Communicate Blog

It’s Crunch Time for South Africa’s Economy

Mallisa Watson - Wednesday, October 01, 2014

World Map Background Means International Oceans Or Global MapWith President Zuma’s State of the Nation address stating strongly that the time has come to tackle poverty, inequality and unemployment, and the recent downgrade of our outlook to “negative” by international rating agencies Standard & Poor and Fitch, it’s clear that South Africa’s economy is in need of a serious boost.  

There has been significant disruption in our platinum mining industry recently, as underpaid workers demand better pay from the massive corporations profiting from the resources of South Africa. And a political party has gained prominence – and seats in parliament – by demanding economic freedom for the South African working class, through the nationalisation of key resources and sectors.

But where do we go from here? The answer is quite complex and will require the cooperation of not only individuals, but also countries coming together working hand in hand. It’s time for South Africa to seriously start addressing these issues and take action.

When one link in a chain breaks, then the entire interdependent and integrated world economy is threatened with failure. The effects can be devastating, as the world realized when financial markets in the US collapsed, sending ripples across the globe.

In his introduction at the Group of Twenty (also known as the G-20 or G20) outreach seminar, vice chancellor  Mandla Makhanya, explained that the global economy was slowly backing away from that breach, but that there was still work to be done. He pointed out that global economic activity and the meltdown in 2008 had shown governments that what it meant to be a nation had also changed irrevocably.

Makhanya highlighted challenges facing nations – jobless growth and growing inequality – but added that there were people working to tackle these problems. The G20 group of nations, and its target of 2% growth, is the best hope to help reap the promise of better futures for all. "The G20 is capable of catalyzing a global turnaround. They are able to grapple with challenges at a global level and can put in place workable solutions," he added.

Opening Africa's borders to improve trade efficiency
The G20 seminar reported that cross-border trade has grown by 4% in 2014, to levels not seen before 2008. If that growth can be sustained, Africa can, trading with itself and the rest of the world, lift itself out of poverty.

"G20 policies on cross-border trade will affect inequality by lifting more people out of poverty. If governments can be convinced to take action to free up trade, especially across borders, it will have a ripple effect on development issues. By not stopping trucks at the border you improve the efficiency of the supply chain, create jobs along the chain and positively affect issues like food security as well."

The G20 believes the open markets will create opportunities for businesses in Japan to sell its TVs to customers in Europe, while a farmer in Kenya will be able to ship produce to America, without losing a third along inefficient supply routes, as easily as selling to Kenyans.

Dr Heather Smith, Australia's G20 Sherpa and keynote speaker at the event, said stability is at the core of what they are trying to achieve. "We accept that the financial crisis was created in developed economies but we are all connected. We need Africa to be part of the change because the poorest of the poor were the hardest hit" Smith concluded.

The world still faces global challenges, but as Africa has prospered members of the industrialised G20 nations have begun to look at the continent not as a charity case, but instead as the newest, most promising market, holding the potential to stabilize and rebuild the world's economy.

If you are looking to give your finance career a boost into the right direction, apply now for our current finance jobs!

We have great opportunities for Financial Managers, Auditors, Cost Accountants, Senior Financial Accountants and so much more. Visit our vacancy page and apply now!

Written by:
Credit: by Stuart Miles

Internal Audit key to Managing Risk

Sandra Olivier - Wednesday, August 27, 2014

risks magnifier definition shows risksOriginally developed as a means of assisting organisations with safeguarding corporate assets and enforcing corporate policies to preserve value, internal audit is expanding its traditional role with a new focus on value creation activities.

Accelerating change has characterised the business landscape for many years and this will continue. New competitors, technologies and financial instruments, changing cost structure and regulations, increasingly integrated global economies and other development are creating new risks and opportunities for organisations to consider.

As these developments progress, it opens a new door on opportunities for internal audit to regain its historic authority as an independent advisor to management by supporting top management goals, monitoring key risks and improving regulatory compliance efforts.

Internationally there has recently been a shift to focus more on supporting executive management in effective management of key risks.

The Committee on Internal Audit Guidance for Financial Services in the United Kingdom has after a year-long consultation issued its recommendations for effective internal audit in the financial service sector. Experts have predicted that similar recommendations will be applicable to South African firms in the near future.

The guidance presents an opportunity and a welcome push for internal audit functions to proactively move onto the front foot and increase their relevance to their respective organisations and the financial services industry as a whole. In the context of a financial services sector, which globally has been subject to intense criticism over recent years this is a welcome shift for the industry.

Internal audit are therefore starting to plays a critical role in helping companies successfully manage the change by providing assurances that with every new process, procedure and initiative, any significant new risks that emerge are identified, monitored and managed effectively. This is to ensure that the company is protected on an ongoing basis and to a level that satisfies management and the board.

 The responsibilities of internal audit are expanding and, consequently, the required skill sets are changing. Internal auditors must continue to enhance their skills and educate themselves on new technologies and competencies that will be required in the months and years to come.

The success of any internal auditor lies with that person’s commitment to ongoing learning and capabilities improvement, along with his or her deep understanding of the organization’s needs and how they can be met through the internal audit function.

Internal audit is starting to reassert its involvement in a range of risks that an organization is facing today creating exciting new challenges for all in this industry. If you are looking for greater success in your career, we can help you untangle the steps to your next job opportunity. Communicate Personnel is a specialist finance recruitment agency, with the very best finance recruiters. We have various finance jobs including accounting, auditing, taxation, and financial manager jobs. Check out the latest vacancies and apply today!

Written by:
Credit: by Stuart Miles

What does it mean to be a Financial Analyst?

Mallisa Watson - Wednesday, July 30, 2014

Take Your Profit Concept For Financial BackgroundWhat does it mean to be a Financial Analyst?

The job title itself is actually self explanatory. In basic terms, Financial Analyst collect and analyze financial information, and then make recommendations to companies, customers or clients based on the research they’ve done. They focus on a particular sector based on the company they work for. Some of them include; investment banks, corporate, pension funds, mutual funds, securities firms, insurance companies, and other businesses. They are also called securities analysts and investment analysts. Where analysts would research stocks, write reports and monitor financial movements to essentially determine whether or not a specific deal is realistic based on the fundamentals of the companies involved.

At the job, financial analysts would need to be constantly updated on both international-economic issues and information about particular companies’ balance-sheets. This would involve keeping up to date with financial news, along with managing statistical data. There’s also a strong focus on recommending individual on investments and collections of investments, which are known as portfolios  and preparing written reports. 

Financial analysts can be divided into two categories:

Buy-side analysts develop investment strategies for companies that have a large number of money to invest. These companies, called institutional investors, include mutual funds, hedge funds, insurance companies, independent money managers, and nonprofit organizations with large endowments, such as some universities.

Sell-side analysts advise financial services sales agents who sell stocks, bonds, and other investments.

Financial analysts generally focus on trends affecting a specific industry, geographical region, or type of product. For example, an analyst may focus on a subject division such as the engineering industry or the foreign exchange market. They must understand how new regulations, policies, and political and economic trends may affect investments.

Investing is becoming more global, and some financial analysts specialize in a particular country or region. Companies want their financial analysts to understand the language, culture, business environment, and political conditions in the country or region that they cover.

The following are examples of the types of financial analysts:

Portfolio managers play a key role in deciding the best investment plan for an individual or company according to the income and ability to undertake risks.

Fund managers work exclusively with hedge funds or mutual funds. This extensive experience often includes activities in different aspects of fund management as a fledgling fund manager learns about accounting, balancing portfolios, responding to market shifts, and financial ethics. Both fund and portfolio managers frequently make split-second buy or sell decisions in reaction to quickly changing market conditions.

Investment analysts determine the value of the current investment, create advice reports, and research new investments.

Ratings analysts analyze companies or industries and make investment recommendations based on their findings. These recommendations include buy, hold and sell recommendations on financial instruments that include equity or debt investments such as stocks or bonds.

Risk analysts evaluate the risk in investment decisions and determine how to manage changeability and limit potential losses. This job is carried out by making investment decisions such as selecting contradictory stocks or having a combination of stocks, bonds, and mutual funds in a portfolio.

Planning to become a Financial Analyst?
Financial analysts typically start by specializing in a specific investment field. As they gain experience, they can become portfolio managers, who manage a team of analysts and select the sort of investments for the company’s portfolio. They can also become fund managers, who manage large investment portfolios for individual investors. A master’s degree in finance or business administration can improve an analyst’s chances of advancing to one of these positions. Important qualities to have are; analytical skills, communication skills, computer skills, decision making skills, detail oriented and math skills.

To be successful, financial analysts must be motivated to seek out blurred information that may be important to the investment. Many work independently and must have self-assurance in the decisions they make.

The financial services industry is competitive and it can be tough to break into the analyst field. If you're interested in the next step in your career as a financial analyst or any other finance jobs, we can help you.

Visit our website to apply online or alternatively you can contact one of our branches for more information.

Written by:
Credit: by hyena reality

Changes in education for Finance professionals

Sandra Olivier - Wednesday, July 02, 2014

graduation gap and diploma The rapid changes in technology and the business world have also compelled CIMA to launch extensive global research to change their framework to adapt and equip finance professionals with the skills to meet current and future business needs.

The research revealed the need to develop an updated 2015 syllabus incorporating a competency framework that addresses the skills and competencies employers expect from their finance team, as well as a new assessment processes.

Top employers identified not only core accounting and finance skills as crucial but also business acumen, people skills and leadership skills. These insights were instrumental in creating a syllabus that ensures that the CIMA qualification remains relevant and meets the needs of students and employers. Besides supporting better business, this also enhances the employability of CIMA members.

New topic areas relevant to accounting in business - such as managing big data, finance function transformation and sustainability - have been included, with integrated case studies added to consolidate learning and reflect real-life work situations. It has also strengthened existing modules to increase education in areas such as cost management and risk awareness.

Another consideration in putting together the new syllabus was looking into Generation Y. This younger generation learns differently and has different expectations from the workplace than previous generations. The findings resulted in a change in the way CIMA assess the competencies, taking advantage of improvements in technology, and reflecting the changes in the workplace.

CIMA is the first global accountancy body to pioneer a combination of computerised assessments to examine the syllabus. Each subject will be assessed not only by an objective test, but also by an integrated case study, which combines the knowledge and learning across the three pillars at each level of the syllabus.

It’s clear that CIMA is committed to supporting the next generation of global finance leaders. The 2015 syllabus ensures that CIMA stays relevant to employers and aligns the learning experience of candidates more to the real world of business.

Are you at a crossroad in your finance career? Communicate Personnel has specialised recruitment consultants that can assist you. We have various finance jobs including accounting, auditing, taxation, and financial manager jobs. Check out the latest vacancies.

Written by:
Credit: by jscreatzs

Opportunities abound in changing banking industry

Sandra Olivier - Wednesday, June 04, 2014

blue atmThe South African banking industry is dynamic and has evolved significantly, as banking chief executives have adapted their strategies in response to regulatory changes and global economic pressures. Over the past 20 years, the sector has transformed through consolidation, technology and legislation.

In the aftermath of the 2008 global financial crisis, international standard-setting bodies announced a range of strategies to address the fundamental weaknesses revealed by the crisis. One such strategy was amendments to the Basel II regulatory framework. Basel III requires banks to hold more capital of higher quality and to have enough liquid assets to cover outflow of funds. As a member of the G20, South Africa’s compliance was compulsory. This challenge was successfully navigated with all of South Africa’s banks completing the transition in January 2013.

It is therefore no surprise that despite dramatic changes over the last two decades, the country’s banking system is well developed and compares favourably with many industrialised countries as WEF Competitiveness Survey 2012/13 ranks South Africa 2nd out of 144 countries. That said, there are still challenges.

A recent survey by PWC shows that one of the top concerns facing South Africa’s banking industry is the sector’s growing dependence on technology. This is not unexpected given the rise of electronic and online banking channels coupled with banks replacing legacy systems. On the one hand, the industry is trying to use technology to become more efficient, but this has to be balanced against their concerns about fraud and the huge costs involved in fighting this crime. The benefit is that rapid technological changes are reducing transaction costs, bridging geographical strains and inspiring investment from large financial institutions.

There are also some concerns in terms of how prepared the banking industry is to manage the new Companies Act, compliance with International Financial Reporting Standards and the proposed Protection of Personal Information Bill.

Despite the banking sectors excellent transformational progress, roughly 19 percent of South African adults still have no formal access to financial products or services to manage their finances. This is by far the biggest challenge but also shows the growth opportunities in the industry.

There are many prospects in this evolving industry. If you are looking to make a change in your Finance career, we can assist. Communicate Personnel have various Accounting jobs, Financial Management jobs, Financial Director jobs and more. Don’t delay start searching today!

Written by:
Credit: by scottchan

Accounting and its challenges

Mallisa Watson - Monday, May 05, 2014

Business Man carrying calculatorThe Accounting profession has shifted progressively over the past few years as the landscape has become more challenging.

Accountants, managers and other users of accounting information cannot afford to overlook the major changes that have taken place in the business organisation, business environment and broader society.

Financial Management author Anthony G.Puxty, stresses that Accounting is not merely a collection of techniques, but that it has a significant impact on society at large. So too, society impacts on Accounting and Accountants are seen as the gatekeepers of financial markets, who are responsible for the quality and integrity of information so that

  • capital markets are efficient;
  • the cost of capital is low;
  • the standard of living is high;
  • the investment risk is low and
  • resources are allocated efficiently

The changing environment has confronted Accounting with a number of challenges that should be recognised, accepted and addressed promptly in order to reverse the already declining trend in its usefulness and relevance.

Challenges accounting face:
With globalization having an escalation of competition among businesses, to survive in this highly competitive environment, organisations are altering the way in which they conduct their business. They have to become customer oriented, lean, efficient and innovative. Globalization does not only affect an organisation and its management, but should also influence the accounting system. The latter should support the raising of capital anywhere in the world, obtaining of listings on foreign exchanges, co-ordination of world-wide operations and the assessment of multinational performances as well as the measurement of productivity, continuous innovation and responsiveness to change.

Information Technology
Technologies had, and will continue to have a profound impact on the way in which information systems gather, process and distribute information within organisations. These technologies also affect the non-information systems that support business functions, such as design, manufacturing and distribution. While accounting cannot play the primary role in initiating or implementing technological innovations and organisational change, the accounting system should provide incentives for improving manufacturing performance and measurements to evaluate progress towards this goal.

The technologies also affect the accounting information system itself. Unfortunately, new technology has been used in the latter instance simply to speed up old methods, in other words crunch predictable numbers faster. However, technology can also be used to create greater flexibility in the accounting information system, thus making it better suited to the changing demands for information.

A shift in business styles
A shift is taking place in the nature of business as the second wave, industrialization, is being replaced by the third wave, information technology. The number of commercial and manufacturing firms is declining and information and service-based firms are escalating. Knowledge has changed from being a minor to a major factor of production.

The traditional accounting model was originally developed to report on business enterprises. Later it was modified through cost accounting to accommodate manufacturing enterprises. This modification was however less than perfect and the result was that additional information was required for decision making.

The evolution of Accounting has been based on a pragmatic approach. Accountants addressed problems as they were encountered and then developed appropriate solutions.

However, accounting should become flexible and adapt to changes in its environment. “Accounting should develop from being a watchdog and scorekeeper to being a facilitator of change” (Turney & Anderson).

We at Communicate Personnel specialize in finding you top of the range skilled accountants that will add value to your company. Visit our website and find our contact details for more information.

Or if you are looking for Accounting jobs or any other Finance jobs check out our vacancy page and apply online now!

Written by:
Credit: by graur ddpavumba

Can Accountants Be Creative?

Mallisa Watson - Wednesday, March 26, 2014

Business Man With Light Bulb Head Is there a place for creativity in accounting or are accountants meant to be ‘by-the-book’ bean counters that popular culture makes them out to be?

The answer? Both

The words ‘creative’ and ‘accounting’ are rarely spoken together because they give the impression that uncertain accounting practices are taking place. This however is not always true. 

Creative accounting can be defined in a number of ways also called aggressive accounting. Creative accounting is a process whereby accountants use their knowledge of accounting rules to control the figures reported in the accounts of a business.

First let’s discuss when an accountant should not be creative.  This should go without saying, but unfortunately we have all seen situations where an accountant bends, or even breaks, the rules to achieve results. Accountants are trusted by those that rely on their information to work within an environment of legal and ethical guidelines. Accountants should always stand by these ethical guidelines.  Furthermore, when it comes to the International Financial Reporting Standards, Generally Accepted Accounting Principles, and Generally Accepted Auditing Standards an accountant should never compromise.

Now let’s discuss if there is room for creativity.

Forensic Accounting
Forensic accountants are trained to look beyond the numbers and deal with the business realities of situations. Analysis, interpretation, summarization and the presentation of complex financial and business related issues are major aspects of the profession. A forensic accountant will also be familiar with legal concepts and procedures. They use their accounting skills to investigate fraud or embezzlement to analyze financial information for use in legal proceedings.

When given a problem, there are often various ways to reach the solution.  For example, there are cases where you approach a problem only to find that you didn’t have access to a reliable source of data that would allow you to solve the problem.  Using your creativity, you can look back at the initial problem and figure out what other routes or sources of evidence you can use to achieve the same result.

Creativity in forensic accounting can also include embracing new technology and using new or existing technology to gather, summarize, and communicate information to the client.  At times there may be a huge amount of documents available during a forensic investigation.  The ability to be creative in finding the specific documents useful in a particular case will help prevent getting lost in the details and save both time and money.  Finally, creativity is also needed to explain the often complex work performed in a manner that can be understood by those without a background in accounting or finance.

Accountants in leadership roles can use creativity to help their company or client in achieving specific results. This may relate to business development, investment opportunities, and other forms of business planning. Business planning, at its core, is a creative process.  An accountant knows the numbers and often has the power to oversee valuable information unknown or not well understood by management.  Carrying this information over in a creative and effective manner may help in achieving an organization’s objectives or avoid an organization from making a costly mistake.

Company Development
Company’s can also use creativity to engage its workforce, which will help attract and retain quality employees.  While many of you probably know the general, simple ways to keep employee’s positive, engaged, and productive such as flexible work schedules and casual dress days, what about getting creative and going above and beyond this?  
One idea can be to include employees in creative marketing techniques such as weekly blog posts. This will provide a platform for employees to display the range and depth of experience among the firm’s staff or firm-sponsored networking opportunities. This will not only engage employees, but it could also attract new clients and help maintain relationships with existing clients. 

There is room for accountants to be creative in the right setting.  Obviously certain roles, organizations, and situations will allow for more creativity than others. Regardless, knowing when and how to utilize creativity will help separate you from the pack.

On the one hand, accountants must follow the rules.  On the other hand, accountants should creatively think about presenting information in ways that they are most useful and clear to users.  Balance is the key.

If you are looking to add creative accountants to your company, let us help!

We at Communicate Personnel specialize in finding you top of the range skilled accountants that will add value to your company. Visit our website and find our contact details for more information.

Or if you are looking for Finance jobs check out our vacancy page and apply online now!

We are looking forward to hearing from you. 

Written by:
Credit: by khunaspix

Mining challenges impacting wider economy

Sandra Olivier - Wednesday, February 19, 2014

coal mine shaft towerNews announcements about strikes are becoming so common placed that few people pay much attention to it. Who could blame you? Unfortunately, with the mining strikes picking up steam again, South Africa’s economy is taking a hit. So what cause is there for real alarm and what do we need to do to overcome the challenges?

Repeated productivity losses from strikes have a ripple effect through the economy. Strikes come at a cost to some, or all, involved - a cost that is felt in financial, social and other terms. Sometimes, if concluded quickly, it may bring benefit to the striking workers and benefit the broader economy by raising the spending power of the lower paid. In other cases, they come at a cost to all sides and to the wider economy. The current strikes in South Africa's mining sector come at a bad time for a country whose currency breached a five-year low against the U.S. dollar.

Experts said that if mine owners did accede to the demands there would ultimately be job losses, especially in South Africa's platinum sector. This is because, at the current price of about 1,446 U.S. dollars an ounce, platinum production is barely viable.

In July 2013, government formed a mining task team – comprising mining unions and the Chamber of Mines and spearheaded by Deputy President Kgalema Motlanthe – which aimed to resolve the challenges faced by the industry. This agreement however, seemed to hold little weight as 2014 started with another wave of strikes.

A recent paper by the South African Institute for International Affairs (SAIIA) offers some recommendations for resolving costly labour disputes. A revenue-sharing model that limits wage increases and incentivises productivity could be the solution. Wage increases should be linked to inflation, and approximately 20% of each company’s profits should be made available for distribution, weighted in favour of low-skilled workers. This is hardly a new idea, it was part of negotiations between mines and unions in 1990 – 1994, but was never followed through on.

Another solution according to Gavin Hartford, an industrial sociologist, could be to relook at the pattern of migrant labour. Currently workers only have a break between Christmas and New Year in 12 months. A more humane approach would be to look at 3-4 month work cycles, which would allow workers to travel home to family, increase cash flow to rural poor and enhance attendance.

If continuous strikes are to be avoided, novel solutions have to be found. We can no longer afford to ignore the issue and hope it will drift off the agenda. It is imperative that, if the country’s mining houses want to make themselves attractive in this highly competitive global arena, that concerted effort be made in boosting their investment appeal. It is not just a mining industry problem but this affect the country’s economy and our collective wellbeing.

Do you want to be part of the solution and help our economy growth? Communicate Personnel is a recruitment agency with consultants specialising in finding Finance jobs, IT jobs, Engineering jobs, Freight jobs and Supply Chain jobs. Check out our vacancy page and apply now!

Written by:
Credit: by Victor Habbick

New Revenue Standard predicts changes in industry

Sandra Olivier - Wednesday, January 22, 2014

business conceptInternational Accounting Standards Board (IASB) indicate that the way in which some companies are currently accounting for revenue in their financial statements will need to be re-examine.

The new, converged revenue recognition standard that’s in the final stages of development by the IASB is expected to lead to at least some changes in financial reporting for virtually all entities that use US GAAP or IFRS.

“Revenue is an important aspect for investors to assess how well companies are doing financially. The way that businesses account for revenue will now change,” says Saica chartered accountant Sue Ludolph.

The standard has been developed due to dissatisfaction expressed by investors over possible manipulation of figures, which resulted in investors not really knowing where they stand. Therefore, at the heart of the standard is the question: what comprises revenue?

“What investors are looking for is a better yardstick of what makes the company tick and how sustainable it truly is. They want to make decisions for the long term, in terms of what makes a company stand out as an investment opportunity. They also want more information that is comparable. In that way they are better informed and ultimately better protected” according to David Reuben, Partner and Head of Audit at Grant Thornton.

Further, the proposed standard aims to provide a single revenue recognition model that will improve comparability over a range of industries, companies and geographical boundaries and to simplify the preparation of financial statements by reducing the number of requirements to which preparers must refer.

The new standard will require that where more than one good or service is bundled together in a single contract, companies will be required to recognise revenue on the transfer of each distinct good or service, resulting in a smaller loss at the beginning of the contract, and a smaller margin over the remaining term of the contract. This requirement could therefore have a significant impact on current practice.

The benefit in introducing a new standard is that it will heighten levels of transparency and make revenue streams more understood.

A final standard is expected towards the middle of 2014 and would be effective for annual periods beginning on or after 15 December 2016 (FASB) or 1 January 2017 (IASB). 

 The coming months, and most likely years, are going to be keeping accounting and auditing professionals on their toes as they get to grips with the new standards. Whether they like it or not.

The importance of having qualified and skilled individuals in your accounting department to navigate the changes due in this industry is vitally important for any company’s growth. If you require additional staff, then we can assist. Communicate Personnel is a specialist recruitment agency, with the very best recruiters. We specialise in the sourcing of top candidates including Financial Managers, Cost Accountants, Auditors, Management Accountants, and more. Contact us today.

Written by:
Credit: by cuteimage

The effect of the credit information amnesty

Mallisa Watson - Wednesday, November 20, 2013

credit card Cabinet's recent approval of a credit information amnesty means that responsible lenders will have an even more important role to play in determining whether consumers can realistically afford credit. SA chief executive Kevin Hurwitz said that granting of credit is vital to a healthy economy. Enabling consumers, who have been unable to access credit due to adverse blacklisting on their names, should be seen as a positive development for the economy provided it does not place extra financial stress on them.

Therefore, the responsibility is on the credit provider to make accurate and reliable credit decisions about the worthiness of applicants. Credit providers should be able to trust their own risk management processes to be strong enough and have skilled staff to make credit decisions without relying exclusively on credit bureau listings.

Additionally, there is no need to increase the cost of credit because of the credit amnesty decree as it is the responsibility of the credit providers to ensure they are doing enough assessments on the consumer’s capability to repay the loan.

The implementation could result over-indebtedness among SA consumers when granted renewed access to credit without any policies, including to those already impaired or struggling to cope with existing financial commitments. All consumers need to realise that the debt itself will remain and we will not receive a free “get out of jail” card and we are still liable for the debt itself.

Hurwitz says that in terms of Wonga's own system, where prior to this consumers with adverse listings would have been rejected straight away, now they will proceed through the company’s own automated risk engine.

"There will always be a mainstream need for credit, as a consumer's variable outgoings coincide with the consumer's fixed income, and so in this way credit will always be a vital part of the economy. However, the credit providers now have a greater responsibility to ensure more thorough checks are in place before credit is granted to ensure that not only consumers, but the economy does not suffer," concludes Hurwitz.

Growth is vital for our economy and for us in general. So if you are looking for skilled staff to add to your company, we can help! Communicate Personnel has a network of experienced staff and a number of Finance jobs in Accounting, Auditing, Taxation, Corporate Finance and so much more.

Visit our vacancy page and apply now!

Written by:
Credit: by Sura Nualpradid