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Visa Cards Win the Majority of Cannex "Best Value" Credit Card Awards
News Release (New Zealand) - Visa's commitment to help its member banks offer a range of competitive payment products saw it and its members win the majority of the card categories in the recent 2007 Sunday Star-Times/Cannex Banking Awards. Visa credit cards won eight of the nine top spots in the three "best value" credit card categories in the annual awards. "Healthy competition in the New Zealand credit card sector is alive and well and to that end it is great to have so many Visa credit card products recognized in this way. Together with New Zealand banks we work very hard to offer Kiwis good value credit card products," says Iain Jamieson, Visa's New Zealand country manager.
Visa and Maybank Launch Visa Money Transfer in Singapore
www.pata.org, CardLine Asia (Asia) - Visa Money Transfer, Visa’s card-to-card payment service, was officially launched on 18 April by Visa International and Maybank. This is the first time this service is being offered in Singapore. Visa Money Transfer allows customers to send funds from their Visa cards to other Visa cardholders around the world. The Maybank Visa Money Transfer service is a fast, convenient and secure remittance service that is also a more affordable option for customers than traditional services using telegraphic-transfers and demand drafts, or those offered by international remittance companies.
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Competition Dictated Visa’s Decision to Adjust Rates
American Banker(US) - Visa has said that its new interchange rates are an attempt to strike a balance between increasing merchant acceptance and competing with other networks for issuers' business. Tolan Steele, Visa USA's senior vice president for interchange strategy, said that the association created the new categories to keep up with rivals.
Visa Sets Up Whatsmyscore.org
Retail Banker International (US) - Visa has launched www.whatsmyscore.org in a move to help students and young adults understand their credit score. The website will explain how credit scores are assessed and also give advice on personal financial management strategies such as budgeting. To enter the promotion, students have to take a free 15-minute online financial education tutorial, designed to provide a crash course in responsible credit use.
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DBS Inks Fresh Deal with China Card Payment Network
Business Times (Singapore), Wen Wei Po (Hong Kong), Sina.com.cn, Sohu.com (China) - DBS Bank announced on Friday a new deal with China's nation-wide card payment network operator that the bank says will help it tap China's retail market. The agreement signed with China UnionPay (CUP) allows CUP cardholders to withdraw cash and check their account balances through DBS' more than 880 ATMs.
BC Card Celebrated its 25th Anniversary
Maeil Business Newspaper (Korea) - BC Card, which celebrates its 25th anniversary this year, is the leading domestic credit card company. BC Card has shown steady development over the past years and the number of its cardholders is expected to reach over 30 million by June this year. One of the contributing success factors of the BC Card was to let cardholders choose their own discount services so they reap the benefits they actually want. BC Card has also formed a partnership with China UnionPay, allowing CUP cardholders to use their cards at domestic BC Card merchant stores and allowing BC cardholders to withdraw cash from CUP ATMs in China.
Banks Target ID Fraud
Sunday Mail (Australia) - Australia's major banks are constantly working against internet fraud and identity theft. Westpac now offers free identity-theft insurance for 55-day or 55-day gold credit card customers.
National Bankers Get More Security
Dominion Post (New Zealand) - The National Bank will offer its online banking customers extra security from Sunday. The bank is one of the last banks in New Zealand to offer so-called two-factor authentication, which requires customers enter a code from a card or electronic token to log in or complete a transaction.
Citic Lays Out Plans for US$6 Billion Offering
Financial Times, International Herald Tribune (Hong Kong), Business Times, Straits Times (Singapore) - China Citic Bank, the mainland's seventh largest lender, is to raise US$6 billion in the world's biggest IPO this year, according to people familiar with the situation. Citic Bank, which will list in Hong Kong and Shanghai, is the latest mainland bank to tap unprecedented investor interest in the sector, which is viewed as a proxy for the country's double-digit growth rates. Many investors are anticipating that the latest China mega-offering will deliver strong first day gains when dealing in shares begins on Friday.
UK Watchdog Questions Barclays-ABN Deal
Financial Times (Hong Kong) - The UK's Financial Services Authority has expressed "strong doubts" about a proposal by Barclays that the Dutch central bank should become its lead regulator following a takeover of ABN Amro. People familiar with the negotiations said FSA officials are not convinced that Barclays' centre of gravity will shift to the Netherlands following a takeover of ABN Amro, even though the combined bank's headquarters will move to Amsterdam.
ABN Amro Discusses Backing Barclays' Bid
Financial Times, Wall Street Journal Asia (Hong Kong) - The supervisory board of ABN Amro was last night meeting to discuss recommending a takeover bid from Barclays that values the Dutch leader at almost €70 billion (US$96 billion). According to people close to the negotiations, the supervisory board's approval would clear the way for the British bank and ABN Amro to outline the terms of their deal today.
Westpac Secures Shanghai Licence
The Sheet (Australia) -The China Banking Regulatory Commission has given preliminary approval for Westpac to open a branch in Shanghai, The Australian reported. The licence will enable Westpac to conduct foreign currency business but not business in Chinese yuan.
Foreign Banks Reach Prize in China: Yuan Deposits
Wall Street Journal Asia (Hong Kong) - More than 20 years after the world's lending banks opened outlets in China, a handful are set to grasp a long-sought prize: deposits in yuan from ordinary citizens. Today, for the first time, Citigroup, HSBC, Standard Chartered and Bank of East Asia intend to begin accepting deposits in yuan from Chinese individuals, and offering loans as well. Until now, China's tight controls over foreign banks have made it impossible for them to offer those basic and much coveted services.
Dawood to Broaden Islamic Banking Reach
International Herald Tribune (Hong Kong) - First Dawood Islamic Bank, Pakistan's sixth to offer products that comply with Islamic laws, plans to open 19 branches by 2008 to tap rising demand in the world's second most populous Muslim nation. The bank, whose first branch is scheduled to open in Karachi next week, will offer a range of products including loans for global trade and lending or car and home purchases.
Citibank in Talks to Buy Taiwan Credit Card Units
Reuters News (Taiwan) - Citigroup has said it is in talks with some Taiwanese lenders about buying their credit card units after an island-wide consumer credit crisis sent many banks into the red. Many local lenders, including top player Chinatrust Financial and small ones like Ta Chong Bank, posted heavy losses in 2006, in part due to the stiff competition in the overcrowded market.
Wells Fargo First to Offer Cardholders Clean, Renewable Wind Power Rewards
PR Newswire (US) - Wells Fargo announced that it is the first US financial institution to make clean, renewable energy reward options available to its cardholders. Through Wells Fargo Rewards programs, consumer and business credit card and check card customers can now redeem reward points to support renewable energy projects and receive certificates for their donations. Nancy Beaver, Wells Fargo Card Services vice president of customer marketing said, "By adding a twist of 'green' to our program, we are making it easier for our customers to make eco-friendly choices and helping raise awareness about environmental issues."
Capital One Says Mortgages Hurt Profit
Associated Press, Reuters (US) - Capital One reported a 24 percent decrease in first-quarter earnings and lowered its full-year profit forecast, citing revised expectations for its mortgage banking business, which it acquired when it paid US$13.2 billion for North Fork Bancorp. The No. 4 MasterCard and Visa card issuer also said more customers missed payments, as it expected, and that net charge-offs increased 37 percent. Overall net income fell to US$675.1 million from $883.3 million a year earlier. The company's US card business, which is known for its "What's in Your Wallet" advertising campaign, said its net income totaled $495.3 million for the first quarter, compared with a record $602.8 million in the first quarter of 2006.
First Data's Small-Bank Pitch via FundsXpress
American Banker (US) - First Data hopes buying FundsXpress Financial Network will help it expand its business with small banks. "We see the online banking and bill-pay component being critically important to our financial institution clients," said Todd Strubbe, the president of First Data Debit Services. First Data already has a debit and automated teller machine operation, Star Network, and online banking and bill payment is "an adjacent market."
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Four Foreign Banks Link with CUP
Sohu.com, Sina.com.cn, People.com.cn, Newscc.com, Chineseinternetnews.com.cn (China) - According to China UnionPay, four initial registered foreign banks have all signed agreements with the CUP for banking card business. Two of them have adjusted their systems in preparation for linking with the CUP’s system.
Credit Card Scam with a Tamil Tiger Twist
Today, Straits Times (Singapore) - Thousands of drivers in the United Kingdom have found out they may have bankrolled weapons and explosives for Sri Lankan militant rebels to the tune of US$60 million, while diners in the US have lost around $3 million to waiters and conmen. The drivers and diners are the latest victims of the growing global credit card-skimming scam, in which card details and personal identification numbers are stolen and put together to clone the cards, police said.
American Express Reports Record Net Income of US$1.06 Billion for First Quarter
Apple Daily, Oriental Daily News (Hong Kong), The Jakarta Post (Indonesia) - American Express reported record net income of US$$1.06 billion for the first quarter of 2007, up 21 percent from a year earlier. Up to March 2007, American Express had issued 64.1 million payment cards, up 12 percent compared to a year ago. Global total transaction volume has increased by 15 percent to reach $146.2 billion for 2007.
Banking Innovation: from ATMs to Security
EnterpriseMagazine (Asia) - At the recent Banking Finance Forum in Hong Kong, chief information officers discussed shifting regional IT trends. "Market reach is one challenge for our bank customers in China, who tend to have few branches," said Chris Ip, partner of McKinsey and Company. "The traditional response is to roll out ATMs, but the capital investment for this is not justified in China. We know one company using mobile phone technology for aspects of online banking, which is cost-effective, but the bank would have to share the savings with the mobile operator."
Defrauded Business Head wants Compulsory PINs for Credit Cards
NZPA Newswire (New Zealand) - Newmarket Business Association (NBA) head Cameron Brewer wants PIN numbers to be compulsory for credit card purchases after some retailers in his own precinct allowed thieves to use his cards. Brewer has a higher profile than most business association leaders but is apparently not universally recognized in his own area, one of Auckland’s busiest, as his credit card and that of the NBA was used repeatedly in Newmarket last week.
Bogus Ticket Ring Busted
Northern TerritoryNews (Australia) - Chinese police yesterday arrested three people suspected of setting up a fraudulent website to sell bogus tickets to the 2008 Beijing Olympics. The website was offering the online purchase of Games tickets and other "fraudulent ticketing information," Xinhua news agency reported yesterday.
Foreign Banks to Hold 10 Percent Market Share in China over Next Five Years
The Sun, Hong Kong Economic Journal, Oriental Daily News, Wen Wei Po, Sing Tao Daily, Hong Kong Commercial Daily, Hong Kong Economic Times, Headline Daily (Hong Kong) - Bank of China vice president Zhu Min expects foreign banks to hold five to 10 percent market share in China over the next five years. The Bank of China has launched a pilot program offering financing and other services to small and medium-sized enterprises at a time when lenders are facing rising competition from their foreign counterparts. The bank has also invested large amounts of money to retool its domestic operations to better compete against foreign banks. Competition in the next five years will be very intense, said Zhu Min.
Vietnam to Ease Bank Stake Rules
International Herald Tribune (Hong Kong), Straits Times (Singapore) - In a bid to expand the banking sector Vietnam is to raise the ceiling on the stake a strategic, non-bank foreign investor can have in a domestic bank to 15 percent from 10 percent, the government said over the weekend. The ownership limit for a foreign bank in a Vietnamese bank remains unchanged at 10 percent and the total foreign ownership limit in a domestic bank will also remain at 30 percent, the government said in a statement.
Scandal "Threatens Role of World Bank"
Financial Times, Wall Street Journal Asia (Hong Kong) - The independent agency charged with assessing the effectiveness of the World Bank has issued a searing indictment of Paul Wolfowitz's leadership, warning that his actions are undermining the bank's ability to pursue development work. In a formal statement, which the bank's board will consider this week, the Independent Evaluation Group said "development effectiveness is being jeopardized by serious governance problems that have recently come to light."
EMV Mandate Helping Smart Card Growth in Asia
Cardline Asia Pacific (US) - Shipments of banking smart cards in Asia will grow by a compound annual rate of 34.4 percent through 2011, according to Frost & Sullivan. Mandates requiring the conversion of magnetic stripe banking cards to smart cards that conform to the international EMV standards are the key factors in this growth. Visa’s website says it has issued at least 52 million EMV smart cards in Asia Pacific, with at least 30 million in Japan and 5.3 million in South Korea. MasterCard Worldwide says that it has issued more than 38 million smart cards in the region, of which more than 95 percent comply with EMV.
American Express Drops 'My Life' Tag Line for 'Are You a Cardmember?'
Retail Banker International (US) - American Express has dropped its 'My Life. My Card' tag line and replaced it with a campaign that introduces the tag line 'Are you a cardmember?' A new campaign launched by American Express in mid-April formed the centre piece of a major multimedia initiative with a budget estimated at over US$500 million. "The new campaign continues the tradition of defining the value of belonging to the American Express community by showcasing some of our most exceptional cardmembers and the ways in which membership works for them" said American Express chief marketing officer John Hayes.
American Express Raises Rates and Fees on RED Card
CardLine Europe (US) - American Express has increased the interest rates and cash-withdrawal fees it charges on its RED charity card in the UK. An American Express spokesperson said that the company has increased the fee for cash advances by slightly more than 5.3 percent, to an annual rate of 25.9 percent, and the rate for purchases by four percent, to an annual rate of 16.9 percent.
American Express Announces Q1 Financial Report
Associated Press (US), Sina.com.cn (China) - American Express has released its first quarter financial report revealing net profit for the company of US$1.06 billion, an increase of 21 percent in comparison with the same period last year. "Higher revenue, combined with tight controls on discretionary expenses, delivered excellent bottom line results for the quarter," said Kenneth I. Chenault, chairman and chief executive.
Mobile Banking's Potency Seen on Commercial Side
American Banker(US) - Bankers and vendors say they are beginning to develop mobile banking technologies that their corporate clients can use for treasury functions. Any significant extension of mobile applications into commercial banking would mark a major turning point because most of the focus in mobile development has been on the retail side. Though the first trials of any mobile banking and payment systems are only now beginning, bankers say they have begun looking for ways to exploit the technologies to bring in revenue and improve customer service.
European Banks Expect SEPA Problems
CardLine Europe(US) - About one third of retail banks in the euro zone expect to have problems with the processing of payment transactions when the European Commission's Single Euro Payments Area directive goes into effect on 1 January 2008, according to LogicaCMG. The research predicts that banks will incur costs of between €650 million and €1.3 billion as a result of failed transactions, largely due to errors in routing and coding the new, SEPA-compliant payments. Fifty-nine percent of banks surveyed say they fear their institution will take a hit to their reputation as a result of the expected processing difficulties but only 57 percent of banks in the euro zone say they have a formal plan in place to resolve problems with the addressing and routing of transactions.
Taking on the Card Giants
Retail Banker International (US) - AOL pioneer Stephen Case is planning to launch GratisCard. The brand will target the disaffected merchant market, leveraging the internet to drive down transaction fees and passing the savings on to cardholders, particularly those without access to credit. GratisCard, which will be formally launched in April, is the cornerstone of Case's plans to shake up the payments industry. GratisCard could find support in the US merchant community among those discontented with the pricing models of Visa, MasterCard and their bank partners.
Chinese Banking Institutions Should Be Socially Responsible
ChinaCSR.com (China) - The China Banking Regulatory Commission has released a guideline, calling on the banking and financial enterprises of Shanghai to bolster their social responsibilities. The guideline emphasizes that banking and financial institutions should run their business with credible management practices, provide excellent financial services, protect consumers' due rights, and treat consumers fairly by providing them full information about financial products. The guideline also says that the banking and financial institutions should take the responsibility to educate consumers, popularize financial knowledge and improve the public's financial and risk awareness.
Retailers Urge State Efforts on US$36 Billion Credit Card Fee
PR Newswire (US) - The National Retail Federation (NRF) has urged US state legislators to continue efforts to control US$36 billion in credit card interchange fees paid by consumers each year, saying state legislation will help focus public attention on the little-known charges. NRF general counsel Mallory Duncan said, "when Visa and MasterCard take their cut, they don't take it on just the retail sale, they take it on the entire transaction including the sales tax. That's not their money. The sales tax is the people's money, and they shouldn't be trying to take a piece of it. That drives up prices even higher, and everybody ends up paying a tax on a tax."
No Such Thing as Free Banking but Put Fees Upfront Says OFT
Daily Telegraph(UK) - The UK Office of Fair Trading chief executive John Fingleton has decided to undertake a full review of bank charges to prevent a 'waterbed effect' where cutting charges in one area has led to increased costs in another. Last year the OFT ruled that credit card charges were unfair and that consumers have been reclaiming back those charges although there have been fears that the banks would end free banking to claw back lost income.
PayPal Logs a Strong Quarter to Cap a New Deal with Yahoo!
Digital Transactions, CardLine (US) - PayPal saw its transaction volume swell 19 percent in the first quarter, to 177 million payments, while its non-auction business expanded to 39 percent of all transactions in a performance widely credited with boosting parent eBay’s financial results for the period. News of PayPal’s performance comes just after it has finalized a deal with Yahoo! allowing businesses associated with PayPal and Yahoo! to process payments at no charge through PayPal Express Checkout until the end of the year.
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