FDR Names Direct Banking Head

First Data Electronic Commerce Payments Services, a division of First Data Corporation, today announced that Randy Kahn, 49, has been named president of Direct Banking, which develops and hosts fill transaction Internet sites for financial institution clients.

Kahn, who built First Interstate Bank into an over $90 million national player in electronic banking services from 1986 to 1996, is charged with making Direct Banking the leading Internet partner for financial institutions across the country.

Kahn was formerly chairman of rules and operations for the National Automated Clearinghouse Association (NACHA), as well as a member of NACHA’s board of directors and executive committee. He was a charter member of the Bankers EDI Council, and an early member of the CommerceNet steering committee. Kahn teaches the technology section of the annual Payments Institute and is a frequent speaker on the business application of technology. From 1986-1997, Kahn served as director of Electronic Banking Strategy for Home Savings of America, the country’s largest savings and loan.

“Randy’s broad knowledge base, with two decades of experience in the financial services industry, will be key to our goal of making First Data the leader in developing Internet-based solutions for our clients,” said Chuck White, president of First Data Electronic Commerce Payment Services.

Hackensack, NJ-based First Data Corporation is a global leader in payment systems, electronic commerce and information management products and services. First Data and its principal operating units process the information that allows millions of consumers to pay for goods and services by credit, debit or smart card at the point of sale or over the Internet; by check or wire money. For further information about First Data, please visit the Company on the Internet at [www.firstdatacorp.com][1].

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


Packard Bell Quicken Link

Packard Bell and Intuit Inc. have established a relationship to enable home PC users with Web browsers the ability to access the most up-to-date personalized financial information.

By double-clicking on an icon located on their desktop, Packard Bell users are instantly hot-linked to Intuit’s Quicken.com Web site where they have free and unlimited use of financial tools and information that help them make the most of their money.

Packard Bell’s relationship with Intuit is making it easier for consumers to better manage their financial lives. Quicken.com helps people make financial decisions in the areas of investing, banking, mortgages, investing, taxes, planning, insurance and more.

“Our customers frequently use their home computers for organizing household finances and budgets. Packard Bell is proud to work with Intuit in bringing the leading and most comprehensive financial service to our customers,” said Mal Ransom, senior vice president, marketing, Packard Bell NEC.

“We are offering a unique service for customers by providing personalized decision-making tools, an objective source of information and comparison shopping — all free to Packard Bell customers and integrated in one place for convenience and efficiency,” said Mark Goines, senior vice president, consumer finance division, Intuit.

With a double-click on the new quick-access icon, Packard Bell users are linked to Quicken.com, which features eight integrated and easy-to-use centers:

— Investments — Helps answer day-to-day investment questions, such as how investments are performing and how to identify and invest in the top mutual funds. The Quote Plus feature helps consumers make better investment decisions by giving them immediate access to highly relevant information about a company. The Mutual Fund Finder and Stock Searcher help people find investments that fit their needs. The Investment Center also fully integrates all the mutual fund capability at the Intuit’s former NETworth site.

— People & Chat — Provides an interactive community for people to talk with each other, as well as with subject matter experts as they make important financial decisions. Features interactive communities on investing strategies, such as the new Armchair Millionaire. Also includes a feature by consumer champion Richard L. Katz.

— Home & Mortgage — Saves consumers time and money by enabling them to comparison shop online for a mortgage. Interactive tools help people answer the questions “How much house can you afford?,” “Should you refinance today?” and “What are today’s rates?”

— Banking & Borrowing — Helps people find great borrowing and savings deals on a variety of banking products. Special features within this center include Credit Report Guide and Our Top Picks, a guide to other useful banking and borrowing sites on the Web.

— Insurance — Lets consumers compare real-time life insurance quotes, get information, connect with agents and even buy a policy online from among the most recognized insurance companies in the nation.

— Retirement — Helps people calculate their needs during retirement and then gives a step-by-step approach to developing and implementing their retirement plan. Consumers may use the Retirement Planner to decide what investment allocations to make based on a personalized interview.

— Saving & Spending — Helps people create a budget, save money and manage their debt. Special features include a Debt Reduction Planner, a Financial Fitness Quiz and a Financial Health Checkup that provides financial help and tips tailored to individual needs.

— Tax — Provides tax help, forms, tools and information online. Tools and information include Tax Estimator, Tax Law Change Updates, Personal Tax Guide, Small Business Tax Guide and Tax Calendar.

About Packard Bell NEC

Credited with having pioneered the mass marketing of PCs through the retail channel, Packard Bell brings innovative, affordable technology to the greatest number of homes in the world.

Based in Sacramento, Packard Bell NEC is the second-largest computer manufacturer in the United States and one of the largest in the world. The company designs, manufactures and markets a wide variety of desktop, notebook and mobile computers and network servers under the Packard Bell NEC and Zenith Data Systems brands.

The company’s major manufacturing operations are in Sacramento; Fife, Wash.; Angers, France; Penang, Malaysia; and Sydney, Australia.

For more information on the Packard Bell brand, customers can call 800/733-5858 or visit [www.packardbell.com][1] on the World Wide Web.

About Intuit Intuit, a financial software and Web-based services company, develops and markets Quicken, the leading personal finance software; TurboTax, the best-selling tax preparation software; and QuickBooks, the most popular small business accounting software. Intuit’s Quicken.com Web site offers a complete set of personal finance news, information and tools, including the leading mutual fund and insurance sites. Intuit’s products and services enable individuals, small businesses and financial professionals to better manage their financial lives and businesses.

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


4Q Update

More data poured in yesterday in response to Bankcard Update/Barometer/CardData’s ‘Fourth Quarter 1997 Portfolio Survey’.

Wells Fargo  $7.3b  $3.6b  $11.3b    5.8m   2.9m   6.5m
Marine Mid   $1.8b  $1.2b  $ 4.4b    1.7m   0.8m   1.6m
SunTrust     $1.1b  $0.6b  $ 2.1b    1.3m   0.6m   1.4m

RECV-receivables; QVOL-quarterly volume; YVOL-year-to-date volume; ACTS-gross accounts; ATV-active accounts; CIF-cards-in-force Source Bankcard Update/Bankcard Barometer/CardData


MBM ATM Signs First Republic

Republic First Bancorp, Inc.’s subsidiary, First Republic Bank, today announced that it has entered into a strategic servicing agreement with MBM ATM Group, Ltd. to place and service a broad regional off-site ATM network. Under the terms of the agreement, Republic First will operate and service a proprietary regional ATM network at various retail and convenience operations, in addition to its own branch offices in the Philadelphia area.

Rolf Stensrud, Republic First president and CEO, said, “This strategic partnership further expands our range of specialized banking products, and will help to broaden our reach in the bank-related service market. It also enables us to begin developing a significant regional presence in this area.” Bank officials anticipate that the off-site ATM network will provide significant fee income.

Republic First Bancorp, Inc. is a Philadelphia-based bank holding company. Its subsidiary, First Republic Bank, has assets of approximately $300 million and markets diversified financial products through its branch offices located throughout the greater Philadelphia area.

MBM ATM Group, Ltd. is a leading ATM network servicer, headquartered in Cinnaminson, New Jersey. It specializes in site selection and servicing of regional ATM networks.


Indonesian Online Banking

Digital Insight and Bank Papan Monday announced that they have made history as Bank Papan became the first bank in Indonesia to offer online home banking services to its customers by using the technology developed by Digital Insight.

The site, www.bankpapan.com, is the first Indonesian Web site with transactional features. The agreement also marks the first international banking customer for Digital Insight.

“With the launch of our Bank Papan Online Banking, we reaffirm the company’s commitment to be a leader in innovation, technology and customer service,” said Bank Papan President Director Al Njoo. “We will continue to invest in technologies that offer significant benefit to our customers. Our launch is clear evidence of our commitment to efficient, secure and friendly service, wherever and whenever it may be required.”

Customers using Bank Papan Online Banking will be able to make balance inquiries; view their transaction history throughout the most recent 60-day period, including loan account details; transfer their money within checking and savings accounts; or make payments to their Bank Papan VISA or mortgage accounts.

“Our company is dedicated to developing technology that enhances the quality of life for people everywhere,” said Paul Fiore, president and CEO of Digital Insight. “At the same time, we know we must build systems that reinforce to the customers that their transactions via the Internet will be secure.”

With about 100,000 users on the Internet in Indonesia, Bank Papan is recognized as the one that won the “race” to be the first financial institution to offer online banking. Several other private banks are in the process of introducing transactional capabilities on the Internet.

Bank Papan is known as the leader in Indonesian mortgage lending and is rapidly expanding its services toward a fully integrated financial service provider. The bank was founded in 1980 and currently serves customers all over Indonesia.

The bank is a subsidiary of a large Indonesian conglomerate that has controlling interest in diversified industries, including tradings, petrochemicals, infrastructure developments, banking/finance and many others.

Digital Insight (www.diginsite.com) is a developer of real-time, Internet-based transaction services for financial institutions. The fast-rising Internet company developed AXIS, a Web-based home banking system for financial institutions.

Along with Internet home banking services for more than 70 financial institutions, Digital Insight provides Web site creation, maintenance and server hosting facilities for more than 230 financial institutions through the country. Digital Insight was founded in 1995.


Out Like a Lion

American Express ended 1997 with the company’s first $40 billion+ quarter in U.S. charge volume. For all of 1997 AmEx racked up $150.5 billion in total volume for a 14.9% increase over 1996. Card loans grew at an above average rate of 14.3% last year to end 1997 at $14.6 billion. However card fees have declined more than 7% and the provision for charge card losses increased about 12% last year. AmEx says rewards programs and expanded merchant coverage drove more volume to the brand last year than any previous year. AmEx’ Travel Related Services reported net income of $1.35 billion for 1997, an increase of 10%.

                                 AmEx  Yearend  U.S. Vitals
                                  1997          1996
       Delinquency                3.5%          3.3%
       Chargeoffs                 6.0%          5.2%         
       Net Int Margin             9.1%          8.8%         
       Avg Discount Rate          2.73%         2.75%
       Avg Fee Per Card           $39.00        $42.00
       Avg Acct Volume            $6,473        $6,074


CreditDesk 2.3

Fair, Isaac announced Monday it will release a new version of ‘CreditDesk’ next month. The new version includes capabilities such as an optional Web-based front end and the ability to handle multiple scoring models for multiple portfolios within a single system. Fair, Isaac says institutions who purchase the software or renew their existing license prior to March 30 will receive the upgrade, ‘CreditDesk 2.3’, at a 15% discount.


Share Group

A MA-based credit card marketing firm was dumped by the AFL- CIO on Friday because of the involvement of the company’s founder in funneling funds to Teamster’s president Ron Carey’s 1996 campaign. The Share Group was engaged in marketing the AFL-CIO’s ‘Union Privilege MasterCard’ to 13 million members and employed about 100 telemarketers. The company said it was losing money on the program and recently negotiated a higher commission. However attorneys for the AFL-CIO believed the increased payments could be misinterpreted by union members. Share Group’s founder pleaded guilty recently to conspiracy charges in the scandal which illegally funneled $700,000 to Carey’s campaign.


Top 10 Scoreboard

      ISSUER           RECV               VOL         ACCTS
      pCitibank        $48.2             $102.8      24.8
      MBNA             $44.5             $ 63.4       28.1
      pBanc One/FUSA   $38.6             $ 40.0      25.9
      Discover         $36.0             $ 57.9      40.4
      Chase Man        $32.5             $ 39.8      21.5
      pFrst Chic       $17.7             $ 46.1      14.9
      Household        $17.3             $ 34.2      16.0
      AT&T Univ        $15.3             $ 27.7      19.7
      Cap One          $14.2             $ 14.0      11.7
      Advanta          $11.2             $  7.0       8.4 
      receivables and volume in $ billions; accounts in millions;
      Source Bankcard Barometer Jan 98/CardData; p-preliminary


Consumer Protection Services

A Toronto-based credit card protection service was cited by the Pennsylvania Attorney General for misleading consumers regarding the benefits of its service and for not informing consumers of their right to cancel. The Tracker Corporation offered, for a $189 fee, protection for up to $10,000 in unauthorized credit card charges. The service was marketed under the trade name Consumer Protection Services. The PA Attorney General’s office also alleged the company did not truthfully identify itself, giving consumers the impression the solicitors were employees of the consumers’ credit card company. Under a new PA law consumers have the right to cancel any sale made over the telephone up to three days after the company mails the consumer a required notice of cancellation. Friday, Tracker signed an ‘Assurance of Voluntary Compliance’ agreement and agreed to paid restitution and the costs of the investigation.


Advanta/FDR Sign

First Data Resources announced that it has signed a multi-year agreement to provide transaction processing services for Advanta Financial Corp., a leading issuer in the quickly growing small business commercial credit card market.  Under the new agreement, First Data will provide data processing and contingency services for Advanta’s entire commercial credit card account base.

“In three years, Advanta has become one of the largest issuers of commercial credit cards to small businesses, and First Data has been a strategic partner with us in our growth,” said Mike Noles, Senior Vice President, Advanta Financial.  “We’re confident that the collaboration of expertise and innovation between Advanta and First Data will enable us to achieve our growth and service objectives through the new millennium.”

“Advanta’s decision to solidify their relationship with First Data is evidence of our commitment to deliver the highest level of service and innovative technology to our commercial issuing clients,” said Sue Lamb, Vice President, Commercial Products Division, FDR.  “Advanta has realized significant growth in their commercial portfolio, and we are pleased to be a part of their proven success in the commercial marketplace.”

Advanta Financial supports Advanta Business Services, the provider of financial services to more than 250,000 small businesses nationwide.  Advanta Business Services is a subsidiary of Advanta Corporation (Nasdaq ADVNA), a financial services enterprise that serves consumers and small businesses through innovative offerings of mortgages, leases, insurance, business credit cards and deposit products.  Further information about Advanta can be found at .

Hackensack, N.J.-based First Data Corporation is a global leader in payment systems, electronic commerce and information management products and services.  First Data and its principal operating units process the information that allows millions of consumers to pay for goods and services by credit, debit or smart card at the point of sale or over the Internet, by check or wire money.  For further information about First Data, please visit the Internet at [http://www.firstdatacorp.com.][1]

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