Back to the credit card

As the economic downturn that began in 2008 deepened, credit tightened, consumers switched to other payment methods and credit losses reached historically high levels. That landscape has changed dramatically. Today, a recovering economy and new payments-related regulatory reforms are converging to bring credit back in favor among both U.S. banks and consumers. Banks are increasingly well positioned Read More

By |2020-05-27T18:00:37-05:00January 14th, 2015|Comments Off on Back to the credit card

Making customer data work for the customer

No doubt “big data” is one of the most popular terms in banking discussions and has even seeped into consumers’ frame of reference. Who hasn’t noticed when the ads on a website eerily mimic your recent Internet search history? While it’s talked about ad-nauseam, many banks still struggle with how to leverage the vast amounts of information Read More

By |2020-05-27T18:00:38-05:00December 3rd, 2014|Comments Off on Making customer data work for the customer

No-Overdraft Fee Accounts, No Overdraft Problem

“Overdraft fees should not be ‘gotchas’ when people use their debit cards,” said Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), after the regulatory agency published its most recent report, “Data Point: Checking Account Overdraft.” The study states that most overdraft fees result from debit card purchases for amounts under $24 and are repaid within Read More

By |2020-05-27T18:00:40-05:00October 7th, 2014|Comments Off on No-Overdraft Fee Accounts, No Overdraft Problem

Serving the Underserved with Prepaid Cards

Half the world’s adults, over 2.5 billion people, do not have a formal bank account, according to the World Bank. In the United States, the segment of financially underserved consumers is substantial, whether they fall into the unbanked or underbanked categories. According to the FDIC, this seemingly high-risk group makes up over 10 million households across America. Read More

By |2020-05-27T18:00:40-05:00September 9th, 2014|Comments Off on Serving the Underserved with Prepaid Cards

EMV for Fraud Control in United States

“We saw a decrease in fraud of about 75%,” says Vivienne Nicol, senior manager, fraud operations, at ATB Financial in Calgary, Canada. She attributes this achievement to the bank’s embrace of EMV, the chip-based encryption technology that has dramatically reduced fraud in Europe. With EMV cards adopted in Europe, and now Canada, organized fraud rings have moved Read More

By |2020-05-27T18:00:44-05:00March 7th, 2014|Comments Off on EMV for Fraud Control in United States

Credit Card Fees: The Banker Response

While the $6.6 billion lawsuit between the credit card industry and a trade association of merchants has been settled, the battle is far from over. A recent Wall Street Journal article highlights a part of the settlement with far-ranging future consequences: the right for retailers to charge more for customers who use a credit card. Banks need Read More

By |2020-05-27T18:01:12-05:00August 17th, 2012|Comments Off on Credit Card Fees: The Banker Response

Helping Consumers Build Credit

Consider a customer who approaches a bank or credit union seeking a small-dollar credit product. The customer is run through the traditional credit checks and found to be ineligible. The issue may be a thin credit file or no credit file, damaged credit from past mistakes, over-indebtedness, or a number of other reasons. What happens next? Is Read More

By |2020-05-27T18:01:14-05:00June 20th, 2012|Comments Off on Helping Consumers Build Credit

Crowdsourcing the Credit Card

Can “crowdsourcing” work in credit cards? UK-based Barclays Bank is trying to find out with its new Barclaycard Ring card. The idea is that cardholders can vote on features for the card, which was rolled out to the U.S. market on March 1 carrying an 8% interest rate. As explained in the following interview with Paul Wilmore, Read More

By |2020-05-27T18:01:14-05:00June 19th, 2012|Comments Off on Crowdsourcing the Credit Card

New Directions in Unsecured Consumer Credit

At a time when retail banks are particularly hungry for growth, one of the brightest opportunities is the cross-sale of credit to depositors, including consumers and small businesses. But fresh approaches will be needed to build real momentum. Retail banks long have been dominant players in customer payments and related accounts, typically handling more than 80% of Read More

By |2020-05-27T18:01:14-05:00June 15th, 2012|Comments Off on New Directions in Unsecured Consumer Credit

Regaining Lost Fee Revenues via Deposit Rates

The introduction of the $5 debit card fee and its subsequent withdrawal can teach us two lessons: one, consumers are very sensitive to any additional banking fees, and two, there are more productive ways to improve the bottom line through a reduction in interest expense. Banks can generate nearly double the potential $875 million in monthly debit Read More

By |2020-05-27T18:01:28-05:00November 7th, 2011|Comments Off on Regaining Lost Fee Revenues via Deposit Rates