Every financial institution wants to be like #Apple, or more specifically Apple #Card — “Created by Apple, Not a Bank,” as its slogan brushes off the role of Goldman Sachs.
Financial Technology
EMV chips have reduced POS #card #fraud as expected but fraudsters are moving into new areas such as opening new accounts in a stranger’s name, taking over accounts or hitting reward programs for profits.
Financial Technology
The differences in #student #loan servicing complaint rates are stark and NerdWallet suggests some alternatives while The Nation shows how some other countries handle education funding..
Financial Technology
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.
U.K. neobank #Starling is in a mood to switch things up, at least on the design front. Last week, Starling unveiled changes to the payments screen on its mobile app and today it unveiled a new #debit #card. For starters, the new debit card is not purple, Starling’s signature color. Instead it&8217;s teal and navy […]
Bank Innovation
With over 25 million #mobile #bank users on the retail side, Bank of #America is shifting attention to ramping the numbers on the #commercial side, with the launch of a mobile app for its #prepaid commercial cards. Today, Bank of America #Merrill #Lynch unveiled an app specifically designed for reloadable commercial prepaid cards. These cards […]
Bank Innovation
PREMIUM- P2P payments app, Venmo, has launched its debit #card, Venmo Card, and it is powered by Mastercard. When Venmo first launched its card in #beta last September, it was backed by Visa. After 10 months of trial, the PayPal-owned Venmo notified its users that they can get a Venmo debit card through a link on […]
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 – #Elevate #Credit will launch a new credit #card #product that targets #subprime clients in June, for which the company has teamed up with #Mastercard. “One of the unique things about this card is that, unlike most subprime credit card products whose credit lines tend to be below $ 500, this one is significantly larger,” […]
Bank Innovation
The Durbin Amendment to the Dodd-Frank legislation largely did way with #debit reward programs (pour one out for PerkStreet.) Dodd-Frank is now under assault from all quarters in Washington, but looking fairly strongly entrenched. Still, debit #rewards programs are making a #comeback with the release of GoBank‘s #Uber #Visa debit #card, announced today. The GoBank […]
Bank Innovation
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