Once again MBNA’s managed loan losses for 1998 logged-in at 4.31%, well below the industry average of 5.52%. Delinquency on total managed loans was 4.62% at Dec. 31 and the managed net interest margin for the year was 7.47%. For the year, MBNA signed-up 475 new affinity programs and added 11.3 million new cardholders representing 9.3 million new accounts. MBNA also reported that net income for the fourth quarter of 1998 rose to $238.3 million, an increase of 30.4%, compared with $188.3 million for the fourth quarter of 1997. During the fourth quarter, MBNA signed a letter of intent with American International Group to underwrite automobile, homeowners, and personal umbrella insurance products for MBNA Customers. Also during the fourth quarter MBNA acquired credit card portfolios from Union Planters Corporation, Household Card Services, Inc., and European American Bank. At year-end MBNA announced its acquisition the PNC Bank portfolio.Details
Japan’s postal savings system and seven financial institutions officially launched the ‘J-Debit’ card service Monday.The seven financial institutions are Fuji Bank, Dai-Ichi Kangyo Bank, Sanwa Bank, Ogaki Kyoritsu Bank, Towa Bank, Tokyo Sowa Bank and Johnan Shinkin Bank. The Japan Debit Card Promotion Association said yesterday the service is initially available at some 10,000 retail outlets run by eight companies. The eight companies include Seibu Department Stores Ltd., JTB Inc., Lawson Inc., Cosmo Oil Co., Kinki Nippon Tourist Co. and Daiwa Securities Co. By year-end more than 400 financial institutions and more than 100 retail companies are expected to join the new program.Details
Free Internet banking has been introduced this month to 247,000 members and 1 million potential Northwest members of Boeing Employees’ Credit Union (BECU). BECU is the largest credit union in Washington and the fourth largest in the country.
Web Access, BECU’s new Internet banking service, allows members to apply for loans, make loan payments, transfer funds and review their accounts. Web Access offers these and other financial services 24 hours a day, 7 days a week at no charge.
“The initial response to Web Access has been terrific,” said Steve Brinton, director of BECU Marketing Communications. “Thousands of our members have Internet access, and want to do their banking from home with a service that will provide them ease and security. Web Access fulfills these needs,” he said.
Brinton also said that the Credit Union continually looks for new ways to make banking possible for members without having to visit BECU’s facilities, another need that Web Access serves.
BECU’s financial centers are located at 12770 Gateway Drive in Tukwila, and 11127 Evergreen Way South in Everett. The Credit Union can be contacted by dialing 206-439-5700 for local calls, or 800-233-2328 for calls outside Seattle. BECU serves current and eligible former Boeing employees, and their families.Details
Concerns over the weakening capitalization of MBNA, due to its upcoming acquisition of the PNC card portfolio, were put to rest as MBNA raised $1.2 billion yesterday. MBNA Corp. announced Monday that it sold 50 million shares of newly issued common stock to Goldman, Sachs & Co. Proceeds from the transaction, which will be counted in the corporation’s Tier 1 capital, will be used primarily to fund the corporation’s previously announced purchase of the credit card business of PNC Bank. The sale is slated to close this Thursday, and will increase MBNA’s common shares outstanding to 801.8 million shares. Fitch IBCA noted yesterday that on a pro-forma basis, MBNA capital ratios will be significantly enhanced. Without any other significant acquisitions, Fitch says internal capital generation is expected to be more than sufficient to maintain capital ratios at their pro-forma levels. If this were to occur, Fitch says ratings could be favorably impacted in the future.Details
IDRC (International Data Response Corporation), announced that it has made two strategic appointments to its business development team. IDRC recently appointed Tim Ferguson and Mitch Pepper as Business Development Managers for ProMark One, an IDRC subsidiary within the IDRC USA Outbound division.
Ferguson comes to IDRC with 12 years of experience in sales and marketing within the financial services industry. Most recently, he held the position of National Sales Director Western Region for First Data Solutionâs Consumer Credit Associates (now called Innovis) where he was responsible for the sales and marketing of an entire line of risk management and direct marketing products and services for the financial services industry. Prior to this, he spent 11 years with TransUnion Corporation, where he most recently served as Vice President of National Accounts. At TransUnion, he was responsible for sales and marketing of financial services-related products and services for large national accounts.
In his new role as business development manager, Ferguson will be responsible for new account development and maintenance primarily within the financial services industry. He will report to Lori Fentem, Senior Vice President of Sales & Marketing. Pepperâs experience level is equally impressive. Pepper comes to IDRC with 17 years experience in sales management, customer service and quality management.
Most recently, Pepper spent 10 years as the Sales Manager for Mail-Well Envelope Company in Phoenix and Los Angeles. There, he was responsible for the generation and maintenance of major national accounts and the management of the southwest sales force and customer service department. In addition to his sales management duties, he served as a corporate trainer for Mail-Well, facilitating the Carew sales training courses and the Philip Crosby Total Quality Management (TQM) courses. His education includes a BS degree in business administration from San Diego State University.
In his new role as Business Development Manager, Pepper will be responsible for new business development and maintenance, concentrating primarily on public utilities and membership services. He will also report to Ms. Fentem. One of the worldâs leading telemarketing and customer service outsourcing firms, IDRC specializes in providing inbound and outbound telephone and Internet based solutions that target businesses and consumers in a variety of industries, including telecommunications, financial services, and insurance, among others. Employing customized, state of the art computer and telephone based technologies in its operations; IDRCâs mission is to create value for our clients and opportunity for our people by providing customized call center solutions based on advanced telephony and Internet communications. IDRC currently employs more than 6,500 professionals, operates 3,500 workstations, and has 23 locations throughout the United States and Canada.
IDRC is currently divided into two geographic operating units that include IDRC USA and IDRC International. IDRC USA is further divided by specialization into IDRC USA Outbound and IDRC USA Inbound & Customer Care. ProMark One operates within the IDRC USA Outbound division and is based in Scottsdale, Ariz. This division specializes in providing large-scale outbound customer acquisition and telesales applications to a variety of industries.
Ferguson and Pepper are excellent additions to the IDRC USA team. We are pleased to have them on board to help us build a bigger and stronger company that will lead the industry into the new millenium.
The headquarters for IDRC USA are located at 7272 E. Indian School Rd., Suite 350, Scottsdale, Ariz. 85251. For more information, please contact Dawn Wahler at 800-933-0233 or 602-941-6229.Details
German car maker, Volkswagen, announced this week plans to launch credit cards, savings accounts, and other banking products this year in Britain. Four years ago the company set up a British financial services arm to offer business development loans to Volkswagen dealers and lease/purchase deals to car buyers. But Volkswagen is now set to go after other bank’s customers. A VW savings account is expected to be announced shortly followed by credit cards in late 1999 or early 2000. VW abandoned discussions with Barclaycard about launching a joint credit card four years ago.Details
Capital One Financial Corporation ranked 41 in Fortune’s second annual list of “100 Best Companies to Work for in America.” The Company was also the only Virginia-based company listed. Currently, Capital One employs more than 10,000 associates worldwide, from customer service to information technology to marketing and analysis.
“As one of the nation’s fastest growing companies, our number one business is to recruit and retain the best and brightest associates,” said Richard D. Fairbank, Chairman and Chief Executive Officer. “As an information-based business, our success depends on the innovation and flexibility of our associates. We built an environment where our associates are empowered to fulfill their potential.”
Nigel Morris, President and Chief Operating Officer added, “At Capital One, we have built a truly entrepreneurial culture. Through our innovative compensation and benefits programs, we’ve built a company of owners who are committed to creating value for the Company and our stockholders.”
Fortune collaborated with best-selling authors Robert Levering and Milton Moskowitz to compile the list, using methodology similar to that used for their books, The 100 Best Companies to Work for in America. To be eligible, a company had to be at least ten years old and have a minimum of 500 employees. Levering and Moskowitz, who have been tracking the best companies since 1981, searched their database of more than 1,000 companies and selected 295 companies as the most viable candidates for this list.
To be eligible, Capital One associates completed the Great Place to Work Index designed to evaluate trust in management, pride in work and camaraderie, along with the Hewitt People Practices Inventory, a 31-page questionnaire developed by Hewitt Associates, a management consultant firm.
“We listen to our associates,” said Dennis Liberson, Senior Vice President for Human Resources. “Twice a year we survey our associates to determine how we can best meet their needs. We already knew that our associates think Capital One is a great place to work — being named to the Fortune 100 list confirms we’re providing unique employment opportunities for the people who come to work at Capital One.”
Capital One prides itself for continuously innovating human resources practices to benefit associates. Among the programs that differentiate the Company from other employers are the associate selection process; a number of ongoing training and development courses; outstanding benefits, including three weeks vacation; and entrepreneurial compensation. Capital One is one of only 28 companies that made the list that offers stock options to all associates. Additionally, Capital One has created an innovative orientation program that assimilates new associates into the culture of the Company.
Capital One has operations in Richmond, Fredericksburg and Falls Church, Virginia; Dallas/Fort Worth, Texas; Tampa, Florida and London and Nottingham, United Kingdom. Headquartered in Falls Church, Virginia, Capital One Financial Corporation () is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One’s subsidiaries collectively had 14.9 million customers and $16.3 billion in managed loans outstanding as of September 30, 1998, and are among the largest providers of MasterCard and VISA credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 Index.Details
CA-based Epiphany, a Web-based ‘Enterprise Relationship Management’ solutions company, announced Monday a strategic relationship with VISA International. VISA and Epiphany will customize Epiphany’s ERM solutions expressively for the bankcard industry, optimizing financial institutions’ ability to enhance their bankcard customer relationships. In addition, VISA has been given a seat on Epiphany’s board of directors as part of the relationship agreement reached.Details
Diebold announced yesterday that it’s Canadian subsidiary, the Diebold Company of Canada Ltd., will begin to directly market ATMs and self- service solutions to Canadian financial institutions. Recently, IBM Canada had performed the role of self-service products distributor for Diebold. Last year, Diebold shipped more than 34,000 ATMs worldwide, including more than 2,200 in Canada.Details
Old Kent Merchant Services, a joint venture between First Data Merchant Services and Old Kent Bank, announced Monday a three-year agreement to begin marketing electronic payment solutions to SAM’S Club business members nationwide. The payment service, to be marketed as ‘SAM’S Club Payment Solutions’, will offer credit, debit, check and I-commerce payment solutions to millions of business members at all 451 SAM’S Club locations in the U.S. SAM’S and FDMS tested the program last year. SAM’S members will apply for the services via phone, email or the Internet.Details
America Online reported Monday its members spent $1.2 billion with online AOL retailers during the nearly six weeks of the 1998 holiday shopping season. The company says 1.25 million AOL members shopped online for the first time ever this holiday season. AOL says Thursday, Dec. 17 was the heaviest shopping day of the season as well as AOL’s best retail day ever, generating over $36 million in sales of consumer goods and travel-related services. By comparison the 1997 holiday shopping season marked the first time that purchases by AOL members resulted in the first-ever $1 million shopping day, with a series of $1 million days following in the weeks before Christmas. Meanwhile Media Metrix reported that toy and apparel sites experienced the most growth in unique visitors on a percentage basis during the four-week holiday shopping period (11/27-12/24) compared with the prior four week period (10/26-11/22), with 86% and 73% increases, respectively. The number of unique visitors to shopping sites increased 25% during the four-week period leading up to Christmas.Details
MasterCard announced last week it is expanding its ‘Platinum MasterCard Collection’, a portfolio of value added offers from prestigious brand partners in the areas of travel, retail, dining, sports and entertainment. The program includes options such as complimentary hotel room upgrades, access to fine dining experiences and special promotions tied to MasterCard’s sports sponsorships. Benefits include access to a preferred reservation system at Relais Gourmands restaurants and room upgrades and other values from global and regional lodging partners including Hyatt, Inter-Continental, Relais & Chateaux and Shangri-La Hotels. Additional partners participating in the collection program include Vail Resorts; Inter-Golf; and Sunsail, the world’s largest yacht charter company. The ‘Platinum MasterCard Collection’ program was first offered to MasterCard members earlier this year. The program currently has about 30 issuers in 15 geographic markets.Details