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  • @fintechna 12:18 pm on September 8, 2018 Permalink | Reply
    Tags: 2018, , , , Invested, ,   

    Faster Payments Sees $17 Billion Invested So Far in 2018 

    and remittance services have had record-breaking amounts of investment this year. A 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 , which trumps the $ 12.3 billion investment for [&;]
    Bank Innovation

     
  • @fintechna 3:35 am on September 8, 2018 Permalink | Reply
    Tags: 2018, , , , , ,   

    Q2 2018: US credit card issuer snapshot 

    Each quarter, Paul Sammer, Manager in the Issuing offering, compiles key metrics on US consumer cards, tracking spend, receivables, loss rates and returns reported by the largest US .

    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.

    Key themes

    • Banks reported favorable credit trends in the past quarter as purchase volume and receivables continued to grow, and loss rates remained benign.
    • Credit card purchase volume increased at a significant pace over the past year, led by Capital One, American Express and Chase.
    • Receivables also grew at a healthy rate, most notably at American Express, Capital One and Discover.
    • New products and product refreshes were prevalent in Q2. Many of these new products are offering high-value incentives to open/activate.
    • Investments in digital capabilities are evident across the industry with new all-digital products (e.g., Chase’s Finn), and full-service functionality in digital channels.
    • Bank of America and Chase reported notable declines in card originations in the past quarter (nearly 10 percent YoY).
    • Issuers pointed to rewards (and associated cost) as a basis of differentiation, but there was a general theme of rational competition in most respects.

    Notable happenings

    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.

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

    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)

    Scorecard—Q2 ($ in Billions)

    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.

    Accenture Banking Blog

     
  • @fintechna 12:18 am on June 22, 2018 Permalink | Reply
    Tags: 2018, , , , , , ,   

    2018 Innovators to Watch: 44 Executives Shaping the Future of Banking 

    PREMIUM &; Every year Bank Innovation assembles a list of 44 that caught our attention in digital and . 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

     
  • @fintechna 12:18 am on May 24, 2018 Permalink | Reply
    Tags: 2018, , , ,   

    2018 May Be the Year of 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 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

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

    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)

    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)

    Scorecard—Q1 2018 ($ in Billions)


    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.

     

    Paul Sammer, Manager

     

     

     

     

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

    Accenture Banking Blog

     
  • @fintechna 12:18 am on April 25, 2018 Permalink | Reply
    Tags: 2018, , , , solarisBank,   

    Fintech solarisBank Aims to Add 50 Partners in 2018 

    EXCLUSIVE – Known as one of the first companies in Europe to procure a German banking license, has lofty ambitions for . That plan, according to Timo Weber, VP of strategy and internationalization, is to add 50 more over the course of the year. “A big part of our effort this year [&;]
    Bank Innovation

     
  • @fintechna 12:18 am on April 19, 2018 Permalink | Reply
    Tags: 2018, , , , , ,   

    U.K. Fintech Loot Will Focus on Generating Revenue in 2018 

    EXCLUSIVE – With over 100,000 signups to date, Ollie Purdue, CEO of digital current accounts will turn his on 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

     
  • @fintechna 12:18 pm on April 15, 2018 Permalink | Reply
    Tags: 2018, , , , ,   

    German Neobank N26 to Launch in U.S. and Britain in 2018 

    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 banking license, allowing it to operate in other [&;]
    Bank Innovation

     
  • @fintechna 12:18 am on March 14, 2018 Permalink | Reply
    Tags: , 2018, , Heavily, ,   

    American Express Will Invest Heavily in Its Networks in 2018 

    EXCLUSIVE – Express will be investing in its as one of its four major strategic priorities for 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

     
  • @fintechna 12:18 am on March 13, 2018 Permalink | Reply
    Tags: 2018, , , , ,   

    Why Voice Banking Will Make It Big in 2018 

    EXCLUSIVE – There has been plenty of buzz around 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 world had other distractions (hint: &; …Read More
    Bank Innovation

     
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