All articles by Verdict Staff
Verdict Staff
CI Country Survey: Card competition grows in Mexico
CI Country Survey: Card competition grows in Mexico The highly profitable Mexican credit card market has grown rapidly over the past several years, and future competition looks set to be particularly fierce among issuers that are vying for new consumers at Mexicos tills, whether bank issuer or retailer While cash remains the dominant payment mechanism in Mexico, over the past three years, its largest commercial banks have launched aggressive campaigns aimed at increasing uptake and use of credit cards, in particular, driven by the high levels of profitability deriving from high interest and interchange rates
Marketing news briefs
EconomyConsumer confidence declinesAn economic report by Banamex says that Mexicos consumer confidence index fell by 6.6 percent to 101.4 points in October 2007 from 108.6 in October 2006 The fall in October 2007 represents the biggest monthly decline since December 2003, the bank says.Financial servicesBanamex launches SME servicesBanamex has launched Paquete PyMES, a set of banking services targeted at small- and medium-sized businesses in Mexico
Singapore cards pass saturation point
As one of Asia-Pacifics most affluent economies, Singapore represents a lucrative market for card issuers, but increasing competition is leading to a blurring of card products and segmentation strategies, countered by innovative approaches to differentiation Unsurprisingly, the Singapore cards market is humming, with card launches every other month from issuers looking to capture the consumer optimism through spending at the point of sale.According to Song Seng Wun, regional economist with CIMB-GK Research: The latest credit cards report reflected what we all know that workers and employees have not had it so good since the Asian financial crisis whacked us ten years ago
Best practice in collections
With declining gross advances, exponential increases in individual voluntary arrangements and bankruptcies and massive increases in write-offs, retail financial institutions need to maximise collections effectiveness, says Francesco Burelli and Anthony Louw, principal consultants at Capco.
Visa plans $10bn IPO
According to the documents, the proposed maximum offering has been estimated at $10 billion, making it one of the largest IPOs.However, Visa did not disclose the number of shares or the dollar amount of the individual share offering, which is a preliminary figure used to calculate the companys registration fee the eventual amount raised in the IPO could be higher
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The US turns to debit cards
The shakier the credit markets in the US get, the more promising the outlook grows for debit cards There are several emerging and high-growth debit markets that should carry substantial transaction volume and value as they come to fruition Charles Davis reports.As the US banking industry copes with tighter financial markets, new waves of bankruptcies and foreclosures, and economic uncertainty, the debit cards increasingly dominant position as a payment vehicle will continue through 2009 and beyond, a new research report from global financial services consultancy TowerGroup says
Region round-up
While cash is still the main form of payment, most credit cardholders prefer to use their credit cards for payment as a convenient substitute to carrying piles of banknotes, according to the report According to the PFM report, based on a survey of 11,500 Chinese consumers in 18 cities, people in their 20s are comfortable with spending tomorrows cash for todays needs a change in attitude towards credit from a generation ago. China UnionPay will complete the linking of its national electronic payment market when it sets up branches in Chinas Xinjiang Uygur and Ningxia Hui autonomous regions as well as in Gansu and Qinghai by next year
Japan’s changing payment patterns
Although cash remains the dominant payment method in Japan, debit and credit card use continues to grow, driven by increasing acceptance and a competitive marketplace Although there are many credit cards in circulation in Japan, they have typically been used as a convenient means of payment rather than a source of credit
US banks post disappointing results
Third-quarter earnings for US banks are the lowest in a decade, as the effects of the US subprime mortgage meltdown continue to be felt throughout the financial services industry. Increasing reserves for loan losses and rising credit costs are indicators of the scale of the problem. Truong Mellor reports.Both Citigroup and Washington Mutual announced third-quarter earnings figures that were down by as much as 70 percent, and even at Bank of America, whose exposure to the housing market woes was minimal, profits dropped by 32 percent.
Corporate cards continue to grow
Despite consumer card offerings grabbing much of the spotlight in the payment industry, it is commercial cards that are drawing an increasing amount of attention from issuers, networks and businesses globally Truong Mellor reports.As both large and small businesses attempt to better manage and track their outlay, the use of corporate cards has risen in recent times The financial case for the corporate card sector is evident it gives employers greater control over employee spend, and the consolidation of company expenditure through improved transaction reporting can further drive financial efficiency