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Credit Card News, Economy News, Banking Industry News - Apr 2014
  • Once the reputation of traditional banks in the UK was tarnished by seemingly continuous scandals, customers started looking at alternatives to the “big four” banks which have monopolized the market for so long.
  • Enter the fintech movement and a swathe of emerging banks looking to disrupt the industry and fight back against the age-old processes currently in play.
  • In the age of contactless payments, banks need to offer a seamless digital experience which can be enjoyed on any device, regardless of location or time of day.
  • Far too often, professionals don’t directly take customer requirements into consideration before creating a product and instead move forward with the idea they have in their head of exactly what client-facing platforms should look like. Unsurprisingly, this rarely heads positive results.
  • This is where emerging banks and the fintech movement come into play, pushing forward with the banking revolution by taking two approaches to disrupt the market: modelling products around user experience and modelling user experience around products. Both of these approaches are viable and clearly working in the digital age.
  • While emerging banks are finding a niche in the market, traditional banks must question their own services, the technology behind them and exactly how they can contend with the exciting and innovative platforms currently being developed.

PayPal, MasterCard reach deal for store payments

Source: reuters Category: Credit Card News
  • MasterCard Inc said on Tuesday it had expanded its deal with payment processor PayPal Holdings Inc, which would allow customers to use PayPal's payment services in stores. PayPal's partnership follows a similar deal with MasterCard's larger rival Visa Inc in July as the company looks to expand its payments network.
  • PayPal will allow users to select a credit or debit card as the default payment method and share data on transactions made through MasterCard's tap-and-pay feature, which allows the shopper to wave a card or mobile phone over a reader to pay, the companies said in a statement.
  • As part of the deal, MasterCard will allow PayPal users to withdraw cash from their accounts using a debit card and also waive the digital wallet fee it currently charges PayPal. The two companies have an existing partnership for co-branded consumer credit cards in the United States and Puerto Rico

Lending and Delinquencies Increase in Q2: NCUA

Source: cutimes Category: Credit Union News
  • Total loans outstanding at federally insured credit unions increased to $823.4 billion during the second quarter of 2016, an increase of 10.5% from a year ago, the NCUA said Tuesday.
  • Year over year, loans grew in every major category, with new auto loans leading the pack, with a 15.6% increase, to $107.3 billion. Used auto loans increased 13.1%, to $173 billion.
  • Total real estate lending grew 8.7%, to $411.2 billion, while payday alternative loans rose 4.2%, to $119.9 million at an annual rate.
  • Total investments by federally insured credit unions dropped 2.5%, to $271.9 billion.
  • The delinquency rate for credit cards was 93 basis points, compared with 86 points a year earlier, the agency said. The delinquency rate for fixed real estate was 55 basis points, down from 68 basis points in the second quarter of 2015.
  • Consolidation among credit unions continued in the second quarter. There were 272 fewer credit unions during the second quarter of the year, with the number of federally insured credit unions standing at 5,887.
  • The percentage of federally insured credit unions that were well capitalized remained steady, with 97.8% reporting a net worth ratio at or above the 7% required by law.
  • The strategic partnership Visa and PayPal announced in July has generated an unusual amount of speculation, even for the payments world.
  • The agreement's talking points also included a veiled reference to PayPal having secured "Cost certainty."
  • The market continues to move toward consumer choice in that regard, and PayPal is now better equipped to offer it.
  • The benefits to Visa are obvious: Removal of a barrier to card use, higher volume, incremental revenue, and arguably the buying of some research and development runway, as discussed below.
  • PayPal's executive suite is stacked with seasoned industry veterans and it's hard to imagine them getting hoodwinked in this deal.