OTS Approves the WAMU – Providian Merger

The Office of Thrift Supervision has approved the acquisition of Providian by Washington Mutual. Providian Financial Corporation is holding a special shareholders’ meeting on August 31 to vote on the transaction. Assuming Providian receives shareholder approval at that meeting, the transaction should close on October 1, 2005. Washington Mutual is a retailer of financial services WITH assets of $323.53 billion.

Details

Cathay United Bank to use Global FICO

Taipei-based Cathay United Bank will be the first financial institution in the country to use Fair Isaac’s “Global FICO” score. Last year, Cathay United became the first financial institution in Taiwan to implement Fair Isaac’s “TRIAD” adaptive control technology. “Global FICO” score applies Fair Isaac’s “FICO” credit risk scoring technology to rank-order consumers according to their credit risk. Designed to be consistently scaled across credit bureaus and across national borders, “Global FICO” score has established a global standard for consumer credit risk assessment.

Details

Fifth Third Executive Joins the MC Board

Charles Drucker, president, Fifth Third Bank Processing Solutions, has been elected to MasterCard International’s U.S. Region Board. Drucker began his career with Fifth Third in 2004, and is responsible for the strategy, sales, product development, relationship management and administration for the Fifth Third Bank Processing Solutions division’s three business lines: Merchant Services; Financial Institution Services, which includes EFT Processing and Correspondent Banking; and Card Products. Fifth Third Bank Processing Solutions processes over 12 billion ATM and POS transactions per year for more than 1,350 financial institutions. Fifth Third Bancorp is a diversified financial services company with $102.7 billion in assets.

Details

VISA’s Latin American PDV Up 38% in Q2

VISA credit and debit purchases for Latin America and the Caribbean increased 38% over the twelve-month period ending June 30th.
VISA’s total sales volume, including purchases and cash advances, surpassed US$258 billion, which is a 29% gain over last year. The number of cards-in-force approached 194 million, a 23% increase over the second quarter of 2004. Over the same period purchase volume with VISA debit cards registered a 48% record growth, surpassing the US$21 billion mark.
The number of VISA and “Visa Electron” debit cards grew to 139 million,
a 22% year-over-year increase for the same period ended June 2005.

Details

Most Americans Not Worried About ID Theft

TransUnion’s TrueCredit subsidiary has released a new survey showing that 63% of consumers thought it was unlikely they would be victims of identity theft in the next year, while only 35% viewed the threat as real. The survey also discovered 45 percent of respondents thought they would need to spend at least 50 hours or more to resolve the problems resulting from an incident of identity theft. TrueCredit helps consumers protect and improve their credit through a suite of secure and easy-to-use products.

Details

HDFC-IDEA VISA

IDEA Cellular and HDFC Bank have launched a co-branded credit card
program. The new “HDFC-IDEA VISA” offers up to 8% back on Idea postpaid
bill payment, three “Reward Points” on supermarket, grocery and
gasoline purchases and other value added services up to Rs. 1500 p.a.
Redemption of all reward points are against equivalent Idea talktime,
the Idea postpaid bill. The program will also offer special calling rate
benefits between the new co-branded connection availed of by the HDFC
bank creditcard holder and his existing mobile or landline thereby
facilitating telephony within the customers often called numbers.
IDEA Cellular has a customer base of over 5 million and currently covers
approximately 45% of India’s population. HDFC Bank has a network of 499
branches and over 1200 ATMs across 219 cities.

Details

VISA to Help Issuers Score Applications

VISA USA has teamed with ID Analytics to launch an application fraud fighter early next year. VISA will provide to its members an empirically-derived risk assessment score that determines the likelihood of whether applicants are who they claim they are. The new service is a customized version of “ID Analytics ID Score” and will be delivered via VISA Advanced ID Solutions. A joint study by both firms found that Members using the “ID Score” in combination with Issuers’ Clearinghouse Service alerts could realize an incremental lift in identification of fraudulent applications of between 17% and 34%. The “ID Scores” are generated from ID Analytics’ real-time fraud prevention system that is continuously fed with cross-industry identity elements.

Details

CCS to be Acquired by Advent

CCS Ceska spolecnost pro platebni karty a.s., a major provider of fuel cards and related fleet services for business in the Czech and Slovak Republics is being acquired by Advent International. CCS has terminals in nearly 100% of the fuel stations in the Czech Republic.
CCS, which currently employs over 200 people, is the largest single
client of all fuel suppliers in the Czech Republic. Advent International has invested in Oskar Mobil, Intercity, BTC and Synergon. Advent was also an early investor in EUNet, the leading regional automated telling machine network manager.

Details

Interlink Sales Volume Soars 72% in Q2

VISA’s online domestic debit brand, “Interlink,” added 6.4 million cards to its network during the second quarter, compared to 2.7 million added in the prior quarter. Sales volume soared by more than 72% to $25.9 billion for 2Q/05, compared to one-year ago. The number of “Interlink” merchants grew by 4.1% to 1.3 million. The average “Interlink” sales transaction was $32.38 for 2Q/05. At the end of 2003, VISA had 70 million “Interlink” cards, which rose to 88.3 million by the end of 2004. Gross dollar volume (sales & cash) rose 70% in the second quarter 2005 to $27.8 billion.

INTERLINK HISTORICAL
Sales Volume Cards
2Q/04: $15.0 billion 87.0 million
3Q/04: $19.4 billion 88.3 million
4Q/04: $23.4 billion 88.3 million
1Q/05: $22.5 billion 91.0 million
2Q/05: $25.9 billion 97.4 million
Source: VISA USA

Details

EDGARS MASTERCARD

Leading retailer Edgars Consolidated Stores has teamed with
Standard Bank to launch the first no annual fee general purpose
cobranded credit card in the country. The new “Edgars MasterCard” will
be offered to low risk store credit card holders. Edcon currently has
more than 3.8 million private label credit card customers. The Company
estimates that as many as 86% may qualify for the new card. Edcon says
its internal research shows that of the existing Edcon account holders,
approximately 68% do not currently own a bank credit card. The new
credit cards will be either Edgars or Jet branded. Qualifying Edgars
customers will receive their credit card offers from August and Jet customers will receive theirs later in the year.

Details

Atlanta Falcons Kick Off a Gift Card

Stored Value Systems is now issuing gift cards for the Atlanta Falcons. The gift cards are available now exclusively at the new retail store, Falcons 365 in Perimeter Mall, and on the new website [www.falcons365.com][1]. Stored Value Systems, Inc. is one of the world’s leading providers of electronic gift cards and other card-based transaction programs and is a wholly owned subsidiary of Comdata Corporation, a business-to-business issuer and processor of payment cards.

[1]: http://www.falcons365.com

Details

JCB to Use SAS Enterprise BI Server

JCB is deploying the SAS “Enterprise BI Server” for its new credit management system. JCB first implemented SAS in May 2002 when it started its “New Credit Management System Development” project, using SAS for data management, development and implementation of various credit models. The success of that implementation led JCB’s decision to use the server. JCB says it expects a 5% year-on-year increase in its revenue. JCB plans to fully adopt the newly enhanced system with SAS “Enterprise BI Server” by January 2006.

Details