Bank of America announced this morning it has reached an agreement with billserv.com, Inc. for electronic bill presentment and payment services. billserv.com’s biller customers now have the ability to securely present bills to Internet online banking customers at Bank of America’s web site. The bank currently has more than 1.6 million online banking customers. Since late March, the Bank of America bill presentment feature has allowed participating customers in California to receive and pay bills electronically. Billers, such as Sallie Mae, rely on billserv.com to create and deliver electronic bills on their behalf.
Bank of America introduced the ‘Photo Security VISA Check Card’ in California yesterday. Bank of America also offers a ‘Photo Security VISA Credit Card’ in California. BofA says the new photo debit card combined with its liability waiver for unauthorized transactions offers a new level of protection for its customers. The ‘Photo Security Cards’ are available free of charge to new and existing Bank of America checking account customers and credit card customers. Customers are required to sign up at BofA’s California banking centers.
Bank of America’s Credit Card Group said yesterday it has selected NC-based American Credit Counselors Corp. to be a lead counselor to the bank’s customers with serious credit card debt. ACCC, a national non-profit organization that provides financial counseling and a debt management program for people who are experiencing financial difficulties, says it ranks among the top 12% nationally based on number of current clients. BofA says it has utilized ACCC for more than 18 months and has monitored and compared the performance of many other counseling agencies. BofA says ACCC’s exceptional reporting on key performance indicators was a factor in its decision to migrate more of its credit-counseling business to the company.
Bank of America announced Thursday the appointment of Kenneth Kido as head of the company’s Consumer Credit Card Division. Bank of America, which now includes the NationsBank card portfolio, is the nation’s sixth largest issuer of bank credit cards, based on outstandings. According to CardData (www.carddata.com).
Bank of America yesterday renewed its contract with Wal-Mart Stores to provide ATM services for an additional three years. The network combines 700 existing ATMs with 200 additional ATMs in Missouri, Arkansas, Oklahoma, Kansas and North Carolina. The BofA/Wal-Mart ATM network will reach a total of 19 states after the additional deployments are completed later this month. Bank of America’s North Carolina ATM network will increase by 23% with the new Wal-Mart ATM installations. BofA is Wal-Mart’s largest ATM provider, with locations in more than 30% of the Wal-Mart and Sam’s Clubs nationwide.Wal-Mart also awarded Bank of America the “Best ATM Service Provider for 1998” out of approximately 165 providers at Wal-Mart’s annual stockholders meeting in June.
Citibank bumps Bank One, Capital One nudges past Household, and Wachovia blows past US Bancorp during the first quarter. According to CardData, the top 25 bank credit card issuers accounted for $396.7 billion of the nation’s total 1Q/99 bank card receivables of $447.5 billion. 1Q/99 financial data for more than 350 top issuers is available via CardData (www.carddata.com)
TOP 25 1Q/99 (ranked by receivables)
1. Citibank $69.4b 14. US Bancorp $6.0b
2. Bank One $68.2b 15. Associates $5.8b
3. MBNA $56.2b 16. First Union $5.2b
4. Discover $32.1b 17. Direct Merchants $5.1b
5. Chase $31.4b 18. USAA $3.7b
6. BofA $20.7b 19. People’s $3.6b
7. Fleet $14.1b 20. Frst Natl NE $3.2b
8. Cap One $13.9b 21. Natl City $2.0b
9. Household $13.0b 22. Partners Frst $1.9b
10. Providian $12.7b 23. KeyCorp $1.3b
11. AmEx Optima $10.2b 24. Firstar $1.3b
12. Wells Fargo $7.9b 25. HSBC $1.2b
13. Wachovia $6.6b
chart excludes GE Capital and First North American National-both firms do
not release data
Source: CardData (www.carddata.com)
Bank of America and Discover Financial Services signed an agreement Tuesday to expand acceptance of ‘Discover Cards’ through Bank of America’s network of more than 14,000 ATMs nationwide. BofA began accepting ‘Discover’ via its ATM network in the early 1990s. Due to last year’s merger between NationsBank and Bank of America, the new Bank of America and Discover Financial Services agreed to expand acceptance of ‘Discover’ through the NationsBank ATM network. Discover currently has 46 million cardholders.
BankAmerica Corporation and BA Merchant Services,Inc. announced Wednesday the approval by the holders of a majority of the outstanding common stock of BAMS of the Agreement and Plan of Merger dated December 22, 1998 among BankAmerica, BAMS and BAMS Acquisition Corporation. The Merger became effective as of 5:01 p.m. (Pacific Time) Wednesday. As a result, BAMS has become a wholly owned subsidiary of Bank of America National Trust and Savings Association, and each outstanding share of BAMS common stock (other than the shares owned by BankAmerica), has been converted into the right to receive a cash payment equal to $20.50 per share, without interest. “We’re now in a better position to provide Bank of America’s full range of products and services to merchants from coast to coast,” said Sharif Bayyari, President and Chief Executive Officer of BAMS.
The Class A Common Stock of BAMS (NYSE: BPI) will no longer be traded on the New York Stock Exchange.
BAMS provides a range of payment processing and related information products and services to merchants who accept credit, charge and debit cards as payments for goods and services throughout the United States. BAMS is the exclusive provider of merchant processing services for Bank of America. BAMS is the fifth-largest processor of merchant credit transactions and one of the largest processors of debit card transactions in the United States.
BankAmerica Corporation Shareholders Vote to Change Name of Holding Company to Bank of America Corporation; Directors Declare Dividends
At the annual meeting Wednesday, shareholders of BankAmerica Corporation voted to change the name of the company to Bank of America Corporation. The name change becomes effective with the official filing in Delaware today and will be reflected tomorrow on the exchanges where the company’s securities are listed.
The holding company’s name now reflects the brand under which the company will do business around the world. Bank of America Corporation was formed Sept. 30, 1998 by the merger of BankAmerica Corporation and NationsBank Corporation. By mid-year 2000, the company’s banks will all be doing business under the brand name Bank of America. Affiliated companies such as Bank of America Mortgage and Bank of America Card Services already are doing business under that name.
In addition today, the Bank of America Corporation board of directors declared a regular quarterly dividend of $.45 per share on Bank of America Corporation common stock.
The dividend is payable June 25, 1999 to shareholders of record on June 4, 1999.
The board also declared regular quarterly dividends on two preferred stock issues. A $1.75 cash dividend was declared on the 7 percent Cumulative Redeemable Preferred Stock, Series B. The dividend is payable July 28, 1999 to shareholders of record on July 14, 1999.
A cash dividend of 62.5 cents was declared on the $2.50 Cumulative Convertible Preferred Stock, Series BB, payable on July 1, 1999 to shareholders of record on June 4, 1999.
BankAmerica, with $614 billion in total assets, is the largest bank in the United States. It has full-service operations in 22 states and the District of Columbia and provides financial products and services to 30 million households and two million businesses, as well as providing international corporate financial services for business transactions in 190 countries. BankAmerica stock (NYSE: BAC) is listed on the New York, Pacific and London stock exchanges and certain shares are listed on the Tokyo Stock Exchange.
Just how concentrated the bank credit card industry has become was illustrated with the end-of-year stats coming from CardData ([www.carddata.com]). Based on year-end 1998 portfolio figures, the nation’s top five issuers have a collective market share of 58% compared to 37% for 1992. If the nation’s three largest consumer banking franchises, Citigroup, Bank One and Bank of America, each held $70 billion in card receivables, then the top three issuers would control 47% of the industry. Citigroup and Bank One each held slightly less than $70 billion at year-end. Bank of America, with about $21 billion in card outstandings and a 4.7% market share, is rumored to be aggressively looking for a major acquisition. A BofA acquisition of MBNA would instantly give BofA the additional market share. However it is believed BofA will slowly absorb mid-sized portfolios.
MARKET SHARE AMONG TOP FIVE CARD PLAYERS
(based on bank credit card outstandings)
4Q/98 RECV MS 4Q/92 RECV MS
1.Bank One $69.9 billion 15.7% 1. Citibank $32.3 billion 16.0%
2.Citigroup $69.6 billion 15.6% 2. Discover $14.7 billion 7.3%
3.MBNA $53.7 billion 12.1% 3. Chase Man $10.1 billion 5.0%
4.Discover $32.5 billion* 7.3% 4. B of A $ 9.5 billion 4.7%
5.Chase Man. $32.2 billion 7.2% 5. MBNA $ 8.2 billion 4.1%
MS-marketshare; *Notes-Discover’s 1998 data are for fiscal quarter ending 11/30/98
Source: CardWeb’s CardData service(www.carddata.com)
Former MasterCard CEO and Bank of America unit president Eugene Lockhart was appointed to the position of EVP and chief marketing officer of AT&T yesterday. Lockhart, who will become a member of the company’s most senior executive body, the AT&T Operations Group, will be responsible for brand management across the company and will oversee the development of marketing programs for all units. He will also set overall marketing strategy for the Consumer Services Group and directly manage its advertising, billing and customer care operations across all product lines. This is the first time AT&T has named a chief marketing officer. The company spent over a year searching for a chief marketing executive. Reportedly, Lockhart’s compensation package will include about $1 million in annual salary plus options to acquire more than 250,000 shares of AT&T. Lockhart resigned as president of BofA’s Global Retail Bank last year following the announcement of the BofA and NationsBank merger. Lockhart reportedly received a $23 million severance package from BofA.
In a move to further leverage its huge payments business and expand its leadership position in the rapidly growing electronic commerce marketplace, Bank of America announced Wednesday that Group Executive Vice President Chris Callero has been named to form and head a new group focused on Strategic Technology and Integrated Payments Services.
Callero and the new group will be responsible for leading Bank of America’s payments strategy across organizational lines — working to deploy strategic technology and develop business partnerships to best align the bank to serve its 32 million customers worldwide. The new group will work to provide customers with emerging access channels and capabilities, including electronic commerce, electronic bill presentment, and financial services aggregation through cable, telecommunications and other Internet providers.
In his new assignment, Callero will report to Ken Lewis, president of Consumer & Commercial Banking and Jim Dixon, president of Technology & Operations.
“Bank of America recognizes the evolution of the whole payments business, and we are moving aggressively to create this new group. Our customers are driving this evolution by increasingly using many convenient methods of payment, including debit cards and online banking, while also showing interest in even more capabilities and access channels, such as electronic bill presentment and Internet commerce. Chris’ extensive experience, leadership and execution capabilities, make him particularly well suited to lead our new Strategic Technology and Integrated Payments Services group,” said Lewis.
“Bank of America is already a major provider of payments services to both businesses and consumers,” said Dixon. “We hold a leadership position in all parts of the payments business — from check clearing, money transfers, and Automated Clearing House payments to credit and debit cards, online banking bill payments, and merchant services. This new group will build on our expertise and leverage Bank of America’s unsurpassed scale to benefit our consumer and business customers globally.”
The Strategic Technology and Integrated Payments Services group will be responsible for supporting existing lines of business such as Card Services, Cash Management, Direct Banking and Transaction Services in the evolution of payments. The group also will work closely with Channel Strategies and Development, leading and sponsoring strategic technology investments that enhance the bank’s development, distribution and processing of payments-related products and services.
Callero began his career with Bank of America in 1971 as a mailroom clerk on the swing shift. He rapidly advanced through a variety of operations management responsibilities and in 1983 was named to form and lead the Item Processing Operation for Southern California in Los Angeles.
In 1992, Callero was named Executive Vice President and head of the Consumer Lending Division, and two years later he formed and led the National Consumer Assets Group — responsible for the financing of homes, home equity, and automobiles for customers through branches, loan-by-phone, direct marketing and automobile dealerships. He was appointed Group Executive Vice President in 1994, and three years later was given expanded national responsibilities as the Group Head for Deposit and Payment Services, including Interactive Banking, ATMs/Debit Cards, Deposit Products, Investment Services, Insurance Services, Small Business and Liability Risk Management.
Since the announcement of the merger of Bank of America and NationsBank, Callero has spearheaded the transition for Consumer & Commercial Banking.
Bank of America is a leader in all aspects of the payments business. Advanced technology and accuracy standards help ensure the smooth processing of 37 million checks each day for customers. More than 1 million of the bank’s customers bank online via the Internet, America Online, or personal financial management software. The bank has more than 22 million credit card and nearly 11 million debit card accounts. Two out of three large U.S. corporations use Bank of America cash management services.
Bank of America, with $595 billion in total assets, is the largest bank in the United States, with full-service consumer and commercial operations in 22 states and the District of Columbia. Bank of America provides financial products and services to 30 million households and 2 million businesses, as well as international corporate financial services for business transactions in 190 countries. Bank of America stock is listed on the New York, Pacific and London stock exchanges and certain shares are listed on the Tokyo Stock Exchange. For more information, please visit [www.bankamerica.com] and [www.nationsbank.com].
Bank of America said Monday it will enable its commercial credit card customers to access the power of a transaction information management system that uses Web-based, point-and-click technology to set new standards of speed, accuracy and cost-efficiency. The online account management and reporting system, ‘EAGLS’ will be available mid-year 1999. ‘EAGLS’ was originally designed with the requirements of the federal government’s General Services Administration in mind. ‘The system has now been modified to meet the needs of private sector customers. ‘EAGLS’ allows users to set up accounts, maintain them, and view regularly scheduled reports, as well as write their own reports with new flexible management information tools. The system also provides superior controls, expedited cardholder setup and on-line access to at least 13 months of data. End-to-end purchasing capability will be delivered through an electronic mall interface, accompanied by electronic reconcilement and EDI capability.