All articles by Charles Davis
Charles Davis
Savings becomes cool
Marshaling the power of digital technology and the penchant for savings in tough economic times, a host of players are making savings cool again.
Bluebird: set to fly?
US retailer Wal-Mart has teamed up with American Express to launch Bluebird, one of the most innovative banking product launches of recent years. As Charles Davis reports Wal-Mart believes that the new product stands a chance of taking off as a result of an aggressive pricing strategy
Union Bank kicks off Banking by Design
In an era in which consumers are craving greater transparency in financial services, California-headquartered regional lender Union Bank has…
Giving the underbanked due credit
Awash in a sea of credit scores, a host of US-based financial services players are turning to unconventional data sources to get a fresh look at creditworthiness. As Charles Davis reports, the need to reassess credit data is pressing as the number of underbanked Americans continues to grow
Barclaycard US carving out its own niche
Barclaycard US, the American card issuing unit of global giant Barclays, has fashioned a profitable niche for itself in the co-branded market, and sees great potential for growth in targeted corporate partnerships. Amer Sajed, CEO of Barclaycard US and global cards head speaks to Charles Davis. Barclays entered the US market in 2004 with the purchase of online startup Juniper Financial, and the US arm of the UKs leading issuer has quietly built a powerful US portfolio by allowing its corporate partners to customise their card programs. The growth of late has been particularly impressive. In mid-2007, Barclaycard US had $4.2bn in credit card receivables. By October 2008, the portfolio surpassed $10bn, and today, Barclaycard US has just over $13bn in card loans outstanding.
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Self service extends to US lending
A growing number of US-based retail banks are ramping up their investment in lending automation. Not only are the banks enjoying savings from lower labour costs, the lending process is being speeded up and, as Charles Davis reports, the initiative taps into customers enthusiasm for self service. Self service is all the rage in many facets of US life: consumers find their grocery lanes replaced by kiosks, their movie ticket window turned into a machine, and even cabbies nowadays frequently point to a do-it-yourself terminal when its time to pay. The automation that has marked the payments side of banking for years is now finally making its way to the lending side of the ledger, as a number of banks are finding that loan applicants want to handle a lot of the front-end chores themselves in exchange for greater speed, and perhaps a slight reduction in rate.
Right up their street
A focus on quality customer service and a heavily promoted debit cards rewards programme represent PerkStreet Financials proposition to differentiate itself. The success of its marketing drive is apparent from impressive customer acquisition statistics a client base doubling every six months. Charles Davis reports. PerkStreet CEO Dan OMalley had what he calls a front seat at the revolution a few years ago as a senior executive at Capital One, where he helped issue credit cards and create the banks answer to what he saw as the next big payments option: the debit card. From my perspective at Capital One, I could see what was coming. People were moving away from the branches, spending more time at ATMs and online, the delivery channels were in complete transformation, and yet the banking industry was so rooted to its investments that it fought that change, and still does, said OMalley.
In-house key to BBVA m-banking growth
Charles Davis discusses BBVA Compasss digital banking and marketing strategy with senior vice president and director of mobile banking and internet strategies, Alejandro Carriles, who stresses the banks determination to develop its mobile banking products in house instead of relying on vendors. Spanish banking titan BBVA stuck a toe into the US retail banking market back in 2005 with the acquisition of Laredo National Bank. Since then, it has snapped up two more Texas banks followed by the 2007 deal to acquire Birmingham, Alabama-based Compass Bancshares. Today, BBVA Compass operates 716 US branches, including 368 in Texas, 93 in Alabama, 79 in Arizona, 65 in California, 45 in Florida, 38 in Colorado and 21 in New Mexico.
Right up its street
A focus on quality customer service and a heavily promoted debit cards rewards programme represent PerkStreet Financials proposition to differentiate itself. The success of its marketing drive is apparent from impressive customer acquisition statistics a client base doubling every six months. Charles Davis reports PerkStreet CEO Dan OMalley had what he calls a front seat at the revolution a few years ago as a senior executive at Capital One, where he helped issue credit cards and create the banks answer to what he saw as the next big payments option: the debit card. From my perspective at Capital One, I could see what was coming. People were moving away from the branches, spending more time at ATMs and online, the delivery channels were in complete transformation, and yet the banking industry was so rooted to its investments that it fought that change, and still does, said OMalley.
Joining the club
The promise of tying credit card rewards programmes to social networks, Groupon-like daily deals and electronic couponing services has long been touted as the next wave of loyalty incentives, and it finally appears to be taking off, says Charles Davis. A host of new technological platforms are coming to market, offering card issuers new ways to take advantage of the viral power of social networking turning cardholder relationships into powerful marketing tools. It is, in some ways, the card industrys answer to Groupon: card-linked offers part daily deal, part card reward programme are gaining real traction.