Amid turmoil in its PR department, VISA yesterday named former GM PR chief, John C. Onoda, as EVP for corporate relations for VISA U.S.A.. Onoda will be responsible for all corporate communications activities in the U.S., including: media relations; public relations; executive communications; employee communications; and communications support for other major VISA projects and issues. In his position at General Motors, Onoda had worldwide responsibility for all communications activities with direct responsibility for GM’s corporate communications function, including media relations, financial communications, internal communications, strategic communications, and communications relating to key public policy issues. Prior to his tenure at GM, Onoda served as vice president, corporate communications for Levi Strauss & Company, based in San Francisco.
CheckFree announced Monday that American Payment Systems, a payment processing company for utility customers, will use the CheckFree RECON-Plus for Windows client/server system to automate the reconciliation of its more than 100,000 daily transactions.
APS manages more than 1,300 accounts for over 60 major utility companies. RECON-Plus for Windows will be used initially to verify its daily cash transactions across 100 bank accounts nationwide. It will later be expanded to include reconciliation of other utility processes.
“We were immediately impressed with the power and flexibility of RECON-Plus for Windows. With this system we will be able to automate more processes than ever before — importing, matching, reporting, etc…which will save significant amounts of time and money,” said Richard A. Okun, President at APS. “Plus, with RECON-Plus for Windows we can consolidate our numerous bank accounts and further save on the associated bank fees.”
Senior Vice President of CheckFree Software Frank J. Amoruso, added, “APS is a leading processor of consumer payments for utilities, and its decision to go with RECON-Plus for Windows ratifies its leadership. The comprehensive features of our product will help fulfill APS’ vision of adapting to the expanding needs and challenges of the utility industry.”
CheckFree, a leading provider of reconciliation software to banks and corporations for more than 20 years, has sold over 600 reconciliation systems to organizations around the world, including more than 100 RECON-Plus for Windows systems.
About CheckFree RECON-Plus for Windows
RECON-Plus for Windows is the industry’s most comprehensive account reconciliation application on the market today. It streamlines the reconciliation process for any organization-wide application, whether check or non-check — including disbursement, depository, general ledger, subledger, wire transfer, debit/credit cards, Federal Reserve, inventory applications, premiums, ATM, ACH transfers and more. RECON-Plus for Windows also reduces fraud through daily deposit verification, allows for intra-day investment opportunities and provides quicker cash concentration.
About American Payment Systems
American Payment Systems () is a wholly owned subsidiary of The United Illuminating Company, an operating electric utility in southern Connecticut. APS is the leading service provider in “walk-in customer bill payments.”
APS has more than 6,500 Point of Sale (POS) locations in 38 states, processing over 80 million payments annually for about 75 major utility companies, which represent over 10 billion dollars in customer payments. APS is the technology leader in providing this outsourced service to the utility industry with enhanced features and automatic postings to customer accounts, as well as automated voice-response interfaces for real-time transaction posting. APS specializes in systems integration to make customer data more available and useful for its clients. APS’ clients include AT&T, Ameritech, Houston Industries, Southern California Edison, Pacific Gas & Electric, Virginia Power, PaciFICO®rp, Entergy, Central & Southwest, Southern California Gas and Carolina Power & Light.
Founded in 1981, CheckFree Corporation (), the operating subsidiary of CheckFree Holdings, Inc., is the leading provider of financial electronic commerce services, software and related products for more than 2.4 million consumers, 1,000 businesses and 850 financial institutions. CheckFree designs, develops and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure financial transactions on the Internet.
Tulsa-based Commercial Financial Services confirmed Monday that an affiliate of CFS has signed a definitive agreement to purchase Corning Savings and Loan Association in Corning, Arkansas. CFS says it is buying Corning S&L so the firm can offer financial products, like credit cards and home equity loans, to CFS’ customers. The company recently hired Alan Colberg, formerly of Bain and Company in Atlanta, to serve as CEO of the new business. CFS says its first step will be to convert Corning S&L into a federally chartered thrift and then develop and test new credit card and residential mortgage products later this year, and begin offering products to CFS customers in early 1999.
Home Financial Network, Inc. announced yesterday that Marquette Banks has launched Marquette Home ATM, a fully customized, bank-branded version of HFN’s popular Home ATM software. Through Home ATM, Marquette customers will now be able to go online to access their Marquette accounts and perform a wide range of ATM-like transactions, including balance inquiry, statement retrieval and funds transfer, and will also be able to pay all of their bills electronically.
Marquette’s Home ATM has been extensively customized and branded to reinforce Marquette’s valuable relationship with its customers. “When our customers see ‘Marquette Banks’ on their computer screen, they trust that they’re dealing with their bank,” said Margaret Murphy, senior vice president of corporate marketing for Marquette Banks. “Customers have no question as to who is providing their home banking services. And we want our customers to trust that Marquette is at the other end.”
Long a leader in home banking, Marquette was the first bank in Minnesota to introduce telephone bill payment, and the first to go live with online banking in 1995. “We expect Marquette Home ATM to be the product that delivers more widespread acceptance of online banking,” added Murphy. “Currently five percent of our customers use Microsoft Money and Intuit Quicken, which were introduced in 1996. We anticipate that penetration to be exceeded by Marquette Home ATM within the first year, due to Home ATM’s elegance and simplicity. We believe that Home ATM is the perfect complement to our portfolio of advanced PFM products.” Murphy continued, “It has been designed specifically to meet the needs of mass market consumers who represent the largest percentage of our PC customer base and who demand simple, transaction-oriented products designed ‘to get the job done.’ By the year 2000, we expect 20 percent of our customer base to be participating in home banking, with the majority using Marquette Home ATM.”
“We chose HFN because they offer a complete, flexible home banking solution today as well as ongoing research and development of future technologies that will keep Marquette ahead of the pack,” stated Doug Hile, president, Marquette Bank, N.A. “For example, Marquette Home ATM has been designed to incorporate electronic bill presentment technology, and will allow customers to download cash from their accounts onto smart cards inserted into their computer in the not-so-distant future.”
“We are very pleased to have met the high standards that Marquette Banks has established for its home banking program,” said Daniel M. Schley, chairman and CEO of Home Financial Network. “We understand and appreciate Marquette’s mission to be a leading provider of electronic financial services to its customers and are confident that we will play a major role in the achievement of its objectives. In the short term, we’re confident that our Home ATM software will prove to be a superb point of entry into the world of online banking for Marquette customers who have expressed a strong interest in home banking and bill payment services.”
About Marquette Banks
Marquette Banks is part of the Pohlad Financial Group (PFG), a group of separately chartered banks in ten states with $4.8 billion in assets. As a part of PFG, Marquette Banks is committed to super community banking — providing the breadth of products and services of a larger institution, backed by the personalized customer service and community orientation of a smaller bank.
About Home Financial Network, Inc. () Home Financial Network of Westport, CT develops and markets Internet banking software for banks to offer on a customized, bank-branded basis to their customers. The company’s “Home ATM” software is designed specifically to serve the needs of mass market consumers who demand simplicity, ease of use, and products that “get the job done.” In conjunction with Home ATM, HFN also markets a series of relationship marketing programs that allow banks to deliver targeted marketing messages directly to their Internet banking customers. HFN’s Home ATM software is certified Y2K-compliant and is configured to transact over public and private networks using all major home banking protocols, including OFX and Gold. The company’s mission is to serve the interests of its client banks by delivering the most transacting customers profitably over time.
American Express and the U. S. Postal Service announced Monday a program to help promote awareness of breast cancer and raise funds for research. >From now until October 31, 1998, American Express will donate five cents per transaction every time any American Express Card is used to make a purchase at any of the nation’s 32,000 post offices. American Express will donate up to $100,000 to the National Institutes of Health for breast cancer research.
The new lightweight, under 200 pounds, ATMs have become prime targets for thieves. TX-based ATX Technologies, manufacturers of the ‘On-Guard Tracker’, has developed a solution to ATM theft by adapting ‘Trackers’ for use in these devices. ATX has begun shipping units to Security Corporation of Richmond, VA. These small ‘Tracker’ units use the Global Positioning System satellites for locating and tracking ATMs. For example, when an ATM is compromised, the ‘Tracker’ notifies Security Corporation with its location, direction of travel and speed. The local authorities are contacted and guided to the machine before criminals have a chance to break into the ATM.
Michigan National will launch its ‘Web Banking’ service this morning. The ‘Web Banking’ service allows customers to view account balances, reorder checks, and communicate with Michigan National customer service representatives through e-mail. The service will soon allow customers to view up to three months of checking account activity, see if checks or deposits have been posted, and transfer funds between linked Michigan National accounts. Michigan National is also launching an e-bill payment service. Michigan National ‘Web Banking’ is free for customers of the bank. Bill payment through the service is free for the first 90 days, and $5.95 per month thereafter. The bank recently introduced a new ‘VISA’ card with interest that is generally tax deductible, called the ‘Equi:Money VISA card’.
In response to last week’s report by the Washington Post that more than $1 million in ‘VISA Check’ card losses were perpetrated on a Virginia credit union from crooks in Pacific rim countries, CUNA says the overall risk is minimal. The CUMIS Insurance Society, which insures about 97% of all credit unions, had insured plastic card losses of $32.5 million last year. CUMIS says the number of claims filed by credit unions is down this year, with claims payments actually about 30% less than they were at this time last year. CUMIS also said it will continue to put out ‘SCAM Alerts’, a broadcast fax and e-mail program that notifies credit unions of plastic card and other frauds being perpetrated against credit unions throughout the country.
Paymentech announced Friday it is adding EBT transaction capability to its POS offerings that will benefit smaller merchants. Paymentech says many of its merchants are smaller, independent locations using a terminal-based product instead of multi-lane platform systems. The new EBT offerings will help these merchants to cost-effectively compete against large supermarket and convenience store chains. Paymentech is launching EBT functionality on its ‘VeriFone 380’ retail solution.
There’s good news starting Monday for banking customers of Wells Fargo and Norwest who step up to any of the two companies’ 6,200 ATMs in 21 states — no fees for cash withdrawals.
“We’ve said it from the start — our customers come first in this merger, so we’re doing everything we can right out of the box to make it as easy as possible for them to bank when, where and how they want to bank,” said Norwest President Les Biller.
“We want to offer our customers, especially those who travel extensively, the benefit of this extensive distribution system as soon as possible,” said Wells Fargo President Rod Jacobs.
Reciprocal, no-fee cash withdrawals do not apply to Instant Cash ATMs owned or operated by Norwest’s correspondent banking customers.
Free ATM cash withdrawals will especially benefit Norwest and Wells Fargo customers in the five states where the two companies’ banking systems overlap: Arizona, Colorado, Nevada, New Mexico and Texas.
Fujitsu-ICL Systems Inc. announced Friday the appointment of Jeffery S. Lund as vice president of new business development for the Financial Services Division.
In this position, Lund will investigate product strategies, product development, strategic partnerships, alliances and acquisitions in a variety of areas including home banking, call centers, payment systems, e-commerce and core systems.
According to Rita L. Champ, senior vice president of Fujitsu-ICL’s Financial Services Division, Lund will capitalize on his extensive expertise in sales, marketing and business development to grow Fujitsu-ICL’s market share.
“Financial institutions are demanding a wider array of products and services to differentiate themselves in the market — and Fujitsu-ICL is poised to deliver the solutions,” Champ said. “Jeff’s experience, which ranges from international logistics to new product and channel development, will allow us to deliver these new products and technologies faster and more effectively than ever before.”
“As Fujitsu-ICL continues its aggressive growth, we are committed to identifying and developing new products that will expand our electronic delivery systems offerings to the financial industry,” Lund commented. “This combination of growth and new product development make this position both a challenging and exciting opportunity for me.”
Prior to joining Fujitsu-ICL, Lund served as the Director of International Sales-Asia Pacific for Melita International, an Atlanta-based call center products company. In this capacity he was responsible for sales and new business development activities. Lund also spent 10 years with National Data Corp. where he was responsible for managing new business development as well as product marketing.
Fujitsu-ICL Systems Names New Vice President of Financial Services Marketing; Banking Veteran to Focus on Strategic Marketing and Product Development
Fujitsu-ICL Systems Inc.’s Financial Services Division also announced Friday the hiring of Mary Nell Hoover as vice president of marketing.
Hoover will oversee all marketing activities including strategic planning, new product design and development, on-going product marketing, marketing support and marketing communications.
According to Rita L. Champ, senior vice president of the Financial Services Division, Hoover is ideally suited to help Fujitsu-ICL meet the growing challenges in the financial services industry.
“With the exponential growth of electronic banking, extensive M&A activity, and even the issues posed by the approach of the new millennium, today’s financial institutions are under increasing competitive pressure. They are seeking ways to streamline their operations while improving services to customers and differentiating themselves from the competition. In response, Fujitsu-ICL is developing new products and service offerings specifically designed to meet these needs,” Champ said.
“Mary’s expertise in marketing strategy and new product development, combined with her extensive banking experience, makes her the ideal choice to lead Fujitsu-ICL’s Financial Services Division forward.”
“Having been in bank management for over fifteen years, I know how important vendor commitment and support is to customers. Fujitsu-ICL reflects this commitment in its knowledgeable and dedicated staff, and in its support and focus on the unique needs of each client,” Hoover said. “I look forward to being a part of such a dynamic team, and to reinforcing and driving that commitment.”
Prior to joining Fujitsu-ICL, Hoover worked with major banks such as Security Pacific National Bank (now Bank of America) in Los Angeles, and First Merit Bank of Akron, Ohio. During her career, she has been involved in the analysis and development of a variety of electronic delivery products including ATMs, home banking, card products, centralized call systems and database marketing systems.
With over 15 years of experience in the financial industry, Hoover is well versed in meeting the demanding needs of the banking industry. She holds a master’s degree from Iowa State University and a Professional Certificate of Business Management from UCLA. In addition, she attended the Stonier Graduate Banking School and the School of Bank Marketing.
Fujitsu-ICL’s Financial Services Division is based in Hackensack, N.J., with operations and sales offices in La Jolla, Calif., and Atlanta. The Financial Services Division has built a reputation for providing innovative features, progressive ergonomic design and reliability for its Series 7000 Advanced Platform family of ATMs and cash dispensers for off-premise, through-the-wall, drive-up, kiosk and lobby installations.
With headquarters in Dallas, Fujitsu-ICL Systems Inc. employs 1,200 people in North America and is the result of a joint partnership between ICL PLC of London and Fujitsu Limited of Japan.
In addition to its line of automated teller machines, airline ticket printers and handheld computer systems, Fujitsu-ICL Systems provides integrated information systems to supermarket, home center, specialty and hard goods retailers in North America.
The bank credit card industry has hit the skids. Since last summer, credit card outstandings, according to second quarter issuer data gathered by CardData, have increased a paltry 8.4%, from $404.5 billion to $438.3 billion. The August edition of CardTrak, released this morning, says this is the lowest level of growth since the recessionary years of 1990-92. To make matters worse, credit card volume is off too. Quarterly volume is only up 8.3%, comparing 2Q/98 with 2Q/97. Thanks to attrition, the total number of gross and active accounts is also shrinking. Nationwide more than 7 million accounts have been closed since January. The shrinkage is due to three elements: high LTV home loans, record bankruptcy filings, and debit cards. Despite federal scrutiny, homeowners have flocked to high LTV loans to consolidate credit card debt, gain tax deductibility and lower monthly payments. The government reported last week a record number of bankruptcy filings, apparently in anticipation of bankruptcy law reform. Debit card volume continues to soar by at least 50% per annum as consumers displace traditional credit card spending with debit card use to avoid the hassles associated with credit cards. CardData will report on debit card volume within the next few weeks.
BANK CREDIT CARD INDUSTRY GROWTH
(excludes debit & business cards)
98-2 98-1 97-4 97-2
Receivables $438.3 $433.7 $442.5 $404.5
Volume $214.1 $195.6 $214.4 $197.7
Gross Accounts 328.5 332.2 335.4 309.9
Active Accounts 220.6 222.6 226.7 206.3
Cards-In-Force 488.3 484.9 483.1 451.4
$ in billions; accounts and cards in millions; Source: CardData ([www.carddata.com] or CD-ROM) 717-338-1885