This document provides a summary of recent developments in the credit card industry. It discusses how the industry is transitioning after years of tightening credit standards and regulatory changes. While loss rates are improving, issuers face challenges in generating profitable growth. The document also summarizes perspectives from analysts on opportunities and challenges for 2011, including ongoing effects of new regulations. It provides updates on Discover's international expansion and brand building efforts through sponsorships and promotions.
201204 Nolan QNL: Life and Annuity Industry OutlookSteven Callahan
An abbreviated version of the industry forecast for 2012 pointing out the highlights of key issues, strategies, areas needing focus, and likely structural changes.
Banking: In search of Relevance - Prefacestuartharle
This document discusses how banks have lost relevance with customers over time and need to adapt to regain it. It describes how banks initially focused only on branches, then added more channels like call centers, but these remained fragmented. Now, customers demand transparency, joined up data and intelligence. The document argues banks must sense and respond to customers in real-time across all interactions using all available data to deliver personalized, timely experiences. This requires accepting that banks cannot create demand but must stimulate latent demand with products that meet customer needs transparently and effectively.
This document provides an industry report on payments trends in Q1 2018. It discusses recent developments including the gradual adoption of open banking APIs by large US banks, continued growth in POS volume driving credit card delinquency rates higher, and plans by large retailers like Amazon to potentially offer checking accounts. It also provides updates on various industry predictions for 2018 and quarterly stock performance for major payments companies. Neobanks expanding from Europe to the US and cryptocurrency firms forming a self-regulatory group are highlighted as interesting news items.
In this issue of Horizon, we have included insightful articles that address several topics of interest to our issuers. George Fiegle, chief operating office of ICUL Service Corporation, does an in-depth interview with us concerning the challenges of card growth in the credit union marketplace. Mark Arnold, CCUE and president of On the Mark Strategies, shares his thoughts on generational marketing and how credit unions can use generational characteristics to improve results. For more info: www.nafcu.org/discover
1) Technology and financial technology (FinTech) startups are disrupting the traditional banking industry by offering new financial products and services. FinTech startups are using technologies like big data, social media data, and machine learning to automate processes and lower costs compared to traditional banks.
2) FinTech startups are creating value by solving problems like asymmetric information between lenders and borrowers. They increase transparency and empower customers to make better financial decisions. However, traditional banks still have advantages from long-standing customer relationships and more comprehensive data.
3) For traditional banks, the best strategic responses depend on whether the FinTech innovations are substituting or complementing existing bank products and services. If substitution dominates
Insights on How to Run a Credit Union: Blending new technologies with traditi...NAFCU Services Corporation
Hear from five thought leaders as they discuss the opportunities and obstacles facing the financial services industry today as it moves firmly into the digital age.Chris Swecker of Swecker Enterprises covers the current state of fraud in banking and explains how data can be used to mitigate it; Jim Goodnight, SAS CEO, explains how a high-performance banking technology framework can provide the next answer to key business questions; Jim Davis, Senior Vice President and Chief Marketing Officer of SAS, shares his insights on why understanding customers' needs will be critical to thriving in the current economic climate; Nobel Laureate Myron Scholes and Alastair Sim, Senior Director of Global Marketing at SAS, address past risk management techniques and how they should evolve. Learn more at http://www.nafcu.org/sas
Instant financial card issuance provides opportunities for new revenue streams for financial institutions. As consumer behavior shifts towards debit and prepaid cards, offering instant issuance of these cards improves the customer experience and drives core deposit growth and fee income. Instant issuance differentiates financial institution brands by surprising customers with ready-to-use cards in the branch instead of a multi-day wait, increasing loyalty and acquisition of new customers. Benefits of instant issuance include improved customer experience, enhanced security, increased card usage and profitability, and the ability to instantly replace lost or stolen cards.
201201 Nolan Newsletter: Industry Trends - A Closer LookSteven Callahan
This document summarizes the challenges facing the life and annuity insurance industry in 2012, including continued economic uncertainty, low interest rates, and increased regulation. It recommends that companies focus on innovation, global opportunities, new product solutions, alternative distribution channels, improved customer service, and rigorous investment of resources. Facing these difficulties, the industry's greatest challenge is innovatively changing how insurance is communicated, sold, and serviced for the future.
201204 Nolan QNL: Life and Annuity Industry OutlookSteven Callahan
An abbreviated version of the industry forecast for 2012 pointing out the highlights of key issues, strategies, areas needing focus, and likely structural changes.
Banking: In search of Relevance - Prefacestuartharle
This document discusses how banks have lost relevance with customers over time and need to adapt to regain it. It describes how banks initially focused only on branches, then added more channels like call centers, but these remained fragmented. Now, customers demand transparency, joined up data and intelligence. The document argues banks must sense and respond to customers in real-time across all interactions using all available data to deliver personalized, timely experiences. This requires accepting that banks cannot create demand but must stimulate latent demand with products that meet customer needs transparently and effectively.
This document provides an industry report on payments trends in Q1 2018. It discusses recent developments including the gradual adoption of open banking APIs by large US banks, continued growth in POS volume driving credit card delinquency rates higher, and plans by large retailers like Amazon to potentially offer checking accounts. It also provides updates on various industry predictions for 2018 and quarterly stock performance for major payments companies. Neobanks expanding from Europe to the US and cryptocurrency firms forming a self-regulatory group are highlighted as interesting news items.
In this issue of Horizon, we have included insightful articles that address several topics of interest to our issuers. George Fiegle, chief operating office of ICUL Service Corporation, does an in-depth interview with us concerning the challenges of card growth in the credit union marketplace. Mark Arnold, CCUE and president of On the Mark Strategies, shares his thoughts on generational marketing and how credit unions can use generational characteristics to improve results. For more info: www.nafcu.org/discover
1) Technology and financial technology (FinTech) startups are disrupting the traditional banking industry by offering new financial products and services. FinTech startups are using technologies like big data, social media data, and machine learning to automate processes and lower costs compared to traditional banks.
2) FinTech startups are creating value by solving problems like asymmetric information between lenders and borrowers. They increase transparency and empower customers to make better financial decisions. However, traditional banks still have advantages from long-standing customer relationships and more comprehensive data.
3) For traditional banks, the best strategic responses depend on whether the FinTech innovations are substituting or complementing existing bank products and services. If substitution dominates
Insights on How to Run a Credit Union: Blending new technologies with traditi...NAFCU Services Corporation
Hear from five thought leaders as they discuss the opportunities and obstacles facing the financial services industry today as it moves firmly into the digital age.Chris Swecker of Swecker Enterprises covers the current state of fraud in banking and explains how data can be used to mitigate it; Jim Goodnight, SAS CEO, explains how a high-performance banking technology framework can provide the next answer to key business questions; Jim Davis, Senior Vice President and Chief Marketing Officer of SAS, shares his insights on why understanding customers' needs will be critical to thriving in the current economic climate; Nobel Laureate Myron Scholes and Alastair Sim, Senior Director of Global Marketing at SAS, address past risk management techniques and how they should evolve. Learn more at http://www.nafcu.org/sas
Instant financial card issuance provides opportunities for new revenue streams for financial institutions. As consumer behavior shifts towards debit and prepaid cards, offering instant issuance of these cards improves the customer experience and drives core deposit growth and fee income. Instant issuance differentiates financial institution brands by surprising customers with ready-to-use cards in the branch instead of a multi-day wait, increasing loyalty and acquisition of new customers. Benefits of instant issuance include improved customer experience, enhanced security, increased card usage and profitability, and the ability to instantly replace lost or stolen cards.
201201 Nolan Newsletter: Industry Trends - A Closer LookSteven Callahan
This document summarizes the challenges facing the life and annuity insurance industry in 2012, including continued economic uncertainty, low interest rates, and increased regulation. It recommends that companies focus on innovation, global opportunities, new product solutions, alternative distribution channels, improved customer service, and rigorous investment of resources. Facing these difficulties, the industry's greatest challenge is innovatively changing how insurance is communicated, sold, and serviced for the future.
The document provides a summary of trends in the payments system industry for Q3 2020. It discusses lessons learned from the COVID-19 pandemic including increased reliance on Buy Now Pay Later programs and the need for faster payments in the US. It also covers predictions for 2020 including growth in artificial intelligence and a potential shift in venture capital funding away from payments towards healthtech. Key industry focus areas and players are analyzed along with earnings announcements and M&A activity in the quarter.
Lending To Automobile Dealers Credit Risk Issueserikday
Lending to auto dealerships presents several credit risk management issues for lenders. Large dealer groups have greater dollar exposure and complexity due to operating multiple franchises across various regions. Small dealers may offer better returns but also have vulnerabilities due to sole ownership and reliance on local markets. When evaluating loans, lenders must consider factors like a dealer's financial controls, ownership structure, management experience, product mix, and regional economic exposure to understand the risks. Ongoing changes in the auto industry also impact dealers through issues such as high inventory, lower margins, and consolidation trends.
Get In The Drivers Seat Of Lending To Automobile Dealershipserikday
This article discusses key issues for lenders to consider when lending to automobile dealerships. It outlines the types of financing requests dealerships typically make, including floorplan financing, mortgages, and working capital loans. It also discusses important factors for lenders to evaluate such as the dealership ownership structure, franchise mix, processing days, advance rates and collateral requirements. The article emphasizes the importance of understanding the dealership's operations, financials, ownership, and managing credit risks when lending to automobile dealerships.
This document discusses current topics in mergers and acquisitions (M&A). It notes that while M&A activity has increased since 2009, significant financial uncertainties remain. As a result, M&A deals face risks related to financing, economic downturns, buyer's remorse, and undisclosed issues. The document highlights five topics for buyers and sellers to consider: the importance of confidentiality agreements; bridging differences between purchase price and company value through earnouts; hedging deals through holdbacks; employment issues during acquisitions; and compliance with foreign anti-bribery laws.
Etude PwC sur le secteur de l’énergie et des énergies renouvelables (2013)PwC France
http://pwc.to/W1uG17
Selon la nouvelle édition de l’étude mondiale « Power & Renewable deals » de PwC, le montant total des transactions dans le secteur de l’électricité et du gaz s’est élevé à 154 milliards de $ en 2012, diminuant de 27% en valeur et de 15% en volume.
1. Credit card issuer fraud losses remain well-contained at around $1 billion annually despite rising volumes, though total card-related fraud costs may exceed $16 billion due to additional stakeholders like merchants and consumers.
2. Purposeful data breaches targeting payment card data are a major challenge, driving a thriving secondary market in stolen card information and products.
3. Enterprise fraud management solutions aiming to leverage data across multiple products may provide improved detection, but organizational barriers remain as issuers seek added value from multi-product implementations.
What Family Business Advisors Need to Know About ValuationMercer Capital
Family business advisors help companies and leaders navigate a wide range of business and family challenges, ranging from corporate governance to succession planning to family relationship dynamics and all points in between. This whitepaper helps fill in that gap.
Rebuilding Customer Trust in Retail BankingNoreen Buckley
An IBM White Paper by Mike Hobday Banking Practice Leader
Global Business Services UK
and Ireland
IBM & Charles Spinosa
Group Director & Leader Marketing Practices VISION Consulting
Grant Thornton/Pitchbook PE Exits ReportMMMTechLaw
The document summarizes private equity exit activity in 2011 and 2012 trends. It found that 420 US companies were exited in 2011 through sales or IPOs totaling $104 billion, similar to 2010 levels. While exit levels remain strong, the growing gap between investment and exits is concerning as it indicates portfolio companies are being held longer. Secondary buyouts could help address the growing inventory of companies by shortening hold periods. The report aims to analyze industry-level data to better understand which sectors may see more exits or hold periods lengthen further.
The document is a report on private equity exits in 2012 that contains the following key points:
- Private equity exit activity in 2011 totaled 420 deals and $104 billion, similar to 2010 levels.
- Exit activity increased in the second half of 2011 while investment activity declined.
- Private equity firms were able to execute exits across all industries and company sizes.
- Median exit valuation multiples hit a three-year high, driven by improving company performance and demand in the M&A market.
smart card alliance - mobile payment business model research report on stakeh...Boni
This document summarizes a research report on stakeholder perspectives regarding business models for proximity mobile payments. It examines four potential models - operator-centric, bank-centric, peer-to-peer, and collaboration - and discusses the consensus views on each model's future, reference cases, and pros and cons for different stakeholders. The conclusion is that the industry is waiting for a bold move from one of the players to help define a sustainable business model.
Discussion of the key strategies that remain in place from prior year for addressing tough economy and need to find profitability and differentiation in a competitive market.
A new map for navigating adland’s ever-expanding boundaries. The map is called ‘MaShCreaTr’, a simple four-box matrix that imposes some order on this increasingly chaotic marketing landscape. It stands for ‘Make, Share, Create, Transform’ and clarifies where different types of player, old and new, operate.
Mercer Capital's Value Focus: FinTech Industry | Fourth Quarter 2022 Mercer Capital
Mercer Capital’s quarterly newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
The UK asset finance and leasing sector has undergone significant changes since the 2008 financial crisis, with new entrants replacing traditional players and changing the types of products and customers. This has created new outsourcing opportunities for companies to take over operations like portfolio management. However, during the 2008 recession, many asset finance companies chose to retain control of their business rather than outsource. Since then, new competitors like challenger banks and alternative lenders have entered the market and captured business from traditional players. Technology has also lowered barriers to entry and allowed faster client services. The asset finance sector now has more competition and must adapt quickly through new products, customers, and financing methods like securitization to continue evolving.
Emerging Trends in Financial Market for 2022ijtsrd
In 2022 we can expect to see banking and payments evolve even faster. The speed of digital transformation, new means of payment, and transformations brought by Open Finance are a few of the factors shaping this changing scenario and guiding trends in the financial market. But why is it worth paying attention to trends in the financial market : It’s because they allow us to predict upcoming scenarios in a world in constant flux and help both incumbents and fintech companies to align the development of their solutions with the latest innovations in the banking and payments sector. We always have our feelers out to make sure we’re keeping pace of these trends, and one source we often rely on is the futurist and researcher Amy Webb, Director of The Future Today Institute, from New York University’s Stern School of Business. Every year, she presents the Tech Trends Report, an essential reference on the trends set to shape the future and likely to dictate how companies do business from now on. The 15th Tech Trends Report was launched at this year’s SXSW, indicating some strategic trends in technology and including a section with insights for payments. Ms. Renu Bala Sharma "Emerging Trends in Financial Market for 2022" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-6 , October 2022, URL: https://www.ijtsrd.com/papers/ijtsrd51815.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/51815/emerging-trends-in-financial-market-for-2022/ms-renu-bala-sharma
1) GE Capital Retail Finance supports retailers' strategies of driving sales and managing credit costs through an integrated point-of-sale application offering private label and co-branded credit cards with instant credit. Discover understands and supports this flexible approach.
2) GE measures acquisition success through metrics like new accounts, approval rates, and same-day activation, but ultimately through helping retailers increase sales and credit penetration.
3) Maintaining customer acquisitions requires a compelling consumer value proposition and close alignment between GE and retail partners on mutual goals like in-store marketing and sales associate support.
This document summarizes trends in the prepaid card industry, focusing on Green Dot and NetSpend as leaders. While both companies' stocks have struggled, they have continued growing revenue significantly through 2011. Green Dot relies on retail partnerships like Walmart for distribution, while NetSpend partners with check cashers and payday lenders. Both companies face challenges from increased competition from retail banks entering prepaid cards, as well as from American Express and partnerships like Kroger/U.S. Bank. Overall regulation is also increasing for the prepaid industry.
Future of Financial Services - Banking on Innovation - Final PaperJohn Fearn
This document discusses the political barriers to innovative financial services. It argues that while radical change in any sector poses challenges for politicians and regulators, the pace of financial innovation is leaving policymakers behind. It analyzes the political reputations of alternative finance providers, payments services, and high street banks to identify the challenges these firms face in influencing regulation. The document predicts that in the near future, most transactions will be digital, mobile payments will increase, and banking services will fragment across new providers, with 20% of lending from alternative sources. It argues that widespread mobile adoption and the 2007-2009 financial crisis have enabled this radical change by shifting consumer habits and eroding trust in large banks.
- Lincoln National Corporation reported net income of $91.6 million for 2002, achieving positive net flows in each business despite declines in equity markets negatively impacting fees and assumptions.
- The company focused on controlling expenses, maintaining a strong capital position, and developing new products, positioning itself for future growth while lessening short-term impacts of market downturns.
- Lincoln believes it is well-positioned for long-term growth in retirement income and wealth transfer businesses as baby boomers focus on ensuring income and legacy, and the industry evolves to provide comprehensive financial planning and retirement solutions.
The document discusses how insurance companies can build brand loyalty like hotels do. It argues that while online sales are growing, physical stores excel at building trust and relationships. Leading insurance companies are realizing bricks-and-mortar locations complement online channels. Examples include RBC Insurance Centers colocated in banks and Belair Direct combining sales offices with a retail space offering insurance packages. The conclusion advocates a multi-channel approach including physical locations to avoid commoditization and build affinity through trusted, personal experiences.
The document provides a summary of trends in the payments system industry for Q3 2020. It discusses lessons learned from the COVID-19 pandemic including increased reliance on Buy Now Pay Later programs and the need for faster payments in the US. It also covers predictions for 2020 including growth in artificial intelligence and a potential shift in venture capital funding away from payments towards healthtech. Key industry focus areas and players are analyzed along with earnings announcements and M&A activity in the quarter.
Lending To Automobile Dealers Credit Risk Issueserikday
Lending to auto dealerships presents several credit risk management issues for lenders. Large dealer groups have greater dollar exposure and complexity due to operating multiple franchises across various regions. Small dealers may offer better returns but also have vulnerabilities due to sole ownership and reliance on local markets. When evaluating loans, lenders must consider factors like a dealer's financial controls, ownership structure, management experience, product mix, and regional economic exposure to understand the risks. Ongoing changes in the auto industry also impact dealers through issues such as high inventory, lower margins, and consolidation trends.
Get In The Drivers Seat Of Lending To Automobile Dealershipserikday
This article discusses key issues for lenders to consider when lending to automobile dealerships. It outlines the types of financing requests dealerships typically make, including floorplan financing, mortgages, and working capital loans. It also discusses important factors for lenders to evaluate such as the dealership ownership structure, franchise mix, processing days, advance rates and collateral requirements. The article emphasizes the importance of understanding the dealership's operations, financials, ownership, and managing credit risks when lending to automobile dealerships.
This document discusses current topics in mergers and acquisitions (M&A). It notes that while M&A activity has increased since 2009, significant financial uncertainties remain. As a result, M&A deals face risks related to financing, economic downturns, buyer's remorse, and undisclosed issues. The document highlights five topics for buyers and sellers to consider: the importance of confidentiality agreements; bridging differences between purchase price and company value through earnouts; hedging deals through holdbacks; employment issues during acquisitions; and compliance with foreign anti-bribery laws.
Etude PwC sur le secteur de l’énergie et des énergies renouvelables (2013)PwC France
http://pwc.to/W1uG17
Selon la nouvelle édition de l’étude mondiale « Power & Renewable deals » de PwC, le montant total des transactions dans le secteur de l’électricité et du gaz s’est élevé à 154 milliards de $ en 2012, diminuant de 27% en valeur et de 15% en volume.
1. Credit card issuer fraud losses remain well-contained at around $1 billion annually despite rising volumes, though total card-related fraud costs may exceed $16 billion due to additional stakeholders like merchants and consumers.
2. Purposeful data breaches targeting payment card data are a major challenge, driving a thriving secondary market in stolen card information and products.
3. Enterprise fraud management solutions aiming to leverage data across multiple products may provide improved detection, but organizational barriers remain as issuers seek added value from multi-product implementations.
What Family Business Advisors Need to Know About ValuationMercer Capital
Family business advisors help companies and leaders navigate a wide range of business and family challenges, ranging from corporate governance to succession planning to family relationship dynamics and all points in between. This whitepaper helps fill in that gap.
Rebuilding Customer Trust in Retail BankingNoreen Buckley
An IBM White Paper by Mike Hobday Banking Practice Leader
Global Business Services UK
and Ireland
IBM & Charles Spinosa
Group Director & Leader Marketing Practices VISION Consulting
Grant Thornton/Pitchbook PE Exits ReportMMMTechLaw
The document summarizes private equity exit activity in 2011 and 2012 trends. It found that 420 US companies were exited in 2011 through sales or IPOs totaling $104 billion, similar to 2010 levels. While exit levels remain strong, the growing gap between investment and exits is concerning as it indicates portfolio companies are being held longer. Secondary buyouts could help address the growing inventory of companies by shortening hold periods. The report aims to analyze industry-level data to better understand which sectors may see more exits or hold periods lengthen further.
The document is a report on private equity exits in 2012 that contains the following key points:
- Private equity exit activity in 2011 totaled 420 deals and $104 billion, similar to 2010 levels.
- Exit activity increased in the second half of 2011 while investment activity declined.
- Private equity firms were able to execute exits across all industries and company sizes.
- Median exit valuation multiples hit a three-year high, driven by improving company performance and demand in the M&A market.
smart card alliance - mobile payment business model research report on stakeh...Boni
This document summarizes a research report on stakeholder perspectives regarding business models for proximity mobile payments. It examines four potential models - operator-centric, bank-centric, peer-to-peer, and collaboration - and discusses the consensus views on each model's future, reference cases, and pros and cons for different stakeholders. The conclusion is that the industry is waiting for a bold move from one of the players to help define a sustainable business model.
Discussion of the key strategies that remain in place from prior year for addressing tough economy and need to find profitability and differentiation in a competitive market.
A new map for navigating adland’s ever-expanding boundaries. The map is called ‘MaShCreaTr’, a simple four-box matrix that imposes some order on this increasingly chaotic marketing landscape. It stands for ‘Make, Share, Create, Transform’ and clarifies where different types of player, old and new, operate.
Mercer Capital's Value Focus: FinTech Industry | Fourth Quarter 2022 Mercer Capital
Mercer Capital’s quarterly newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
The UK asset finance and leasing sector has undergone significant changes since the 2008 financial crisis, with new entrants replacing traditional players and changing the types of products and customers. This has created new outsourcing opportunities for companies to take over operations like portfolio management. However, during the 2008 recession, many asset finance companies chose to retain control of their business rather than outsource. Since then, new competitors like challenger banks and alternative lenders have entered the market and captured business from traditional players. Technology has also lowered barriers to entry and allowed faster client services. The asset finance sector now has more competition and must adapt quickly through new products, customers, and financing methods like securitization to continue evolving.
Emerging Trends in Financial Market for 2022ijtsrd
In 2022 we can expect to see banking and payments evolve even faster. The speed of digital transformation, new means of payment, and transformations brought by Open Finance are a few of the factors shaping this changing scenario and guiding trends in the financial market. But why is it worth paying attention to trends in the financial market : It’s because they allow us to predict upcoming scenarios in a world in constant flux and help both incumbents and fintech companies to align the development of their solutions with the latest innovations in the banking and payments sector. We always have our feelers out to make sure we’re keeping pace of these trends, and one source we often rely on is the futurist and researcher Amy Webb, Director of The Future Today Institute, from New York University’s Stern School of Business. Every year, she presents the Tech Trends Report, an essential reference on the trends set to shape the future and likely to dictate how companies do business from now on. The 15th Tech Trends Report was launched at this year’s SXSW, indicating some strategic trends in technology and including a section with insights for payments. Ms. Renu Bala Sharma "Emerging Trends in Financial Market for 2022" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-6 , October 2022, URL: https://www.ijtsrd.com/papers/ijtsrd51815.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/51815/emerging-trends-in-financial-market-for-2022/ms-renu-bala-sharma
1) GE Capital Retail Finance supports retailers' strategies of driving sales and managing credit costs through an integrated point-of-sale application offering private label and co-branded credit cards with instant credit. Discover understands and supports this flexible approach.
2) GE measures acquisition success through metrics like new accounts, approval rates, and same-day activation, but ultimately through helping retailers increase sales and credit penetration.
3) Maintaining customer acquisitions requires a compelling consumer value proposition and close alignment between GE and retail partners on mutual goals like in-store marketing and sales associate support.
This document summarizes trends in the prepaid card industry, focusing on Green Dot and NetSpend as leaders. While both companies' stocks have struggled, they have continued growing revenue significantly through 2011. Green Dot relies on retail partnerships like Walmart for distribution, while NetSpend partners with check cashers and payday lenders. Both companies face challenges from increased competition from retail banks entering prepaid cards, as well as from American Express and partnerships like Kroger/U.S. Bank. Overall regulation is also increasing for the prepaid industry.
Future of Financial Services - Banking on Innovation - Final PaperJohn Fearn
This document discusses the political barriers to innovative financial services. It argues that while radical change in any sector poses challenges for politicians and regulators, the pace of financial innovation is leaving policymakers behind. It analyzes the political reputations of alternative finance providers, payments services, and high street banks to identify the challenges these firms face in influencing regulation. The document predicts that in the near future, most transactions will be digital, mobile payments will increase, and banking services will fragment across new providers, with 20% of lending from alternative sources. It argues that widespread mobile adoption and the 2007-2009 financial crisis have enabled this radical change by shifting consumer habits and eroding trust in large banks.
- Lincoln National Corporation reported net income of $91.6 million for 2002, achieving positive net flows in each business despite declines in equity markets negatively impacting fees and assumptions.
- The company focused on controlling expenses, maintaining a strong capital position, and developing new products, positioning itself for future growth while lessening short-term impacts of market downturns.
- Lincoln believes it is well-positioned for long-term growth in retirement income and wealth transfer businesses as baby boomers focus on ensuring income and legacy, and the industry evolves to provide comprehensive financial planning and retirement solutions.
The document discusses how insurance companies can build brand loyalty like hotels do. It argues that while online sales are growing, physical stores excel at building trust and relationships. Leading insurance companies are realizing bricks-and-mortar locations complement online channels. Examples include RBC Insurance Centers colocated in banks and Belair Direct combining sales offices with a retail space offering insurance packages. The conclusion advocates a multi-channel approach including physical locations to avoid commoditization and build affinity through trusted, personal experiences.
The development of it in economic growth in usa & bangladeshRafi Afnan
This document is an assignment submitted by Rafi Afnan to Jewel Kumar Roy on the topic of fintech and its potential to disrupt traditional financial institutions. It summarizes findings from a World Economic Forum report that identified 5 key characteristics of fintech innovators that make them more threatening to incumbents than past innovators. These include highly focused products, automating processes, strategic use of data, platform-based models, and collaborating with incumbents. The document concludes that while brands may survive, fintech will force changes that benefit consumers. It then briefly previews emerging technologies in 2019 like 5G that could enable further fintech innovations.
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the wayDeloitte United States
On the surface the property and casualty sector appears to be doing quite well, but running an insurance carrier is rarely smooth sailing. The last few years have been particularly difficult for those occupying C-Suite positions, as more fundamental issues are threatening not only short-term results on their balance sheets, but challenging the long-term viability of their operating models as well.
For example, a growing number of insurers are facing significant organizational disruption. Many have made large-scale investments in technology, replacing core systems for claims, policy administration and finance. Their chief challenge now is how to effectively leverage the new systems they’ve put in place and maintain their momentum with additional innovations in personnel, products and culture.
Additionally, ongoing political gridlock in Washington could undermine an already unsteady economic recovery. Not to mention regulatory uncertainty that makes it difficult for carriers to plan ahead and determine operational priorities.
Innovation may ultimately be the key to keep insurers growing regardless of shifting economic and insurance market conditions, as they devise ways to thwart ongoing and emerging competitive threats as well as capitalize on new opportunities.
For more - visit http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/039bdd0819e23410VgnVCM3000003456f70aRCRD.htm
Specialty lending has grown significantly due to new regulations tightening bank lending standards. This has led banks to pull back from high-risk lending, driving clients to digital alternative lenders. These lenders utilize technology like big data and automation to efficiently match borrowers and lenders. Though still small compared to traditional banks, the specialty lending market has grown exponentially and has considerable room for further expansion, representing an opportunity for investors.
1 12291 White Paper Customer Driven Online Engagement LetterSaumen Ray
The document discusses new challenges for online marketers as customers gain more control over brands through social media and individualization trends. Key challenges include a lack of consistent communication across marketing silos, difficulties tracking customers across channels, and issues with accurate sales attribution as purchase processes become multi-step and cross-channel. The document argues that customer engagement, by listening, understanding, and interacting with each customer through relevant dialogues, is the solution to address these challenges and move from market-driven to customer-driven approaches.
Value creation through M&A - A best practice framework for management and boa...Exemplum
This paper provides management teams and boards with a best practice framework to help them pursue, evaluate, and effect M&A and partnership opportunities. It also includes detailed management and board checklists.
After a flat year in 2012, the private equity industry faces an intensely competitive deal-making environment worldwide, an overhang of aging assets waiting to be sold and challenging fundraising conditions in 2013. But as we discuss in this report, private equity is also poised to capitalize on robust debt markets, a likely resurgence in corporate M&A activity, signs of a recovery in IPOs and the solid support of institutional investors that remain as committed as ever to the asset class.
This report provides a timely look at every major aspect of private equity, with fresh data and insights from surveys and interviews with leading industry insiders. We also bring to bear the experience and judgment that Bain & Company derives from its unparalleled position as the leading adviser to the private equity industry and its stakeholders.
The newsletter provides an overview of trends in the online payment processing industry in Q4 2017. Key topics covered include the growth of fintech and online payments driven by mobile devices, e-commerce, and changing demographics. Mobile wallets and NFC technology are poised to replace traditional credit cards. Blockchain represents a potential disruption to the industry. The payment processing industry is consolidating through mergers and acquisitions as larger players seek to expand. Governments are playing a role in regulating the industry and encouraging further development.
1) Despite an uncertain economic environment, many private equity firms are raising new funds dedicated to consumer deals in hopes of benefitting from market share gains.
2) However, investors have mixed views on dedicated consumer funds, with some preferring diversification across sectors while others welcome the specialization.
3) Private equity firms will use these new funds to acquire consumer brands, but valuations remain high for quality companies and the sector remains challenging with risks of failures or bankruptcies for certain deals.
This document provides a stock analysis report on Visa by Birkey Investment Group. It summarizes the payment card industry, analyzes Visa's financial performance and position within the industry, and recommends purchasing Visa stock. Visa dominates the global payment processing market with over 50% of transactions. It has strong financial trends in revenue, earnings, and margins that distinguish it from competitors like MasterCard. Visa's recent acquisition of Visa Europe will help it grow further in the European market. Based on this analysis, the report recommends Visa as a solid investment opportunity.
Similar to Discover Horizon Newsletter Spring 2011 (20)
Learn from the largest subservicer how best to evaluate and select the right subservicing partner for your credit union based on your portfolio, investor mix, product range and other key selection factors.
Nearly one-third of Americans surveyed by Securian Financial Group say they haven’t thought about what would happen to their debt if they – or their cosigners – were to pass away unexpectedly. Fewer than 13 percent say they have taken steps to protect themselves from the sudden loss of a borrower.
With the tsunami of new regulations from NCUA and the CFPB, getting good at compliance is becoming a key success factor for credit unions. In this podcast and presentation from the 2013 NAFCU Annual Conference, Toné Gibson explores how your credit union can develop a cost-effective approach to strike a better balance between compliance and operational efficiency. Through the utilization of three methodologies – strategic development, process excellence, and performance management – learn in detail how to reduce the cost of compliance.
Wolters Kluwer Financial Services is the NAFCU Services Preferred Partner for Consumer and Member Business Lending & Deposit Services. More educational resources and contact information are available at www.nafcu.org/wolterskluwer.
Consumers are willing to pay for services that they find either adds convenience or delivers value. In this podcast and presentation from the 2013 NAFCU Annual Conference, Dave Schneider, Brent Dixon, and Paul Muse discuss how to expand your credit unions credit and debit opportunities and explore innovative products that can help guide your future credit union operations, including new approaches to increasing penetration, activation, and usage of the fundamental card. Also, learn to leverage new payment options that will appeal to Gen Y consumers, including Internet PIN debit, PINless at the point of sale, and payments and delivery of service through mobile.
The document provides an overview of strategic succession planning presented by Deedee Myers. It discusses best practices for succession planning at multiple levels including the board, CEO, executive roles, and managers. It emphasizes the importance of evaluating the board and having necessary conversations. Integration of board and CEO succession planning is highlighted. Outcomes of effective succession planning include increased capacity, opportunities for high potentials, and improved employee morale.
Rising Above Uncertainty: Opportunities and Challenges for Credit Unions in P...NAFCU Services Corporation
Credit unions face opportunities and challenges from evolving payments markets. Regulatory changes are reshaping retail financial services, increasing pressure on legacy models. Emerging technologies and new entrants threaten traditional revenue streams. Credit unions have opportunities for growth but must continue innovating. EMV implementation in the US faces delays from dual debit network requirements. Prepaid cards and mobile devices are gaining traction, changing how consumers interact with financial institutions. To compete, credit unions must enhance digital capabilities and appeal to younger demographics through offerings like mobile payments and banking. Trusted brands position credit unions well to lead developments.
In this presentation from the 2013 NAFCU Annual Conference, Barrett Burns provides a comprehensive analysis of credit score models and discusses how your credit union can utilize them for member outreach and education.
Listen to the full podcast here: http://www.nafcu.org/NAFCU_Services_Corporation/Partner_Library/Credit_Scores__What_s_Behind_the_Number___Podcast_and_Presentation_/
Insuritas: Boost Income and Expand Wallet Share by Engaging the Digitally Dis...NAFCU Services Corporation
This document discusses how financial institutions can engage website visitors and members through digital marketing strategies. It begins by noting that digital spaces are dynamic and outpace marketers' ability to predict what will resonate. It then provides examples of how testing and optimization led to significant increases in traffic and conversions for credit unions. The rest of the document outlines strategies for personalizing the member experience online, nurturing conversations, and creating a "digital exchange" where members can complete multiple financial transactions in one place. The goal is to transform the website from basic information to an engaging sales and service channel.
The document summarizes a presentation about the impact of Dodd-Frank regulations on international payments and how credit unions can address these changes. It discusses:
- New disclosure requirements for international payments under Dodd-Frank that will take effect in October 2013.
- How the Federal Reserve's FedGlobal international ACH system can help credit unions provide lower cost international payments to members while meeting regulatory requirements.
- Benefits of using FedGlobal ACH payments include no beneficiary deductions, lower costs, consistent delivery times, and accessibility for institutions of all sizes.
- Resources available to help credit unions understand and comply with new international payment rules.
Money Concepts: Slides for What to Look for in Your Wealth Manangement Progra...NAFCU Services Corporation
This document outlines key considerations for credit unions looking to offer wealth management and financial planning services. It discusses the role and responsibilities of an advisor, important characteristics and qualifications to look for in candidates, how to integrate advisors with existing staff, the recruiting and hiring process, compensation structures, and lessons from positive and negative past experiences. The goal is to provide guidance to credit unions on establishing an effective wealth management program and selecting an advisor that will help achieve program mandates for success.
The document discusses Loan Prospector, a tool from Freddie Mac that assists with underwriting conventional loans. It highlights credit policy updates that Loan Prospector has been updated to reflect. These include changes to maximum loan-to-value ratios, how short sale fees are treated, and asset and income documentation requirements. The document also provides an overview of how Loan Prospector analyzes loan files, returns feedback and documentation checklists, and explains the risk classifications and documentation levels it assigns loans.
Deluxe Financial Services: Building an effective social marketing program | D...NAFCU Services Corporation
This document outlines key reasons for credit unions to establish an effective social media marketing program, including growing social media popularity and declining in-person touchpoints. It notes that while social media risks must be managed, regulations should not prevent social media use. The document provides tips for a successful social media strategy, including setting goals, defining a strategy, developing assets and gaining buy-in. It emphasizes measuring key social media metrics and lists humanizing your brand and cross-selling to members as benefits of social media.
The document provides an overview of best practices for outsourcing receivables collections. It discusses the risks and benefits of outsourcing, as well as keys to success. Case studies show how two credit unions reduced costs and increased returns by outsourcing to Credit Control. The presentation emphasizes selecting a financially stable vendor with industry experience, strong client support, and national licensing. It also stresses the importance of accurate data, service level expectations, and compliance with numerous regulations to protect members' data and privacy.
The document outlines 10 ways to improve a vendor management program. It discusses evolving the role of the vendor manager to be more strategic. It recommends having a senior-level vendor manager and understanding the market position of vendors and your own institution. It also suggests changing performance metrics, connecting with vendor representatives on LinkedIn, using the right type of ROI metrics, tying vendor performance to business plans, choosing the right implementation model, and making vendor management a key strategic performance indicator.
2013 NAFCU BFB Survey of Executive Compensation and Benefits (Presentation Sl...NAFCU Services Corporation
First introduced in 2007, the NAFCU-BFB Survey of Federal Credit Union Executive Benefits and Compensation was created to better understand the compensation and benefits for the top five executives of Federal credit unions. For more info: www.nafcu.org/bfb
Study Confirms Debit Strength, Reveals Reward Trends (Payment Choice Study Re...NAFCU Services Corporation
TSYS partnered with Mercator Advisory Group to conduct the 2012 Consumer Debit Payment Choice Research Study. This unique study combines survey questions and focus groups, enabling researchers to have an interactive discussion with participants about payment choices and influences, technology awareness and overall user experiences. Learn more at: www.nafcu.org/discover
The document discusses five truths for defining a mortgage strategy. It outlines that a strategy is a high-level plan to shape the future. The five truths are having a vision, commitment to the vision, proper performance and productivity tracking (PPT), internal measurement of goals, and external measurement of goals against market benchmarks. The document encourages downloading additional resource materials on defining a mortgage strategy.
There is an unprecedented focus today around the future of retail branch networks. Credit union executives are seeking new ways to economically alter the scale, reach, and character of their branch assets to drive growth and enable expansion in profitable new territories and non-traditional locations. While the channel is universally acknowledged as best for both member acquisition and sales, the economics must change in order for this way of member-centric financial services to thrive and realize its potential in the new, consumer-driven, omnichannel environment. For more info: www.nafcu.org/ncr
The document provides an agenda and overview for a Desktop Underwriter training session. It discusses understanding DU recommendations, recent announcements from Fannie Mae, analyzing DU reports, data integrity reminders, and additional training resources. It also outlines general lender requirements when underwriting loans with DU, including employing prudent judgment, ensuring accurate data, complying with verification messages, and reviewing documentation.
Discover the Beauty and Functionality of The Expert Remodeling Serviceobriengroupinc04
Unlock your kitchen's true potential with expert remodeling services from O'Brien Group Inc. Transform your space into a functional, modern, and luxurious haven with their experienced professionals. From layout reconfiguration to high-end upgrades, they deliver stunning results tailored to your style and needs. Visit obriengroupinc.com to elevate your kitchen's beauty and functionality today.
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...Niswey
50 million companies worldwide leverage WhatsApp as a key marketing channel. You may have considered adding it to your marketing mix, or probably already driving impressive conversions with WhatsApp.
But wait. What happens when you fully integrate your WhatsApp campaigns with HubSpot?
That's exactly what we explored in this session.
We take a look at everything that you need to know in order to deploy effective WhatsApp marketing strategies, and integrate it with your buyer journey in HubSpot. From technical requirements to innovative campaign strategies, to advanced campaign reporting - we discuss all that and more, to leverage WhatsApp for maximum impact. Check out more details about the event here https://events.hubspot.com/events/details/hubspot-new-delhi-presents-unlocking-whatsapp-marketing-with-hubspot-integrating-messaging-into-your-marketing-strategy/
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
Virtual Leadership and the managing workIruniUshara1
Virtual leadership is a form of leadership in which teams are managed via a remote working environment.
Like traditional leadership roles, virtual leaders focus on motivating employees and helping teams accomplish their goals.
Virtual leadership focuses heavily on improving collaboration through communication, accountability, and transparency
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Herman Kienhuis
Presentation by Herman Kienhuis (Curiosity VC) on developments in AI, the venture capital investment landscape and Curiosity VC's approach to investing, at the alumni event of Amsterdam Business School (University of Amsterdam) on June 13, 2024 in Amsterdam.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
1. SM
Brought to you by Discover ... your partner in payment services ISSUE # 4 • SPRING 2011
Welcome to Horizon Card Industry Growth: A Return to Fundamentals
SM
Welcome to the By John Grund, Partner, First Annapolis
latest issue of
For the first time in years, card issuers
HorizonSM —
are talking about growth, as the triple
a publication
whammy of the credit crisis, CARD Act and recession gradually give way
designed
to the realities of a new competitive environment. One of the starkest
exclusively for
challenges facing the industry is where profitable growth will come
our credit issuing
from as issuers shift their attention from an internal to an external focus
community
and consumers do the same as household balance sheets stabilize. The
partners.
backdrop for achieving growth is not without problems — unemployment,
The year 2010 was an interesting while improving, remains stubbornly high; the price of gasoline is fast approaching a record;
time for cards and payments, with the housing market has not yet recovered; and regulatory uncertainty looms as the new
legislative, as well as economic, Federal Consumer Financial Protection Bureau takes shape.
challenges. This issue includes a
In many ways, the card industry is currently in a transitional state. The credit tightening of recent
report on growth in the card industry
years is paying off as loss rates improve swiftly. Competition for cardholders is intensifying
from First Annapolis, and we’ve
via a new flow of direct mail offers, while certain market segments (e.g., partnerships and
asked one of our analytical partners,
even sub-prime) that experienced severe dislocation during the recession are regaining their
Mercator Advisors, to share some
footing. However, there are mixed messages surrounding the state of the consumer. Holiday
of their perspectives on the 2011
season spending in 2010 was a clear indication of pent-up demand at least among the more
marketplace. We’ve also included
affluent customer segment, but other customer segments remain cautious and even debt-averse,
an update from our own Government
based on elevated payment rates. Collectively, after a nice bounce of an economic recovery,
Relations department that I’m sure
the challenge of generating profitable growth looms large for the industry. Ironically, the “new
you will find interesting.
normal” sounds a lot like the old normal in that regard.
We are proud to report the latest
In our view, long-term industry growth will be driven by a return to fundamentals, some of
news in our global expansion
which were out of synch prior to the credit crisis. Underwriting, arguably the most fundamental
areas as partnerships and alliances
aspect of consumer lending, is once again a differentiator and driver of profitable growth with
worldwide have fueled our growth
many repricing levers no longer available after the CARD Act. Service, yes service, has the
and will continue to do so in the
potential to be a growth driver and not just a cost center ripe for automation or off-shoring to
years to come. There are also many
the lowest expense location. Consumer trust in many financial institutions was fractured and
new products and services being
is in need of repair. Strategic focus is another fundamental that will drive profitable growth —
developed, and we look forward to
like consumers, issuers spread themselves too thin as they added products, partners and price
sharing those with you.
points during the land grab that was in vogue prior to the crisis.
Thank you again for your continued
Despite a rather sobering past two years, the
support. As always, we welcome
your comments and your feedback.
next wave of growth opportunities promises to
IN THIS ISSUE
be quite exciting. Technology alone is paving
Best Regards, the way for new forms of electronic payments/ Washington Viewpoint .......................................... 2
commerce with mobile and tablet devices International Expansion Broadens
Discover® Acceptance ........................................... 3
creating new channels for customer
Credit Issuing Outlook for 2011 .............................. 3
engagement. Consumer behavior is changing
Kevin O’Donnell Unique Promotions and Sponsorships Build
in unimaginable ways through various forms
Group Executive, Credit Issuance Brand Awareness ................................................. 4
of social media capable of influencing choice,
Did You Know? .................................................. 4
(continued on page 2) Upcoming Industry Events ..................................... 4
2. Card Industry Growth: A Return to Fundamentals (continued from page 1)
price, access and delivery of traditional goods while creating Wall Street because of sheer size and scalability. As is always
entire new categories of digital goods, services and currencies the case, card industry growth will be determined by the value
for that matter. The pace of change will put a premium on the it creates for consumers on Main Street. n
discipline required to filter new opportunities so that investments The views expressed in the preceding article are those of First Annapolis,
can be prioritized and risks can be mitigated. History offers a and do not necessarily reflect the views of Discover.
lot of valuable learning that can guide the next wave of prudent
First Annapolis is a specialized management consulting firm serving the
growth. The Internet era of the late ’90s taught many card payments industry. One of the firm’s principal specialties is credit card issuing
issuers the perils of chasing every bright, shiny object thought where it advises clients on strategic and tactical matters. Other practices
include deposit access, merchant acquiring, retailer services, commercial
to be the next big opportunity. There will be no shortage of payments and mobile/emerging payments. The firm also provides a suite of
new opportunities that are the rage in Silicon Valley and on M&A advisory services and serves various international markets.
Washington Viewpoint
By Ray Messina, Asst. General Counsel and Vice President for Government Relations, Discover
The following is an update on congressional activity affecting run by a single director into
the consumer credit industry. a bipartisan commission, like
Debit Interchange — As the July deadline approaches for the FTC and the Consumer
compliance with the Dodd-Frank Act debit interchange fee Product Safety Commission.
restrictions (“Durbin Amendment”), bipartisan bills introduced The legislation may also require
in the House and Senate would delay the provision’s effective congressional approval of the
date pending a study of its impact. Approval of this legislation CFPB’s annual budget (the
by the House is likely, but House leaders are expected to bureau currently is funded
delay consideration until the Senate votes. A Senate vote is not through a guaranteed share
expected until the bill’s cosponsors (Senator John Tester (D-MT) of Federal Reserve revenues),
and Bob Corker (R-TN)) round up filibuster-proof support of at and enhance the ability of the inter-agency “Financial Stability
least 60 senators. Oversight Council” to override CFPB regulations.
Supporters of the “stop and study” bill are closing in on this This legislation will have strong support in the Republican-
goal through cosponsorships and voting commitments, including controlled House of Representatives. However, its prospects
from senators who supported the Durbin provision in 2010. for Senate approval seem dim, and a presidential veto is a
Senator Tester believes he will prevail, but the outcome strong possibility.
remains uncertain. The president has yet to nominate a director for the CFPB, and
Meanwhile, the Federal Reserve informed Congress that it there is some disagreement about the bureau’s authority after
will not meet its April deadline for issuing a final interchange its effective date if a director is not in place. Treasury believes it
regulation, and a U.S. district court considering a challenge can exercise all bureau powers while a vacancy exists, but the
to the Durbin Amendment refused to preliminarily enjoin the statute appears to require the approval of a bureau director for
rule, or dismiss the challenge. Judicial or regulatory action that rulemaking and other activities.
changed the proposed interchange standards might make Business Method Patents — The financial services sector
some in Congress less willing to support a legislative delay, has incurred significant expenses litigating, or settling, claims
but so far the pressure for a legislative solution continues. that patents on methods of doing non-financial business have
CFPB — The House Financial Services Committee has been been infringed upon by financial activities of banks and
conducting oversight of the creation of the Consumer Financial other financial services providers. Legislation updating U.S.
Protection Bureau, which begins operations in July. Several patent laws that has been approved by the U.S. Senate and
hearings have been held, and Committee members have is under consideration in the House includes a new procedure
sent numerous requests for information to Professor Elizabeth for expedited review of the validity of such business method
Warren and other members of the Treasury Department’s CFPB patents. n
“Implementation Team.”
In May, the subcommittee will vote on legislation to restructure
the agency. The bill would turn the bureau from an agency
2
3. International Expansion Broadens Discover Acceptance
®
Discover® has already achieved extensive
card acceptance across the United States.
At the same time, we have been expanding
payment options throughout North America
and the world. Reciprocal acceptance
agreements with major international payment
networks overseas are creating broad new
opportunities for both our business partners
and cardmembers. Our international
presence has grown considerably with the
acquisition of the Diners Club International®
network and our numerous partnerships with
foreign payment companies such as JCB,
China UnionPay and our newest partner, the
South Korea-based BCcard.
domestic network in South Korea. Its member banks have issued
In 2008, Discover purchased Diners Club. To date, 97% of approximately 54 million cards.
Diners Club volume in North America has been successfully
The net effect of these agreements is that Discover is bringing
moved onto the Discover Network. We have also enabled
to our merchant partners new customers and incremental sales
Discover card acceptance at Diners Club locations outside the
volume. Discover Cardmembers also get to use their cards
U.S. in more than 43 countries. Prior to the agreements with
globally, and visitors to the U.S. can use cards issued by the new
China UnionPay in 2005 and JCB in 2006, Discover had
partner networks. Diane Offereins, executive vice president for
very little presence outside North America.
payment services at Discover, stated, “All members can keep
Our recent alliance with BCcard will provide even more their local identity while having global acceptance.” We are
opportunities for both Discover and BCcard customers to access confident that our aggressive brand-building will continue to
a broad range of merchants worldwide. BCcard is the largest result in more sales for Discover merchants around the world. n
Credit Issuing Outlook for 2011
By Ken Paterson, VP Research Operations/Director, Credit Advisory Service, Mercator Advisory Group
If 2009, the year of the CARD Act, was the year of credit card potential effects of the recent
regulation, and 2010, the year of the Antitrust Settlement and the MasterCard®/Visa® antitrust
Durbin Amendment, was the year of credit card regulation, then settlement, and merchants may have considerable influence
2011 must also be the year of credit card regulation. Yes, there is over which card the consumer pulls from his/her wallet, and
a pattern here: New regulation will continue to be a major market ultimately over which cards consumers will find most valuable
mediator for the credit card industry. to possess.
Not only are new legal/regulatory challenges likely to be The final lessons from 2010 and the Durbin Amendment are that
significant, they are likely to be unpredictable in scope. What we significant card-pricing changes can emerge and be implemented
can see is a newly functional Consumer Financial Protection Bureau quickly, and that interchange is in the crosshairs. Perhaps the
that, based on stated goals and initial hiring, is highly likely to changed political environment will slow further potential changes,
provide continued tough scrutiny to credit cards, and in particular and perhaps caution will prevail against major manipulations in
the terms and conditions, disclosures, and ongoing fine tuning of credit pricing that might jeopardize the availability of consumer
the CARD Act. credit in a soft economy. But it is not easy to ignore the events of
And don’t overlook the spillover effects of major changes in 2010 and the possibility of significant new
adjacent payment products. With the imminent release of debit regulatory initiatives that might further affect
interchange rules by the Federal Reserve, we will begin to credit card issuing in 2011. n
understand the potential crossover implications for credit cards. The views expressed in the preceding article are those
of Mercator Advisory Group, and do not necessarily
How motivating will the new pricing be to merchants to steer reflect the views of Discover.
consumers toward debit and away from credit? Overlay the
3