The Office of Thrift Supervision announced Friday that it closed the Atlanta-based $2.5 billion NetBank and appointed the FDIC as receiver. NetBank sustained significant losses in 2006 primarily due to early payment defaults on loans sold, weak underwriting, poor documentation, a lack of proper controls, and failed business strategies. However, ING DIRECT agreed to acquire $1.4 billion in deposits and 104,000 new customers of Netbank for $14 million. Since its inception in 2000, more than 5 million Americans have their savings with ING DIRECT, building the bank to $57 billion in deposits, $23 billion in mortgage loans and $75 billion in assets.Details
Experian Consumer Direct has launched “FamilySecure.com” to help parents and guardians monitor for identity theft that may be affecting them and their children. Through the Web site, parents and guardians can enroll themselves and their children in a comprehensive credit monitoring product that alerts them of key changes in their credit file and their children’s that could be a sign of identity theft. Parents and guardians are notified of any credit inquiries, open accounts or public records such as bankruptcies, tax liens or monetary judgments associated with them or their child’s identity. If a match is found, the parent or guardian is alerted via e-mail and information is provided regarding how to take corrective action if identity theft has occurred. If a parent, guardian or child becomes a victim of identity theft while the parent or guardian is using the credit monitoring product and fraud resolution service provided by Experian Consumer Direct through “FamilySecure.com”, Experian Consumer Direct will reimburse certain identity theft expenses up to $2 million in accordance with the terms of the guarantee. Experian Consumer Direct is part of Experian Interactive and a provider of online credit reports, scores and monitoring products delivered directly to consumers.Details
First Data has signed processing agreements with Kazkommertsbank
subsidiary, Moskommertsbank. This will allow the bank to focus on the
development of its MasterCard portfolio and payment card business, a
significant source of the bank’s revenue. For the bank, First Data will
oversee operational and technological aspects of the bank’s credit card
division and provide issuer and acquirer processing. This will cut back on
the division’s operational costs. First Data operates in 38 countries,
over 5 million merchant locations and 1,900 card issuers.
Moskommertsbank is one of top 3 leaders in real estate mortgage holders
in Russia with loan volumes above $1 billion for 1Q07, has 7 branches in
Moscow, 3 in St.-Petersburg and a branch in Volgograd, Kaliningrad,
Novosibirsk, Chelyabinsk, Nizhny Novgorod, and Perm.
According to the British Banker’s Association, credit card borrowing
fell GBP 100 million while personal loans and overdrafts fell GBP 300 million in
conjunction with a gross mortgage lending increase of a mere 1% for
the month of August, 2007. These statistics are part of an overall decline
in consumer borrowing in the UK. This cyclical trend is similar to findings
for August of 2006 during which mortgage purchase approvals were
down 14% by number and 7% by value. These mortgage lending rates
were also reflected in the consumer credit realm.
The “Groupement des Cartes Bancaires” has approved the GALTT’s
“KeyControl” in response to the difficulty of managing frequently
renewing passwords on the VISUCARD platform. With the platforms
often changing and renewing passwords, an EMV feature to insure
against fraud, personalization errors become increasingly common.
The “KeyControl” control host verifies personalization data on payment
cards and is the only validation tool qualified by the “Groupement
des Cartes Bancaires” for use with VISUCARD. GALITT payment
systems has more than 20 years in e-payments and covers the
transaction cycle from end-to-end with marketing and technical solutions.
Cardpoint and alphyra have agreed on terms for a merger. The parent company
will operate under the name of “Payzone” and will allow the companies
to collaborate on the creation of a new European consumer payments
and cash distribution group. Terms of the merger stipulate that Payzone
will acquire shares of both Cardpoint and alphyra to be 59.05% owned
by alphyra Shareholders, 40.95% by Cardpoint Shareholders and
Payzone is to be led by a board drawn from both company administrations.
Furthermore, alphyra’s acquisition will be conducted
according to a sale-and-purchase agreement between Payzone and the
alphyra Vendors, the Cardpoint acquisition is to be conducted according
to a “Scheme of Arrangement” between Cardpoint and Cardpoint
Shareholders, and Payzone shares will be traded on the main market of the
London Stock Exchange at such time as the Directors deem to be best for
the Company and its Shareholders. alphyra has operations in 20 countries
and processes over 400 million transactions annually with a total value of
over 12 billion Euro through a payzone network of over 150,000 retail
Everlink electronic payments service has appointed Mark Ripplinger as
President and Chief Operating Officer to oversee company operations
in client support, product strategy, and sales. With 28 years of business
experience, Ripplinger was previously vice president of technology and
chief information officer (CIO) for the Canadian Payments Association
(CPA) following his time as the senior vice president for technology and
CIO at ATB Financial, VP/CIO at Crown Life and vice president of
systems for Co-operators, in that order. Ripplinger’s advance education
includes a bachelor of administration degree from the University of Regina
Wincor Nixdorf will be providing METRO Group’s “Cash & Carry”
checkout stations with 6500 point-of-sale systems and service
in 28 countries. This decision was made based on the solutions’
international versatility and the need for the standardization of
METRO’s hardware/software. The standardization will rationalize
operations and, subsequently, minimize expense. Over 35 companies
have implemented TP.net software over the past 3 years which has
been oriented to the principles of modularity and standardization.
QuIC Financial Technologies has launched its “QuIC Bridge” allowing
direct user access for risk management. The solution also streamlines
integration and model validation with QuIC Engine and work-flow
management through the application of the QuIC Simulation Framework.
The new “Bridge” solution circumvents the need to go through model
validation and the costs of implementing a high-risk project. The QuIC
product suite provides customizable flexibility and scalability on pricing
and risk analysis for in-house, partner and third-party applications.
Reflecting the company’s confidence in the Taiwan card market, American
Express has launched a gold card with EVA Airways. This co-branded
launch is targeting upper class consumers, a population segment that has
demonstrated sustained purchasing power. The card is being launched with
the country’s second largest air carrier despite recent changes for card
applications in the face of unsecured consumer lending problems. As a result
of the more stringent guidelines, local banks reported a lack of
and profitability with their card programs. Figures show that from January
2007 until August 2007, the credit card revolving balance totaled NT$2.53
trillion (US$77.7 billion), down 28.1% from the same period last year.
However, total credit payments amounted to NT$944.5 billion, an increase
1.85% last year.
The S1 division, Postilion bank software, will be jointly marketing its
integrated banking and payments solution in Brazil with VAS Consultoria
Empresarial (VAS). Postilion’s solutions will offer self-service banking
payment to Brazil’s banking customers using mobile devices as real-time
payment channels. This partnership expands the Postilion global network
to more than 20 resellers. VAS financial sector technology supports the
Postilion solutions in Brazil in addition to its presence in over 50 other
countries with offices on 5 continents. Postilion self-service financial
solutions include transactions for prepay, Internet access points, ATMs,
POS terminals, and phones with multi-channel,open system architecture.
Vijaya Bank is hoping to expand its credit card operations with a strategic
partner on a possible joint venture. Plans are tentative at this point,
is considering appointing an adviser for the project and is open to
These plans have been announced at a time that the Indian credit card
is catching up with debit cards. It is projected that over the next 5
credit card market will grow by 40%. Currently, about 65,000 Vijaya Bank
credit cards are active, 45,000 of which are issued by VISA , and 2.9 lakh
debit cards are active, all of which are issued by VISA.