Latest / What the Flux / Commbank's cash crisis | Advertisers avoid X like the plague | General Motors cuts 1,000 jobs

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Commbank's cash crisis | Advertisers avoid X like the plague | General Motors cuts 1,000 jobs · What the Flux

• 0:05
  Speaker 1: This is locked the Flux.
• 0:06
  Speaker 2: I'm Brett and Justin as Wednesday, the twenty first of August.
• 0:09
  Speaker 1: Juzy Boy.
• 0:10
  Speaker 3: Not all heroes war capes, my friend, and it's fair
• 0:13
  Speaker 3: to say that Asik has taken on a Voldemort sized job.
• 0:16
  Speaker 1: Get this one.
• 0:17
  Speaker 3: Assick claims it's taken down more than seven thousand fishing
• 0:20
  Speaker 3: and investment scam websites.
• 0:22
  Speaker 1: Now that's just for the last twelve months.
• 0:23
  Speaker 3: And given that Australian's lost more than two point seven
• 0:26
  Speaker 3: billion bucks from scams in twenty twenty three, this kind
• 0:29
  Speaker 3: of seems necessary and personally, I am sick of seeing
• 0:33
  Speaker 3: fake Koschi selling me financial advice.
• 0:36
  Speaker 1: Stop at Koschy. He's everywhere is and he he is.
• 0:39
  Speaker 2: According to the latest Pluck survey, the average Aussie is
• 0:41
  Speaker 2: spending more than seventy eight dollars on subscriptions every single
• 0:44
  Speaker 2: month between Netflix and Spotify, Dizzy plus ko Bang. You
• 0:48
  Speaker 2: are already there but been in. More importantly, the majority
• 0:50
  Speaker 2: of Flux users have forgotten to cancel more than three
• 0:53
  Speaker 2: subscriptions to keep draining their card. And that is why
• 0:56
  Speaker 2: we built the Flux Subscription Tracker, where you can securely
• 0:59
  Speaker 2: connect your bank inless thirty seconds and let plucks do
• 1:01
  Speaker 2: its magic. We'll tell you a list of all your
• 1:03
  Speaker 2: subscriptions so you can track your spending and cut those
• 1:06
  Speaker 2: subscriptions that you don't use anymore. So make sure to
• 1:08
  Speaker 2: check it all out in the flux app.
• 1:09
  Speaker 3: Three reliable stories today, juzzy boy, let's do it for
• 1:13
  Speaker 3: our first. Combank has warned its investors that keeping cash
• 1:17
  Speaker 3: at its bank branches is costing it more than three
• 1:20
  Speaker 3: hundred and fifty million bucks a year.
• 1:22
  Speaker 2: Hint, hint, nudge nudge, sorry for us and help us
• 1:24
  Speaker 2: go cash lists. Tell me more so, juzzy boy.
• 1:27
  Speaker 3: We spoke last week about Combank's whopping cash profit of
• 1:30
  Speaker 3: nine point eight billion bucks, and that was for the
• 1:32
  Speaker 3: last financial year.
• 1:33
  Speaker 2: Most of that coming from its retail and business customers.
• 1:35
  Speaker 3: And most of that not coming from serving customers at
• 1:38
  Speaker 3: the bank branch.
• 1:39
  Speaker 2: Which is why it was quite interesting and quite peculiar.
• 1:43
  Speaker 2: The Combank highlighted in their annual port the provision of
• 1:45
  Speaker 2: cash services is costing them three hundred and fifty million
• 1:48
  Speaker 2: dollars a year.
• 1:49
  Speaker 3: And not only that, juzzy boy, Combank called it a
• 1:52
  Speaker 3: challenging commercial model.
• 1:53
  Speaker 2: Nowabe man, that includes cash in ATMs and also cash
• 1:56
  Speaker 2: at bank branches.
• 1:57
  Speaker 3: But over the past six years, monthly cash ATM with
• 2:00
  Speaker 3: for alls chausey boy, they have dropped by fifty percent.
• 2:03
  Speaker 2: And get this, some banks aren't even holding any cash
• 2:06
  Speaker 2: in some of their branches anymore.
• 2:07
  Speaker 3: But Chelsea boy, do not toss your wallet in the
• 2:10
  Speaker 3: bin just yet. Out Come well, twenty percent of people
• 2:12
  Speaker 3: over sixty five are still heavy cash users and cash
• 2:15
  Speaker 3: is still an important part of our society broadly.
• 2:18
  Speaker 1: So what is the key learning here?
• 2:19
  Speaker 3: Banks are in a delicate dance at the moment, trying
• 2:22
  Speaker 3: to trim the fat from their costly old school cash
• 2:25
  Speaker 3: services while keeping the regulators off their backs.
• 2:28
  Speaker 2: You see, bee Man, If they cut back too far
• 2:30
  Speaker 2: on the cash services, regulators might step in with even
• 2:32
  Speaker 2: tougher rules.
• 2:33
  Speaker 3: Which could make things even more expensive for the banks
• 2:36
  Speaker 3: than they are now. You've gotta feel for Combank, poor
• 2:38
  Speaker 3: old Combank. Here's a fun step, bbe Man. Cash payments
• 2:42
  Speaker 3: have dropped from always forty percent of all payments in
• 2:44
  Speaker 3: Australia in two thousand and seven to less than ten
• 2:46
  Speaker 3: percent of all payments by twenty twenty two.
• 2:48
  Speaker 1: That is according to the RBA.
• 2:49
  Speaker 2: But even so, banks no not to mess with the
• 2:52
  Speaker 2: baby boomers yeap.
• 2:53
  Speaker 3: According to research by payment platform Wave, eighty two percent
• 2:56
  Speaker 3: of baby boomers were very concerned about cash disappearing.
• 3:00
  Speaker 2: And this is quite a timely release of info from
• 3:02
  Speaker 2: Combank because later this month they'll be facing a Parliament
• 3:04
  Speaker 2: committee on the use of cash services.
• 3:07
  Speaker 3: For our second story, X formerly known as Twitter, has
• 3:10
  Speaker 3: seen its ad revenue drop by more than twenty four
• 3:13
  Speaker 3: percent in the first half of this year as advertisers
• 3:16
  Speaker 3: stay away from X.
• 3:18
  Speaker 2: Fair to say Elon Musk is the human embodiment of
• 3:20
  Speaker 2: a red flag for ex's man, So tell me more.
• 3:23
  Speaker 3: Well, jazy boyit Remember back in October twenty twenty two,
• 3:25
  Speaker 3: Elon Musk acquired Twitter for forty four billion US dollars.
• 3:29
  Speaker 2: I do, and if I'm not mistaken, he brought in
• 3:31
  Speaker 2: a kitchen sink into the office.
• 3:32
  Speaker 1: Money's first day.
• 3:33
  Speaker 3: That's correct, And since then X has been through more
• 3:36
  Speaker 3: drama than the season finale of Maths.
• 3:38
  Speaker 1: I would say.
• 3:39
  Speaker 2: First it was the name change from Twitter to x.
• 3:41
  Speaker 3: Xing someone just doesn't quite roll off the tongue like
• 3:44
  Speaker 3: tweeting someone.
• 3:45
  Speaker 2: Then he fired six thousand staff throughout the first eighteen months.
• 3:47
  Speaker 3: And there has also been some criticism of the moderation
• 3:50
  Speaker 3: processes on X with a heap of hate speech and
• 3:53
  Speaker 3: also lots of misinformation.
• 3:54
  Speaker 2: Which brings us to a new report from an ad
• 3:56
  Speaker 2: tracking company called Media Radar YEP. They claim that X
• 3:59
  Speaker 2: has seen its AD revenue dropped to seven hundred and
• 4:02
  Speaker 2: forty four million US dollars in the first half twenty
• 4:04
  Speaker 2: twenty four, and that's twenty four percent lower than the
• 4:06
  Speaker 2: AD revenue they generated in the first half of twenty
• 4:08
  Speaker 2: twenty three. Josie Boy, why oh why of companies pulled
• 4:11
  Speaker 2: back so hard from their ads spend on X Well,
• 4:13
  Speaker 2: a number of companies were found to be advertising on
• 4:15
  Speaker 2: the platform and the ads would be promoted right beside
• 4:18
  Speaker 2: controversial stuff like posts praising Nazis. And it's fair to
• 4:21
  Speaker 2: say it's just a little too much brand risk for
• 4:24
  Speaker 2: big companies looking to advertise their products.
• 4:26
  Speaker 1: So what is the key learning here?
• 4:27
  Speaker 2: Brands want to be where the eyeballs are, but they
• 4:29
  Speaker 2: also need to feel safe about the company they keep.
• 4:32
  Speaker 3: In the world of marketing, brand alignment is how well
• 4:35
  Speaker 3: a company's advertising reflects its core values and its identity, as.
• 4:39
  Speaker 2: Well as the image it wants to project to its audience.
• 4:41
  Speaker 3: But right now, Jasi Boy for brands buying ads on
• 4:44
  Speaker 3: X is a high risk game about us.
• 4:46
  Speaker 2: Risky is offering free ice cream in a room full
• 4:48
  Speaker 2: of lactose intolerant people.
• 4:50
  Speaker 3: And X's AD revenue had already tumbled thirty six percent
• 4:54
  Speaker 3: year on year in the last financial year.
• 4:56
  Speaker 2: So be Man. While Muskie Mask has tried to give
• 4:58
  Speaker 2: confidence to brands, the damage has all already been done.
• 5:01
  Speaker 3: And given that ads make up about ninety percent of
• 5:03
  Speaker 3: X's income, that's according to The New York Times, X
• 5:06
  Speaker 3: has a real predicament on its hands.
• 5:09
  Speaker 2: For our third and final story, General Motors is cutting
• 5:12
  Speaker 2: one thousand software employees globally to focus on its high
• 5:15
  Speaker 2: priority initiatives like using.
• 5:17
  Speaker 3: AI GM taking time to just work on itself at
• 5:21
  Speaker 3: the moment, what is happening here?
• 5:22
  Speaker 2: Josie boy wellbe Man at General Motors is the American
• 5:25
  Speaker 2: car manufacturer that's been around since nineteen eight.
• 5:28
  Speaker 3: It's the name behind car brands based in the US
• 5:30
  Speaker 3: and also around the world like Chevrolet, Hama, SAB and
• 5:33
  Speaker 3: the classic Ossie Holden, Rest in Peace Holden and Now
• 5:37
  Speaker 3: General Motors has announced that it will be laying off
• 5:39
  Speaker 3: one thousand staff in its software and its services division.
• 5:42
  Speaker 2: But what's interesting here is that General Motives has made
• 5:44
  Speaker 2: it clear these job cuts aren't about reducing costs.
• 5:47
  Speaker 3: No, they're actually a way to streamline the software side
• 5:50
  Speaker 3: of the GM business.
• 5:51
  Speaker 2: That's because GM is exploring ways to make software and
• 5:54
  Speaker 2: AI more central to its vehicles.
• 5:57
  Speaker 3: So now GM is resetting itself to better with other
• 6:00
  Speaker 3: car makers in an industry that's becoming increasingly software driven.
• 6:04
  Speaker 3: So what is the key learning here? In the automotive industry?
• 6:08
  Speaker 3: Software is the new hardware.
• 6:09
  Speaker 2: You see, b Man, Software to find vehicles have become
• 6:12
  Speaker 2: more common and more normalized. As cars are evolving more
• 6:15
  Speaker 2: through software, you could almost call them smartphones on wheels.
• 6:18
  Speaker 2: Think heated seeds, driving assistance, speeches, fast charging, free these.
• 6:22
  Speaker 2: The list goes on.
• 6:23
  Speaker 1: I would call mine listen more of a knock here
• 6:26
  Speaker 1: on wheels.
• 6:26
  Speaker 2: Get this BMN. The average lines of software code per
• 6:29
  Speaker 2: vehicle doubled from one hundred million in twenty fifteen to
• 6:31
  Speaker 2: two hundred million in twenty twenty.
• 6:33
  Speaker 3: And that number is expected to jump to six hundred
• 6:35
  Speaker 3: and fifty million by twenty twenty five.
• 6:37
  Speaker 2: Plusam, is there any worse feeling than looking up your
• 6:39
  Speaker 2: bank statement and seeing a number of subscriptions that you're
• 6:42
  Speaker 2: not even using but you've been charged for months. Well,
• 6:45
  Speaker 2: we have a solution to that. It's all in the
• 6:47
  Speaker 2: Flux Subscription Tracker in the Flux app. To make sure
• 6:49
  Speaker 2: to check out the Flux app to safe some cash.
• 6:51
  Speaker 1: Thanks for listening and we'll see you on Friday.