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Credit Card News, Economy News, Banking Industry News - Mar 2015
  • The Federal Reserve should demand more capital from Wall Street while the central bank slowly increases interest rates, a leading U.S. regulator said on Thursday as he outlined a formula for future economic growth.
  • Banks retain profits or issue stock as a cushion against future losses. Global banking regulators are debating how much of a cushion - or 'capital' - leading banks should have.
  • The Basel Committee meets in Chile on Nov. 28-29 to finalize the rules.
  • The holiday shopping season is here once again. Last year’s shopping spree sent the average American $986 deeper into debt. Retailers, keen to encourage spending, frequently use store credit cards to separate people from their money.
  • The perks offered by store credit cards can be tempting. Typically, you will be offered 0% financing, in-store discounts or both. But you should beware the traps associated with these perks. 
  • If you need to finance your holiday purchases, it is better to open a credit card with a 0% introductory purchase APR (that waives interest) before you start shopping.
  • The ubiquity of digitization has forever changed customer behavior, creating a disconnection between what people have come to expect and their actual experience, especially with their financial institution.
  • With consistently high-quality, personalized service now the norm from so many mainstream service providers, many credit unions have fallen into the Experience Gap. And it’s not just with respect to e-channels.
  • To compete effectively, credit union marketers need to develop digital capabilities to overcome the Customer Experience Gap. The good news is that this isn’t as costly as you might think. To “market,” in today’s digital landscape you don’t need a budget of thousands of dollars for an ad campaign.
  • The last nine months of 2016, $1.4 billion has been invested globally in Blockchain startups, according to a PricewaterhouseCoopers (PwC) expert, reports Silicon Republic.
  • Discussing the growth of Blockchain at a recent PwC’s Business Forum in Dublin, leading PwC executive Seamus Cushley, who oversees a 25-strong Blockchain research lab in Belfast, explained that block chain’s growth was expanding with many startups in finance, healthcare, and supply chain monitoring utilizing Blockchain technology.
  • 90 percent of major North American and European banks are exploring Blockchain.
  • Banks have yet to fully deploy the technology on a massive scale. That, though, hasn’t stopped other sectors from embracing the technology hence the massive investment in Blockchain over the past nine months.
  • It’s been just over a year since the rules around credit card fraud changed, creating an incentive for banks to issue cards with EMV chips and merchants to accept them.
  • EMV chips keep card data more secure than magstripes do. The chip in the card generates a unique code for each in-person transaction, so hacked data from one purchase can’t be used for other transactions.
  • Almost one-third of Millennials (31%) had negative feelings toward EMV chip cards, the survey found, the highest percentage of any age group. There are two major reasons why: longer transaction times and confusion about when to use the technology.
  • EMV is a rare instance of technology slowing things down instead of speeding things up. Having grown up Googling and instant messaging, Millennials expect the world to continue to move faster
  • Millennials, and anyone else unhappy with EMV technology, can opt for another secure option: mobile payments.
  • A survey by Toronto-based TD Bank found 43% of U.S. borrowers would be subject to resets on their home equity lines of credit (HELOC) within two years which would end their ability to borrow more, and start requiring higher minimum payments.
  • However, 27% of respondents had no idea when their loans reset, and 38% falsely believed that a reset would lower their payments.
  • The knowledge gap provides an opportunity for lenders to reach out to borrowers to help them avoid unpleasant surprises.
  • Credit unions held $79.3 billion in HELOCs and second mortgages in August, accounting for about 9% of their total loans, according to CUNA Mutual Group's latest Credit Union Trends Report.

NCUA Recovers $3 Million From Nomura

Source: cutimes Category: Credit Union News
  • Nomura Asset Acceptance Corporation and Nomura Home Equity Loan, Inc. have agreed to pay more than $3 million to settle claims with the NCUA in connection with the sale of faulty residential mortgage-backed securities to two corporate credit unions, according to the agency.
  • “Every recovery NCUA makes through our legal efforts reduces the possibility of further costs of the corporate resolution being shouldered by credit unions,” NCUA Board Chairman Rick Metsger said.