Sanwa Bank California sold its card portfolio to MBNA and entered into an agent relationship this week. Terms of the sale agreement were not disclosed but it is estimated the $25 million portfolio sold for an 18% premium. Terms of the agent agreement call for MBNA to market ‘Preferred’ and ‘Platinum Plus’ VISA and MasterCard, personal/business card products under the Sanwa Bank California name. According to CardData (www.carddata.com) Sanwa had $26,273,283 in outstandings at year-end 1998 and 34,198 gross accounts; 22,780 active accounts and 36,963 cards-in-force.Details
Madrid-based Banco Espanol de Credito SA and American Express’ Spanish unit signed agreements yesterday to offer credit card services to the bank’s commercial clients in Spain. Banesto will now permit AmEx credit cards to be accepted at its commercial clients’ businesses in addition to VISA and Mastercard. Banco Espanol de Credito SA has 42,000 commercial clients.Details
An innovative system that allows automated teller machine deployers to cross-sell services through personalized, on-screen marketing messages on an ATM is being demonstrated by Diebold, Incorporated at the CeBIT world business fair in Hannover, Germany this week.
Diebold’s one-to-one ATM marketing capability will be on display in the Diebold Stand No. A07 in Hall 18, March 18-24. Show attendees are encouraged to register at the Diebold stand as a user of the system and conduct a hands- on demonstration of Diebold’s one-to-one ATM marketing features.
“We believe this system can help our customers leverage valuable consumer contact time into potential business opportunities,” said Thomas W. Swidarski, senior director, Worldwide Marketing for Diebold. “Our one-to-one marketing concept allows ATM deployers to use their existing customer database for information that can help them target a specific message to the consumer at the ATM.”
Diebold’s one-to-one ATM marketing concept uses the waiting time of a standard ATM authorization period to display interactive messages to consumers about products and services. Because it works in conjunction with an ATM deployer’s customer information database, the system allows institutions to custom-design the advertising messages depending upon demographics, existing account relationships or retail buying habits.
For example, a bank customer using an ATM during the holiday season might be shown a promotion for debt consolidation loans on one transaction, while the frequent ATM user next in line, who is not a bank customer, might read about a new checking account that waives ATM transaction fees.
In each case, the customer may be prompted to respond to on-screen questions — which might even ask for their phone number — and the answers are forwarded to marketing departments for proper follow-up.
Because it runs during the waiting phase of the ATM transaction, one-to- one marketing does not delay transaction times or create long waiting lines. Customers who want to turn down the service that is offered can do so by answering “no” to the on-screen prompts.
For ATM deployers, the system provides a tracking capability that allows them to monitor the success of the ATM marketing program. It can also be configured to dispense a coupon from the ATM receipt printer as a way to reinforce a message.
“While Diebold’s one-to-one marketing concept offers a glimpse into the future, we wanted to demonstrate that the technology exists today,” Swidarski said. “It not only helps ATM deployers build customer loyalty, but it provides them with a revenue generating advertising medium that could also be sold to local retailers.”
Diebold Demos Iris Recognition ATM
An automated teller machine that recognizes a customer’s identity by the iris of their eye — without the need of a card or personal identification number (PIN) — is being demonstrated by Diebold, Incorporated at the CeBIT world business fair in Hannover, Germany this week.
Diebold is displaying a unique “iris recognition” biometric system that uses a camera to read specific features of a customer’s iris (colored part of the eye) and compares it to a previously recorded image stored in a database. A match between the user’s “live” iris and a biometric iris template contained within a database initiates the ATM transaction.
The biometrics application featured on Diebold’s 1064ix ATM can also accept conventional card-based transactions. CeBIT visitors can sample the technology by recording their iris image at Diebold’s enrollment station, and then use the iris recognition technology to initiate an ATM transaction. The biometric ATM will be on display in the Diebold Stand No. A07 in Hall 18, March 18-24 at CeBIT.
“This ATM exemplifies Diebold’s technical capabilities,” said Alben W. Warf, senior vice president, development and manufacturing at Diebold. “Our biometric ATM lets consumers choose how they want to access their accounts — with leading-edge biometric technology or through standard card and PIN-based transaction systems.”
Biometrics is the use of distinct human biological features — such as fingerprints, voice patterns and eye characteristics — as identification methods in security systems. This futuristic technology, once limited to certain high-level security systems, is making its way into consumer applications such as ATMs.
Diebold’s research and development efforts in the area of biometrics have been ongoing for more than a decade. The company has tested many different biometric technologies including fingerprint verification, voice verification, hand geometry, and facial recognition. In 1996, Diebold introduced the world’s first live installation of biometrics on an ATM in South Africa utilizing fingerprint verification. In 1997, Diebold displayed the world’s first ATM featuring facial and voice recognition to identify customers.
Iris recognition is a popular biometric application because the iris is one of the body’s most unique physical structures. It has 266 measurable characteristics that do not change with age and it cannot be copied or replicated.
The biometric ATM combines proprietary Diebold software with iris imaging equipment from Sensar, Inc. to record a customer’s iris image and compare it to existing images stored in a database. The Diebold application compares and recognizes the “live” iris image with images stored in a centralized database.
“As the financial world transitions toward the widespread use of biometric security systems, our software will make it easier for customers to adapt by providing them with standard alternatives,” added Warf.
Sensar, Inc. was founded as the first commercial spin-off of the Sarnoff Corporation in Princeton, N.J., USA — an internationally acclaimed research and development facility. IriScan of Marlton, N.J. holds the exclusive worldwide patents on the iris recognition concept originated by Drs. Leonard Flom and Aran Safir and the software and process technology invented by Dr. John Daugman, Cambridge University, England. Sensar uses, under license, the iris recognition process developed and owned exclusively by IriScan. IRISCAN is a trademark of IriScan, Inc., of Marlton, N.J., and is used by Sensar, Inc. under license from IriScan, Inc. For more information, please visit [www.sensar.com].
Diebold, Incorporated is the global leader in providing integrated delivery systems and services. Founded in 1859, the company employs more than 6,000 associates in some 120 locations worldwide with headquarters in Canton, Ohio, USA. Diebold reported revenue of US$1.2 billion in 1998 and is publicly traded on the New York Stock Exchange under the symbol “DBD.” For more information, visit the company’s Web site at www.diebold.com.
High-volume billers could save $6 to $15 million annually by delivering bills to customers electronically. NFO’s PSI Global projects that by the year 2000, at least 36% of the nation’s highest volume billers will offer electronic bill presentment, up from six percent. The number of bills presented via the Internet are projected to double in the period. According to the PSI Global study, leading billers estimate that electronic bill presentment could yield savings of $.10 to $.40 per item over existing billing methods. Postage accounts for 56% of current costs, PSI Global determined. Still more savings will accrue to billers on the payment side. PSI says it found that billers would save an average of nearly $.094 cents per payment processed electronically.Details
CA-based NetPack, Inc. and Orga Card Systems International have signed a deal for Orga to produce and provide support for NetPack’s ‘First Internet Access Card’ and the NetPackage ‘Internet Retail System’.The Netpackage ‘Internet Retail System’ allows software producers to sell their software by using a NetPack card that can be as small as a credit card, and marketed through stores, even mini-markets or gasoline stations, as well as in mall kiosks or airport stores.Details
Novadigm, Inc.’s software that delivers advertising to the ATM is picking up speed. The company said Wednesday that Wells Fargo, which launched a variable advertisement program for ATMs earlier this month, will expand its program to 6,100 ATMs nationally. On March 1, Wells Fargo began ads on 340 San Francisco Bay Area ATMs that are part of the Wells Fargo Media Express ATM Network. Electronic Payment Services, Inc. is also using Novadigm products to automate the delivery and management of high-resolution advertising graphics and marketing messages to ATM screens.Details
ChequeMARK Inc. announced Wednesday it has agreed to a test agreement to provide Electronic Checking services, including its Assured Payment service, to WorldWide Publishing Inc. of Los Angeles, California. This agreement marks the company’s product entry into the telemarketing industry, an industry traditionally thought to be too risky for traditional check authorization companies. WorldWide Publishing Inc. is a leader in marketing packages of monthly magazines to consumers on a national basis.Details
CheckFree and Equifax E-Banking Solutions signed a three-year reseller agreement for electronic billing and payment Wednesday. Equifax E-Banking Solutions, formerly Goldleaf Technologies, is one of the largest providers of electronic banking software in the U.S., with approximately 7,000 licensed programs in more than 1,400 financial institutions worldwide. Under the terms of the agreement, Equifax E-Banking Solutions will resell CheckFree E-Bill services to their customers, which include banks, credit unions, and saving institutions worldwide. Equifax E-Banking Solutions has been selected by IBAA Bancard to provide internet banking to IBAA member-banks, thus allowing Equifax E-Banking Solutions to expand their outsourcing services to include EBP to more than 5,000 IBAA community banks in the United States.Details
First Data Merchant Services said Wednesday that Peoples Heritage Bank and M&T Bank have renewed their processing agreements with First Data. First Data says both institutions have made recent acquisitions that will generate incremental volume of one million transactions per year, representing $950 million in sales volume. Peoples recently acquired Glastonbury Bank and Trust Company and M&T recently acquired the merchant portfolio of OnBank and Trust Company.Details
Unlike the rapid growth experienced in the online shopping and trading sectors, online tax preparation and filing face abysmally slow consumer adoption rates, according to research released Wednesday by Jupiter Communications. According to a Jupiter/NFO survey, security, fear of errors, and privacy concerns are the top reasons for consumers’ reluctance to file their taxes via the Web.
The Jupiter research, which was released to Jupiter Strategic Planning Services clients today, shows that while taxpayers are progressively moving away from filing paper returns, submitting returns via the Internet will not emerge as a significant preparation channel for some time. The Jupiter/NFO survey, which polled more than 2,100 online households, indicates that the number of Internet users who plan on preparing their taxes over the Internet is less than two percent, or less than 0.5 percent of all expected individual returns.
“Contrary to popular belief, Web-based tax filing is only a tiny part of what is defined as electronic filing. The increase in electronic filings is more likely due to an rise in the number of desktop software users who are using dial-up filing options, rather than the widespread migration to Web-based solutions,” said Marc Johnson, director of Jupiter’s Digital Commerce Strategies. “While consumers show they are becoming more comfortable with electronic filing options, they are still hesitant to rely on the Web for such an important transaction. The lesson here is that consumer behavior does not change as quickly as some assume, especially with highly sensitive, low-frequency activities such as tax filing.”
Because most taxpayers file only once each year, tax preparation behavior will shift slowly. According to the Jupiter/NFO survey, the movement of 3.5 percent of consumers away from pencils, paper, and calculators to software will be the only significant change in consumer tax preparation behavior from 1998 to 1999.
Jupiter analysts advise financial services and commerce players that offer products or services that are infrequently used–such as taxes, mortgages, loans, and other big ticket items–to align themselves with complementary partners that provide more consistent interaction. Jupiter Communications is a new media research firm that helps companies make intelligent business decisions about consumer interactivity. Focused exclusively on how the Internet and other technologies are changing traditional consumer industries, Jupiter’s Strategic Planning Services (SPS) deliver a continuous flow of analysis, primary data, and market projections. SPS offers companies investing in new technologies a framework for realizing return on investment-both for new lines of business in mainstream media, entertainment, commerce, and marketing, as well as for Internet- and technology-based start-ups. Jupiter also produces industry seminars, newsletters, and book-length research studies. New York City-based Jupiter Communications, LLC, was established in 1986, and is an independent, privately held company.Details
LendingTree, Inc., the leading online loan center, Wednesday announced that David Anderson, a former senior principal at American Management Systems Inc., has joined the company as Vice President of Lender Management and Borrower Relations.
Anderson will work with the more than 30 lenders on The LendingTree Network to continually increase their closed loan rates. He will manage technical improvements of backend systems, as well as the re-engineering of lenders’ traditional loan processes.
During his 10 years with AMS, a leading technology consulting company, Anderson advised large financial institutions on best practices in credit origination and customer relationship management. His roles at AMS included serving as originations program manager, client engagement manager, and U.S. delivery services manager. He earned his bachelor’s degree in computer information systems from James Madison University.
“Last month alone, more than 30,000 consumers requested loans on LendingTree’s site worth $2.2 billion. We’re devoting substantial resources to ensure that this growing demand translates into more closed loans,” said Doug Lebda, founder and CEO of LendingTree. “David’s knowledge of lending processes makes him the ideal person to spearhead this effort.”
“I’ve worked with lenders for years to create efficient and effective origination channels, but I think the Internet blows these traditional tools out of the water when it comes to cutting costs,” said Anderson. “I couldn’t pass up the opportunity to be part of a company that’s completely re-engineering the lending industry.”
In addition to his work with lenders, Anderson will plan and manage the growth of LendingTree’s Borrower Relations call center. LendingTree is increasing the size of its call center staff to handle an anticipated boom in volume expected from partnerships with priceline.com, a name-your-price mortgage and home equity service, and Credit Management Systems, Inc. (NASDAQ: CMSS), a company that gives LendingTree access to the CreditConnection network of leading prime and non-prime automobile lenders.
About LendingTree, Inc.
LendingTree, Inc., founded by Doug Lebda in 1996 and based in Charlotte, N.C., is the only place – on or off-line – where a network of lenders bid for borrowers’ business. Loan types include personal, auto, mortgage, home equity, debt consolidation and credit cards. The company is led by a management team comprised of veterans in the banking, financial services and information technology industries. In addition, LendingTree has formed strategic partnerships with Snap! and priceline.com. The priceline.com relationship lets borrowers name their own rate and terms for mortgages and home equity loans on priceline.com. Borrowers get answers to their loan requests from lenders in The LendingTree Network. LendingTree is an equal opportunity lender. Go to [www.lendingtree.com] or call 704-541-5351 for more information.
A cadre of industry leaders, including international economist, best-selling author and financial journalist Paul Erdman, will speak on the future of banking and technology at Fair, Isaac and Company, Inc.’s InterACT ’99 conference Better Strategies, Better Technologies, Better Decisions in a World of Change June 27-30, 1999, at the Cavalieri Hilton in Rome, Italy.
In his speech, entitled “A World Emerging from Crisis,” Erdman, best known for his books “The Silver Bears” and “The Set-Up,” will take InterACT participants on a global tour, starting with Southeast Asia, Korea and China, moving on to Japan, then Russia, and Latin America. In each case, he will seek the answer to the question: “When will worldwide economic recovery begin in earnest?”
Other conference keynote speakers include:
* Hans van der Velde, president, Visa International, EU region, who will explore the future of international banking and payments, including the exchange of electronic information and smart card technology.
* Former governor of the U.S. Federal Reserve System and current executive vice president at Fair, Isaac, Robert Heller, who will talk about technology and the bank of the 21st century, exploring the impact of technological innovations that are increasing the scale and speed of banking activities.
* John Spence, chief executive of business banking, Lloyd’s TSB Bank Scotland plc, who will discuss the challenges of balancing personal customer relationships with automated banking via the telephone and the Internet from the viewpoint of a UK retail banker.
In addition, Fair, Isaac experts will host more than 40 sessions on global, leading-edge strategies and technologies in insurance, credit management, financial services marketing, mortgage, small business lending, and telecommunications. InterACT ’99 is Fair, Isaac’s third corporate conference in Europe.
Once again, a Product Expo at the conference will allow attendees to “test drive” advanced software from Fair, Isaac and alliance partners. InterACT Showcase sessions will debut Fair, Isaac’s new, innovative decision-making solutions.
Fair, Isaac () helps businesses worldwide maximize the value of data to make more profitable decisions about their customers, operations and portfolios. Known for its pioneering work in credit scoring and its use of data in transaction-level decisions, Fair, Isaac now delivers data management services, analytics, software and consulting to the financial services, direct marketing, personal lines insurance, retail and healthcare industries. Headquartered in San Rafael, Calif., Fair, Isaac employs 1,500 people in 17 offices worldwide. For the fiscal year ended September 30, 1998, the company reported revenues of $245.5 million.Details