Chase Ranks #1 in Cross-Selling Campaigns

A new report found that Chase ranked number one among the top five cross-selling direct mail list for both mortgage and banking product categories. Chicago-based Comperemedia’s data shows that the top five mortgage companies heavily using direct mail for cross-selling also include Capital One Bank, MBNA, Citibank and Wells Fargo. For banking, Bank of America, Capital One Bank, Wachovia/First Union and Union Bank of California join Chase in the top five. Compremedia says Wells Fargo has credited part of their current revenue success to cross-selling activities. A staggering 80% of their recent growth stemmed from selling more products to existing customers.

Details

Providian’s Monthly Metrics Strong Again

Providian’s managed charge-off ratio has plunged more than 450 basis points and its managed delinquency rate has dropped 160 basis points compared to one-year ago. During June, Providian’s charge-off rate dipped below 8% and delinquency declined for the eighth consecutive month. Providian’s managed charge-off ratio now stands at 7.97%, compared to 8.47% on May. One-year ago managed charge-offs were 12.53%. Delinquency, on a managed basis, dropped to 4.84% in June from 4.86% in the prior month and 6.44% for June 2004. Providian recently announced plans to merge with Seattle-based Washington Mutual for $6.45 billion. The issuer reported last week that managed loans outstanding as of June 30th, were $18.6 billion. For complete details on Providian’s latest performance, visit CardData ([www.carddata.com][1]). (CF Library 6/6/05)

PROVIDIAN MONTHLY MANAGED METRICS
Month Charge-Offs Delinquency
Jan 05 8.54% 5.61%
Feb 05 8.12% 5.50%
Mar 05 8.62% 5.16%
Apr 05 8.49% 4.96%
May 05 8.47% 4.86%
Jun 05 7.97% 4.84%
Source: CardData(R) (www.carddata.com)

[1]: http://www.carddata.com

Details

BofA Leads Top 5 Issuers in Organic Growth

Among the top five U.S. issuers, which represent more than $436 billion in credit card outstandings during the second quarter, Bank of America is the only issuer posting solid organic growth in both outstandings and volume. BofA reported a 2.4% sequential gain in outstandings and a 14.0% sequential increase in volume during 2Q/05. Chase posted a 3.2% gain in outstandings but volume growth, quarter-to-quarter, was a lackluster 7.5%. MBNA posted the largest gain in sequential volume growth of 15.6%, but, outstandings growth was less than 1%, according to CardData ([www.carddata.com][1]).

TOP FIVE OUTSTANDINGS/VOLUME
(Growth Over Prior Quarter)
Outstandings Volume
Chase: +3.2% +7.5%
Citi: -1.1% +13.0%
MBNA: +0.5% +15.6%
BofA: +2.4% +14.0%
Disc: NC + 4.1%
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Details

Australia Wants to Benchmark Interchange

The Australian Payments System Board is proposing to establish and publish a common benchmark for interchange fees for the Bankcard, MasterCard and VISA credit card programs, according to last week’s issue of CardFlash International. The proposal replaces an earlier proposal to publish program-specific benchmarks. The standard proposes that the common benchmark be based on a weighted average of the eligible costs of issuers in the Bankcard, MasterCard and VISA programs. The new common benchmark would become effective on November 1, 2006. Meanwhile, BPAY has now agreed to publish its interchange fees and will be available on its Web site after September 1st. BPAY was unwilling to publish its fees after a request was made in June.

Details

Xtremo ATM Certified by RBS Lynk

NexTran Industries announced that its next-generation ATM, the “Xtremo,” has been certified RBS Lynk. The Xtremo features include a large eight-inch full color screen, can hold up to 2000 banknotes and is capable of performing such non-traditional transactions as cell-phone top-offs, sale of phone cards or postage or wiring money through Western Union. The NexTran Group LLC is a diversified portfolio of affiliate companies covering the financial services, security and Internet market segments.

Details

US Dataworks Tops 1B Clearingworks Transactions

Houston-based US Dataworks has exceeded the one billion transaction threshold using its “Clearingworks” payment platform. Clearingworks processes Accounts Receivable Conversion (ARC) transactions, image exchange/substitute checks (Check 21) transactions for credit card companies and financial institutions as well as the federal government. US Dataworks is a developer of payment processing solutions, focused on merchants, billers, Federal, State and local governments and the Financial Services market.

Details

BofA Launches the Make-A-Wish VISA

Bank of America and Make-A-Wish Foundation launched a VISA credit card this week that generates 65 basis points for each purchase and $2 for each account activation to the charity. The Make-A-Wish Visa card will give consumers a way to use their everyday spending to help the Foundation grant wishes to the thousands of children facing life-threatening medical conditions. There is no cap on the dollar amount that is donated to the Make-A-Wish Foundation. Bank of America is one of the world’s largest financial institutions, serving 33 million consumer relationships. The Make-A-Wish Foundation grants the wishes of children with life-threatening medical conditions with more than 11,700 wishes a year and 144,000 wishes granted worldwide since 1980.

Details

CHOOSINGANDUSING.COM

The UK payments association has launched a new Web site in an attempt
to offer impartial credit card advice directly to consumers. APACS says
the new online service is committed to providing a full breadth of
information on the nearly 1,500 credit card products currently available
in the UK. The site also provides advice on
managing money and reminds anyone who gets themselves into financial
difficulties, or struggling with repayments, that help and support is
available. As well as providing a one-stop site to answer basic questions
about credit cards, the site also includes more detailed information for
those wanting a greater understanding. The site is located at www.choosingandusing.com.

Details

AmEx/JetBlue Card Rolls Down the Runway

American Express and JetBlue Airways rolled-out their new cobranded credit card this week, previously announced in June, which awards points that are automatically transferred to the cardholder’s “TrueBlue” frequent flier account. Cardmembers earn award dollars on virtually every dollar they spend on the card and double award dollars on JetBlue flight purchases and other select categories, including restaurants, sporting events and movie theater purchases. JetBlue currently operates 316 flights a day and serves 32 destinations in 13 states, Puerto Rico, the Dominican Republic and The Bahamas.

Details

InfiCorp Buys CU Cards via AssetExchange

Oregon-based AssetExchange has assisted two credit unions with the sales of their credit card portfolios to InfiCorp including First Financial CU of Albuquerque and Helena Community CU of Montana. AssetExchange is a leading credit card advisory and brokerage firm for financial institutions. Services include credit card portfolio brokerage, performance assessments, and market valuations.

Details

MetaBank to Issue Travelex Prepaid Cards

South Dakota-based MetaBank has inked a deal to be the issuing bank for select Travelex prepaid card programs that will be offered through Travelex’s 20,000 banks and credit unions clients. Meta Payment Systems, a division of MetaBank, offers card issuing and program support to banks, processors, and third-party distributors seeking to develop, market and manage stored-value cards. Travelex is the world’s largest foreign exchange specialist, with offices in 35 countries, nearly 700 retail branches and 16,000 commercial customers.

Details