Credit card ABS performance losses dwindled from persistently high levels while excess spread has strengthened to twice the pre-recession average. The Fitch’s Delinquency Index for September is 2.30%, a 35% drop-off compared to last year while losses fell nine basis points (bps) to a multi-year low of 6.32% from 6.41%. On this index, losses averaged…
With the consumer confidence index recently plunging to 44.5 from 59.2 in July on Conference Board, rewards redemption was way up in 3Q/11. Up four points from recent averages, 47% of consumers redeemed at least a portion of their rewards in the past three months, up from 43.1% in 1Q/11 and 43% in 2Q/11. The aspect of “free money” motivates 60.6% of redeemers, 39.5% of whom applied it towards payment of a monthly credit card balance while 23.1% deposited the cash rewards into a personal savings account. With this, consumer demand for mobile devices and applications continue to rise, but only 19.5% of reward-using credit card holders can see or redeem their rewards balance on their mobile device.
Jack Henry & Associates payment processing services to the financial services industry announced its “JHA Payment Processing Solutions” division added 20 credit unions to its client roster during fiscal year 2011. Nineteen of these credit unions elected to replace a competitive ATM, debit, and credit card processing solution with a PPS solution and one launched a new card program. JHA Payment Processing Solutions provides payment solutions to the financial industry including ATM, debit, and credit card solutions. These innovative solutions include one of the largest switch processors in the United States, access to one of the credit union industry’s largest surcharge-free ATM networks, online real-time transaction authorization and processing, signature and PIN-based processing, in-house and outsourced fraud prevention and detection solutions, cardholder awards programs, card program management and profitability solutions, card manufacturing and personalization, instant issue and activation, marketing materials and programs, and renowned customer service.
The availability of debit card rewards offers fell 30% over the past year, according to Bankrate.com’s 2011 Debit Card Rewards Study, but are still largely unchanged. Additional findings show .5% is still the payout ratio, 71% of debit rewards cards have no annual or monthly fees (up from 50% last year); 71% have no cap on rewards-compared to 75% in 2010; those that have caps lowest caps at $120 cash, 80,000 miles and 50,000 calendar points per year; the highest payouts are 1% while the lowest are 0.25%; and flat per-transaction payouts constitute 18% of offers.
Open Solutions integrated enabling technologies for financial service providers launched its “DNAweb” Internet banking solution integrated with the company’s flagship DNA core. The “DNAweb” platform is built for the DNA platform to evolve with the changing needs of consumers and businesses while delivering a superior online experience with the latest Web banking features. Open Solutions created DNAweb with the latest application technology and sophisticated product architecture so the application can evolve with the ever changing online banking environment. The “DNAweb” solution helps banks and credit unions offer a more personalized online banking experience and is designed to deliver the “DNAbillpay” bill pay module.
Sage North America integrated its “ERP X3” business process management software for midsized distributors and manufacturers with its “Exchange” PCI certified payments platform. The Sage “ERP X3” customers in North America using versions 5 or 6 can now use Sage Exchange to process credit and debit card transactions that auto post into their Sage “ERP X3” system in a secure, PCI DSS environment. This is ultimately to help businesses streamline their payments process; increase order and payment accuracy; and deliver an improved customer experience by providing the convenience of accepting bank card payments in an integrated environment.
Bremer Bank, MN-based regional financial services company, is set to upgrade their current Fiserv online banking platform to Corillian Online and add Checkfree RXP from Fiserv for electronic bills and payments. This will allow Bremer to integrate payment functionality directly into the online banking homepage, a feature that improves convenience for the bank’s clients and drives service usage. Bremer will also deploy Campaign Manager from Fiserv to enable targeted marketing campaigns via its online banking site. In addition to Corillian Online and CheckFree RXP Bremer will deploy Campaign Manager from Fiserv to build and distribute targeted marketing campaigns within the online banking user interface.
Datacard Group secure ID and card personalization announced First Financial Federal Credit Union has selected its “CardWizard” issuance software, along with its “FCP 20/20” financial card printers for its instant debit and ATM card issuance program. First Financial Federal Credit Union has implemented the Datacard instant card issuance software and associated hardware in its five branch locations around New Jersey. Immediately after opening a new account or requesting a replacement card, members leave the branch with a permanent, personalized, unembossed and activated ATM or debit card. The CardWizard issuance software transfers the personalization data fully encrypted to the FCP 20/20 financial card printer, which quickly and securely prints in high-definition color onto both sides of white blank card stock.
Fiserv financial services technology solutions, shared key insights into how financial institutions can add social media to their marketing mix at the 2011 BAI Retail Delivery Conference. The Company shared advice on how to monitor the social media conversation, prepare the internal groundwork for a social media launch, tailor the content and frequency of interactions to different social sites, market a social media presence and, lastly, measure results. Steps covered encourage Strategy Development; Listening and Monitoring the Conversation; Laying the Internal Groundwork; Integrating Marketing; and Metrics and Reporting.
Javelin Strategy & Research has named Fiserv the “Best in Class” mobile banking provider for the second year in a row in its “2011 – 2012 Mobile Banking Vendor Scorecard.” Fiserv attained the highest score of all the providers surveyed and is the only provider to be named “Best in Class” for two consecutive years, demonstrating consistent leadership in this emerging channel. The Javelin report credited key acquisitions of M‐Com and CashEdge by Fiserv for bringing strategic mobile services in‐house.
Misys application software and services launched its “Misys Risk” enterprise market risk solution, allowing bank clients to measure, control and manage risk across multiple asset classes, instruments, portfolios and systems. Drawing on its deep expertise in developing risk management and trading systems, Misys has developed a front-to-back enterprise market risk management system designed for risk managers at sell-side and buy-side institutions, incorporating analytics, drill-down capabilities, limit and alert management and reporting. The “Misys Risk” solution leverages existing front-office trading infrastructures, reducing the cost, risk and time of implementation and is designed to work closely with multiple front-office trading systems to provide one dedicated solution for all risk management functions.
In South Carolina, 32 credit unions have joined together pledging to keep debit cards free for their members. These banks want it known they believe in providing the best banking experience for their members with as little cost to them as possible. The partnership credo reads; “I pledge to uphold the credit union philosophy of “people helping people” by continuing to offer fairly priced banking services to our members. In addition, I pledge that my credit union will abstain from charging a fee for members to use our debit cards for as long as market conditions allow us to do so.”