Bank Plus Update

Los Angeles-based Bank Plus continues to deal with the fallout of its sub-prime credit card ventures. Total credit card portfolio delinquencies were 20.2% at May 31, 1999 compared to 16.8% at March 31, 1999. At May 31 total outstanding credit card balances were $291.9 million, a net decrease of $18.7 million from the March 31 balances. The delinquency rates for Bank Plus’ portfolio breaks out as follows: 6.4% for 30-59 days; 4.5% for 60-89 days; 3.2% for 90-119 days; 3.0% for 120-149 days; and 3.1% for 150+ days. For more information on Bank Plus visit CardData ([][1]).



Mondex Korea

Mondex is coming to South Korea. MasterCard Korea, Kookmin Bank, Korea Credit Communication Inc., the Amdahl Corp., KDB Capital and TeraSource Venture Capital will form the new franchise, Mondex Korea. Korea Telecom also announced last week a strategic alliance with Mondex Korea, whereby Korea Telecom plans to make the Korean telecoms infrastructure Mondex-compatible, including around one million public payphones. South Korea is currently Asia’s second largest card market, with MasterCard dominates. Mondex is globally interoperable and now is under development in 60 countries including 18 territories in Asia Pacific. The first Mondex smartcards in Korea will be launched at COEX, a high-tech intelligent building complex in Samsung-dong, Kangnam-ku. The hybrid smart card will provide multiple applications such as Mondex, MasterCard credit, Maestro debit and access entry, and a loyalty program. COEX is planning to go live with the cards as early as next year and it will be used by 50,000 employees as well as 200,000 visitors a day to the trade centre. Over 35,000 Mondex cards are to be issued to Hanyang University students later this year and will be used as student ID and for purchases at the campus’ cafeteria, bookstores and other stores off campus.


Lockhart Promoted

AT&T announced yesterday the promotion of H. Eugene (Gene) Lockhart, 49, currently executive vice president and the company’s chief marketing officer, to the new position of president, AT&T Consumer Services.

Lockhart replaces Daniel H. Schulman, who is leaving AT&T to become president and COO of

“Gene has an impressive record of marketing to demanding, savvy consumers in highly competitive environments,” said John D. Zeglis, president of AT&T. “His talent and experience make him the ideal choice for president of AT&T Consumer Services, with responsibility for the development, marketing, and after-sale care of segment-specific service bundles.” Lockhart will report to Zeglis.

Prior to joining AT&T in January 1999, Lockhart was president of Bank America Corporation’s Global Retail Bank, where he was responsible for the consumer, commercial, and small business banking services delivered through more than 3,000 branches around the world. Prior to joining BankAmerica, he was president and CEO of MasterCard International and CEO of Midland Bank PLC, where he was responsible for all consumer and corporate banking services in the United Kingdom.

Lockhart is on the Board of Directors of RJR Nabisco Holdings, the First Republic Bank, IMS Health, Inc., and the Academy of Arts in London. He is also a trustee of the Alumni Board of the University of Virginia, where he received his MBA and B.S. degrees.

He lives with his wife and four children in Greenwich, Conn.


PMG & BancWare Team

PMG Systems, Inc., provider of profitability and activity-based costing software, and BancWare, Inc., provider of asset-liability and transfer pricing software, announced Thursday that they have formed an alliance to jointly market their products and services. Under the terms of the agreement, the two companies will conduct joint marketing and sales activities that leverage the strengths and experience of both sales and marketing teams to maximize sales to financial institutions worldwide.

“Increasingly, banks are looking for comprehensive, end-to-end solutions for delivering management information across the entire institution,” said Frank Donny, senior vice president of marketing at PMG Systems. “By leveraging BancWare’s premier product line and expertise, our solutions will be complemented by BancWare’s robust Insight funds transfer pricing software. In addition, we can now extend our offering to include asset-liability management and other critical solution areas.”

“Matt Mandalinci, president of BancWare commented, “We are very pleased to be working with PMG Systems. This deal represents the “best of breed” solution where BancWare provides the Funds Transfer Pricing and PMG Systems provides the profitability products.”

The products covered under the agreement include BancWare’s Insight funds transfer pricing software, Convergence asset-liability management software and ViewPoint, an advanced analytical solution for complex scenario modeling, and risk management software. PMG Systems’ full product line will be co-marketed by the two companies, including CPMS (Customer Profitability Management System), IPMS (Integrated Profit Management System), PWS (Profitability Workstation), CMW (Cost Management Workstation), Customer Profitability Workbench (CPW) and Planning and Budgeting Workbench (PBW).

About PMG Systems

Based in West Chester, Pennsylvania, PMG Systems offers leading-edge profitability measurement and activity-based costing software for financial institutions worldwide. Its principal products are the Customer Profitability Management System, Integrated Profit Management System, Cost Management Workstation, and Profitability Workstation. Leading banks licensing PMG software include First Union, PNC Bank, Canadian Imperial Bank of Commerce (CIBC), Wilmington Trust Company, Bank of Ireland, and Thomas Cook Financial in the United Kingdom. For more information, visit PMG Systems on the Web at [][1].

About BancWare Inc.

Headquartered in Boston, MA, BancWare serves more than 180 clients in over 14 countries worldwide. BancWare’s fully integrated and scalable solutions support data collection, transformation, and management; asset/liability management; comprehensive budgeting and planning; and advanced financial analysis, including term structure modeling and option adjusted value at risk. Founded in 1981, BancWare is an operating unit of SunGuard Data Systems Inc. SunGuard’s business is computer service and application software. SunGuard is the only large specialized provider of proprietary investment support systems, and is the pioneer and a leading provider of comprehensive disaster recovery systems. SunGuard Data Systems Inc. common stock is reported on the New York Stock Exchange under the symbol SDS.



Business AAdvantage

Citibank and American Airlines launched a business card version of its ‘Citibank AAdvantage’ bank credit card Thursday. The ‘Citibank Platinum Select AAdvantage Business Card’ offers one ‘American AAdvantage’ mile for every dollar spent, up to 150,000 miles per calendar year. Awards earned on purchases made by employees accumulate toward the business owner’s ‘American AAdvantage’ frequent flyer account. Cardholders also qualify for discounts on computer equipment, automobile rentals and hotel stays. Other special benefits include ‘Reduced Mileage Awards’ and the opportunity to earn double miles for stays at Wyndham Hotels. The new ‘Citibank Platinum Select AAdvantage Business Card’ carries a $75 annual fee, plus $25 for each additional card, and an APR of Prime + 9.9%. The ‘AAdvantage’ frequent flyer program has more than 35 million members. It is estimated that Citibank has more than two million ‘AAdvantage’ bank credit card accounts. U.S. Bank also offers a business card version of its ‘Northwest Airlines WorldPerks’ bank credit card. According to CardTrak’s ‘Business Card Survey’, the ‘U.S. Bank WorldPerks Business VISA’ has no cap on the amount of mileage that may earned. U.S. Bank charges $75 per card and an APR of Prime +9.9%.



Germany’s ZeitControl cardsystems, developer of the world’s first smart card that can be programmed in BASIC, said this morning that its product, by virtue of price, is positioned best to meet the competitive challenges currently in the chip card marketplace. ZeitControl says ‘Java’ or ‘MultOS’ cards require larger chips to operate, therefore driving the smart card’s price tag to between $10 and $15 per unit. The ‘BasicCard’ costs $2 to $5 per unit. The ‘BasicCard’ is available in two versions: the ‘Compact BasicCard’ and the ‘Enhanced BasicCard’. Both versions contain 256 bytes of RAM, plus user-programmable EEPROM: 1 kilobyte in the ‘Compact BasicCard’, and 8 kilobytes in the ‘Enhanced BasicCard’. The company, in partnership with Philips Semiconductor, is now developing a ‘Mifare Pro BasicCard’ which offers contact and contactless options in one chip.


CFS Deal

Troubled Commercial Financial Services of Tulsa confirmed Thursday that its proposed sale to Atlanta-based Worldwide Asset Management has been delayed. Yesterday, Worldwide substantially lowered its price and other terms following its three week due diligence phase. Worldwide made its proposal May 27 to purchase certain assets of CFS and enter into new servicing agreements for the trust accounts that CFS services. CFS, under bankruptcy protection, said yesterday the unsecured creditors committee and the asset-backed security holders are in the process of reviewing Worldwide’s new proposal and the company has asked the Court to delay the hearing on the sale procedure motion until June 29.


Mondex Canada

The first transaction with the Desjardins ‘Mondex Electronic Cash Card’ in Sherbrooke, Quebec was made yesterday. More than 500 local merchants are participating in the e-cash card program. The ‘Desjardins Mondex Electronic Cash Card’ is the first time in Canada it will be possible for caisse Desjardins members to obtain a hybrid card which combines the functions of a debit and electronic cash card. Debit transactions are performed in the usual manner by a magnetic stripe on the back of the card and the electronic cash card function is performed by the chip on the front side. The ‘Desjardins Mondex Electronic Cash Card’ service will be gradually available from now until the end of the summer in the Sherbrooke area which includes the cities of Sherbrooke, Fleurimont, Rock Forest, Saint-Elie-d’Orford, Lennoxville and Ascot. Plans for the Quebec-wide use of the new card are still undetermined.


Platinum Delta

American Express and Delta Air Lines launched the ‘Platinum Delta SkyMiles Credit Card from American Express’ Thursday. The ‘Platinum Delta SkyMiles Credit Card’ has an annual fee of $135. The fee is $80 for cardholders who also carry an ‘American Express Personal Card’, ‘Gold Card’ or ‘Platinum Card’ account issued in their names. The interest rate for purchases is Prime + 9.99%. Benefits of the program include: free companion certificate each year upon renewal; 10,000 bonus ‘SkyMiles’ plus 5,000 base miles for new cardholders; 10,000 extra base miles if card volume exceeds $25,000 annually; and double miles for every Delta purchase.


MC Taste of Times Square

Taste of Times Square(TOTS), one of New York City’s great outdoor food festivals showcasing area restaurants, will return to Times Square on Monday, June 28, 1998. Held on West 46th Street between Broadway and Ninth Avenue including the historic Restaurant Row, the event is a wonderful evening of fine food and entertainment beginning at 5:00 p.m. The event is organized by the Times Square Business Improvement District (the BID) and presented by MasterCard International. Korbel Chardonnay Champagne is the official sparkling wine and Jammin’ 105 is the official radio station.

The event features more than three dozen of Times Square’s great restaurants. Each restaurant provides “tastes” of their signature dishes which attendees can have in exchange for official Taste of Times Square tickets. In addition, more than a half dozen breweries will serve their featured beers.

Throughout the festival and at several bandstands guests are treated to dozens of top-notch local entertainment and classic New York street musicians. Featured this year will be a swing tent with music and dancing all evening.

There is no admission to the street festival, however TOTS coupons valued at $1 each can be purchased at the event and are redeemable for “tastes” and beverages at each of the booths. Come early for the best selection of food. Approximately 12,000 people attended TOTS in 1998.

“For the third consecutive year, MasterCard is proud to support New York City’s finest restaurants by presenting Taste of Times Square,” said Fred P. Gore, senior vice president, U.S. Acceptance Group, MasterCard International. “As the preferred payment brand, MasterCard is committed to supporting the great restaurants in the New York City community. With more than 16.2 million locations, no card is accepted in more places and by more merchants than the MasterCard card — including New York City’s Taste of Times Square.”

“Taste of Times Square is a wonderful showcase for dozens of the neighborhood’s great restaurants,” said Brendan Sexton, President of the Times Square BID. “There are more than 250 eateries in Times Square serving everything from haute cuisine to hamburgers. Taste of Times Square gives visitors, residents and employees a unique opportunity to sample many of these great restaurants in one location at one time.”

Since its creation seven years ago, the Times Square BID has worked aggressively to make the neighborhood cleaner, safer and friendlier for all who visit, live and work in Times Square. Supported by the area’s 400 property owners, the BID provides a full range of supplemental services, promotion for the area, advocacy for the interests of the local businesses, information to enhance economic development and public improvements. Learn more about the BID and Times Square at [][1].

MasterCard International has the most comprehensive portfolio of payment brands in the world. With 23,000 member financial institutions, serving consumers in 220 countries and territories, MasterCard is the industry leader in quality and innovation. Nearly 700 million MasterCard, Maestro, Cirrus and Mondex cards are in circulation today. With more than 16.2 million locations, no card is accepted in more places and by more merchants than the MasterCard Card. In 1998, gross dollar volume exceeded $650 billion. MasterCard can be reached through its World Wide Web site at [][2].



MBNA and Red Sox Renew

MBNA America Bank, N.A., announced Thursday that the Boston Red Sox are extending their endorsement of MBNA’s credit card services.

MBNA now has the endorsement of 17 Major League Baseball teams and is the Official Credit Card Issuer of Major League Baseball. Nearly 900,000 MBNA customers carry a credit card endorsed by Major League Baseball or one of its teams.

The extension represents an important endorsement to MBNA’s Sports Sector, which remains one of the company’s fastest growing areas with more than 550 sports organizations endorsing MBNA products. These endorsements include Major League Baseball, the National Football League, the National Hockey League, and the National Association of Stock Car Racing (NASCAR).

MBNA Corporation (NYSE: KRB), a bank holding company and parent of MBNA America, N.A., a national bank, has $62.1 billion in managed loans. MBNA, the largest independent credit card lender in the world, also provides retail deposit, consumer loan, and insurance products.