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UMB: Insights – Aviation

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UMB Industry Insights

It’s not just CEOs who utilize private/corporate aircraft, but most often sales teams. Learn more about this critical tool and why it’s an efficient option for many businesses.

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Don’t let your business be an easy target for fraud

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Fraud can come in many forms, from counterfeit checks to stolen credit cards and trusted employees to savvy hackers. For businesses, fraudulent activity is always bad news. According to the Association for Financial Professionals’ (AFP) 2015 survey, 62 percent of companies were targets of payments fraud in 2014 with financial losses that ranged anywhere from a relatively small amount to millions of dollars. The good news for businesses is that there are numerous measures out there that can help prevent and detect fraudulent activity. In addition, advanced technology is being developed and deployed now that will help companies better protect their operations and their bottom line.2015 AFP Payments Fraud and Control Survey

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The many forms of fraud

According to the AFP, the most common form of fraud businesses encounter is through checks, corporate credit/debit cards and wire transfers. Paper checks continue to be the payment type most vulnerable to fraudulent attacks and account for the largest dollar amount of financial loss, even though their use continues to decline. Credit and debit cards are the second most popular form of business fraud, although they experienced a decline in fraudulent activity, down from 43 percent in 2013 to 34 percent in 2014.  And lastly, wire fraud incidents almost doubled from 14 percent in 2013 to 27 percent last year.

The newest form of fraud is cyberfraud in which criminals create an email account for corporate executives or vendors and send emails with payment instructions to employees in the accounting department. Employees who are unaware of the fake or altered email account will follow the instructions and make payment.

Be prepared

While it may seem daunting, businesses can take steps to protect against fraudulent activity. Positive Pay is one example of how companies can get ahead of the game. Positive Pay is an automated fraud detection tool offered by most banks. Here is how it works: Companies cut checks every month and send the bank a list of all those checks, including check numbers, amounts and payees. As checks clear against the account, the bank makes sure the checks match up, eliminating any fraudulent or altered checks.

To protect against internal fraud, business owners should implement dual control and separation of duties. Understand who is in charge of what responsibilities on the financial side and make sure there are no gaps. Implement dual control over the businesses banking transactions, meaning the same person who is running payables should not be the same person who is reconciling accounts. Also, business owners should review financial statements on a weekly or monthly basis.

To mitigate compromise in these areas, businesses should review all areas of their operation and put the proper preventions in place to protect against fraud. For instance, businesses should ensure their employees have the proper education and training for fraud detection. They should install, maintain and update spam filters, anti-virus software and firewalls. Reducing check writing, outsourcing payroll and having dual controls are additional tips that can help prevent fraudulent activity.

New technology on the way
2015 Payments Fraud and Control Survey
In addition to being prepared, businesses will soon be able to rely on new technology to help protect against fraud. The latest and most anticipated technology is EMV (Europay, MasterCard and Visa) chip cards, which will have a major impact on lessening credit and debit card fraud. So much so that 92 percent of financial professionals believe EMV technology will be effective in reducing fraud at the point-of-sale.

Traditional magnetic stripe cards require a signature for security purposes, whereas the new chip cards will add an additional layer of sophisticated fraud protection through an embedded microchip that turns the cardholder’s information into a unique code that is difficult to duplicate or copy when used at a chip-enabled terminal.

Merchants and retailers are currently in the process of investing in new card reading technology that will accept EMV chip cards. If they do not update their technology, they could potentially be liable for fraudulent transactions and not the user or card issuer. Visa intends to institute a liability shift in the United States for domestic and cross-border counterfeit transactions effective Oct. 1, 2015. This shift will encourage Visa issuing banks to begin issuing EMV chip cards and merchants to begin deploying card swipe technology that can process the chip-on-chip transaction.

While new technology and preventative measures can help businesses protect against fraud, the truth is that it will always exist in one form or another. What businesses can do is educate their employees, make sure they are using the most up-to-date technology and work with their financial partners to ensure the best practices and protective measures are in place.

 

Source: 2015 Association for Financial Professionals (AFP) Payments Fraud and Control Survey

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Financial Word of the Week: Generation-skipping transfer tax

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Financial Word of the Week - Generation-skipping transfer tax

The generation-skipping transfer tax (GST tax) is a separate transfer tax that is imposed on certain transfers and may apply in addition to any gift or estate tax due. The purpose of the GST tax is to tax the transfer of assets passing to a person more than one generation beyond the donor (i.e., “skipping” a generation). This flat-rate tax is calculated at the maximum estate tax rate applicable at the time of the transfer. (In 2015, the maximum estate tax rate is 40 percent.) However, like the gift and estate tax, there are certain exemptions that may apply to help avoid or minimize the impact of the GST tax. For example, there is a lifetime exemption that allows you to transfer a certain dollar amount of assets without incurring this tax. In 2015, the exemption amount is $5,430,000. In addition, there is an annual exclusion available that currently allows for the transfer of $14,000 to any individual without the GST tax being imposed.

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One of the keys to the GST tax rule is that it is designed to only tax certain transfers – those involving a transfer of assets to a person one or more generations down the line. For family members such as grandchildren, this is straightforward. For example, a gift from a grandparent to a grandchild would skip the donor’s child’s generation and would, absent an applicable exemption, be subject to the GST tax. However, for non-family members, whether a transfer skips a generation is not always as apparent. For gifts to unrelated individuals, the Internal Revenue Code deems a gift to someone more than 37 ½ years younger to have “skipped” a generation and is therefore subject to the GST tax.

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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UMB: Insights – What ag means to UMB

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UMB Industry Insights
Beginning with the Kemper family’s love affair with agriculture, UMB has had a rich history with agriculture.

Continuing our UMB: Insights series, Mariner Kemper, our Chairman and CEO, and Bill Watson, president of UMB Bank’s Agribusiness Division, share why we focus on agriculture.

“UMB’s been in agribusiness for all of the 102 years we’ve been in business. It’s part of our roots. It’s part of our connection to the community.”

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Financial Word of the Week: Gift tax annual exclusion

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Financial Word of the Week - gift tax annual exclusion

The gift tax is a transfer tax imposed on any gift you give someone during your lifetime. However, the Internal Revenue Code provides each individual with a gift tax annual exclusion. The annual exclusion is the amount of property one individual may give each year to another individual without incurring any gift tax consequences. This number is adjusted annually for inflation and is currently $14,000 per donor per donee in 2015. “Per donor per donee” means that each individual donor may give $14,000 each to as many individuals as the donor wishes. For example, in 2015, each parent can give to each of their three children $14,000 in gifts, for a total of $ 28,000 per child.

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When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Financial Word of the Week: Power of Attorney

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Financial Word of the Week - power of attorney

A durable power of attorney is a legal document where you as the “principal” designate an agent to handle the matters described in the document during your lifetime. A power of attorney is “durable” only if it provides that your agent may act even if you are disabled. In addition, there are many different kinds of power of attorney:

  • ordinary – revocable and automatically terminates upon the death or incapacity of the principal
  • springing – become effective only when needed, at some future date or upon some future occurrence, usually the principal’s incapacity
  • general – authorizes an agent to transact business for the principal
  • special – limits the agent’s authority to only a specified matter.
  • durable – remains in effect during the principal’s incapacity

Powers of attorney are central part of most estate plans, and provide a mechanism outside of court guardianships and conservatorships for management of your affairs. It can be a useful complement to a revocable trust, as the trustee would not have powers regarding assets not held in the trust. Rather, the agent can deal with assets held outside of the trust and other business that the trustee may not be able to handle, such as signing your income tax returns or dealing with a retirement asset.

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Books or eBooks: Who’s Winning? {infographic}

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Get the word on who’s leading the book industry. Are you Team Book or Team eBook?
eBooks vs. Traditional Books - infographic

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Financial Word of the Week: Credit Shelter Trust

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Financial Word of the Week - credit shelter trust

A Credit Shelter Trust (also known as family trust, non-marital trust or bypass trust) is one that is usually employed as part of a married individual’s estate plan. Upon the death of the first spouse, it is funded with the estate tax exempt amount, sometimes referred to as the Unified Credit. Such a trust is often structured to provide benefits to a decedent’s surviving spouse, without triggering estate tax upon the second spouse’s death. Property in the credit shelter trust can then pass through to descendants upon the death of the surviving spouse with no estate taxes paid by the estate of either spouse. In 2015, the estate tax exempt amount is $5,430,000.

In light of the high exemption amount, it is always a good time to update your estate plan with your legal advisor.

 

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Financial Word of the Week: Estate Tax

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Financial Word of the Week - estate tax

If you’re an heir to a relative or friend’s estate, you need to know what an estate tax is AND realize that there’s a good chance it may not apply to you as it once would have in the past. Estate tax is a transfer tax imposed when someone passes away and leaves his or her assets to you. Currently, the federal government and 16 individual states charge an estate tax.

The federal estate tax rate is currently at 40 percent. Fortunately, the tax code allows all individuals to pass a certain amount of assets (either during their lifetime, at death or a combination of both) before those transfers are subject to the federal estate tax. This amount has jumped dramatically in the past 15 years, going from $675,000 in 2001 to $5,430,000 in 2015. As a result, many estates will not be subject to a federal estate tax.

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Financial Word of the Week: Corporate Fiduciary

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Financial Word of the Week - corporate fiduciary

A corporate fiduciary is a financial institution that exercises fiduciary‡ responsibility for the benefit of an individual or individuals. Mostly commonly, it’s children and the elderly who need fiduciaries. A fiduciary exercises a high standard of care in managing another’s money or property. Fiduciaries can be known by many names – trustee, executor and conservator are a few common examples of fiduciaries in an estate planning context. For more, read our post on “What are fiduciaries and why do you need them?”

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Corporate fiduciary vs. individual fiduciary

Some of the advantages to hiring a corporate fiduciary over an individual fiduciary include gaining the institution’s financial expertise, neutrality, longevity, and high standard of care. Corporate fiduciaries have these pros:

  • many years of experience in managing and investing funds for clients,
  • no ties to any one beneficiary, and so will be in the best place to follow the grantor’s wishes,
  • longevity that eliminates concerns that death or disability of an individual fiduciary will  interfere with management of assets, and
  • will exercise a high standard of care, as they have internal safeguards and audits to ensure compliance to state and federal regulations governing fiduciary conduct.

Regardless of the nature of the role, the aim of a corporate fiduciary is to make the best financial decision for the beneficial owner of any assets under its supervision.

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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