McConn breaks down Alerus customers into three general demographic groups: the younger generation, which has fully embraced debit cards as a way of life; those in their 30s to 50s, who like their credit cards but are adjusting from checks to bank debit cards at the checkout; and older folks, who still prefer checks – and sometimes balance their checkbook in the checkout line.
The continued rapid growth in credit card spending, together with increases in annual membership fees and higher charges for overdrawn accounts, late payments and cash advances, contributed to banks' fee income from credit cards.
Interestingly, Australia is a market where the financial regulators have been very aggressive with respect to credit card interchange fees. In spite of those efforts, the Australian banks have figured out new ways to drive credit card-related fee income.
A national bank should fully consider and appropriately address several important issues before offering payroll card products. These include compliance issues and any role of nonbank third parties. Failure to properly address these issues can expose the bank and its customers to significant risks.
Importantly, the announcement also indicated that AT&T's network service will serve as an industry utility to carry other types of payments and payment information, such as real-time retrieval of demand deposit account information and other data-sharing as needed between business partners.
The report reveals that U.S. bank internal IT spending on non-card payment systems will grow 37% between 2004 and 2003 compared with 24% between 2003 and 2002 and 14% between 2002 and 2001. Massive investment in check processing will drive this short-term spike.
Bank internal IT spending on non-card payments will reach $1.0 billion in 2004, up from US$0.7 billion in 2003 and US$0.6 billion in 2002. This spending will account for 2.7% of the total IT budget of U.S. banks in 2004, up from 2.1% in 2003 and 1.7% in 2002.
What really speaks to me about this idea, though, is that Netpace and its competitors are hastening the expansion of the mobile phone carriers' business models. The idea that your mobile phone becomes not just an identifying key for commerce (like a signature), but also a kind of wallet (like a credit card) is powerful and transformative for the communications business—even more so than the 900-number concept, which has generally been used only to bill voice-based services delivered over the phone itself.
NYCE had 2003 revenue of approximately $143 million and net income of approximately $30.7 million. According to the announcement, the transaction is expected to be approximately neutral to M&I's earnings per share in 2004 and accretive in 2005.
New Jersey is one of 10 states that doesn't now count gift cards and gift certificates as unclaimed property, though another nine states shield only some types of the gifts, based on the kind of issuer or the value of the gift.