From the category archives:
I had the opportunity to speak with Mike Urban, FICO Senior Director of Fraud Solutions, about how criminals are enhancing their margins in ATM and debit card fraud.
The trend towards ATM compromises is largely a result of increased point of sale security. Criminals move to the weaker link, or the easiest approach, and ATMs are [...]
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The Fed announced this morning that 99% of checks are now clearing electronically between banks. During a period of unremitting bank-bashing, let’s take a moment to applaud a real home run by the bankers. The radical transformation of the check infrastructure, accomplished over the last six years, is due to some very smart law-making (the [...]
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Glenbrook’s Erin McCune is in Orlando for BAI’s Payments Connect conference.
John Stewart of Digital Transaction News moderated an open discussion exploring the most pressing issues in e-payments. It picked up on the list of 10 pressing themes raised in the November issue (pgs. 26-32). The panelists were:
Aaron Fine, Oliver Wyman
David [...]
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Green Dot’s IPO plans revealed that they are becoming a bank holding company. This is completely fascinating to me – and gives, I think, a peek at what may come for retail banking in the future.
At Glenbrook we’ve been talking, thinking, and writing for some time about two related issues. One is the [...]
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I spent most of 2008 and early 2009 completely obsessed with the credit crisis (evidenced by this index of the best crisis coverage I created just over a year ago). Reading this Andrew Ross Sorkin piece in tomorrow’s New York Times got me all riled up again:
What the Financial Crisis Commission Should Ask
NYTimes’ “Dealbook” column [...]
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A few weeks ago, Glenbrook issued a challenge to Payments Views readers: “What Are the Best Ways for Banks to Replace Lost Overdraft Fee Income?“ Given how significant the financial hit will be (JPMorgan Chase estimates a 2010 impact of $500 million after-tax), we thought we’d at least get some good ideas. [...]
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Bank income from debit card overdraft fees is variously estimated as $25 billion to $38 billion annually. The recently announced Federal Reserve Bank regulations requiring opt-in procedures will result in a gigantic hit to retail bank P&Ls, as we wrote about recently. JPMorgan Chase, for example, in a recent investor presentation, estimated [...]
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I think it’s fair to say that the success of remote deposit capture (which allows the recipient of a check to scan and deposit it electronically) took the payments industry somewhat by surprise. The early take on this offering seemed to be “hey, why not just change to electronic payments”?
The answer, of course, was that [...]
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The Fed’s announcement on Thursday of a new rule prohibiting overdraft fees on debit card and ATM transactions without consumer opt-in is an economic earthquake for retail banks.
The Center for Responsible Lending has estimated that banks make $23.7 billion in overdraft fees annually; the New York Times said this morning that Fed officials had put [...]
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Chase Blueprint brings new transparency and consumer control to credit cards
Today’s announcement of the new “Blueprint” functionality by Chase Card Services represents a significant generational inflection point in the evolution of the US credit card business.
Although they often try to refute it, for more than 25 years US credit card issuers have marched steadfastly in [...]
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Consistent with the current government focus on enhancing consumer protection, the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act of 2009) brings sea changes to the credit card industry. Forward-looking financial services institutions are viewing these shifts not as a reactive compliance and operational exercise, but more broadly in anticipation of [...]
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In case you’ve been wondering where things stand with government bailout funds the WSJ has an interactive graphic. You can sort by program (Automotive Industry Financing Program, etc.), by recipient company, by date, by amount, etc.
(hat tip to Barry Ritholtz)
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At Glenbrook, we’re pretty interested in what makes mass consumer adoption of new payments capabilities happen – or not. We’ve been talking lately about “brand as action” – the notion that consumers (and merchants) need a way to express how they are going to pay or be paid.
This can be brand with a “capital B” [...]
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We often think of innovation as being primarily technology-driven – but there are some great examples of innovations in banking that were simply business model or process changes involving little, if any, new technology.
Two examples that have proven very valuable financially to US banks in recent years involve simply the handling of transactions being posted [...]
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Late last week, Thomas M. Hoenig, President and Chief Executive Officer of the Federal Reserve Bank of Kansas City, gave a speech in Omaha titled “Too Big Has Failed“.
A lesson to be drawn from Continental is that even large banks can be dealt with in a
manner that imposes market discipline on management and stockholders, while [...]
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Glenbrook Payments Boot Camp
Mar 10-11, 2010, Santa Clara, CA
May 19-20, 2010, Santa Clara, CA
Headlines from Payments News
