The first fully FCRA-compliant daily cross-sell campaign capability that enables lenders to identify and respond quickly to credit active customers in their portfolios has been launched by Experian. “Cross-Sell Triggers” enables users to identify credit-related activity initiated by their customers on a daily basis then respond by sending firm offers of credit within just 24 hours of notification. Key features include the use of daily inquiry and trade triggers coupled with credit scoring models and attributes to identify highly responsive, credit-active customers seeking additional credit products. The solution also includes running all triggered consumers through Experian’s “Do Not Solicit” database to ensure appropriate consumers receive offers of credit. “Cross-Sell Triggers” has the additional capability of running multiple campaigns simultaneously. Last week, Experian introduced “Email Presecreen,” a new service which will enable credit card issuers to fine tune email solicitations based on credit risk. (CF Library 8/23/02)
Email, as a marketing channel, now produces about 3% of all new accounts. Yesterday, Experian introduced a new service which will enable credit card issuers to fine tune email solicitations based on credit risk. To take advantage of Experian’s new “Email Prescreen,” customers provide to Experian their lists of prospect email addresses and their intended online offers. After credit information about each prospect is extracted from the company’s nationwide database of more than 230 million credit-active consumers, they are segmented using up to 12 different levels of prescreen criteria to determine acceptable levels of risk according to each customer’s wishes. On behalf of the customer, Experian then deploys the credit offer to the pre-approved prospects through the company’s email center. When an email offer is returned without being delivered, Experian sends a printed offer via the post office to the prospect’s physical address. Automatic tracking of responses allows up-to-the-minute availability of activity reports via a password-protected, remote access Web response portal, with the majority of responses coming within 48 to 72 hours post-launch. Experian says a recent test campaign using “Email Prescreen” to reach out to 650,000 online prospects enjoyed a 1.9% click through rate.
In conjunction with certifying its SEC filings, Capital One restated its stock option-adjusted net income lower for the past two years due to a computational error. As a result, the card issuer adjusted its 2001 net income from $597 million to $545 million, a 9% decline. Cap One also restated its 2000 stock option-adjusted net income as $401 million instead of $413 million, a 3% decrease. Cap One amended its Annual Reports on Form 10-K to correct the pro forma net income and earnings per share previously disclosed. The card issuers says the amendment does not affect the Company’s historical results of operations, financial conditions or cash flows for any period presented. Cap One says that other than this change, there is no change to the consolidated financial statements, the notes to the consolidated financial statements, the report of the independent auditors or the report of management. In pre-market trading this morning Cap One’s stock was down slightly from $31.05 to $31.00. Yesterday, the firm’s stock briefly dipped to $26.30. For complete details on Capital One’s latest performance visit CardData ([www.carddata.com]).
Toronto-based Cryptologic reported second quarter revenue of $8.9 million compared to $10.8 million in the second quarter of 2001. Net income, before non-recurring items, in the quarter was $2.0 million compared to $4.8 million in the second quarter of 2001. The company says the decline in revenue and profits reflects the challenge being faced by the entire Internet gaming industry as a result of the decision by certain US-based banks to limit the use of their credit cards for Internet gaming transactions. In light of this situation, the Company says its priorities remain adding alternative non-credit-card-based payment methods and continuing to expand its customer base in markets that embrace online gaming. Cryptologic also says Littlewoods Leisure has received regulatory certification from the Isle of Man government to operate an online casino using Cryptologic e-gaming technology. With an 80-year history Littlewoods Leisure, a wholly-owned subsidiary of London Stock Exchange listed Sportech plc, is one of the UK’s best-known gaming companies. The certification of CryptoLogic software to the Isle of Man’s Tier-one standards will provide a significant point of difference when dealing with top-tier customers looking for a licensed and regulated software solution.
CheckFree Corporation reported revenues of $130.6 million and pro forma net income of $12.8 million for the quarter ending June 30th. The Company’s pro forma revenues for the fiscal year of $493.2 million represent 14 percent growth over the prior year.
Experian launched a sophisticated Web-enabled data analysis solution that helps collections organizations reduce expenses and improve operations by tracking the location of payments and statements in the postal system. The “ePIN+” system utilizes the latest United States Postal Service tracking technology to give users precise information about any mail piece. It provides the date customers receive billing statements and when their payments have entered the postal system. Information gathered through “ePIN+” can be seamlessly integrated with a user’s predictive dialing capability providing relevant information on the status of the mailed invoice or returned envelope for the debtor with whom they are speaking.
London-based HSBC Group reported that HSBC USA Inc. had 2Q/02 net income of US$198 million, an increase of 5% from US$188 million for the second quarter of 2001; however, cash earnings in the second quarter decreased to US$197 million from US$229 million in the comparable period in 2001. HSBC also reported that its Internet banking service had more than 335,000 customers registered at the end of the second quarter, up from approximately 275,000 at year-end 2001. HSBC Bank USA has more than 410 branches in New York State as well as eight branches in Florida, two in Pennsylvania, three in California and 17 in Panama.
London-based NDS Group Plc reported that as of June 30th, they had approximately 29.6 million set-top boxes containing NDS technology were in use worldwide, up from 24.5 million at 30 June 2001 and an increase of 1.5 million in the quarter. Growth has been strong in US, UK, Israel and Asia Pacific, although less so in Europe due to uncertainties surrounding platform ownership; the subscriber base in Latin America has not grown through the year, mainly due to tough economic conditions. Asia Pacific has been boosted by the launch of SkyLife in Korea and initial rollout of set-top boxes is now occurring in China. NDS Group is a leader in providing conditional access systems and interactive applications for digital pay TV.
MBNA Europe Bank Limited has acquired the $1.2 billion credit card portfolio of Alliance & Leicester plc. Under terms of the deal, MBNA will market credit cards to A&L’s 5.5 million customers through A&L’s
310 branches in the UK and also will develop products and services for A&L’s 1.34 million existing cardholders. Inclusive of the A&L portfolio, MBNA has more than a 14% market share of all credit card receivables in the United Kingdom and a 19% share in Ireland. Prior to the acquisition, MBNA had approximately 8.0 million cardholders in the U.K., Ireland, Canada, and Spain. MBNA will manage the A&L card portfolio from its administrative and operations facilities in Chester, England. The bank also has facilities in London and in Carrick-on-Shannon and Dublin, Ireland.
MBNA Europe Bank Limited has acquired the $1.2 billion credit card portfolio of Britain’s Alliance & Leicester plc. Under terms of the deal, MBNA will market credit cards to A&L’s 5.5 million customers through A&L’s 310 branches in the UK and also will develop products and services for A&L’s 1.34 million existing cardholders. Inclusive of the A&L portfolio, MBNA has more than a 14% market share of all credit card receivables in the United Kingdom and a 19% share in Ireland. Prior to the acquisition, MBNA had approximately 8.0 million cardholders in the U.K., Ireland, Canada, and Spain, according to The RAM Report ([www.ramreport.com]). MBNA will manage the A&L card portfolio from its administrative and operations facilities in Chester, England. The bank also has facilities in London and in Carrick-on-Shannon and Dublin, Ireland. In May, the Bank of Spain approved MBNA’s application for a branch license that will allow MBNA to market credit cards and related products in Spain. MBNA expects to begin operations in Spain during the 3Q/02. In mid-April, MBNA Europe Bank Limited received clearance from the Financial Services Authority in the U.K. to apply to the Bank of Spain for a branch license to operate in Spain. Spain will become the fourth international market that MBNA has entered. (CF Library 4/12/02; 5/14/02)
Providian reported 2Q/02 net income of $153.9 million compared to net income of $232.4 million for the second quarter of 2001. Providian also announced Tuesday the closure of its Sacramento operations facility, effective immediately, and plans to close facilities in Fairfield, California and Salt Lake City, Utah by the end of this year. Approximately 300 employees will be affected by the closing of the Sacramento facility and an additional 1,000 employees will be affected at the Fairfield and Salt Lake City facilities. Since October, Providian has cut its workforce by 47% after the collapse of the sub-prime credit card market. The Company ended the second quarter with $19.6 billion in total managed credit card loans and 12.9 million accounts, down from $22.1 billion in managed credit card loans and 15.0 million accounts at the end of the first quarter 2002. During 2Q/02, Providian originated approximately 350,000 new customer accounts with a balanced distribution in the middle and prime market segments of approximately 65% and 35%, respectively. The managed net credit loss rate and the managed 30+ day delinquency rate for the second quarter of 2002 were 17.53% and 10.16%, respectively. The quarter ended with a managed charge-offs for the month of June 2002 of 17.22%, down from the managed net credit loss rate for the month of March 2002 of 17.64%. Providian says it spent $104.2 million in solicitation and advertising during the second quarter. For complete details on Providian’s 2Q/02 results visit CardData ([www.carddata.com]).
First Data announced Friday an agreement to acquire PayPoint Electronic Payment Systems from BP p.l.c. Created in 1984 to help ARCO launch PIN-based card payments at the gasoline island, PayPoint added non-petroleum clients in the 1990s while continuing to process payments for parent ARCO, which BP acquired in 2000. Earlier this year, BP agreed to switch its debit and credit processing transactions to PayPoint for its various retail sites throughout the U.S. That switch is expected to take place in early 2003. PayPoint’s existing contracts include Albertson’s, Costco, Trader Joe’s and McDonald’s. With the addition of PayPoint’s EBT acquiring capabilities, First Data says it will be able to offer direct EBT connections to any merchants anywhere nationwide.