All articles by Dan Jones
Dan Jones
Taking the fight mainstream
The United Services Automobile Association, a US bank dedicated to providing financial services to American military personnel and their families, has launched a bold new marketing campaign designed to capitalise on public anger at the mainstream US banking industry
M-banking take-off picking up speed
Latest mobile banking figures from Barclays, Wells Fargo and others suggest that m-banking for so long a source of frustration to banks due to unwieldy interfaces and lack of appetite from consumers is finally realising its potential as a true alternative delivery channel
US heading towards tougher regulation for cards industry
The enactment of a credit card Bill of Rights by US president Barack Obama on 22 May has given the retail banking industry its clearest sign yet that the post-Lehman playing field will be an era of more stringent regulation, but more significant still could be the implications for credit provision at a time when card default rates are continuing to spiral.Under the new law, known as the Credit Card Accountability, Responsibility, Disclosure (CARD) Act, customers must be notified at least 45 days before any rate changes come into force, while those rate hikes as well as penalty fees and introductory promotions will also be subject to stricter supervision
Making sense of Japan
Latest full-year results from Japans leading banks make for dismal reading, but some players are still confident they can crack the countrys notoriously tricky retail banking market Headline figures for financial 2008 illustrate the extent to which the Japanese economy has suffered at the hands of the credit crisis, particularly at the countrys three megabanks, where sustained losses on securities pushed institutions deep into the red
Outsource of controversy?
An outsourcing move aimed at furthering ANZs super-regional business strategy has seen the bank sign a A$500 million deal with telecommunications provider SingTel
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US Senate rejects card interest cap, pushes for alternative measures
The US Senate has rejected a proposal to cap credit card interest rates in the country at 15 percent by a margin of 60-33, though other political figures have vowed to maintain the pressure on the industry. A wider range of measures, aimed at more effectively regulating credit card practices, known as the Credit Card Accountability, Responsibility and Disclosure Act, are nonetheless expected to pass shortly The bill, endorsed by US president Barack Obama, would require companies to give 45 days notice before increasing interest rates and prohibit retroactive increases
Westpac’s H1 results hold up as new business model is rolled out
Westpac, now Australias largest bank by market capitalisation, has announced cash earnings of A$2.3 billion ($1.74 billion) and net profit of A$2.18 billion for the six months to 31 March, down 6 percent and 1 percent year-on-year respectively. Cash earnings at Westpacs retail and business banking division rose by 17 percent year-on-year to A$990 million, but fell by 7 percent at the newly acquired St George retail and business unit
Woeful full-year earnings recorded at Japan’s banks
Japanese banks painstaking efforts to rebuild their battered balance sheets after the countrys so-called lost decade have been heavily impeded by the tumultuous economic events of 2008, full-year figures confirm. The countrys three megabanks Mitsubishi UFJ Financial (MUFG), Mizuho and Sumitomo Mitsui posted a collective full-year loss of $12.6 billion (in dollar terms) According to filings, Mizuho and Sumitomo Mitsui reported losses of $6.1 billion and $3.9 billion respectively, while a preliminary MUFG statement forecast a $2.6 billion loss.
KBC posts ?3.6bn Q1 loss; returns for more Belgian government aid
Beleaguered Belgian bancassurer KBC has posted a net loss of 3.6 billion ($4.9 billion) for the first quarter, forcing the Belgian government to step in for a third time to provide aid to the group. KBC wrote down a further 3.8 billion in toxic assets after its bond insurer, MBIA, was downgraded by ratings agencies; the Belgian government subsequently announced it would offer a guarantee for 90 percent of the banks losses up to a limit of 14.8 billion. Underlying net profit rose at all of KBCs regional units, but total impairment charges stood at 707 million, which included 307 million in impairments on loans and receivables.
Garanti: We will continue to be a pioneer
Garanti, the Turkish bank part-owned by GE, caused a stir in March with its latest attention-grabbing marketing campaign Executive vice-president Fuat Erbil spoke to Dan Jones about the banks advertising and retail product innovations, which include m-banking money, five-minute loans and a range of contactless tools.Garanti Bank, Turkeys largest bank by assets, has long been known for its light-hearted marketing campaigns and innovative product launches March saw the bank fire its latest salvo in the quest to attract more customers in a TV spot anticipating the US presidents visit to Turkey in April, a Barack Obama lookalike advertised Garantis new low-cost consumer loan package.