Younger Consumers Prefer Online Banking

Younger customers are continuing to choose the anonymity of their laptops over the human contact of a bank teller. A new survey by the ABA found that the banking method consumers used most often were branches 36%; online 23%; ATM 21%; telephone 5% and mail 8%. Banking at a local branch was the clear favorite of nearly half of those over the age of 55, but only 25% of those under 34 said they use branches most often. In fact, younger customers ranked branches behind online banking (30%). Older customers said the opposite with 47% saying branches are their preferred method of payment with ATMs (17%) and online (13%) trailing far behind.

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TSYS Europe Prepaid Cards Gather Steam

TSYS Europe reports it has issued more than 1.7 million instant-issuance, non-personalized cards for The Gift Voucher Shop. GVS launched its “One4all Gift Card” in five major Irish Post Offices in Dublin and on its Web site. The product is VISA supported, although the card does not carry the logo, and is restricted to acceptance within a GVS-defined network of more than 200 UK retailers. The new gift cards will be offered in a growing number of Post Offices throughout Ireland and the UK later this year. TSYS now processes multiple prepaid portfolios for major banks across Europe, including Bank of Ireland, Royal Bank of Scotland, Norwich Union, Santander and LloydsTSB.

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Fiserv Adds a New Board Member

Fiserv has added Doyle Simons, EVP of Temple-Inland, to its Board of Directors. Simons has worked at Temple-Inland for 15 years. Before becoming Executive Vice President, he served as Chief Administrative Officer, Vice President-Administration, Director of Investor Relations, and a Corporate Attorney. Prior to joining Temple-Inland, Simons was an attorney in private practice. He earned his bachelor degree in Business Administration from Baylor University, his Doctor of Jurisprudence from The University of Texas and completed the Stanford Executive Program at the Stanford Graduate School of Business. Fiserv provides information management systems and services to the financial and insurance industries.

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CARD LOANS JUN

Credit card loans dropped to GBP 53.5 billion in June, the lowest level in the past twelve months. This is the third consecutive monthly decline and nearly GBP 3 billion lower than one-year ago. According to the Bank of England gross credit card lending to individuals in the second quarter topped GBP 31 billion. The sum of all monthly repayments to UK banks amounted to GBP 30 billion. During the 12 months to the end of June 2007 outstanding credit card balances have reduced by GBP 2.6 billion.

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IDT Names Oppenheimer as CFO

NJ-based phone card specialist IDT Corporation has named Marc Oppenheimer as EVP/CFO and Treasurer. Prior to this new appointment, Oppenheimer has been the Lead Independent Director of IDT’s Board of Directors since December 2006 and the financial expert of the Audit Committee of IDT’s board since April of 2006. He has also served as the Chairman of the Audit Committee and Director of Net2Phone. His financial expertise includes being President of Octagon Associates, Inc., a merchant banking and financial/strategic advisory firm. Until mid-2006, he was Executive Vice President of Kenmar Global Investment Management, Inc., and a Managing Director of Kenmar-Nihon Venture Capital. Oppenheimer started his financial career as a Credit Officer at The Chase Manhattan Bank, N.A. specializing in international lending and commodity financing. He also served as the Director of Trade and Merchant Banking for Midlantic National Bank, an institution with assets of $29 billion. Oppenheimer has a B.S. with Honors in Management and Industrial Relations from New York University as well as an MBA with Honors in Finance from New York University.

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PPI Promotes Myers to COO

Payment Processing Incorporated has promoted Eddie Myers to president and COO from EVP/GM. In his new role, Myers will oversee client implementations support, merchant sales, human resources and facility management. Prior to joining PPI, Myers worked at Paymentech, where he held various sales and management positions over a span of nine years. Previously, he held a number of technical and marketing positions with VeriFone and NDC. Myers is an active member of the Electronic Transaction Association (ETA) and a current member of the ETA Board of Directors. Payment Processing is a provider of integrated payment solutions. In 2006, PPI processed over $3 billion in VISA and MasterCard payments.

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Credit Piggybacking Goes Mainstream

A San Diego company has compiled a group of investors with seasoned tradelines dating back at least 10 years with perfect payment history and low balances and made them available to the public. Under the program borrowers are added as authorized users to help build credit. TradeLine Solutions says it can boost a score from the 500s into the 700s. The Company offers five packages for varied levels of credit, with plans starting at $599. Experian is implementing new software on September 1st that will not recognize additional authorized users when reporting.

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ONE PAYMENT

ONE Payment, a collaboration among ChinaPay, ECONTEXT and
INICIS, has introduced online payment processing in China, Japan and
Korea through a single interface, merchant service and payment
gateway. The online processor provides real-time payment data, a
single point of contact for the three countries, local payment technology
implementation, payment acceptance in local currencies and provides
24-hour customer services from a single support team. ChinaPay Co.
Ltd. online payment gateway provider has 166 member banks.

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CFSI Catalyst Fund Invests in AccountNow

CA-based prepaid card marketer AccountNow has secured the Center for Financial Services Innovation’s new Catalyst Fund as the final investor in the companies third round of venture funding and named David J. Petrini, formerly EVP and CFO of Capital One’s GreenPoint Mortgage Funding as its new CFO. On June 26, AccountNow announced $12.75 million in new funding and the addition of two new board members. Trident Capital, a new investor, led the round, and all current investors participated. These investors include INVESCO Private Capital, Oak Hill Venture Partners, VSP Capital, Grayhawk Venture Partners and Mr. Coltrell. Christopher P. (Woody) Marshall, Managing Director of Trident Capital and Stephen B. Galasso, Strategic Advisor at Trident Capital, were AccountNow’s new board members. The Center for Financial Services Innovation (CFSI) created the CFSI Catalyst Fund to invest in financial services companies and solutions focused exclusively on underbanked consumers. The fund is a private equity limited partnership and was announced on July 24. The Center for Financial Services Innovation, a non-profit affiliate of ShoreBank Corporation, facilitates financial services industry efforts to serve underbanked consumers.

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52% of Consumers Pay No Monthly Bank Fees

A new survey shows that two-thirds of consumers spend $3 or less in monthly fees for bank services such as checking account maintenance and ATM access. The poll by the American Bankers Association also reveals that more than half of consumers pay no bank fees, a 9% increase from 2006. When asked how much they estimate they spend on fees for banking services each month, such as checking account maintenance and ATM access, consumers provided the following responses: 52% said they pay nothing; 13% said $3 or less; 9% said $3-$6; 3% said $6-$8; 5% said $8-$10; and 13% said they pay more than $10.

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