All articles by Douglas Blakey
Douglas Blakey
Mobile banking usage doubles in a year
Mobile banking usage has doubled in the past year, according to a report from consultants IDC Financial. But the report, 2009 Consumer Mobile Banking Preferences, adds that m-banking is still not at a point where it could be a game changer for banks. According to the survey, while mobile banking may have finally turned the corner with customer acceptance, it is not a mainstream channel and in order to be successful, financial institutions need to be strategic about their mobile offerings.
Small banks set for CPP struggle
Small banks that received funds through the Capital Purchase Program (CPP) may struggle to repay the US Treasury, according to a report from the Congressional Oversight Panel. The report, Small Banks in the Capital Purchase Program, found that one-size-fits-all” repayment terms mean that large banks have been much better served by the programme than smaller institutions.
Co-operative backs Barclaycard contactless
The UKs Co-operative (Co-op) chain of supermarkets has become the first major grocery retailer in the country to launch contactless payment in its stores, after teaming up with Barclaycard. Contactless payment will allow Co-op customers to make purchases of £15 ($22.80) or less, without the need to enter a PIN or insert their card into a payment terminal. The roll-out will begin with a pilot in 100 Co-op food stores next year after an agreement was signed with Barclaycard in partnership with Visa
Ally Financial drops GMAC brand
Ally Financial is to drop the GMAC brand in the US, Canada and Mexico from August in favour of the Ally moniker. The move to the Ally name allows us to invest in a brand that we own and can build upon for the long term,” said Ally president Bill Muir. An ally is someone you rely on to support you, and our new brand embodies our 90-year heritage as a trusted finance source for the automotive industry.”
SEB H1 retail profits fall, group profits triple
Swedens second-largest bank by assets, SEB, has beaten analyst forecasts with first half group net profits of SEK2.69bn ($359.1m), up 214% from SEK857m in the corresponding period last year. But operating profits at SEBs retail unit fell 13 percent in the first half of fiscal 2010, to SEK786m (H109 SEK899m).
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RBC CEO warns customers to pay for reform
In a speech to the British Bankers Association on 13 July, Royal Bank of Canada (RBC) CEO Gordon Nixon warned that customers would foot the bill for banks’ higher costs of capital He argued that strong, local regulation is more important and criticised proposed international regulations which will punish all banks, including those such as RBC which have escaped relatively unscathed from the global banking crisis.
Scotiabank kicks off savings drive
Scotiabank has launched Let the Saving Begin, a nationwide savings promotion, with the aim of encouraging Canadians to save and invest To promote the campaign, Scotiabank has signed up Canadian TV personality Valerie Pringle as a brand ambassador.
Spanish World Cup win costs Banesto ?10m
Banesto, the retail-focused Spanish-based lender in which Santander has a near 90 percent stake, will have to pay around 10 million ($12.6 million) as a result of Spains triumph in the FIFA World Cup. In an effort to boost retail deposits and tap into Spains love of football, Banesto launched an innovative savings account at the start of February tied to its sponsorship of Spains international football team. The soccer-themed deposit account, Depsito Seleccin, offered customers interest of 3 percent, but in the event of Spain winning the FIFA World Cup, the bank agreed to pay a rate of 4 percent.
Santander to acquire SEB’s German retail unit
Spains biggest lender, Santander, is to acquire the 173 German-based branches of Swedens SEB in a deal worth around 555 million ($695.7 million). The SEB branches serve around 1 million customers and will complement Santanders existing German network of 176 branches. According to Santander, the SEB German retail unit has loans outstanding of around 8.5 billion (82% of which are mortgages) and deposits of 4.6 billion.
Barclays revamps student overdraft offer
Barclays has unveiled an improved student incentives package, offering an interest-free overdraft of up to £2,000 ($3,031), a free SMS service to help customers keep abreast of their finances, and a range of mobile phone, broadband and laptop incentives