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  • @fintechna 3:35 pm on May 18, 2018 Permalink | Reply
    Tags: , , , , , , , Snapshot,   

    Q1 2018: U.S. credit card issuer snapshot 

    Guest blogger Paul Sammer reviews U.S. consumer use of cards to pay for transactions, fund loans, and receivables and transaction volume in Q1 .

     

    As purchase volume and receivables continued to rise during the recent quarter, several issuers reported material increases in returns resulting from tax reform. Read more about the key themes and notable happenings below.

    Key themes

    • Purchase volume in Q1 2018 continued to increase at a significant pace year-over-year, along with strong growth in receivables.
    • Chase, Capital One, Bank of America, and American Express reported robust purchase volume growth year-over-year, while American Express, Discover and Capital One led in terms of receivables growth.
    • cited increased consumer confidence and tax reform as drivers of strong purchase volume.
    • Loss rates continued to normalize although several banks suggested that losses may be stabilizing.
    • ROAs were bolstered by tax reform, which had a substantial impact on reported returns.

    Investment is ongoing in digital, mobile and self-service capabilities.

    Notable Happenings

    Transactions:

    • American Express and Citi complete sale of Citi’s $ 1.2 billion Hilton portfolio to American Express.

    New Partnerships:

    • Starbucks launches a new with Chase; Synchrony announces partnership with Crate and Barrel to offer a new private label credit card and co-brand card; Alliance Data and Lucky Brand agree to introduce a new private label credit card; Synchrony becomes preferred financing partner for Mahindra Powersports.

    Partnership Developments:

    • Due to retail partner bankruptcies, Synchrony replaces qualifying Toys “R” Us credit card accounts with a 2 percent cash back Mastercard and Alliance Data closes Bon-Ton accounts; Synchrony announces that it plans to onboard the PayPal Credit portfolio in 3Q18.

    New Products/Features:

    • Amazon introduces 5 percent back at Whole Foods on Amazon Prime Rewards Visa card; Chase announces new ultra-premium Marriott Rewards Premier Plus card and Amex announces new ultra-premium SPG Amex Luxury card (with single loyalty program branding coming in 2019).

    Mobile & Tech:

    • Synchrony invests in Payfone, provider of identity authentication in digital channels; Goldman Sachs acquires credit card startup Final.

    Industry trends (based on non-retail card issuers in scorecard section)

    Q1 2018: U.S. credit card issuer snapshot fintech1 Total receivables for non-retail issuers at end of 1Q18. 2 Total purchase volume of non-retail issuers in 1Q18. 3 After-Tax ROA excludes Wells Fargo, Chase, Bank of America and US Bank, which do not report credit specific income. 4 YoY = Year-over-year change versus 1Q18. 5 QoQ = Quarter-over-quarter change versus 4Q17. Note: Purchase Volume is reported volume for the quarter (it is not annualized or TTM)

    Scorecard—Q1 2018 ($ in Billions)

    Q1 2018: U.S. credit card issuer snapshot fintech
    1 Chase no longer discloses an ROA measure directly attributable to Card Services. 2 Citi: Purchase volume includes cash advances. Citigroup data includes Citi-Branded Cards and Citi Retail Services. 3 Capital One: U.S. card business, small business, installment loans only. Purchase volume excludes cash advances. 4 Bank of America: Receivables, purchase volume, and net loss rates are for U.S. consumer cards. 5 Discover: includes U.S. domestic receivables and purchase volumes only. Restated: ROA reflective of Direct Banking segment (credit card represents ~80% of loans) and implied U.S. Cards tax rate of ~22%. ROA denominator estimated from total loans ended figures.
    6 American Express: Changed reporting method as of 1Q16. Figures are for U.S. Consumer segment only and exclude small business. 7 totaled $ 343M as of 1Q18, compared to $ 309M in 4Q17 8 A/R and PV for Retail Card unit only. 9 Loss rates and ROA include all of SYNCHRONY ’s business lines (i.e., Retail Card, Payment Solutions, and CareCredit). Retail Card accounts for about 70% of total receivables. 10 Average Receivables.

    We are excited to share Q1 2018: Credit Card Issuer with you. Stay tuned for next quarter’s analysis.

     

    Q1 2018: U.S. credit card issuer snapshot fintech

    Paul Sammer, Manager

    Q1 2018: U.S. credit card issuer snapshot fintechQ1 2018: U.S. credit card issuer snapshot fintech

     

     

     

     

    The post Q1 2018: U.S. credit card issuer snapshot appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 pm on March 13, 2018 Permalink | Reply
    Tags: , , , , , , , , Snapshot,   

    Q4 2017: U.S. credit card issuer snapshot 

    Although issuers are benefiting from increased spend and receivables, rising loss rates and rewards costs are continuing to suppress ROAs.

    Key themes

    • Receivables and spend increased year-over-year for all
    • American Express, Discover and Capital One led in terms of year-over-year receivables growth
    • Chase and Capital One led in terms of year-over-year purchase volume growth, although all issuers reported strong growth
    • Several banks have suggested that competitive intensity has moderated slightly
    • Although loss rates are normalizing, they remain below historical averages
    • Investments are being made in machine learning, mobile and advanced analytics

    Notable happenings

    Transactions:

    • PayPal announces an agreement to sell its $ 5.8 billion portfolio of U.S. consumer receivables to Synchrony

    Partnership Renewals:

    • Marriott signs renewal agreements with Chase and American Express

    New Partnerships:

    • Uber and Barclays introduce a new no-fee credit card
    • Alliance Data gains new partners IKEA and Adorama

    New Products/Features:

    • Hilton and American Express introduce a new high-end fee card, Aspire
    • Amazon opens its cashier-free store Amazon Go to the public
    • Chase introduces mobile payments as a bonus category on Freedom cards

    Mobile & Tech: 

    • Target introduces a proprietary wallet in its mobile app
    • Kroger and Chase Pay partner on mobile payments

    Industry trends (based on non-retail card issuers in scorecard section)

    Q4 2017: U.S. credit card issuer snapshot fintech
    Click to view larger

    1 Total receivables for non-retail issuers at end of 4Q17. 2 Total purchase volume of non-retail issuers in 4Q17. 3 After-Tax ROA excludes Wells Fargo, Chase, Bank of America and US Bank, which do not report credit specific income. 4 YoY = Year-over-year change versus 4Q16. 5 QoQ = Quarter-over-quarter change versus 3Q17. Note: PV is reported PV for the quarter (it is not annualized or TTM)

    scorecard—Q4 ($ in Billions)

    Q4 2017: U.S. credit card issuer snapshot fintech
    Click to view larger

    1 Chase no longer discloses an ROA measure directly attributable to Card Services. 2 Citi: Purchase volume includes cash advances. 3 Capital One: U.S. card business, small business, installment loans only. Purchase volume excludes cash advances. 4 Bank of America: Receivables, purchase volume and net loss rates are for U.S. consumer cards. ROA estimate is discontinued. 5 Discover: includes U.S. domestic receivables and purchase volumes only. Restated: ROA reflective of Direct Banking segment (credit card represents ~80% of loans) and implied U.S. Cards tax rate of ~40%. ROA denominator estimated from total loans ended totals. 6 American Express: Changed reporting method as of 1Q16. Figures are for U.S. Consumer segment only and exclude small business. 7 US Bank: Net Income attributable to Payments Services totaled $ 309M as of 4Q17, compared to $ 322M in 4Q16; Payments Services includes revenue from consumer credit cards, as well as commercial revenue and other sources. 8 A/R and PV for Retail Card unit only. 9 Loss rates and ROA include all of SYF’s business lines (i.e., Retail Card, Payment Solutions, and CareCredit). Retail Card accounts for about 70% of total receivables. 10 Average Receivables.

     

    Q4 2017: U.S. credit card issuer snapshot fintech

      Paul Sammer, Management Consultant

    Q4 2017: U.S. credit card issuer snapshot fintechQ4 2017: U.S. credit card issuer snapshot fintech

     

     

     

     

    The post Q4 2017: U.S. credit card issuer snapshot appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 pm on September 14, 2016 Permalink | Reply
    Tags: , eigene, Elektronische, erschaffen, , , Snapshot, Währung, wollen   

    Snapshot: Grossbanken wollen eigene Elektronische Währung erschaffen 

    4 (UBS, Deutsche Bank, BNY Mellon, Santander) gemeinsam eine neue digitale schaffen.

    Das ist nicht die erste Inititative dieser Art sondern nur eine Reaktion auf Entwicklungen, welche andere Bankenkonsortien schon früher aufgegriffen haben.

    Zur Anwendung wird die -Technologie kommen. Damit entstehen die ersten großen Anwendungsfälle für diese noch junge Technologie.

     

    Die Banken versprechen sich vor allem :

    1. Rationaliserung im Interbankenhandel. Die Backoffice- und Clearingabteilungen sind zu gross und zu teuer geworden.

    2. Geschwindigkeit im Settlement neuer Geschäft

    3. Möglichkeit der Schaffung neuer Produkte und Wertschöpfungsketten

    Das könnte für die Banken ein Multi-Milliardenmarkt werden. Es geht um sehr viel Geld. Ist es ein Ausweg oder eine Reaktion auf die derzeitige Ertragsschwäche? Oder nur eine Reaktion auf die fortschreitende Disruption auf den -Markt?

    Wie schnell kommt das Projekt? Nicht vor 2018. Das Jahr 2017 wird benötigt, um das Thema bei den Aufsichtsbehörden abzustimmen. Um solch einen Ansatz 2018 in den Betrieb zu nehmen müssten technologische Projekte, welche auf Blockchain ausgerichtet sind, spätestens im 1. Quartal 2016 starten. Die betroffene Prozesskette ist riesig.

    Snapshot: Grossbanken wollen eigene Elektronische Währung erschaffen fintech

    Noch ein anderer Aspekt verdient Beachtung:

    Sollte es den Banken tatsächlich gelingen, ein Abwicklungssystem für ihre Transaktionen ausserhalb des Zentralbanksystems zu etablieren, wäre den EZBs und den FEDs dieser Welt ein wesentliches Instrument ihrer Regulierung genommen. Wohin führt dieser Weg?

    Die 4 Grossbanken reihen sich jedenfalls ein in eine Reihe von ähnlichen Initiativen von ebenso grossen Wettbewerbern. Wer wird am Ende gewinnen? Das lässt sich nicht absehen.

    Haben die Privatkunden bald etwas davon? Wohl eher nicht, da es zunächst eher um die institutionellen Anleger geht.

    Interessant ist der Ansatz trotzdem, da durch den Marktdruck nun auch die Grossbanken gezwungen sind, in den Fintech-Markt und seine Technologien einzusteigen. Insofern wird das mindestens ein Push für die gesamte Technologieszene sein.

     

    Dieser Artikel ist zuerst auf LinkedIn Pulse erschienen

    Featured Image: Pixabay

    The post Snapshot: Grossbanken wollen eigene Elektronische Währung erschaffen appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

     
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