#Faster #payments and remittance services have had record-breaking amounts of investment this year. A #Fintech Global report, published this week, found that global investment in payments and remittance companies has reached a historic high. For the first half of the year alone there has been $ 17.5 #billion #invested, which trumps the $ 12.3 billion investment for […]
Bank Innovation
US consumers are showing an increased preference for credit cards. Banks reported robust growth in purchase volume over the past quarter, along with solid growth in receivables and benign loss rates. Read more about the key themes and notable happenings below.
Transactions
Citibank completed $ 1.5B acquisition of L.L. Bean credit card portfolio from Barclays; Synchrony and PayPal finalized transfer of $ 7.6B in receivables; Signet Jewelers closed last phase of credit outsourcing, selling its non-prime portfolio to CarVal Investors and Castlelake.
New Partnerships
Alliance Data and IKEA introduced new co-brand offering 5 percent rewards on IKEA purchases; American Express announced new partnership with Amazon to offer a small business co-brand credit card; Wells Fargo launched no-fee Wells Fargo Propel American Express card.
Partnership Developments
In July, Walmart announced its intent to partner with Capital One and end its Synchrony relationship; Citibank renewed its card partnership with Sears, paying $ 425 million up front in a highly customized structure; Alliance Data and Victoria’s Secret renewed their PLCC partnership.
New Products/Features
American Express launched its no-fee, 1.5 percent cash back Cash Magnet card; Citi and American Airlines introduced new no-fee AAdvantage MileUp card, offering 2 miles per dollar; Chase and Hyatt introduced $ 95 annual fee World of Hyatt Card; Chase and Marriott introduced $ 95 fee Marriott Rewards Premier Plus card; Chase and Southwest Airlines introduced $ 149 annual fee Southwest Airlines Priority Card; Synchrony and Belk will introduce a co-brand credit card.
Mobile & Tech
Chase announces a partnership with Tock, a high-end dining program.
Stay tuned for next quarter’s report on US consumer credit card trends.
1 Total receivables for non-retail issuers at end of 2Q18. 2 Total purchase volume of non-retail issuers in 2Q18. 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 2Q17. 5 QoQ = Quarter-over-quarter change versus 1Q18. Note: Purchase Volume is reported volume for the quarter (it is not annualized or TTM)
1 Chase no longer discloses an ROA measure directly attributable to Card Services. 2 Citigroup: Purchase volume includes cash advances. Citigroup data includes Citi-Branded Cards and Citi Retail Services. 3 Capital One: US 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 US consumer cards. 5 Discover: includes US domestic receivables and purchase volumes only. Restated: ROA reflective of Direct Banking segment (credit card represents ~80% of loans) and implied US Cards tax rate of ~22%. ROA denominator estimated from total loans ended figures. 6 American Express: Changed reporting method as of 2Q18. All figures except ROA are for US Consumer segment; Amex has stopped reporting net income attributable to US consumer segment. ROA is estimated based on US receivables comprising 88% of Global Consumer segment and 22% US effective tax rate. 7 US Bank: Net Income attributable to Payments Services totaled $ 361M as of 2Q18, compared to $ 282M in 2Q17; 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.
Paul Sammer, Manager, Payments
The post Q2 2018: US credit card issuer snapshot appeared first on Accenture Banking Blog.
PREMIUM – Every year Bank Innovation assembles a list of 44 #innovators that caught our attention in digital #banking and #fintech. These are the people Bank Innovation believes to be this year’s movers and shakers in the industry, paving the way with forward-thinking technologies and ideas. This year the list contains a variety of innovators […]
Bank Innovation
#Conversational #banking is in the spotlight. Google’s recent voice demo with Google Assistant has led many to look for — or create — an equivalent in the banking industry. Some larger #banks are trying. Bank of America is in the middle of rolling out its AI-driven virtual assistant Erica in stages across the country; Capital One has […]
Bank Innovation
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.
Investment is ongoing in digital, mobile and self-service capabilities.
Transactions:
New Partnerships:
Partnership Developments:
New Products/Features:
Mobile & Tech:
1 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)
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 #Snapshot with you. Stay tuned for next quarter’s analysis.
The post Q1 2018: U.S. credit card issuer snapshot appeared first on Accenture Banking Blog.
EXCLUSIVE – Known as one of the first #technology companies in Europe to procure a German banking license, #solarisBank has lofty ambitions for #2018. That plan, according to Timo Weber, VP of strategy and internationalization, is to add 50 more #partners over the course of the year. “A big part of our effort this year […]
Bank Innovation
EXCLUSIVE – With over 100,000 signups to date, Ollie Purdue, CEO of digital current accounts #Loot will turn his #focus on #generating revenues this year. “We spent last year and most of 2016 scaling and on the workings of the product,” Purdue told Bank Innovation. “This year, we look at revenues.” Launched back in 2014, […]
Bank Innovation
Berlin-based challenger bank N26 will be opening its services to users in the United States and the United Kingdom by the end of this year, founder and chief executive officer Valentin Stalf told Reuters today. The bank, which was officially launched in 2015, currently has a #German banking license, allowing it to operate in other […]
Bank Innovation
EXCLUSIVE – #American Express will be investing in its #networks as one of its four major strategic priorities for #2018 as a way for the credit card company to adapt to the growing prominence of digital payments. “As the payments industry continues to evolve with more types of transactions being processed electronically such as cross …Read More
Bank Innovation
EXCLUSIVE – There has been plenty of buzz around #voice #banking for some time now, and while many thought 2017 would be the year voice banking made it big, that didn’t happen. And that’s not because the field didn’t make any progress – it did- but the #fintech world had other distractions (hint: #blockchain & …Read More
Bank Innovation
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