Citi is giving customers another way to get tickets to see their favorite music live through its Citi ThankYou Rewards. Members can redeem their “ThankYou Points” directly to purchase tickets to sought-after performances on LiveNation.com. Through Citi’s relationship with Live Nation and the Citi® Private Pass® program (www.citiprivatepass.com), customers already can enjoy exclusive ticket presales, preferred tickets, VIP experiences and access. Now, Citi ThankYou Rewards members (www.thankyou.com) can use their points to buy tickets to concerts at Live Nation venues.
NY-based National Envelope Corporation has unveiled card sleeves and mailing envelopes to help shield contactless payment cards in transit. The new “Smart Card Guard” uses a thin protective metallic barrier that is incorporated into a specially produced, easy-to-print substrate. The new product was developed late last year and tested early this year by InfoGard Laboratories. The Company said the new product was developed in response to a 2006 study by researchers at the University of Massachusetts-Amherst. The test of 20 smart cards showed encryption levels were not nearly strict enough to prevent easy interception of personal information. National Envelope manufactures approximately 50 billion envelopes a year via 21 manufacturing facilities in the U.S. and Canada. A report released last week by Packaged Facts projects that total contactless credit and debit cards in the U.S. will reach 109 million by 2011 from the current 27 million. (CF Library 5/2/07)
Citigroup reported that its international card business first quarter
net income soared by 33% to a record $388 million from one-year ago and
up 68% from the prior quarter. The growth was driven by a 25% increase
in purchase sales, a 28% increase in average loans, and improved net
interest margins. Revenues increased 36% to $1739 million.
Citi noted that the first quarter results include the integration of
Credicard in Brazil and the acquisition of Grupo Financiero Uno in
Central America. Revenues also include a $66 million pre-tax gain on the
sale of MasterCard shares. Credit card outstandings as of March 31st
were $32.2 billion, up 34% year-on-year. The account base grew 19%
year-on-year to 31.7 million compared to one-year ago. Purchase volume
for the first quarter was $21.7 billion. Delinquency (90+ days) was flat
sequentially at 2.29%, but up slightly from 1Q/06. Charge-offs were
4.99% compared to 5.39% in the prior quarter and 3.64% for the year ago
quarter. For complete detail’s on Citigroup’s international cards
performance, visit CardData (www.carddata.com.)
New Web site research reveals that Capital One ranked as the #1 site in online customer experience, Discover ranked the #1 site for online prospective customers/acquisitions and U.S. Bank ranked as #1 in online service levels. Bank of America was ranked second overall in the prospects study, and was the second most successful company in the acquisition category. The findings come from two studies conducted by Keynote Competitive Research involving more than 1,600 credit card customers interacting with nine leading credit card Web sites. Each of the studies captures more than 250+ metrics for each site-and provides competitive rankings in dozens of categories. Keynote also found that National City topped the rankings for reliability in the “Service Level Rankings for Credit Card Prospects,” which focused on the publicly available areas of the credit card sites. Keynote noted that credit card sites continue to improve year over year with reductions in outages, improvements in overall availability and load handling. However, several major credit card brands experienced major problems, such as 20 plus hours of outage and up to a 4% failure rate (customers unable to access their statement or pay a bill online) during the 30 day study of service levels. Keynote noted that credit card sites continue to improve year over year with reductions in outages, improvements in overall availability and load handling. However, several major credit card brands experienced major problems, such as 20 plus hours of outage and up to a 4% failure rate (customers unable to access their statement or pay a bill online) during the 30 day study of service levels.
Citigroup reported that 2Q/06 profits for its U.S. Cards unit rose 19% year-on-year to $878 million driven by lower bankruptcy filings and a favorable credit environment. However, total revenues for the U.S. card unit were flat at $3.25 billion compared to the year-ago quarter. Citi says the lackluster growth in average managed loans and a 12% increase in purchase sales were offset by higher payment rates and net interest margin compression. Bank credit card outstandings for the U.S. were also flat at $111.3 billion compared to $111.9 billion one-year ago. But, private label card outstandings increased 27% to $29.4 billion. Citi says the growth in managed loans reflected a shift from traditional card products to higher reward and private label card balances, including the addition of Federated card receivables. Purchase volume increased to $77.9 billion for the second quarter. Citi’s account base at the end of the second quarter rose 18% to 144.4 million accounts. Citi’s charge-offs for bankcard and private label cards rose to 4.11% compared to 3.90% in the prior quarter, and 5.58% one-year ago. Overall delinquency (90+ days) dipped slightly from 1.74% for 1Q/06 to 1.58% for the second quarter 2006. For complete details on Citigroup’s 2Q/06 performance, visit CardData ([www.carddata.com]).
U.S. Credit Card Net Income
2Q/05: $ 735 million
3Q/05: $ 797 million
4Q/05: $ 444 million
1Q/06: $ 926 million
2Q/06: $ 878 million
Source: CardData (www.carddata.com
A new competitive intelligence study has found that American Express, U.S. Bank and HSBC as providing customers with the best technical service levels in the credit card industry. The latest Keynote Systems report has found that overall the credit card industry recorded just average reliability, with just 97.9% reliability during peak periods. American Express reported excellent reliability at 99.7% during peak periods. U.S. Bank, Bank of America and HSBC performed atop the Keynote rankings for site responsiveness, an indication of how fast the sites were in downloading pages and executing transactions.
A new study reveals that Discover, American Express and Chase are providing the best online experience for prospective card customers. The report also determined that HSBC and Providian provide the most reliable online service levels. The report from Keynote Systems found that 30% of prospective customers visiting the Chase, Citi and AmEx sites indicated they were very likely or extremely likely to sign up for a credit card account with those companies. Comparably, the bottom ranked sites registered only 16% of the prospects visiting their site as being interested in a card. Discover was considered the easiest credit card to apply for online – and the easiest company to deal with, with 71% of online consumers expressing this sentiment. The “Keynote Rankings for Credit Card Prospects” study was based on an examination of the online experience of 2,000 prospective credit card customers and the measurement of 250 metrics.
NOVA Information Systems has hired Roger Alexander as CEO of euroConex Technologies, its European affiliate. Alexander will run the Company’s pan-European merchant acquiring business. Alexander was most recently chief executive officer of S2 Card Services
Ltd. (formerly known as Switch). Prior to joining S2 he was a partner with Edgar, Dunn & Company in London and spent over 30 years with Barclays Bank. EuroConex Technologies provides integrated payment processing services to financial institutions and merchants in more than 30 European countries using a multi-currency platform.
NOVA Information Systems has hired Roger Alexander, former CEO of the U.K.’s S2 Card Services (f/k/a Switch), as CEO of euroConex Technologies, its European affiliate. Prior to joining S2 in October 2002, Alexander spent 3 years as a partner with payment systems consultancy firm Edgar, Dunn & Company in London. Previously, Alexander spent over 30 years with Barclays Bank where he held a variety of roles and was appointed director of Barclaycard and managing director of Barclays Bank’s Emerging Markets Group in 1994.
MasterCard’s contactless “PayPass” technology is coming to Canada via
Citi Cards Canada and Petro-Canada. The new payment option will be
available to a select number of “Citi PETRO-POINTS MasterCard”
cardholders for use at participating Petro-Canada stations in
Burlington, Oakville, Mississauga, Brampton and Etobicoke, Ontario.
A full roll-out for all “Citi PETRO-POINTS” cardholders is planned for
next year. The no-fee “Citi PETRO-POINTS MasterCard” was launched in
September 2004. It is the first general purpose credit card in Canada
that provides an instant savings of two cents per liter on the purchase
of gasoline and diesel fuel at Petro-Canada, while also offering
“PETRO-POINTS” on all credit card purchases. MasterCard has implemented
several “PayPass” closed market trials in Canada.
A new report has found that online banking sites are laggards in service levels compared to credit card and stock trading sites. Keynote Systems says Bank of America, Wachovia and US Bank were determined to be the best sites in its study. The study also found that Washington Mutual is the current industry leader in online service levels, a measure of overall site responsiveness and reliability. Bank of America, which has the industry’s highest satisfaction with online bill payment, according to the study, also has the industry’s highest use of online bill payment and the greatest percentage of customers accepting online statements. The Keynote “Customer Experience Ranking” is a measure of online customer experience based on evaluation of more than 250 metrics.
Citi Cards is expanding its Urbandale, Iowa center with the addition of up to 200 jobs and construction of a 170,000 square foot facility, scheduled for completion in January. Employees at the new site will handle remittance processing and statement printing and mailing for the Citi Cards bankcard, retail card and oil card portfolios, as well as Citi Cards processing related to other Citi businesses. Citigroup global financial services company, has some 200 million customer accounts and does business in more than 100 countries.