Financial satisfaction of people in the U.S. rebounded strongly in the third quarter of the year, according to a new survey by the American Institute of CPAs, reversing the lows in the second quarter in the midst of the recession brought on by the novel coronavirus pandemic.
The AICPA’s Q3 2020 Personal Financial Satisfaction Index measured 33.1, representing a whopping 99 percent (16.5 point) increase from the previous quarter. That’s the biggest quarterly increase in the 27-year history of the PFSi, and a complete turnaround from the second quarter, when the index had its largest ever quarterly drop.
Dana Edwards is focused on designing and developing digital products for the US and UK Simply Business businesses. He has a track record of running product, technology, and data teams using the latest customer-centric, agile practices.
His passion is helping engineers, business teams, product teams, data teams, and enterprises work in a way that produces high quality products for customers. This drives him to create an environment of empowerment and inclusivity.
Dana joined Simply Business in 2022 with an extensive background in financial services. Previously, he held roles as Chief Technology Officer for firms such as PNC Financial Services and MUFG Union Bank. His career started with roles in product and technology development, and academics
Sam Rea is the chief technology officer at Aspire General Insurance, bringing over 20 years of experience leading IT organizations in the insurance industry. Prior to joining Aspire, he served as CTO for the PEAK6 InsurTech portfolio, overseeing technology across an agency franchise, MGA, SaaS platform, BPO service, and a national flood insurance processor. He previously held senior roles at National General Insurance as EVP and CIO, and at Zurich Insurance as assistant vice president.
Curt Hess is the U.S. Executive President at Vitesse, where he is leading the company's strategic expansion in the American insurance market. Curt brings over 25 years of experience across fintech and global banking, most recently as Chief Operating Officer at 10x Banking, helping scale operations at one of the UK's most innovative fintech firms. Prior to that, Curt held multiple C-level roles during a 12-year tenure at Barclays, including Chief Executive Officer of the US Consumer Bank and Chief Executive Officer of Europe Retail and Business Banking. Earlier in his career, Curt held senior finance leadership positions at Citi as well as with Bank of America in the U.S. His deep expertise in digital transformation, operational scale, and client-centric innovation uniquely positions him to drive Vitesse's U.S. momentum in the insurance space.
The PFSi is built around various factors, including the labor market. The gains can be mainly attributed to improvements in job openings per capita and underemployment. Those had the biggest impact on increasing the overall PFSi. The biggest factor driving the quarter-over-quarter rally was a 35 percent (37 point) decrease in underemployment. A decrease in underemployment improves overall financial satisfaction in the index. While there was an improvement in underemployment in the third quarter from Q2’s record high, it’s still 117 percent above its level a year ago. For the second consecutive quarter, underemployment is still the biggest negative contributor to the average American’s personal financial satisfaction. The Q3 underemployment level reflects data measured through the middle of September.
“As Americans continue to navigate the economic impact of the COVID-19 pandemic, it is important to remember that the fundamentals of financial planning haven’t changed,” said AICPA PFS Credential Committee chair Dave Stolz in a statement Thursday. “Though the stock market’s record performance is encouraging, 2020 has served as a reminder of the volatile nature of markets. As the impact of COVID-19 continues to play out across the country, investors should weigh their risk tolerance and ensure they have ample cash on hand. Further, a tax-efficient financial plan that includes a diversified portfolio can give confidence that long-term financial goals will remain within reach through this period of extreme uncertainty.”
The coronavirus put millions out of work, prompting job openings per capita to show a record plummet earlier this year. In the third quarter, job openings started to recover, climbing 37 percent (20 points) compared to Q2. That factor is now only 10 percent below its measurement a year ago before the pandemic. The Q3 index comes from July data from the U.S. Bureau of Labor Statistics.
