All articles by Verdict Staff
Verdict Staff
Morgan Stanley confirms spin-off of card unit Discover
In a filing with the US Securities and Exchange Commission (SEC) on 23 March, Morgan Stanley stated that it would distribute shares in Discover, the fourth-largest debit and credit card network in the US, to Morgan Stanley shareholders. Morgan Stanley first announced its intentions to spin off Discover in December 2006, although the SEC filing did not detail how many shares would be offered or how much would be raised from the IPO
Standard Chartered positive about Asia
As the man at the helm of Asia-focused banking group Standard Chartereds cards and personal loans division, Sherazam Mazari is in an enviable position all forms of consumer credit are increasing in popularity in the Asia-Pacific region, and Standard Chartereds global expertise in credit provision and risk management has placed it in prime position to take advantage of the opportunities ahead.In an interview with CI, Mazari said: Retail spend as a percentage of private consumption for emerging countries like China, Indonesia, India and Pakistan is a mere 1 percent and below
Leveraging innovation for profit
Innovation should be a key focus for issuers and suppliers to ensure the continued growth and profitability of the industry The credit card ranks alongside the internet and the mobile phone as an innovation that has transformed the way we live, interact and transact
US cards industry put on notice
Of the many newly empowered Democrats in Congress, Senator Chris Dodd, the chair of the Senate Banking Committee, has made credit card industry practices a focal point of a series of hearings.Dodd has been clear that his committee will scrutinise a host of credit card lending practices, fees, penalties and interest rates.No industry in America is more deserving of oversight by Congress, the Consumer Federation of America testified to Dodds committee at a January hearing
Adding value with EMV
Chip and PIN technology is expanding the functionality of payment cards worldwide, helping payment networks and issuers to expand the range of features and benefits to consumers Justin Bandy reports.The increased popularity of EMV-compliant chip and PIN cards in the global cards and payments industry has the potential to do much more than simply reduce losses from fraud
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Hong Kong remains a hub of activity
Hong Kongs payment card industry is one of the most advanced in the world, with e-money cards such as Octopus setting an example for prepaid contactless schemes globally In the Asia-Pacific region, Hong Kong represents a stable and growing consumer lending market, helped by one of the strongest economies in the world
Amex’s CFO heads to Citi
Citi said that Crittenden will join the group on 12 March, and will report to Charles (Chuck) Prince, chairman and CEO of Citi.Crittenden joined Amex in June 2000 as executive vice-president and CFO
First Data exits cheque and money order business
Global payment processor First Data is to exit its cheque and money order operation after the completion of a strategic review, in which it concluded that the business was in a declining market First Data is expecting to free up between $250 million and $300 million in cash which it will use for acquisitions, share repurchases and other uses during 2007.Most of the cheque and money order business will be terminated over a period of two to three years
The changing face of fraud
The card industry is in a continuous fight against fraud as tech-savvy individuals create new challenges for the industry
Barclays’ bad debts ‘over the worst’ as profits hit record highs
Despite racking up record profits for 2006, UK banking group Barclays is still feeling the effects of the UKs tough credit environment, due to continuing high levels of impairments and losses at its Barclaycard unit In its 2006 full-year results, Barclays group pre-tax profits rose to £7.14 billion ($14 billion), an increase of 35 percent compared to 2005, mainly due to strong performances at its investment banking and fund management units, Barclays Capital and Barclays Global Investors