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News Scan May 2012

Credit Card News, Economy News, Banking Industry News - May 2012
May 2012

Delinquent Auto Loans Hits 13-Year Low: TransUnion

Source: Cutimes Category:Banking Industry News
  • The firm looked at the rate of boAuto loan delinquency rates in the first quarter dropped to 0.36%, down nearly 27% from the first quarter of 2011.
  • On a quarterly basis, auto loan delinquencies declined almost 22% from 0.46% in the fourth quarter of 2011.
  • Forty-three states experienced declines in their auto delinquency rates between the fourth quarter of 2011 and the first quarter of this year.
  • The record drop in delinquencies can be attributed primarily to a growing demand for both new and used vehicles and higher used vehicle values, which equates to an increase in equity for consumers.
  • Lending and leasing as well as a higher number of loans originated in the nonprime risk segments are also on the rise.
  • The delinquency rate is expected to remain low for the rest of the year but may rise and fall with traditional seasonal patterns.
May 2012
  • The nation's consumer financial watchdog is preparing restrictions on prepaid debit cards, a largely unregulated product that is flourishing even amid concerns about high fees and poor disclosures.
  • While the consumer bureau's new effort would not rein in most fees that come with the cards, like a $5 monthly maintenance fee, it would require companies to reimburse consumers for unauthorized charges.
  • The new oversight would coincide with a boom in the prepaid business. By 2013, the volume of money on prepaid cards is expected to swell to $90 billion.
  • But under the bureau's so-called advanced notice of proposed rulemaking, the agency is seeking to apply a longstanding federal rule for debit and gift cards to prepaid products.
  • The rule, known as Regulation E, requires companies to reimburse customers for unauthorized transactions that pop up when a prepaid card is lost or stolen.
May 2012
  • The 12-month average of sales is nearly 4.4 million units compared to fewer than 4.2 million units a year ago. A modest increase.
  • With sales rising and production not particularly strong, the months’ supply of housing has dropped significantly from 8.5 to 9 months a year ago to 6.6 months in the April figures which is a little higher than the cycle low of 6 months in January.
May 2012
  • According to a recently released Intuit GoPayment survey, 55% of the nation's 27 million small businesses do not accept credit cards.
  • Intuit estimates that each business that does not accept plastic misses out on approximately $7,000 in sales annually, equating to approximately more than $100 billion in collective lost revenue.
  • This missed opportunity represents a combination of new sales and sales that go to other businesses that accept credit cards.
May 2012

Housing starts add to recovery signs

Source: Reuters Category:Economy News
  • Housing starts increased 2.6 percent to a seasonally adjusted annual rate of 717,000 units. March's starts were revised up to a 699,000-unit pace from a previously reported 654,000 unit rate.
  • Housing starts last month rose across the board. Groundbreaking for single-family homes increased 2.3 percent. This segment accounts for most of the market. Starts for multi-family homes advanced 3.2 percent.
  • Permits to build single-family homes rose 1.9 percent in April to a 475,000-unit pace. Permits for multi-family homes fell 20.8 percent to a 240,000-unit rate.
May 2012
  • SAP rolled out a slew of new products based on its HANA in-memory database today, including two specifically created for banks.
  • Among the new solutions are business intelligence applications for sales and operations planning, cash forecasting, collections, planning and consolidation, and sales pipeline analysis.
  • The bank-specific programs are SAP Bank Analyzer for financial reporting and SAP Deposits Management for transaction history analysis.
  • SAP Bank Analyzer is designed to help organizations quickly analyze large volumes of data, to automate processes and make decisions in near-real-time. The solution is said to let banks rapidly generate detailed financial reports on assets and accounting performance.
  • SAP Deposits Management is meant to help retail banks boost performance through improved transaction history analysis.
  • It helps employees' access up-to-date account information and processes multi-year information to detect patterns and opportunities.
May 2012
  • Nine percent of U.S. chief information officers (CIOs) are female, down from 11 percent last year and 12 percent in 2010.
  • About 30 percent of those polled said their information technology (IT) organization has no women at all in management.
  • Yet only about half of survey respondents consider women to be under-represented in the IT department.
  • A majority of those surveyed said their organization is facing a skills shortage in areas such as business analysis and project management.
  • While the U.S. average of 9 percent female CIOs has declined, it is higher than the global average of 7 percent.
May 2012
  • American Express has launched a mobile offer engine that recommends and ranks relevant merchant offers in real time for US Cardmembers based on their spending history and location – a Cardmember’s "spend graph."
  • In an increasingly crowded marketplace, where consumers are bombarded with daily deals, we saw an opportunity to help our Cardmembers save time as well as money by curating meaningful offers for them,” said American Express.
  • At the same time, we can help our merchant partners build their business by helping them reach the right Cardmembers with the right offers at the right time.
  • We developed our mobile offer engine with three key points of differentiation in mind: relevance, convenience and value said AmEx.
May 2012
  • Less than a third of U.S. consumers have used their phones to make payments, as the world increasingly shifts more activity to mobile phones, the U.S. is a laggard even among its most avid users of smartphones.
  • Based on their use of smartphones, extreme mobile users “aggressively change how they shop for products and services, how they interact with their banks and bank accounts, and how they pay for goods and services, The U.S. only has 20.
  • In the U.S., over 80% of the most avid users have used smartphones to make payments and conduct mobile banking, compared to less than a quarter of the less avid who have done both.
May 2012

Private sector hiring falls in April

Source: Yahoo Category: Economy News
  • Private employers hired a far fewer than expected 119,000 people in April, the smallest gain since September 2011.
  • The Economists surveyed had forecast the ADP National Employment Report would show a gain of 177,000 jobs.
May 2012
  • The Federal Reserve Board has published comparative information on the average debit card interchange fees that each payment card network charges acquirers (and indirectly merchants) and provides to debit card issuers.
  • The data compares the 2009 baseline to 2011 (pre-Durbin) and 2011 (post-Durbin).