also receive fraudulent phone calls or emails from someone posing as an immigration or citizenship service provider, claiming that they can guarantee entry into Canada, provide jobs, or fast-track your immigration processing for a fee. Never share your financial details with such organizations without contacting the website owner and checking online reviews to confirm the legitimacy of the business. Also, learn about the immigration and citizenship process so you can identify fake claims. Employment fraud While looking for a job as a newcomer in Canada, be on your guard against fake “employment agencies” who ask you to pay for “training” in order to get a job or promise you a guaranteed job if you pay a large upfront fee. Legitimate recruiters or agencies in Canada will never guarantee job placements or force you to undergo mandatory training. Typically, when employers use external recruiters or agencies to find candidates, the organization, not the candidate, pays the agency’s fee. Fake phone calls from “CRA” or tax fraud Many newcomers receive fraudulent phone calls from someone claiming to be from the Canada Revenue Agency (CRA) or Service Canada. Typically, the caller (or recorded message) will state that you have unpaid tax liabilities or that your Social Insurance Number (SIN) has been compromised. In some instances, scammers may even claim there is a warrant out for your arrest, which can be quite alarming. They may ask you to share your SIN number or make a payment through wire transfer, bitcoin, or prepaid gift cards. These callers are often aggressive and use threatening language to scare the recipient. In a variation of this type of fraud, the caller (supposedly the CRA) will claim that you’re entitled to a tax refund and will need to share your banking information to get it. The CRA typically contacts individuals by message in their secure online portal, so if there is an issue with your tax return, you will see a message about it there. If you’re unsure about the legitimacy of a call, hang up and call the agency to verify its authenticity. Educate yourself on the ways legitimate government agencies can contact you and the questions they may ask. Pyramid or Ponzi schemes A pyramid scheme is a business model where you’ll be offered payment or commission for enrolling other members, rather than for selling actual products or services. You’ll be asked to pay an upfront “membership fee,” with promises of being able to turn a profit once you start bringing in more members. A Ponzi scheme is a type of fraud where you’re lured into investing money with the promise of very attractive dividends. In reality, your money is not being invested anywhere and is instead being used to pay “dividends” to other investors. Investors may receive lucrative dividends for some time until the pool of new investors dries up. If the promised returns seem too good to be true, it may be a Ponzi scheme. Be sure to carefully vet investment opportunities or speak to your financial advisor before making any investments. Catphishing or romance fraud If you’re active on dating sites or apps, keep an eye out for romance fraud. Catphishing, or catfishing, is when a person pretends to be someone else online, using a fake name, photograph, or story. A fraudster may spend time talking to you online, and once they’ve established a romantic connection, they’ll ask you for money, claiming that they need it to help a sick relative or get over a bad stretch. In some cases, the scammer may even meet you in person to make the relationship seem more legitimate. Fake computer virus or ransomware In this type of scan, the victim gets a call or email claiming that their computer has been infected with a virus. The scammer may ask for money to remove the virus or could try to access personal information and passwords through their device. Be sure to install an anti-virus to protect your laptop and mobile device. Fake prizes If you receive a message, email, or phone call saying you’ve won a prize for something you don’t remember participating in, it’s probably a scam. Fraudsters may use this opportunity to collect your personal information or verify your contact details, so avoid responding to such messages or sharing any information. If you’re unsure about the legitimacy of the prize, check the organization’s website to confirm whether the contest or offer is real. Tips to protect yourself against financial fraud as a newcomer Financial fraud can impact your financial stability and, as a newcomer, it’s important to safeguard yourself against potential threats and fraudulent activities. Here are some key things you should keep in mind to protect yourself against financial fraud: Keep close track of finances. Review your bank account, credit card statements, and credit report regularly and report any inconsistencies early. If you’re unsure about what to look for, speak to a financial advisor for more information. Protect your personal and financial information. Change your banking passwords often and don’t write them down. Keep your credit card and credit card information safe, and don’t use your credit card on untrustworthy websites. Don’t share your personal or financial information, including your SIN, unless you know why it’s needed and how it will be used. Educate yourself on who can ask for your SIN or credit history, and only share this information if it’s absolutely necessary. Learn to identify fraud. If an offer seems too good to be true, it’s likely fraudulent. Always review the terms and conditions of the service or financial product you’re purchasing before making any payments. Borrow only from trustworthy financial institutions. Credit is an essential part of Canada’s financial ecosystem. Financial institutions like banks, credit unions, mortgage providers can provide you with credit to cover your expenses. Avoid going to illegitimate local lenders or payday loan providers as they could misuse your financial information or lead you into debt. Verify suspicious phone calls or emails and report fraud. If you’re unsure about the legitimacy of an email or call you received, check for signs of phishing or contact the organization or agency to verify whether the information is accurate. Don’t share your financial or personal information with anyone or click on any links until you’ve verified the authenticity of the message. If you suspect that you’ve received a fraudulent phone call or email, report it to the Canadian Anti-Fraud Centre by telephone at 1-888-495-8501, through their website, or by email (info@antifraudcentre.ca). If your SIN has been stolen, report it to Service Canada at 1-866-274-6627 as soon as possible. Keep your laptop and mobile devices safe. Never give physical or virtual access to your devices to someone who isn’t an authorized service professional or someone you didn’t contact for service or repair. Your devices may contain saved passwords, login details, or other personal information that fraudsters can extract and misuse. Always wipe your devices by restoring factory settings before selling or scrapping used laptops or mobile phones. As a newcomer in Canada, receiving phone calls from someone posing as a CRA official can be alarming. By learning to recognize common financial scams and verifying potentially fraudulent claims, you can safeguard yourself against fraud. Remember, by reporting fraudsters, you are protecting not just yourself but also countless others who may otherwise be targeted by financial scams. Original article located here, published by Arrive. About Arrive Arrive is powered by RBC Ventures Inc, a subsidiary of Royal Bank of Canada. In collaboration with RBC, Arrive is dedicated to helping newcomers achieve their life, career, and financial goals in Canada. An important part of establishing your financial life in Canada is finding the right partner to invest in your financial success. RBC is the largest bank in Canada* and here to be your partner in all of your financial needs. RBC supports Arrive, and with a 150-year commitment to newcomer success in Canada, RBC goes the extra mile in support and funding to ensure that the Arrive newcomer platform is FREE to all. Working with RBC, Arrive can help you get your financial life in Canada started – right now. Learn about your banking options in Canada and be prepared.
Declining viewership for live events, including the Super Bowl, presents concerns for advertisers
This year’s NFL Championship, best known as the Super Bowl, will again be one of the most watched events. But public interest in live events appears to be declining, even for the “Big Game,” say two marketing professors at the Indiana University Kelley School of Business. “Live sports events are the last stand for live TV, with the Super Bowl being the biggest spectacle to unite the American audience. Live events like this are languishing. Need proof? Look at record low ratings for award shows,” said Ann Bastianelli, teaching professor of marketing at Kelley, who added that the Super Bowl remains “a rare opportunity to gauge the U.S. cultural consciousness.” “The early reports and teasers suggest that Super Bowl viewers are in for a smorgasbord of memorable and even humorous commercials, providing some much-needed laughs during the ongoing pandemic. Even so, the Super Bowl isn’t enjoying the same viewership it once had which should prompt changes in marketing decisions,” added Demetra Andrews, clinical associate professor of marketing. With a television audience of more than 90 million last year, the Super Bowl continues to provide the biggest platform for advertisers. But, according to Andrews, television viewership of the Super Bowl has declined fairly steadily for years and the increase in livestreaming of the game does not account for the decline. Of note, she said, is a persistent decline in watchers aged 18-49 since 2008, a key component of the Super Bowl audience. According to Morning Consult, 40% of Generation Z-aged American aren’t sports fans, compared to only 24% of Millennials opting out of sports. Gen Z may be more likely to watch and share ads online than during the sporting event. “Despite this, the price for advertising during the Super Bowl has remained high for a 30-second ad. This is likely to prompt marketing organizations to reexamine the value of the Super Bowl as a promotional platform,” Andrews said. The cost of a 30-second commercial in the 2022 game is $6.5 million, up significantly from the $5.5 million price tag of just a year ago. “Clearly, the network is not bashful about asking that, even with the misgivings that advertisers have had in the past few years,” Bastianelli said. Super Bowl parties traditionally have been a big part of the game day experience and something most attractive to advertisers. But with larger gatherings discouraged and even restricted last year, this aspect was greatly diminished for the 55th Super Bowl. More people may gather to watch the game, while others will be hesitant to do so. “Without Super Bowl parties, brands might not get the same return on investment, because people couldn’t discuss ads in real-time with others, so brands shifted to digital/online advertising to avoid the $5.5 million price tag,” Bastianelli said. They also do this “because spending money online builds reach and frequency and gives brands valuable data to maximize customer engagement much more cost-efficiently. “The downside is that, while culture spreads at the speed of social, it’s much harder to stand out with sustained hype,” she added. Reevaluation of the Super Bowl as a promotional platform should include a determination of whether an organizations’ target customer groups are likely to watch or attend a Super Bowl event, Andrews said. Both professors are available for interviews. Contact George Vlahakis at vlahakis@iu.edu for assistance.
The landscape of college athletics has changed greatly in the past year. For the first time ever, student athletes can now profit from the use their name, image and likeness. It’s been a hot topic subject for years, and now it’s come to fruition. Dr. David Hunt is an associate professor at Augusta University’s Pamplin College of Arts, Humanities, and Social Sciences and also the faculty athletics representative at AU. “It’s different for Division I and for Division II. For DI, there’s bigger audiences and they have bigger followings. But it isn’t D1, D2 and D3 specific; it just seems like people are willing to put more money into programs at the D1 level,” said Hunt. While some may think NIL deals go to the most popular athletes, that’s not always the case. “There are a lot of NIL opportunities for people who don’t have a huge number of followers, because it tends to hit a particular niche,” added Hunt. It’s not just the notoriety on the court or playing field that can garner an NIL deal, but also a player's social media activity and number of followers. These can be a big tool for student athletes receiving compensation for outside business ventures. “It can be cash or it can be in-kind payments. So for some influencers, companies just send them stuff in an effort to get them wearing it on their social media channels.” Some schools and athletic programs have already negotiated deals for an entire team where all the players can benefit from it, but Hunt said it could lead to legal questions over potential conflict of interest deals. “If a basketball program gets a NIL deal for the whole program with Adidas, can an individual player wear Under Armour? Can an athletic department even do that? It can be helpful and beneficial and monetarily advantageous for those students, but it’s not the students doing that,” said Hunt. All the NIL deals, especially those where schools negotiated them, can be used as a recruiting tool to entice athletes to come play for their program. This could create a recruiting advantage for some states over other states. “One university received NIL deals for every single female athlete. That is a huge advantage compared to other universities. So now some universities can recruit students based on the NIL opportunities and if the university has a support program for it, they can say we have a structure in place that you can take advantage of.” This is an important and emerging topic happening in schools and athletic programs across America, and if you’re a journalist looking to know more, then let us help with your questions and coverage. Dr. David Hunt is available to speak with media regarding student athletes now being able to profit from their name, image and likeness – simply click on his icon now to arrange an interview today.
Ask an Expert - Are American Fan-Based Businesses at Risk for Decreased Revenue?
Modern fandom, according to Mike Lewis, is about having a passion for something—a sports team, entertainer, politician, fashion brand, a university—something. Lewis, professor of marketing and faculty director, Emory Marketing and Analytics Center (EmoryMAC) and host of the podcast, Fanalytics, considers fandom important because what people are fans of defines a modern culture. We can laugh at the sports fan with the painted face and the open shirt and the spikes on the sleeves, but the reality is, the traits that drive that level of enthusiasm and commitment are the traits that change the world outside of the arena. Mike Lewis, professor of marketing and director of EmoryMAC To better understand modern fandom and its effect on culture, Lewis, along with Yanwen Wang, Associate Professor of Marketing and Behavioral Science, and Canada Research Chair in Marketing Analytics, University of British Columbia, created EmoryMAC’s “Fandom Analytics Initiative.” The Fandom Analytics Initiative’s first report, Next Generation Fandom Survey, Generation Z: The Lost Generation of Male Sports Fans, published in September 2021, examines the results of a national survey the initiative commissioned. Nearly 1,400 people across four demographic groups—Generation Z, Millennials, Generation X and Baby Boomers—participated in the survey. Is Gen Z the Lost Generation of Male Sports Fans? The results reveal a somewhat troubling trend: Generation Z males (those born between 1990 and 2010) “seem to be increasingly indifferent and negative to traditional sports,” Lewis and Wang write in their report. “Generation Z’s relative lack of passion for sports and other categories is troubling for fandom-based businesses and a curiosity for those interested in the state of American society.” While only 23 percent of Generation Z defined themselves as “avid sports fans,” 42 percent of Millennials did, along with 33 percent of Gen Xers and 31 percent of Baby Boomers. Perhaps even more revealing is the percentage of respondents who considered themselves “anti-sports fans”—a startling 27 percent of Generation Z tagged themselves as “anti-sports” compared to 7 percent of Millennials, 5 percent of Gen X, and 6 percent of Baby Boomers. “That was unexpected,” says Lewis, who thought Generation Z would line up similar to Millennials, given that both groups are digital natives. “I’m still more and more surprised at how different Generation Z is than Millennials and, frankly, everyone else.” When Lewis and Wang took a look at the differences between male and female Generation Zers, things got even more interesting. In traditional sports categories (football, basketball, hockey, baseball, soccer), more Generation Z females defined themselves as “avid sports fans” than did their male counterparts. When it came to football, 20 percent of both Generation Z males and females described themselves as avid fans (the lowest percentage of all the demographic groups). But in every other traditional sport, Generation Z “avid sports fan” females outnumbered males by a discernable margin. Only when it came to eSports did Generation Z males outnumber Generation Z females. “I think there’s a very deep issue going on,” says Lewis. “Something fundamental has shifted.” The survey included questions about fandom-related psychological traits, specifically, community belonging and self-identity. On both, Generation Z males scored lower than Millennials. “The findings related to sports are particularly germane from a cultural perspective,” states the report. “Part of the lack of Generation Z fandom is due to younger individuals having less intense feelings of group belonging in general.” Beyond the Playing Field, How Does Loyalty Shine? While the report doesn’t take a deep dive into the psychology behind Generation Z’s fandom differences, it does note that Generation Z came of age during a time of “ubiquitous social media, dramatic demographic changes, and a hyper-partisan political environment,” they write. “These dramatic changes may fundamentally alter how members of Generation Z engage with cultural industries.” Overall, Millennials were shown to have the “highest preference across all sports,” according to the report. Millennials are not only willing to watch games, but they also enthusiastically wear team gear. Baby Boomers are up for watching games but are less interested in following teams on social media. As it turns out, note the authors, Generation Z isn’t totally disconnected. Across the entertainment categories, Generation Z is similar to other generations. “Sports fandom is the outlier,” they state. In addition to sports, Lewis and Wang looked at six other fandom segments: new and now celebrities, social justice culture, athletic excellence, old school personalities, brand fanatics, and Trump Fans. Lewis points to the fact that whatever one thinks of Donald Trump, he does generate fandom. “That passion for whatever it is—sports, politics, movies, music—that’s really what drives the world,” says Lewis. Because of its importance, fandom is, notes the study, “increasingly actively managed,” whether to garner viewers, money, or votes. Recent trends such as streaming across devices, the ubiquity of social media, an increase in demographic diversity (not to mention a once-in-a-lifetime pandemic), have affected mainstream sports and entertainment. As a result, Lewis believes it’s important to study how fans are changing across generations. Leagues, teams, networks, studios, celebrities, and others need to understand why there is less engagement to formulate strategies for acquiring the next generation of fans. Authors Mike Lewis and Yanwen Wang As sports leagues and teams see more growth opportunities with women and increasingly diverse fan bases, Lewis wonders if some sports teams may alienate their current fan bases by marketing to non-traditional groups. “If you’re a league or a team, you’ve got a real dilemma at this point,” he explains. “If the NFL wants positive press, it has to market to the non-traditional fan segments. If they do that, are the traditional fan segments going to be less interested? Perhaps.” EmoryMAC’s research on fandom in the modern age is ongoing. A study into how eSports’ fandom differs from traditional sports fandom is also in process—as is research on how younger demographic groups see colleges and universities as institutions worthy of fandom. EmoryMAC will continue to make data and insights available on its fandom analytics website. “Looking at the fandom and passion of young groups now will tell you a lot about what the world will look like in 20 years,” says Lewis. I suspect that the era of sports being a mass marketing product and also a cultural unifier is probably going to end. Mike Lewis While that strikes Lewis as sad, he and EmoryMAC are merely following the data. “It may be the reality of where this is going,” he adds. If you're a reporter looking to know more - then let us help. Professor Michael Lewis is an Associate Professor of Marketing at Emory University’s Goizueta Business School. In addition to exploring trends in the overall marketing landscape, Lewis is an expert in sports analytics and marketing. He is available for interview - simply click on his icon to arrange a discussion today.
Aston University MBA students to work with SMEs through new Virgin Money programme
The Levelling Upstarts programme is open to all small and medium-sized enterprises (SMEs) The Virgin Money programme aims to match SMEs with MBA students from leading university business schools, including Aston Business School Applications for the programme are open and will run until the end of February. Virgin Money has launched an innovative new programme which gives SMEs the opportunity to partner directly with MBA students from leading universities, including Aston University, through digital workshops to help them solve specific business challenges. Levelling Upstarts aims to both empower regional SMEs to level up and to foster the next generation of business leaders. The programme will help SMEs overcome challenges such as building brand awareness, honing a competitive advantage or selling into new markets. They will receive tailored guidance and recommendations through access to MBA students at leading universities, including those from Aston Business School. The digital workshops for successful applicants will be held with Aston University in March and June. Around 40 businesses will be selected to take part in the initial round of workshops across the three business schools on the programme. Kirit Vaidya, Fulltime MBA programme director at Aston Business School, said: “We have been working with Virgin Money for over two years. We are excited to participate in the Levelling Upstarts programme. “Our students have experience and expertise in a range of areas including IT, marketing, operations and human relations in addition to what they learn on our MBA programme. “The students gain enormously from the experience of applying their knowledge to add value for businesses. The participating businesses gain from the students’ expertise and fresh perspectives in addressing specific challenges or to transform their business models in a fast-changing world.” Professor George Feiger, executive dean of the College of Business and Social Sciences at Aston University, said: “Both our students and the participating businesses can gain immensely from the Levelling Upstarts programme by sharing ideas, putting thoughts into practice, offering alternative perspectives, challenging the perceived norm, creating bold solutions and ultimately working in partnership to enable the SMEs to move forward. “It is also a unique opportunity for tomorrow’s entrepreneurs to gain direct access to the growing businesses of today, putting their training into practice and gaining new skills along the way, boosting their employability.” Graeme Sands, Interim Head of Business Banking at Virgin Money, said: “Our new Levelling Upstarts programme enables businesses to get focused, comprehensive and free support that otherwise may not be available to them. “By pooling the resources of talented business students and helping them think outside of the box, the programme can help to help solve their business challenges while simultaneously giving MBA students valuable and transferable skills to help their future careers. “It really is a win-win for both students and participating businesses.” Applications for the programme are now open and will run until the end of February. Businesses that wish to express an interest can email levellingupstarts@virginmoney.com for further information on how to apply.
Is it better to give than receive? Our expert explains the science behind holiday gift giving
It's the holiday season -- full of merriment and cheer and gift giving. But why do we give gifts? And why is it a ritual that cuts across cultures on just about every continent on Earth? UConn professor Dimitris Xygalatas, an expert in human rituals, details the social science behind the centuries old tradition of exchanging gifts in a new essay for The Conversation: From the shells exchanged by Pacific islanders to the toys and sweaters placed under Christmas trees, sharing has always been at the center of many ritual traditions. This is fundamentally different from other forms of material exchange, like trade or barter. For the Massim, exchanging a shell necklace for a shell armband is not the same as trading yam for fish, just as giving a birthday present is not the same as handing a cashier money to purchase groceries. This speaks to a more general rule of ceremonial actions: they are not what they appear to be. Unlike ordinary behaviors, ritual actions are nonutilitarian. It is this very lack of obvious utility that makes them special. Professor Xygalatas is an anthropologist and cognitive scientist at the University of Connecticut who specializes in some of the things that make us human, including ritual, sports, music, cooperation, and the interaction between cognition and culture. He is available to speak with media, answering all your holiday ritual questions. Click on his icon to arrange an interview today.
Have you finished your Christmas shopping yet? If not – waiting for last minute deals or just pushing off the pain of navigating a jam-packed shopping mall might result in some failed efforts, unhappy kids and even the potential for coal in your own stocking for letting some loved ones down. Recently, John Talbott, the director of the Center for Education and Research in Retailing at the Indiana University Kelley School of Business was interviewed on the IBJ podcast to explain how supply chain woes may be creating chaos this Christmas. Experts expect shoppers to drop a record amount of money this holiday season. The National Retail Federation forecasts sales for November and December to grow between 8.5% and 10.5% over the same months in 2020. In total dollars, that would be between $843.4 billion and $859 billion. At the same time, the supply-chain issues that have plagued commerce since the start of the pandemic are expected to complicate gift buying and limit stock for some products. The answer is to get your shopping done as soon as possible, because you might not get a second chance, says John Talbott, the director of the Center for Education and Research in Retailing at the Indiana University Kelley School of Business. In the latest edition of the IBJ Podcast, Talbott explores other big questions with host Mason King. Does Indy’s status as a leading U.S. logistics hub give Hoosiers a leg up on gift availability? What role might inflation play in this year’s shopping season? Why are gift cards even more valuable than usual this year? How can we avoid cybercrime? And are there any blockbuster, must-have gifts for this season? November 28 – IBJ Podcast And if you’re a journalist looking to know more or covert this subject – then let us help. John Talbott is the Director for the Center for Education and Research in Retail at Indiana University’s Kelley School of Business. He’s an expert in the areas of retailing, relating marketing activities to financial outcomes, and new media communication. John is available to speak with media regarding this important topic – simply click on his icon now to arrange an interview today.
Aston University pharmacy graduate honoured for charity fundraising work
An Aston University pharmacy graduate has been recognised for his charitable fundraising in the Chemist and Druggist Awards 2021. Shoaib Hussain managed to raise thousands of pounds within just four weeks when he shared a video detailing his 2017 trip to help at Rohingya refugee camps in Bangladesh. He received the Above and Beyond Award at a ceremony held at the InterContinental London – The O2 on 19 November. Shoaib’s powerful video resonated so strongly with the public that he smashed his £25,000 fundraising target in just 24 hours. His campaign eventually raised £135,000 – all of which was donated to the charity Global Helping Hands, which is run by UK medical professionals. The money has paid for thousands of survival packs and the building of a medical centre, over 100 homes, 30 wells, and seven educational sites in Mosques. Shoaib said: “The video shared a personal account and was extremely difficult for me to voice. It detailed something I have not even spoken to my wife about fully, and something I still cannot talk about without tearing up when I remember what I witnessed.” Shoaib dedicated his award to “the refugees who I helped, and the donors who made it possible”.
Emory Experts - Post-Financial Crisis: How Well do Mutual Fund Stocks Fare?
Following the global financial crisis in 2008, the assets of passively managed mutual funds have ballooned, while the market share of actively managed funds has fallen dramatically. Addressing this topic, a new research has been coauthored by Jeffrey “Jeff” Busse, professor of finance, and Goizueta alumni Kiseo Chung 17PhD, assistant professor of finance, Texas Tech University and Badrinath Kottimukkalur 17PhD, assistant professor of finance, George Washington University. In their paper, the researchers explain the shift in assets from actively managed funds to passive funds, “Impediments to Active Stock Selection and the Growth in Passive Fund Management. In 1999, Busse and his coauthors explain, the net assets of passive funds were “less than an eighth the assets of active funds.” But by the end of 2019, “the market share of passive equity funds increased to more than 50 percent,” Busse, Chung, and Kottimukkalur note. Passive funds track indices such as the S&P 500, Dow Jones Industrial Average, NASDAQ Composite, and Wilshire 5000—all indices that have been difficult to beat over the last decade. According to the Wall Street Journal, from 2008 to 2018, more than 80 percent of actively managed funds in the U.S. underperformed the S&P Composite 1500. This is in large part, the trio notes in their paper, because the so-called “FAANG” stocks—Facebook, Apple, Amazon, Netflix, and Google—comprise such a large part of these indices. In fact, the top 10 stocks in the S&P 500 currently make up around 30 percent of its market cap. “The market caps of these companies are huge, and they’ve done exceptionally well since the financial crisis,” Busse explains. Hence, active fund managers and their teams of analysts have found it much more challenging to discover undervalued and overlooked stocks with positive alphas ─ the stocks that outperform an index. “As such, a general move toward passively managed funds is not so surprising,” the paper reveals. Finding Diamonds and Avoiding Duds Making it even more difficult to find diamonds in the rough is a lack of volatility in the stock market. Except for some isolated periods, including the month or so around the start of the pandemic in March 2020, the market hasn’t experienced much volatility since 2008. Without wide swings in prices, fund managers have less opportunity to buy low and sell high. Over the same time period, aggregate stock liquidity has also been high, which means less chance for fund managers to pick up winners at bargain prices. “When there’s money in the market—when there’s liquidity—it means there aren’t a lot of disagreements on prices,” explains Busse. “Liquidity is inversely related to mispricing,” the researchers explain in their paper. This combination of circumstances—the rise of the FAANG stocks, the lack of market volatility, and higher liquidity—is making it much more difficult for actively managed funds to find stocks that will help their funds beat the indices, and therefore, outperform the passive funds. As a result, justifying their management fees gets more complicated. According to Thomson Reuters Lipper, the average expense ratio (management fees divided by total investment in a fund) for actively managed funds is 1.4 percent compared to 0.6 percent for the average passive fund—nearly three times as much. While active fund managers have realized that these higher costs are no longer paying off and have moved to reduce them, actively managed funds continue to lose market share. Market Share Gain of Passively Managed Funds While the authors weren’t surprised by the growth of passively managed funds, they were surprised by how much they grew. From 1999 to 2019, the authors note, the number of actively managed funds grew by 11 percent, while the number of passively managed funds increased by 244 percent. “There haven’t been any papers that try to explain why passive funds have gained so much market share,” says Busse. He and his coauthors believe their research illustrates that it’s in large part because the market, post-financial crisis, is challenging for stock pickers. “As such, it has been difficult for actively-managed funds to recoup the costs associated with active management, and compared to earlier periods, passively managed funds are better positioned to gain market share,” they explain. “As the payoffs to active management decrease, it becomes more difficult to justify the costs of active management, and, thus, we expect funds to decrease these costs given their negative performance implications.” Busse doesn’t believe the current fund management environment will continue indefinitely. When the pandemic knocked the S&P 500 down 30 percent in March 2020, managers did gain opportunities to find positive alpha stocks—which they bought. “It’s just, on average, over the last 10 years, there haven’t been enough of those opportunities,” explains Busse. “It’s a matter of hanging in there and, in some sense, keeping your investors from fleeing to passive funds until the environment is a little bit better.” Jeffrey Busse is the Goizueta Foundation Term Professor of Finance where his research focuses on investments, with an emphasis on mutual funds. Jeff is available to speak with the media regarding this important topic – simply click on his icon now to arrange an interview today.
