The Center for Financial Services Innovation (CFSI) released a new study that uncovers reasons consumers use harmful small-dollar credit products, highlighting the need for better high-quality credit solutions. Having surveyed over 1,100 small-dollar credit (SDC) consumers, plus an additional 500 non-SDC consumers for comparison, the study suggests an estimated 15 million consumers used at least one SDC product in the past year; 59% of surveyed SDC consumers had only a high school education or less, compared to 45% of non-SDC consumers polled; and 27% of SDC consumers had a credit card, compared to 61% of non-SDC consumers. The top three reasons identified for funds shortage included living expenses consistently more than income, bill or payment due before paycheck, and unexpected events such as emergency expenses or income drops.
Grant Victor’s ATMequipment.com and eGlobal were ranked in Inc. Magazine’s 500|5000, a 2012 ranking of the nation’s fastest-growing private companies. Grant Victor had a three-year growth rate of 151% and was also ranked No. 96 among the Financial Services industry. ATMequipment.com had a three-year growth rate of 127% and was also ranked No. 105 among the Financial Services industry while eGlobal had a three-year growth rate of 107% and was also ranked No. 117 among the Financial Services industry. The median growth rate of 2012 Inc. 500|5000 companies remains 97 percent, despite a lagging economy.
The U.S. Bank Business Visa Charge Card pay-in-full card is designed to give small businesses a way to build their business credit, manage their cash flow and earn cash rewards on all their purchases. With no monthly or annual fee, benefits of the U.S. Bank Business Visa Charge Card include no interest charges or revolving balances because customers pay in full every month; ability to build a business credit profile; 25-day monthly grace period for owners to pay their bill; up to one percent cash back on purchases; 24/7 domestic call centers with dedicated U.S. Bank small business specialists and zero liability fraud protection.
Chase and LivingSocial announced the 12 small businesses that will receive grants of $250,000 each through “Mission: Small Business” grant program. To increase awareness of the important role small businesses play in local communities, “Mission: Small Business” is supported by the U.S. Chamber of Commerce. Moreover, nearly 70,000 small businesses registered and 3.1 million while consumers showed voted for their favorite small businesses. Participating small businesses from across the country were evaluated based upon their applications which were required to demonstrate a feasible growth plan, creativity, overall passion for their business and the potential to make a positive impact within the local community. Chase will offer grant recipients access to a Chase Relationship Manager who will provide guidance for utilizing the grant efficiently and effectively. Chase and LivingSocial also partnered with the U.S. Chamber of Commerce to help announce the program and drive small business engagement and participation.
Fiserv announced that six financial institutions have recently chosen “Cleartouch” from Fiserv for account processing. Related solutions for this service include online banking, risk management, check capture, mobile banking, document imaging, card production, bill payment and accounting. These institutions include Mansfield Bank, a $372-million bank headquartered in Mansfield, Mass; The Home Building & Loan Company, a $43-million bank in Greenfield, Ohio; Kennebec Federal Savings & Loan Association in Kennebec, Maine; Magyar Bank, headquartered in New Brunswick, N.J.; Webster City Federal Savings Bank, a $91-million bank in Webster City, Iowa; and Winchester Savings Bank in Winchester, Mass.
Fundtech global transaction banking solutions released results for its benchmark test conducted in conjunction with IBM for a Tier 1 global bank. This demonstrates Global PAYplus Services Platform (GPP-SP) running on an IBM software and hardware stack is able to far exceed the Bank’s current and future performance targets for processing mass payments. Mass payments refers to consumer and business low-value payments (such as ACH or SEPA transactions) that are typically processed in very large quantities, and therefore require a highly scalable system. In the benchmark test, Fundtech’s GPP-SP was able to process 20 million payments in under two hours, less than half the time established as the benchmark by the Bank. In variations of the test, GPP-SP processed double and even triple the volumes in the target timeframes.
Fico has selected Savvis to deliver Fico “Debt Manager” as a service in the cloud to lenders and collection agencies. The “Debt Manager” solution transforms collection and recovery processes for credit card accounts, secured and unsecured loans, mortgages and deposit/current accounts with game-changing adaptive control capabilities, and a flexible architecture that aligns with business needs. FICO “Debt Manager” is now optimized for Savvis data center services and Savvis Symphony Dedicated Cloud, an enterprise-class cloud computing solution. Lenders can now deploy the solution faster, cut collection costs, improve productivity and collect more from delinquent customers.
Braintree payments platform for online and mobile commerce acquired Venmo mobile and social payment application that makes it seamless for consumers to make and share payments with their mobile phones. The Venmo mobile payment application allows consumers to make purchases on their mobile device and allow Braintree to allow e-commerce companies to accept payments on mobile devices. Braintree has stored over 30 million credit cards from consumers who’ve purchased at merchants using Braintree’s payment gateway and vault. Consumers who have stored their payment information at one of the thousands of online and mobile applications that use Braintree will soon be able to utilize the Venmo digital wallet to pay merchants in just one click. Braintree powers payments for innovative online and mobile merchants including Rovio/Angry Birds, Uber, Airbnb, HotelTonight and OpenTable.
Capario revenue cycle management solutions launched its integrated patient pay solution through its relationship with TransFirst transaction processing services and payment enabling technologies. Capario identified a need for a patient payment solution due to the difficulties providers face when determining a patient’s financial responsibility and collecting from patients at the time of service and once they leave the office. According to a recent report entitled “Perspectives on Patient Payments” by MGMA Connexion, 30 percent of patients leave the physician’s office without paying. For unpaid bills turned over to a collection agency, providers recover on average $15.77 for every $100 owed. Capario’s new patient pay solution allows providers to collect patient payments quickly through the Capario portal at check in and check out with credit card swipe technology; create paper or electronic statements to be sent to patients after insurance has paid; maintain a practice-branded patient payment portal where patients can easily view their statements and pay their balances online; and accept and post checks received in the mail using ACH check conversion.
ACI Worldwide (ACIW) payments systems announced ACI Money Transfer System has received the SwiftReady payments accreditation for the fifteenth consecutive year. Also, its ACI Global Trade Manager achieved the SWIFTReady Supply Chain Finance accreditation for the fifth year in a row. SWIFTReady accreditation for payments recognizes that ACI’s Money Transfer System satisfies SWIFT’s highest requirements for the initiation, generation, processing and settlement of payments. The SWIFTReady Supply Chain Finance label, received by ACI Global Trade Manager, is granted to trade finance applications which support the Trade Services Utility (TSU) messages and workflows. Global Trade Manager is designed and built according to TSU standards and is fully compliant with TSU Release and the Bank Payment Obligation or BPU.
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”0″ ihc_mb_template=”1″] Delinquencies for U.S. credit card ABS fell for the 30th straight month for unprecedented positive performance, according to Fitch Ratings. After peaking in January 2010 at 4.54% delinquencies currently stand at 1.82%, five basis points above the record of 1.78% set in August 1994. Additionally, the Fitch Prime Chargeoff Index is…
Discover is partnering Google to offer cardmembers means to input their credit card directly into Google Wallet by logging into the online Account Center at discover.com/googlewallet. This will give Discover cardmembers the ability to tap and pay for purchases in-store in conjunction with the Google Wallet application on a compatible NFC smartphone and make purchases online. Cardmembers using Google Wallet to pay for items with their Discover card will continue to earn Cashback Bonus® rewards. The credit card will automatically sync to the Google Wallet application for those that have a compatible NFC smartphone.