Bank Processor DCI Adds Santarosa to the Board

Bank processor DCI has elected DCI client Ron Santarosa, executive vice current EVP and CFO at First California Bank to the company’s board of directors. Santarosa brings 17 years of banking experience to the board, joining fellow DCI customers and noted bankers Kim Capeloto (Bank of Clark County, Vancouver, Wash.), Lloyd Davidson (First Bank Kansas, Salina, Kan.), John Davis (Colorado Capital Bank, Castle Rock, Colo.), R.A. Edwards, (First National Bank, Hutchinson, Kan.), Kenneth Goering (Citizens State Bank, Moundridge, Kan.), Tim Kohart (Valley State Bank, Syracuse, Kan.), Reed Peters (First State Bank and Trust, Larned, Kan.) and Kathleen Steward (Chisolm Trail State Bank, Wichita, Kan.). iCore, DCI’s flagship product, is an integrated, relational core processing and bank management solution used by in-house and outsourced institutions nationwide.

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WaMu Launches an Instant Online Paperless Account

WA-based WaMu has launched its “Instant Online Paperless Account” targeting small businesses as part of the organization’s mission to be a small business banking leader. The “Instant Online Paperless Account” allows businesses to open accounts online in less than 10 minutes in response to Barlow Research showing 40% of companies using Internet Banking indicated the ability to open a business checking/savings account(s) online is a top priority and very important. WaMu has assets of nearly $319.67 billion and operates approximately 2,500 consumer and small business banking stores through its subsidiaries across the country.

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TRM Gets Funding and Acquires Access to Money

ATM provider TRM has secured financing with LC Capital Master Fund and Lampe Conway for $11,000,000 pursuant to a Securities Purchase Agreement. The loan was used to pay the cash portion of the purchase price for TRM’s acquisition of LJR Consulting Corp., d.b.a. Access To Money; to pay eFunds $2.5 million in satisfaction of the settlement reached last December; to satisfy all of the company’s remaining loan to GSO Capital Partners; to pay $1.0 million to “Notemachine Limited” in further reduction of the Company’s obligations under the Settlement Agreement dated as of November 20, 2007, to satisfy in full the Company’s loan from the Lender and the Administrative Agent dated February 4, 2008 and (f) to pay fees and expenses incurred in connection with the Purchase Agreement and the “Access To Money” acquisition. In connection with the Purchase Agreement, the Company issued warrants to the Lender to purchase 12,500,000 shares in aggregate of the Company’s common stock.

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PULSE Beefs-Up its Executive Management

Debit network provider PULSE has promoted Judith McGuire to SVP of product management, James Cichy has been hired as VP, fraud management and Mike Urquizu has been promoted to VP of Sales. McGuire has been with PULSE since 2002 and now directs product management activities for all PULSE network products. She previously worked for First Data in multiple roles, including product development and marketing. Recognized fraud expert Cichy is responsible for PULSE fraud protection and prevention services, including “DebitProtect,” which provides risk scoring for all PIN, signature and PINless debit transactions on the PULSE network. Prior to joining PULSE, Cichy was employed at Fifth Third Bank, where he and his team were recognized for their outstanding efforts to minimize fraud losses. Urquizu oversees the national financial institution sales program and manages a team of sales executives. He is responsible for sales of PULSE network participation, as well as various processing solutions.

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Fulton Financial Unloads Cards to Elan

PA-based Fulton Financial has signed agreements to sell its credit card portfolio to U. S. Bank , d/b/a Elan Financial Services for the enhancement of the card offering. In doing so, Fulton will continue selling and providing support for the credit card products and services through its bank branches while the sales transaction is expected to result in a 2008 pre-tax gain of approximately $10 million. Fulton Financial Corporation employs over 3,900 associates and has more than 265 banking offices across the Mid-Atlantic States.

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PaySimple Waives Merchant Fees for Earth Day

E-payment provider PaySimple is celebrating Earth Day by waiving the initial startup fee of $199 for merchants. The PaySimple solution is an on-demand Software as a Service (SaaS) platform that enables small businesses to bill, collect, and manage their customer payments under one user-friendly system. The PaySimple solution includes recurring billing, email invoicing, web/telephone payments, ACH direct-debit, EFTs and direct deposits, credit card processing, e-check processing, check conversion, and business software/shopping cart integration. According to a study commissioned by the PayItGreen Alliance, if one in five households switched to electronic bills, statements, and payments, the collective impact would save 151 million pounds of paper, avoid filling 8.6 million household garbage bags with waste and avoid producing 2 million tons of greenhouse gas emissions.

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BofA Q1 Credit Card Profits Plummet 39%

Bank of America reported that its Card Services division net revenue increased 21% to $7.33 billion due to 15% growth in net interest income and 33% growth in non interest income driven by 14% growth in average loans and leases, Card Services allocation of the VISA, Inc. IPO gain and higher card income. However, net income of $670 million was down 39% as the higher net revenue and the reversal of litigation costs related to VISA were more than offset by higher credit costs. Managed U.S. consumer and business credit card loans at the end of the first quarter was flat sequentially at $161.4 billion. First quarter U.S. Card Services charge-offs were 5.67%, compared to 5.03% in the prior quarter and 4.82% one-year ago. The managed 30+ day delinquency rose to 5.93%, compared to 5.70% in the fourth quarter and 5.45% for 1Q/07. Purchase volume for U.S. consumer and business cards was $56.8 billion for 1Q/08 compared to $64.7 billion for 4Q/07 and $55.4 billion for 1Q/08. BofA also reported that mobile banking recorded approximately 224,000 activations in the first quarter reaching 840,000 active customers. The “Keep the Change” program reached 8 million net new enrollments since inception, with 974,000 customers alone signing up in the first quarter. For complete details on Bank of America’s 1Q/08 performance, visit CardData ([www.carddata.com][1]).

BOFA EOP CARD LOAN HISTORICAL
(U.S Consumer & Business Cards)
1Q/07: $144.9 billion
2Q/07: $148.7 billion
3Q/07: $153.0 billion
4Q/07: $161.4 billion
1Q/08: $161.4 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Decision-Makers Focus on Technology Purchases

MA-based Aite Group has released its report revealing over the next 2 years, mobile banking, e-mail communications and enhanced fraud detection are the most common types of applications large U.S. financial institutions will be engaging and/or replacing. Specifics of the research include findings of Aite’s survey of 23 U.S. financial institutions, conducted between January and March 2008, with 59% disclosing likelihood to deploy a mobile banking application and 41% likely to deploy a mobile bill payment application before 2011. Aite Group independent research and advisory firm studies business, technology and regulatory issues and their impact on the financial services industry.

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Small Biz Optimism Sinks to a 6-Year Low

OPEN from American Express “Small Business Monitor” has conducted research concluding 1/3 of small business owners are remaining focused on growth and hiring during the next 6 months amid a staggering economy. Optimism among these business owners is the lowest it has been in the 6 years AmEx has been conducting this research, despite the findings that 70% are planning on expanding business operations, while 44% cite economy and 16% cite homeland security as topics most important to the outcome of the next presidential elections. Additional findings of the survey show 86% of the businesses surveyed are experiencing financial impact from high energy costs, 35% have experienced disabled business as a result of energy costs and 33% have been forced to raise prices. Furthermore, 71% of entrepreneurs are concerned about retirement given current financial conditions, 52% are not convinced by the potential effectiveness of Bush’s Economic Stimulus Package and 41% are considering downsizing by cutting back on staff.

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CSI Introduces the Universal Fleet Fuel Card

Fleet maintenance provider CSI has issued the Universal Fleet Fuel Card to offer saving to cardholders. All members receive every benefit CSI has to offer, such as “Smart Buy”, a nationally updated database reporting fuel prices at filling stations in every city. Other benefits include real-time online reporting, allowing managers to track and analyze the spending of every card and driver as well as control the limits and types of spending, even changing restrictions to allow for non-fuel purchases such as maintenance. CSI Enterprises provides a specific line of controlled financial payment products including business fleet fueling/maintenance payment cards, a corporate virtual payment MasterCard and card solutions for corporate purchasing, travel and entertainment spending.

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FEB DEBT

Credit card outstandings rose in February by GBP 400 million to GBP
54.8 billion. This is the second consecutive month of growth following
several monthly declines in 2007. Year-on-year credit card outstandings
(not seasonally adjusted) are essentially flat. According to the The
Bank of England, the increase in net consumer credit in November was GBP
2.4 billion above the prior month and above the previous six-month
average. Net other loans and advances rose by GBP $2.0 billion, higher
than the January increase.

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Citi’s Q1 U.S. Credit Card Profits Drop 34%

Citigroup reported that 1Q/08 profits for its U.S. Cards unit declined 34% year-on-year to $595 million due to increased credit costs. For the first quarter Citi reported that credit costs increased $447 million, driven by higher net credit losses, up 23%, and a $302 million pre-tax charge to increase loan loss reserves. Higher credit costs reflected a weakening of leading credit indicators, trends in the macro-economic environment and an increase in the rate at which delinquent customers advanced to write-off. The managed net credit loss ratio increased by 120 basis points to 5.83%. GAAP revenues decreased 2%, reflecting the impact of higher funding costs and higher credit losses in the securitization trusts, partially offset by the gain on VISA shares. Excluding the gain on VISA shares and a gain on MasterCard shares in the first quarter, revenues were down 8%. Managed revenues grew 14%, reflecting the gain on VISA shares and a 6% increase in managed receivables. The managed net interest margin increased 3 basis points to 10.14%. Expenses decreased by 6%, primarily driven by a partial release of the VISA-related litigation reserve, offset by increased collection and servicing expenses. For complete details on Citigroup’s 1Q/08 performance, visit CardData ([www.carddata.com][1]).

CITIGROUP
U.S. Credit Card Net Income
1Q/07: $ 897 million
2Q/07: $ 726 million
3Q/07: $ 852 million
4Q/07: $ 398 million
1Q/08: $ 595 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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