More Americans say they will increase spending and fewer say they are cutting back on expenses, according to the results of a recent Citi national survey, with only 35% planning to spend than in 2012. Of those surveyed, 63% plan to spend more (11%) or the same (52%) on holiday shopping in 2013. Consumers’ approximated…
Redwood Credit Union of the San Francisco area is set to deploy NCR “SelfServ ATMs,” replacing its 30 currently installed machines, including 28 non-NCR ATMs. Twenty-nine of the new NCR SelfServ ATMs will include NCR’s Scalable Deposit Module (SDM) technology, the only technology on the market that allows consumers to deposit both cash and checks simultaneously in any orientation through a single slot. Designed for NCR SelfServ ATMs, this technology delivers a consumer deposit experience that is twice as fast as other ATMs, allowing for a typical consumer transaction of five bank notes and two checks to take less than 60 seconds to deposit. Additional features include self-healing technology; dual-roll receipt printers that ensure the ATM need never run out of paper; and graphical operator panels for easy fixes or resets.
Down the long bumpy road that was April 2010, consumer confidence was shaken, but in the end remained flat on the Discover U.S. Spending Monitor. The discrepancy in the final numbers from March to April was practically nil, dropping only from 89.5 to 89.4. This was no indication, however, of variation throughout the month. From April 6 to April 20 alone, there was a near 10-point increase in consumers who felt the economy was worsening, from 46% to 56%, while the number of consumers rating their personal finances as poor shot from 20%-28%. Meanwhile, those who said their finances were getting worse exploded from 46 to 55% in conjunction with skyrocketing gas prices.
But when all was said and done, those feeling economic conditions were getting worse stood at 51%-the same as in March- as 18% feel conditions are the same, down 2 points from the previous month, and 26% feel the economy is improving, a 1-point increase from March. To blame: Gas Prices. This is clear to the 57% planning to change their summer vacation because of unmanageable fuel costs while 68% are forced to cut back on discretionary spending. Also throughout the month of April, only 34% described their finances as good or excellent, while 64% say their finances are fair or poor, 49% of whom disclosed they are only worsening-compared to the 48% in March. Only 21% say their finances are improving, compared to 22% in March, for a telling sign of the times.
Consumers’ confidence was up in January thanks in great part to perceived improving U.S. economy and personal finances as the Discover U.S. “Spending Monitor was up 5.6 points to 93.1. This being the highest level of confidence since November 2007, the number of consumers rating the economy as good or excellent hit 10%, compared with 9% in December, while 51% still rate the economy as poor, down 5 points from December, and 37% rate the economy as fair, up 3 points from December. Overall, 33% feel economic conditions are getting better; 40% feel the economy is getting worse-down 4 points since December; and 22% feel economic conditions are unchanged. Among middle-income consumers, 50% currently rate the economy as poor; 32% feel the economy is getting better, a 7-point increase from December; 38% rate their finances as good or excellent; 40% feel their finances are getting worse; and 35% of all consumers anticipate an added expense or income shortfall in the month ahead.
American Express announced a $100,000 grant to the National Trust for Historic Preservation to support Save Ellis Island to facilitate the launch the next phase of rehabilitating and re-opening the 29 unrestored buildings on Ellis Island. This includes the expansion of Save Ellis Islandâs Board of Directors and organizational infrastructure to meet the challenges of the project. American Express is deeply committed to historic preservation and in partnership with the National Trust will contribute $10 million to support preservation projects in five cities over the next five years. The Company has already provided more than $5 million in grants to historic sites across the U.S. over the past five years through Partners in Preservation, and has also supported the restoration of iconic international sites including St Paul’s Cathedral, London, England; Mexico City’s Historic Center, Mexico; Delhi Heritage City, India; Route 66 and Easter Island, Chile.
With 41% expecting the final legislation to have a positive impact on the economy and 42% anticipating more stability within the U.S. financial system, U.S. consumers expect both the U.S. economy and the country’s financial system to benefit from Congress’ sweeping financial reform legislation. This, according to the RBC Consumer Outlook Index, also shows 41% of Americans worry it will have a negative impact on profits for Wall Street vs. 30% who think it will have a positive impact while 36% anticipate a negative impact on Main Street vs. 31% whom foresee a positive impact. However, consumers are split on how the final legislation will affect their own bottom line. Additionally, 29% of consumers think it will have a negative impact on their personal spending habits while 26% say it will have a positive impact; 44% see the national economy getting worse in the next three months, up from 38% in June; 30% say the U.S. economy and their own finances will get worse over the next year; 55% feel their ability to pay bills will remain the same over the next three months (compared to 57 per cent in June); and 50% say their debt level will remain the same (compared to 53 per cent last month).
The Electronic Funds Transfer Act (Regulation E) will require consumers to opt in for overdraft protection for debit and ATM transactions, beginning for new customers on July 1, 2010 and for existing customers on August 15, 2010. Considering only 9% of bank customers contribute 80% of banksâ NSF fees, financial institutions stand to lose between 40 and 60 percent of annual overdraft income from this new regulation. Seventeen percent of all households report that they are either âextremely likelyâ or âvery likelyâ to opt in for overdraft coverage for debit card purchases and ATM withdrawals, but ATM/debit cardholders with overdraft activity are almost twice as likely to opt in for coverage than other consumer segments. Twenty-nine percent of ATM/debit cardholders with overdraft activity on their accounts will likely opt in while those with seven or more overdraft occurrences in a year are most likely to opt in to continue receiving this service. This, according to a recent study by Raddon Financial Group (RFG), concludes 51% of households report that they will not opt in because they have no need for overdraft coverage, as they never overdraft their accounts; 53% of households extremely to somewhat likely to opt in do not intend to overdraft and the service is free if they donât use it; while 46% opt in because they want to guard against the potential of having a transaction declined.
Fitch Ratings has not placed any additional U.S. credit card ABS transactions
“Under Analysis” following its monthly surveillance review of
U.S. Credit Card asset-backed securities (ABS) transactions.
A transaction may also be designated as ‘Under Analysis’ when a review
is undertaken because of a material event affecting the transaction or
when a regular, more in-depth periodic review is being performed. While
transaction performance is reviewed monthly, Fitch conducts detailed
portfolio reviews at least annually.
Five hundred and twenty-nine classes of U.S. credit card ABS
transactions were designated with a SMARTView date of March 23, 2010,
indicating that performance has been reviewed and a rating action is not
anticipated within the next 30 days.
The Discover U.S. Spending Monitor was up 2.3 points to 87.5 this month, thanks to more optimism on the economy and increased discretionary spending. Although only 35% are currently concerned about additional expenses and their income changing in the month of March, there is little indication, however, consumers are planning to increase spending anytime soon with 57% intending to keep spending intentions flat. This, however, marks only the third month over the past 2 years this figure did not decline. With 49% expecting no additional expenses or income over the next month, 41% expect to spend the same in March as they did in February on discretionary items, a 4-point increase; 33% plan on spending the same as the prior month on home improvement purchases, also a 4-point increase; and 38% plan on spending the same on major purchases like a vacation, a 3-point increase. Still, 57% continue to rate the economy as poor; 46% felt the economy was deteriorating, a 3-point decrease from January; and only 29% felt economic conditions were improving, a 2-point increase from the prior month.
Sixty-eight percent of corporate representatives expect China to lead
business travel recovery with investment by global companies and local
companies to increase over the next 12 months while 89% anticipate their
own companies to invest in China. Additionally, 79% expect their company
to invest in India over the next year and 46% anticipate China as a top
priority for international expansion in the short term. This, according
to two American Express Business Travel surveys conducted among its
Global Business Partnership (GBP) clients and with 180 client
organizations for its annual China Business Travel Survey(The
Barometer), shows China will be the first country to emerge from the
current economic cycle according to indications from 72% of firms.
Additional GBP findings show 50% of respondents say their company will
decrease travel spending over the next year by more than 10%; 25% stated
T&E spend will stay the same over the coming year; 25% predicted they
would be hiring again come 1Q/10; and 36% will continue to hold off on
hiring until 2011. Additional Barometer findings show 80% of
organizations have formal T&E policies in place; 68% have attained more
than 50% policy compliance (up 17% Y/Y); and 78% of Chinese
organizations have negotiated rates with airlines and 79% with hotels.
Economic confidence among small business owners paused in September after three consecutive months of gains. Nearly half of small business owners are expecting Q4 to be worse than their 2008 fourth quarter, with 21% expecting year-over-year improvement, and 30% expecting the same results. The latest “Discover Small Business Watch” index fell to 87.7 in September, down 2.1 points from August. When asked whether they agree or disagree that the recession is over for their businesses, 69% of small business owners disagreed, only 13% agreed and another 18% couldnât be sure. Discover found that 50% of small business owners say they plan to decrease spending on business development activities such as advertising, inventory and capital expenditures, a jump from 43% in August. Similarly, those who plan to increase spending fell to 25% from 27% in August, and 22% are planning no changes.
A new survey shows that 71% of consumers said they are keeping a closer
eye on their finances than they did a year ago. Slightly more than
three-quarters of the consumers surveyed said they use online banking,
with non-users making up the remaining one-quarter. The study conducted
by Forrester Consulting on behalf of Fiserv also found that 60% of
consumers said they are spending less than they did a year ago, and 24%
reported paying for items with cash more often. To help tighten their
belts in response to the financial crisis, 66% of those surveyed
reported making a decision to drive less, 27% cancelled vacation plans,
and 18% delayed a new car purchase. More consumers also resorted to
credit cards and savings to help pay the bills. Thirty-six percent said
had tapped savings to help pay bills, and 34% had paid a bill with a
credit card in the past 12 months. Additionally, 29% of those surveyed
said they had decreased the amounts they had deposited into savings
accounts, and 19% said they were putting less money into their checking
accounts than a year ago.