Hawaii TS2

Total System Services announced Thursday the signing of a long-term agreement to process Bank of Hawaii’s credit and debit card accounts.  Bank of Hawaii will convert from an in-house processing system to ‘TS2′ TSYS’ state-of-the-art, Year 2000-compliant cardholder system. On May 12, TSYS announced the signing of a multi-year contract to provide commercial, debit and cardholder processing services to First Hawaiian Bank, who will also convert to ‘TS2’.

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MC EVP to Speak at Financial Expo

The seventh annual Financial Technology Expo and World Conference (), the only business event specifically for banking, insurance and securities executives, will feature keynoters from some of the industry’s most prominent and successful innovators.  The event, expected to draw thousands of senior-level executives including CEOs, CIOs, CTOs, and CFOs, will take place, September 15-17, 1998, at the Jacob K. Javits Convention Center in New York City.

Michael R. Bloomberg, founder and chief executive officer, Bloomberg Financial Markets, and Jerry McElhatton, president and executive vice president, global technology and operations, MasterCard International, will deliver this year’s keynote addresses.  In addition, today’s top e-commerce executives will discuss the factors behind their firms’ achievements and the future competitive challenges they face in the keynote panel presentation.

“Technology drives the search for a competitive advantage in today’s financial services industry.  The keynote speakers and panelists have a profound understanding of both the global financial marketplace and the leading-edge technologies that help drive it,” says Frank Paige, Financial Technology Expo and World Conference show director.

Michael R. Bloomberg

Michael R. Bloomberg, founder and chief executive officer of Bloomberg Financial Markets, will deliver the opening keynote address on Tuesday, September 15, from 9:00 a.m. to 9:45 a.m. in the Javits Center’s Special Events Hall.  Bloomberg will offer his views on a wide range of critical issues, including convergence, globalization, non-traditional competition and information delivery.

Jerry McElhatton, president and executive vice president, global technology and operations, MasterCard International, will challenge attendees in a keynote speech on Wednesday, September 16, from 9:00 a.m. to 9:45 a.m. in the Special Events Hall.  McElhatton will discuss how technology is leading the payments industry into the 21st century, the future of money, e-commerce and the impact of the Internet.

Keynote Panel Presentation

A panel of visionary e-commerce executives will discuss their current challenges and what the models of success will be in the future, on Thursday, September 17, from 8:30 a.m. to 9:45 a.m.  The panel, “Defining Success on the Internet: Today’s Electronic Commerce Pioneers and Tomorrow’s Competitors,” will feature Michael Wheeler, president, CNBC Dow Jones Business Video; Douglas Boake, senior vice president, PointCast; Paul T. Shiels, president and chief executive officer, Medscape; Brooks Fisher, vice president and general manager, consumer Internet division, Intuit; and Teri Felix, vice president, Charles Schwab & Co.

Conference Program

The Financial Technology Expo and World Conference will educate top decision-makers in banking, insurance and securities on ways to maximize their firms technology investments.  The conference program, “Markets Without Limits: Transcending Global Boundaries,” provides four tracks: banking, securities, insurance and operations.  Executives participating in the conference represent some of the financial services industry’s top companies, including Salomon Smith Barney, Banc One, Prudential, Lehman Brothers, Travelers, Merrill Lynch and Chubb.  IBM, Informix Software, KPMG Peat Marwick, Nortel, Cisco Systems, RCG Information Technology and PeopleSoft are sponsors of the conference program.

Exhibitors

Over 250 exhibitors will display the latest financial technology products, including groupware, networks, Internet/e-commerce, data warehousing, enterprise application systems, computer telephony integration and straight- through-processing.  Participating companies include Microsoft, NEC, Nortel, Chordiant, Allenbrook, Bloomberg, Thompson Financial, Lexmark, Xerox, US Web, Lamda Data Systems, CheckFree, TenFold, Mobius, Xpedite, Arial Systems, OMR, BLAST and Blitz Systems.

Special Events

Trading in the Millennium, the Trading Floor of the Future, a live and interactive trading floor designed by Interport, will allow attendees to make trades and will showcase innovative technologies that will improve trading in the 21st century.  The Insurance Call Center, sponsored and designed by Chordiant Software, will address the enterprise-wide view of customer relations and the integration of customer and business processes.  The Banking Call Center, sponsored by Nortel, will provide banking solutions to simplify and improve customer relationships.

Management Pavilions

The Risk Management Pavilion will showcase state-of-the-art risk management technologies including: market- and credit-risk architectures and enterprisewide risk management.  The Portfolio Management Pavilion will provide timely information on how to handle the Euro, Year 2000, portfolio pricing, FIX compliance and SWIFT messaging.

Vendor Workshops

These hands-on workshops will provide demonstrations and information about today’s hottest financial technologies and offer practical insight into their applications.  The vendor workshops will take place on Thursday, September 17, at 10:00 a.m. Forte Software, Inc. will sponsor one of the vendor workshop sessions.

Sponsors

The Financial Technology Expo and World Conference is sponsored by Bank Systems + Technology, Insurance & Technology, Wall Street & Technology and Financial Technology International.

The Financial Technology Expo and World Conference is managed and produced by Miller Freeman, Inc., a wholly owned subsidiary of United News & Media plc. Miller Freeman is the world’s largest trade show producer and a leading publisher of technical and industry-specific magazines.  Miller Freeman produces more than 370 events, including PC EXPO, and almost 400 publications, including 270 magazines and a growing portfolio of digital media services.

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Stress Reliever

Bank of America is promoting its ‘VERSATEL/VISA Check Card’ as a stress reliever. BofA says consumers sweat with stress when writing checks, especially if they have poor penmanship. The bank said yesterday that bad handwriting costs Americans an estimated $200 million annually because of bookkeeping errors, misfiled information, illegible doctor’s prescriptions, and personal checks that can’t be deciphered. BofA is in the midst of a major summer promotion for its debit card. BofA is running a ‘Triple Win Sweepstakes’ this summer in which three new VW Beetles will be given away to customers whose names are picked in the sweepstakes drawing. In addition to these grand prizes, the bank is awarding triple the amount of purchases made by customers whose names are selected during weekly sweepstakes events.

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Crestar I-Bill

Crestar Bank broadened its Internet banking services to include Internet Bill Payment through Crestar’s Internet web site at .  Like Crestar’s popular telephone bill payer and PC Banking online bill payment services, Internet Bill Payment enables Crestar customers to pay a wide variety of regular or occasional bills including those for utilities, merchants, health care services, installment loans and credit cards.  Crestar Internet Banking uses state of the art encryption technology to ensure that all transactions are conducted in a secure electronic environment.

“Internet Bill Payment is another example of Crestar’s commitment to offer our customers the ability to bank whenever and however they choose, whether that’s by coming into the bank in person or visiting us online,” said Hilary Blackburn, vice president, Crestar Electronic Commerce Group.  “The addition of Internet Bill Payment not only helps round-out our Internet banking service, but provides a much-demanded bill payment service to those customers who wish to pay bills online via the Internet.”

The new service requires no special personal finance software.  It is accessible to Crestar customers who access the bank’s web site using the customer number found on their Crestar MoneyCard, Crestar Premier MoneyCard or Check Card, along with a confidential personal identification number (PIN).  A monthly fee of $5.95 per month is deducted from the customer’s primary deposit account, for those who choose to use the service, and covers an unlimited number of bill payments.

Customers can select the merchants and others they wish to pay and enter that information online from their own personal computers.

The introduction of Internet Bill Payment represents the latest expansion of Crestar’s online banking services.  These include balance transfers and inquiries, access to current and recent account statements, as well as a variety of specialized information and services including online mortgage and student loan applications.

The bank’s recently introduced Crestar PC Banking For Business and Crestar Internet Inquiry For Business services extend to smaller companies, the same level of convenience and service available to consumers and larger companies. Crestar also is among a select group of banks in the country to participate in a partnership with Intuit to help small business owners shop and apply for credit services through Intuit’s new CashFinder () web service.

Crestar Bank is a unit of the $26.1 billion-asset Crestar Financial Corporation, based in Richmond, Virginia.  Crestar offers a broad range of financial services to consumers, businesses, institutions and governmental customers in Virginia, Maryland and Washington, D.C. and in selected markets nationally.  Crestar’s multi-channel distribution system includes 566 banking locations and a complete range of 24-hour electronic banking alternatives such as telephone, PC and Internet banking.   Other Crestar subsidiaries provide insurance, mortgage banking, equipment leasing and full-service securities and investment advisory services.

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FANCash Returns

NationsBank, Precis Smart Card Systems, Schlumberger Smart Cards & Terminals, and Verifone Inc., have teamed up again to offer ‘FANCash’ smart cards to Carolina Panther fans again this year.  Panther fans will be able to purchase drinks, food and merchandise with their ‘FANCash’ cards faster and in more places at Ericsson Stadium this season. This summer a new inventory and payment system was installed, called ‘Tangent’, which can accept smart card payments at all stadium registers. The 1998 ‘FANCash’ cards feature six designs preloaded with $10, $20, $25, $50 or $100. During 1996, NationsBank unveiled the stored value cards, which were marketed as ‘FANtastic Plastic’.

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Brooks Brothers Card

GE Capital Retailer Financial Services recently entered into a five-year agreement with Brooks Brothers, a leading American retailer of upscale men’s and women’s clothing, to provide a private label credit card program.

Under the agreement, GE Capital will provide new account processing, sales authorizations, financing, credit card and billing statement production, payment processing, customer service, collections, risk management and marketing support for Brooks Brothers’ private label credit card and existing portfolio of accounts.

“There is a great potential to grow the Brooks Brothers brand, and we believe that GE Capital is the perfect marketing partner for realizing that potential,” said Joseph R. Gromek, President and Chief Executive Officer, Brooks Brothers.

“We are excited to work with Brooks Brothers, clearly an American icon that continues to set the standard for consistent product quality and customer service.  We look forward to developing innovative credit card programs with them to help them achieve their goal of increased market share in the upscale clothing arena,” said Edward Stewart, President and CEO, GE Capital Retailer Financial Services.

The card provides the following special benefits:  10% savings on the first purchase; concierge service and a dedicated 800-number for cardmembers; complimentary monogramming; and seasonal cardmember special events.

Brooks Brothers was founded in New York City in 1818.  A wholly-owned subsidiary of United Kingdom-based retailer, Marks & Spencer, plc, the company operates 71 retail and 48 factory stores in the United States, as well as a direct mail business.  Brooks Brothers also operates a successful business operation in Japan, selling its merchandise in 66 locations, and recently opened its first two stores in Hong Kong.

GE Capital Retailer Financial Services (RFS) is a leader in providing credit, customer service, billing and payment processing services for retailers and consumers in the United States and Canada.  It provides private label credit cards, proprietary credit services and database marketing solutions to more than 300 retailers and 70 million cardholders in North America.  Retailer Financial Services is one of 28 specialized businesses within GE Capital.

GE Capital, with assets of over US $250 billion, is a global, diversified financial services company.  A wholly-owned subsidiary of General Electric Company, GE Capital, based in Stamford, CT, provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world.  GE is a diversified manufacturing, technology and services company with operations worldwide.

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VISA – Hypercom Deal

VISA and Hypercom announced Wednesday an expanded agreement to assist VISA member banks in emerging markets to acquire Hypercom’s ‘T7P’ terminals at very competitive prices. Initially designed to cover the Baltic States and CIS countries, the agreement for POS systems has now been extended to the entire VISA CEMEA region, consisting of 92 countries and territories. The number of VISA cards issued in the CEMEA region has increased by 59%, with charge volume up 105% at year end March 1998. The ‘T7P’ POS terminal series supports credit, debit and smart cards.

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Top 10 Mid-Year

[][1] Providian officially entered the list of the nation’s ten largest issuers during the second quarter due, in part, to its acquisition of  more than $2 billion worth of First Union accounts. Discover lost a little share due to its sale of ‘Prime Option’ accounts, and Banc One/First USA outpaced MBNA during the second quarter. According to [CardData][2], bank credit card receivables expanded by a mere 1.1% since March 30, compared to 3.0% one year ago. Over the past twelve months card loans have increased by 8.4%, the lowest rate of growth since the recession of 1990-91. As of June 30, bank credit card receivables stood at $438.3 billion. The top ten market share at mid-year was 65.2%.

U.S.  TOP  TEN  BANK  CREDIT  CARD  ISSUERS
RANKED  BY  RECEIVABLES
Rank Issuer 2Q-98     1Q-98   Q-Q CHNG   SHARE
1. Citibank/Universal $60.3b    $60.1b    (+0.3%)   13.8%
2. MBNA America $46.0b    $45.1b    (+2.0%)   10.5%
3. Banc One/First USA $39.8b    $38.7b    (+2.8%)   9.1%
4. Discover $34.1b    $35.8b    (-4.7%)    7.8%
5. Chase Manhattan $31.4b    $31.4b (NC)      7.2%
6. Household $17.2b    $17.3b    (-0.6%)    3.9%
7. First Chicago NBD $17.1b    $17.0b    (+0.6%)    3.9%
8. Fleet $14.8b    $14.9b    (-0.6%)    3.4%
9. Capital One $13.1b    $13.2b    (-0.7%)    3.0%
10 Providian $11.5b    $8.7b     (+32%)     2.6%
Source CardWeb’s CardData (www.carddata.com or CD-ROM) 717-338-1885

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

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Diebold & TimePlex Deal

TimePlex Group and Diebold announced yesterday that they have entered into a service agreement to provide a single source communications package developed exclusively for Diebold customers.  The package provides customers increased bandwidth and management services of their frame relay network.

![][1]     Diebold will combine TimePlex SYNCHRONY(R)IAN-150 Internetworking Frame Relay Access Switch (FRAS) products with Diebold ATM platforms.  This will provide a greater networking bandwidth that will enable a more efficient delivery of such advanced features as full-motion video advertising and digital security images taken at the ATM.  The increased network performance will also provide the infrastructure to allow the introduction of new applications and revenue opportunities for banking institutions and private ATM owners.

The agreement also allows Diebold to provide a total package of communication services to customers.  By utilizing TimePlex’s centralized support infrastructure, Diebold now has the ability to provide customers all the essential ingredients for their frame relay infrastructure, including carrier services and network management.

“In an effort to maximize our total service and product solutions, Diebold is focused on investing to accelerate our innovations and partnerships to match the velocity of our marketplace,” said Robert W. Reho, vice president of customer services and systems, Diebold.  “The combination of Diebold’s advanced ATM products and services matched with TimePlex’s knowledge of complex network environments and financial market penetration, allows Diebold to bring a single-source solution to the marketplace.”

“Due to the competitive nature of automated transaction networks which exists in today’s marketplace, Diebold’s customers require a more sophisticated array of telecommunications products and network management services,” said Orin Fatolitis, vice president of business development for TimePlex Customer Service.  “With nearly 30 years of networking experience in the development, design and management of complex networks, TimePlex provides the needed expertise and resources,” said Fatolitis.

Jacques de Labry, the president and CEO of TimePlex Group, reinforced the company’s new direction, stating: “We are dedicated to listening to our customers and creating innovative solutions combining application expertise with worldwide network management.  Together, Diebold and TimePlex are redefining how business is being conducted at remote locations, providing a wider range of services and products and software at the interactive workspace.”

About Diebold

Diebold, Incorporated (pronounced DEE-bold), headquartered in Canton, Ohio, is a global leader in providing card-based transaction systems, security and service solutions to the financial, education, healthcare, utility and retail industries.  Founded in 1859, the company develops, manufactures, sells and services automated teller machines, campus and card systems, electronic and physical security equipment, automated medication and supplies dispensing systems, integrated systems solutions, software and banking supplies.  For more information about Diebold, Incorporated, visit the company’s web site at .

About TimePlex Group

TimePlex Group has nearly thirty years of experience designing, implementing and managing voice, video and data networking solutions for major private enterprises, government agencies and service providers worldwide. TimePlex Group is an independent, privately held company that is uniquely qualified to provide turnkey business applications, managed networks and seamless migration to evolving technologies.

The TimePlex product portfolio includes its SYNCHRONY bandwidth management, Asynchronous Transfer Mode (ATM) access and frame relay switching, broadband and network management products.  The TimePlex Group, headquartered in Woodcliff Lake, NJ, delivers global services and support in 70 countries to a base of over 4,000 customers.  TimePlex Group manages customer networks from its worldwide operations centers, providing interactive lifeline services and, in some cases, complete network outsourcing.  For more information about TimePlex Group, please refer to .

[1]: /graphic/diebold/diebold.gif

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Case for Corp Cards

A new study from VISA reveals major corporations that utilize purchasing card programs are reducing their invoice processing costs by an average of 73%. According to the study, which was conducted by Deloitte & Touche, corporations that adopt purchasing card programs slash the processing cost from an average of $83 per transaction to an average of $23 per transaction. The study, which reviewed practices of 18 leading multinational corporations, identified 37 specific “best practices” for purchasing card programs that lead to significantly greater efficiency. Among the most effective practices identified “Establish Program Objectives”; “Obtain Senior Management Support”; “Adopt a ‘Marketing Focus’ Strategy”; “Actively Encourage (Mandate) Card Usage”; and “Minimize Use of Merchant Category Blocking to Restrict Purchases”.

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SmarTalk Suit

A class action lawsuit alleging violations of the federal securities laws was filed yesterday against SmarTalk Teleservices. On Monday SmarTalk announced that it was postponing the release of its second quarter results due to certain accounting issues raised by SmarTalk’s auditors.The complaint alleges, among other issues, that SmarTalk’s management was encountering severe difficulties in integrating the companies acquired and had improperly accounted for the acquisitions. The suit also alleges SmarTalk executives were artificially inflating the price of SmarTalk’s stock by disseminating to the public statements about SmarTalk’s “record revenues and earnings,” while selling off $50 million worth of personal holdings.

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Wireless Demo

BellSouth Wireless Data will be demonstrating four new wireless transaction terminals in their Technology Suite at the San Francisco Hilton tomorrow. The company will demo the Hypercom ‘T7PRR’, the Intellect ‘9770’, the Lipman Nurit ‘2090’ (joining the model ‘2070’) and the Elite ‘700’ Series from IVI. BellSouth and Transaction Network Services recently signed an agreement to provide low-cost wireless transaction authorizations across the nationwide BellSouth Intelligent Wireless Network.

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