Citi to Become LiveNation’s Official Card

Citi has made a strategic investment into Los Angeles-based Live Nation, the most comprehensive concert search engine on the Web. In return, Citi’s has become Live Nation’s “official credit card partner”. Citi’s recently expanded “Private Pass” program will offer an array of Live Nation benefits such as presale and preferred tickets, box seats at select venues, premium seats, exclusive merchandise and a variety of VIP experiences. Live Nation has assembled a vertically integrated live music platform that provides our corporate partners comprehensive access to over 10,000 events and more than 36 million avid fans. Citi will also receive other opportunities to participate in future initiatives, such as venue naming rights, tie-ins with Live Nation’s new ticketing operation and benefit access for other Citi customers. It is anticipated that Citi’s brand messaging and logo will be integrated into online and offline initiatives as well as in signage, direct mail campaigns, and LiveNation.com.

Details

TU and Edgar Dunn Introduce Revolver Model

TransUnion and Edgar, Dunn & Company have introduced their second scoring model to identify predictive credit behavior characteristics using survey-based data. The “Revolver Model” is based on data from the “PaymentDynamics 2007 Preferred Payments Study.” The “Revolver Model” joins the “Payment Preference Model” as part of the “PaymentDynamics Suite” which was introduced in July 2007. The suite is designed to allow retail banks, financial services companies, credit card issuers, and card associations to maximize and prioritize direct product offer strategies across the full payment spectrum of cash, check, debit cards and credit cards.

Details

CITI, IFC & BRAC

The IFC has joined Citi’s lead, having signed $22 million financing
agreements, including a US$ 18 million partial credit guarantee from
IFC, to support BRAC microlending of Bangladesh. Citi began
financing for the organization in 2007 and is providing US$42 million
in BDT this year. Citi and BRAC have partnered in the past to launch
a local currency securitization of microcredit receivables in 2006 and
a remittance distribution arrangement in 2007. BRAC’s microfinance
services targets consumer populations in over 40,000 Bangladesh
villages, employs more than 100,000 and has provided assistance
in many developing and 3rd-world countries. The IFC has committed
$8.2 billion, financing for 299 investments in 69 developing countries
and has provided advisory services in 97 countries while Citi has over
200 million customer accounts across nealry 100 countries.

Details

ORCC Hires a First Annapolis EVP and GM

Web based financial services provider Online Resources has hired Sheila Narayan, previously with First Annapolis, to serve as EVP and general manager of banking payments. At First Annapolis, Narayan spent more than 10 years developing business and market strategy, leading strategic technology and marketing partnerships, managing client relationships and advised senior banking and processing executives on new product development and strategic sourcing. Narayan will be responsible for Online Resources’ consumer service provider payments business, which serves large financial institutions and banking partnerships. The division provides bill payment and related services to 13 of the largest 50 U.S. banks. She is a graduate of Bryant College and holds an MBA from The Wharton School, University of Pennsylvania.

Details

TNB Acquires Two Hawaii Card Portfolios

TNB Card Services has purchased the credit card portfolios of Hawaii Pacific FCU and Kaua’i Government Employees’ FCU, bringing the total number portfolios to 150. Hawaii Pacific Federal Credit Union has 8,000 members and assets of $48 million. 50 select employer groups, primarily small businesses. Kaua’i Government Employees’ Federal Credit Union currently has assets of $52 million. With the latest addition of the two card programs, TNB added more than $3.2 million in outstanding balances to its agent issuing portfolio.

Details

Hypercom Goes Forward with its Thales Deal

Hypercom says Ingenico’s offer to buy the terminal maker appears to be a “hostile overture” due to Ingenico’s lawsuit filed against Francisco Partners, which is financing Hypercom’s acquisition of Thales’ e-Transactions business, and in Ingenico’s effort to make private negotiations public. Hypercom says the potential harm to its shareholders of failing to pursue the acquisition of the e-Transactions business was significant. Yesterday, Thales informed Hypercom it may abort the transaction, retain Hypercom’s $10 million deposit and seek other remedies if it did not sign the “Stock Purchase Agreement” by tomorrow. Hypercom’s share price rose sharply yesterday on the merger proposal. Ingenico yesterday offered to buy Hypercom for $332 million, a 52% premium over last week’s share price, as well as an approximate 83% premium over Hypercom’s current enterprise value. (CF Library 2/11/08)

Details

Citi Invests in ViVOtech

Citi has made an investment into contactless and NFC specialist ViVOtech. To-date ViVOtech has received strategic investments from First Data, NCR and Motorola. All three companies use ViVOtech technologies and systems to enhance their contactless/NFC offerings. The Company has more than 360,000 units deployed in 29 countries, ViVOtech products are used at movie theaters, QSR, casual dining establishments, c-stores, gas stations, drug stores, grocery stores, buses, taxicabs, kiosks and vending machines, enabling a wide variety of businesses to accept contactless/NFC payments and promotions.

Details

Moodys’Issues Negative Credit Card Outlook

Moody’s Investors Service has issued a “Negative Outlook” for the U.S. credit card sector due to rising charge-offs. However, there was no immediate rating implications for credit card asset-backed securities. Moody’s expects other measures of credit card performance such as repayment levels and average yields to remain strong. Moody’s also notes that charge-off rates — at just under 5.0% in November, the latest month available-are still below their historic average of about 5.5%. The average yield on credit cards for the credit card companies has been stable-to-improving despite lowered interest rates, thanks to risk-based re-pricing, the discretion that many card issuers have to change rates, and also the increase in collected late fees as more borrowers are delinquent. In 2007, U.S. credit card ABS issuance volume reached a record $94.6 billion, the third consecutive year of increase.

Details

Online Card Processor Grows 27% in 2007

Online payment processor Billeo reports 27% in growth for transactions during 2007. Billeo users increased their reliance on the service, making $1,350 in transactions per month up 27% compared to 2006, making payments at more than 12,000 different online merchants and billing companies. These include utility companies, mobile phone providers, property management and mortgage companies. Billeo made important enhancements to its suite of online payment products consisting of its Bill Pay Assistant, Shopping Assistant, and Password Assistant. The company also introduced the Billeo Shopping Assistant over the summer to help consumers manage and track online purchases and has added a feature that automatically saves all online payment confirmation pages, extremely popular with Billeo users. Billeo Biller Directory has nearly 6,000 billing companies across 26 categories, including utility, cable and credit card companies — the largest Biller Directory available.

Details

SUNCORP & CITIBANK

Valued at nearly A$230 million, Suncorp has sold its credit card
division to Citibank for undisclosed terms. Representatives from
Suncorp say this development will strengthen partnerships
with Citibank while adding nearly 100,000 cards to the latter’s
portfolio. Although the cards issued will maintain the Suncorp
brand, Citibank is now responsible for operational risk, credit risk,
technology platforms, issuance, back office processing, and
portfolio management.

Details

Comperemedia Reports a Sharp Decline in Mailings

Mintel Comperemedia reports that lenders sent approximately 2.6 billion direct mail pieces during 2007, down from 30% sent to consumers in 2006. Mortgage mailings dropped by over 34% in 2007 as lenders sent just 1.7 million offers, decline from the 2.6 million sent in 2006. Direct mail campaigns for adjustable-rate mortgages declined by 72% from 2006 to 2007. In contrast, safer fixed-rate mortgage offers increased 14% between years. Home equity lenders cut back offers for home equity lines and loans by 21% in 2007.

Details

CREDIT CARD COMPARISON

According to a recent Office of Fair Trading (OFT) report, consumers are
not given suitable resources with which to make informed decisions when
comparing credit cards and features. In response, the organization is
recommending the Financial Services Authority (FSA) launches an
independent credit card price comparison website, the standardization of
terminology used in credit card product literature and improvements made
to consumer education regarding benefits of shopping around for a card.
The OFT, however, does not place blame entirely on the lack of resources,
rather, holds the ultimate decision is in the hands of the
consumers and it
is up to them to conduct some research of their own. Supporting this, figures
shows 68% of card holders did not shop around before selecting their
current card. Furthermore, the APACS organization, with interest in how
consumers spend cash, on payment cards and other means of transactions,
is offering its full support to the OFT proposal in the hopes it will
convince
consumers to make more informed decisions. Additionally, APACS will
be working with the OFT and FSA to ensure these recommendations come
to fruition.

Details