Capital One Financial is reducing operating expenses and cutting about 2,000 current jobs across the company. Approximately half of these planned job eliminations have already occurred in the company’s US Card, Mortgage Banking, and UK businesses. Cap One expects to achieve additional savings from attrition and the elimination of selected positions that are currently vacant. The company also expects to realize savings from reduced spending on suppliers and vendors, and reduced facilities costs. The initiative is expected to reduce the operating expense structure of the company by approximately $700 million pre-tax, with approximately $400 million realized in 2008, and an additional $300 million realized in 2009. The company will record one-time charges of approximately $300 million pre-tax over the course of the cost restructuring initiative. Approximately $150 million of these charges are related to severance benefits, while the remaining charges are associated with items such as contract and lease terminations and consolidation of facilities and infrastructure.
Citigroup this morning confirmed plans to cut 17,000 jobs and transfer about 9,500 to less expensive locations worldwide, affecting about 8% of its total workforce. Citi says it wants to eliminate organizational, technology and administrative costs that do not contribute to our ability to efficiently deliver products and services to our clients. The action is expected to generate total expense savings of approximately $2.1 billion in 2007, $3.7 billion in 2008, and $4.6 billion in 2009. Citi says it will record a charge of $1.38 billion pre-tax, $871 million after-tax, in the first quarter of 2007 and additional charges totaling approximately $200 million pre-tax over the subsequent quarters of 2007. Citi says that it will consolidate some back-office, middle-office and corporate functions to eliminate duplication.
GlobeID Software announced this morning it has entered into a memorandum of understanding with GlobeSet, Inc., to establish a technology and marketing partnership leveraging the GlobeSet Payment System and GlobeID’s GlobeID Banking to provide best of breed end to end payment solutions to the financial services industry.
The GlobeSet Payment System is a comprehensive SET Secure Electronic Transaction software solution. The SET protocol developed by Visa, MasterCard, and their technology partners, including GlobeSet, is recognized as the emerging standard for secure payment card purchases over the Internet.
GlobeID Banking is a world-class self-service solution providing the financial services industry with a strategic foundation to enter the electronic commerce market. GlobeID Banking encompasses the Middle-Office Solution (MOS), the ground-breaking Internet intermediation solution, and five optional modules: Internet Payment Handler (IPH), Internet Virtual Cash (IVC), Home Banking Handler (HBH), Financial Electronic Data Interchange (FEDI) and Foreign Exchange (FEX).
“GlobeSet is very excited at the prospects of leveraging GlobeID’s know how in implementing end to end payment solutions in Europe on the eve of the SET convergence initiated last month by the banking community in France. This cooperation will allow the adoption of Smart Card solutions to support SET card present transactions over the Internet.”says Dennis Jolly, GlobeSet’s Vice President, Sales, Marketing and Operations.
As payment over the Internet becomes more ubiquitous and ignores forever more national boundaries, this partnership responds to a fast growing market requirement for advanced payment services over the Internet such as foreign exchange, loyalty, installment and corporate purchasing programs to be performed in as ever more secured transaction environments.
“GlobeSet’s best of breed interoperable SET Gateway combined with GlobeID Banking give us the ability to deliver to our customers unmatched advanced transaction services in the most secure environment available” says Fabrice de Comarmond, GlobeID Software’s Senior Vice President, Business Development & Partnerships.
GlobeSet is the world’s largest provider of SET software for OEM solutions. GlobeSet provides all four SET applications, including GlobeSet Wallet, GlobeSet POS, GlobeSet Gateway, and GlobeSet CA. All products are in general availability, offer multi-platform support, and fully support secure hardware cryptography and key management. With offices in the U.S., Europe, and Asia Pacific, GlobeSet has implemented numerous SET solutions around the world for major banks, retailers and financial processors. GlobeSet is a strategic SET solution provider for OEMs worldwide. Founded in 1994, GlobeSet, Inc. is a privately held corporation headquartered in Austin, Texas. Additional information about GlobeSet can be found at .
About GlobeID Software
Paris-based GlobeID Software SA () develops and markets world class electronic commerce transaction solutions. The company’s self service products enable high volume operators to provide advanced, cost efficient transaction services to online communities around the world. GlobeID Software SA is owned 31.5% and 68.5% respectively by the management holding company, Edeltrust, and Bull ().
GlobeID Software SA today announced the introduction of GlobeID Banking, a new software product suite based on the Company’s patented technology that enables banks and financial institutions to offer consumers and businesses a variety of integrated retail banking services.
An extension of the GlobeID Banking Middle Office Solution (MOS), the new software suite includes optional modules that support home banking, Internet payments and micropayments, financial EDI services as well as customer care and administration services. Whether directly operated by a bank or through a third-party service provider, GlobeID Banking enables financial institutions to develop their customized retail banking strategy and to take advantage of their own look and feel. Beyond standard payment instruments such as credit cards, GlobeID Banking supports the development of multiple new Internet payment instruments including direct debit account, pre- or postpaid virtual cash, electronic cash, and billing services, with custom payment conventions such as installment or certified payments. GlobeID Banking is expected to be available by the end of the second quarter of 1998.
“With this introduction, GlobeID Software is well positioned to be a leading supplier of secure transaction platforms for numerous electronic business value-added services,” said Francois Chaillou, President and CEO of GlobeID Software. “The launch of GlobeID Banking underscores our long-term commitment to meeting the evolving electronic commerce needs of the financial services industry. This new product also demonstrates our determination to support open standard protocols.”
The patented GlobeID technology, which has generated more than US $5 million of licensing revenues, was purchased from GCTech SA, GlobeID Software’s predecessor company in October 1997. More than 80,000 customers have access to the GlobeID payment system, and merchant kits have been distributed across Europe, Latin America and the Middle East.
Alain Couder, Chief Operating Officer of Bull SA, the majority stockholder of GlobeID, said, “GlobeID Banking opens up unprecedented opportunities for banks and other financial institutions to offer their customers innovative, value-added payment services for electronic commerce. GlobeID’s payment experience, combined with Bull’s expertise in secure transactions and smart cards, will provide a safe and convenient shopping environment for customers and merchants alike.”
GlobeID Banking 2.0
GlobeID offers a highly customizable set of solutions, including a wide variety of payment methods, such as credit card, e-check, direct-debit account, virtual cash, micropayments and electronic purses. The technology also supports standard payment protocols, such as SET and C-SET, as well as standard security protocols, such as SSL, enabling maximum interoperability across and between customers’ platforms and legacy platforms. GlobeID’s technology is already used by Kleline SA of the Paribas Banking Group in Europe and is integrated with major international merchant servers, such as Microsoft, Intershop, Oracle, iCat and Ilog.
GlobeID Banking Middle Office Solution (MOS) GlobeID Banking Middle Office Solution (MOS) is the core of the GlobeID banking services. MOS lets banks manage their retail and corporate services in a secure Internet environment with support for hardware and software based authentication mechanisms. Equally important, MOS does not require banks to modify their retail banking interfaces, but is designed to incorporate into banks’ existing network infrastructures through a set of extended APIs. MOS also includes a set of databases (consumers, merchants, brands, networks, banks) and associated database management tools. Its CORBA based Core Software Bus supports additional modules such as a Support module (call center), Security module (firewall) and Management module (accounting and registration). The CORBA-based Application Software Bus, meanwhile, allows a GlobeID MOS to operate the retail banking solution using one or more GlobeID Banking application modules (IPH, IVC, HB, FEDI).
GlobeID Banking HomeBanking (HB) With support for new standards in Internet financial services technology, such as OFX and Gold Standard, the GlobeID Banking HB module plugs into the GlobeID Banking MOS Application Software Layer and seamlessly integrates with legacy networks, systems and services.
GlobeID Banking Internet Payment Handler (IPH) IPH allows a middle-office operator to offer value-added Internet payment services. In conjunction with payment gateways, IPH supports a wide range of payment instruments such as major credit cards, echecks as well as direct debit accounts, virtual cash, electronic cash, private label credit or debit cards.
GlobeID Banking Internet Virtual Cash (IVC) Recent developments in smart card technology will contribute significantly to the growth of electronic purse solutions. While these solutions are being tested and deployed, the GlobeID Banking IVC module–a secure software approach using a notational stored value mechanism–enables GlobeID Banking operators to issue a cash- like payment instrument on the Internet. IVC also supports both multiple foreign currencies and micropayments (small transactions typically less than $1) which cannot be economically processed by credit cards or direct debit accounts. An SSL- based implementation is used for micropayment transactions, and a SETbased implementation is available for larger transactions with optional non-repudiation services. A first implementation of IVC has been operational since mid-1996 and is currently being used by merchants for micropayment services.
GlobeID Banking Financial EDI (FEDI) Advances in EDI over the Internet, too, will lead to an increasing number of small businesses embracing GlobeID technology. The GlobeID Banking FEDI enables merchants and businesses to report GlobeID 2.0 transactions to their accounting systems — an important advantage for small businesses when transaction volume is high and an absolute requirement for micropayment service providers who must account for all transactions.
Commenting on these technological advances, Pieter Van Der Linden, GlobeID Software’s Chief Technology Officer, said, “Internet-based commerce has evolved significantly since the GlobeID Payment product was developed in 1996. New standards have emerged and software now needs to support multiple protocols for customers using various payment and authentication instruments.”
Mr. Van Der Linden continued, “When developing GlobeID’s technology, our guiding insight is that one enters a store to buy, not to pay. After the success of the value-added purchasing functions included with GlobeID Payment 1.2, we extend these functions to end-to-end standard payment protocols such as SET and C-SET in the GlobeID Banking 2.0 product.”
About GlobeID Software
Paris-based GlobeID Software SA () develops and markets software for securing and certifying online transactions. GlobeID Software carries on the work of its predecessor company, GCTech SA (Paris, France), which pioneered the technology in 1995 and joined forces with Bull SA to establish GlobeID Software in October 1997.
Edeltrust, the management holding company, and Bull respectively own 31.5% and 68.5% of GlobeID Software’s stock. GlobeID Software’s product line includes GlobeID Banking and GlobeID IAM.
About Bull SA
Bull () is an international I.T. group based in Europe with 21,267 people and operations in more than 85 countries. In 1997, Bull earned revenues of $4.2 billion including over 65% outside of France, its country of origin.
Bull offers a wide range of systems, infrastructure software and I.T. services, through focused innovation, alliances with the best partners and its own integration expertise.
In its industry, Bull is recognized for innovative products such as Escala servers, Sagister multiframes, CP8 smart cards and infrastructure software such as ISM/OpenMaster for management of systems and networks. In I.T. services, Bull is ranked in Europe as the third largest systems integrator and fifth in maintenance and support services.
GlobeID Banking Testimonials Pierre Simon, President of Kleline SA “Kleline has been using GlobeID technology since 1996. Last December, we renewed this commitment and will implement the GlobeID Banking product on our Internet payment platform, the leading platform in the European market.” Abdallah Hitti, Chief Operating Officer of Kleline SA “GlobeID Banking 2.0 meets all of our expectations for the electronic commerce marketplace. The open MOS platform will enable us to offer more payment options and customer care services to over 120 merchants and 80,000 consumers.” M. Colonna d’Istria, On-line Editor, Le Monde “GlobeID’s micropayment features have allowed Le Monde to sell entire copies of its daily paper on the Internet to thousands of customers worldwide for a little less than a dollar on a pay-perview basis. The use of this technology for near-dollar transactions with non-repudiation and digital receipt services, as well as built-in customer care services, helped us launch services without having to deal with the usual technical challenges, such as VAT and record-keeping. We expect that GlobeID Banking will enable us to reach more customers since it will allow them to set up GlobeID accounts directly with GlobeID Banking operators, without installing any specific software on their client platforms.” Gael de Kertanguy, Chief Operating Officer of Globe Online Internet Mall “After eleven months of operation, GlobeID Payment has processed more than 60,000 transactions for our merchants. We expect that GlobeID Banking will be the most efficient way to process secure Internet payments in 1998. Moreover, a large portion of our business involves international currencies, and Globe Online’s merchants have been successful in foreign sales because IVCs support multiple currencies.