pAY m e n t seRvICes soLutIons
bY eugene KIm, copYwrITer, IcbA servIces neTworK
ICBA Bancard Re-Launches Credit Card Portf
New ACE
U
nderstanding the profitability potential and positioning of their credit card portfolios are one of the primary issues facing today’s community bankers. Credit card plan manager can attest that taking the time to dissect the numbers may be time-consuming. This is why ICBA Bancard is pleased to announce that a new version of its popular Automated Card Expert, or ACE portfolio assessment tool will launch later this year. “Community bankers really have a need for better automation of credit card portfolio data,” says ICBA Bancard Senior Vice President Scott Broughton. “Opportunities to improve a credit card program’s performance exist within every portfolio, but for the community banker wearing multiple hats, finding the time to identify them can prove challenging.” Until ICBA Bancard launched Automated Card Expert (ACE) in 2002, pinpointing acquisition, usage and retention opportunities could be a time-consuming, mind-numbing task. Broughton explains that community bankers had to sift through hardcopies of several reports, ascertain what data was needed and then manually enter it into a spreadsheet. “Bankers asked us for an easier way to determine the profitability of their credit card portfolios. We responded with ACE.” ACE analyzes key metrics important in determining the health of a portfolio such as account growth; penetration and activity; average credit lines; growth in outstandings, volume and usage; receivables aging; and revenue, expenses and profitability. The tool also allows users to research recommended growth strategies and tactics common in the industry today. 10 | NetworkNEWS
Test drive AC
E for yourself ! Visit www.icbaban card.org
folio Development Tool:
Delivers Improved Functionality
“Our newest version of the software (scheduled to be launched later this year) offers end-users even more advanced and improved functionalities,” says Broughton. He describes a new simulation feature that illustrates how small changes can affect a bank’s bottom line. “ACE allows users to effortlessly measure the end-result of complex what-if scenarios. Bankers can select a particular line item, such as the percentage of active accounts, and determine what the potential revenue of their portfolio would be if they increased these accounts by five percent. It’s a great planning tool.”
Fitness
lash F
Broughton adds that the newest version of ACe will also include the following enhancements:
4 ew graphing capabilities and formats, n
including line charts and 3-D images.
4 more robust peer group comparisons. 4 Intuitive portfolio analysis option that illustrates
the potential bottom-line outcome of changes to annual percentage rates, fees and more.
4 simulation feature whereby the user can A
measure the effects of teaser rates.
4 he ability to download ACe reports into t
excel and other formats for further data manipulation.
“The software truly automates credit card portfolio management by eliminating mundane tasks and time-drain, while targeting new opportunities for credit card program growth,” he says. “We think Bancard’s issuers will be very pleased with ACE’s new functionalities.”
NetworkNEWS | 11
pAY m e n t seRvICes soLutIons
bY AudreY wrIghT-cIprIAno, creATIve mArKeTIng dIrecTor IcbA servIces neTworK
Should You Household Rewards to Keep Your Best Customers?
he payments industry is holding its collective breath, waiting to see what, if any, fallout occurs from Capital One’s foray into debit issuing. By partnering with MasterCard, the financial services behemoth’s decoupled debit card will be accepted by the millions of merchants worldwide who accept MasterCard; lackluster merchant acceptance was the roadblock that foiled attempts of other third parties to link their debit cards to accounts at other financial institutions. In a press release, Capital One announced that its decoupled debit card will be co-branded and can be linked to and settled from any demand deposit account. And, unlike standard debit cards, which typically accumulate few, if any, rewards, the new decoupled debit card offers rewards points nearly as compelling as those found on many credit cards. Capital One has further enhanced its value proposition for potential cardholders by granting them the ability to pool these rewards points with those they earn for transactions on their Capital One credit cards.
T
bank uses a processor other than Fidelity National Information Services (Bancard’s partner for credit card processing). To keep Capital One and their ilk at bay, community bankers will want to make sure that their credit and debit card products look their very best. Pooled rewards programs will appeal the most to transactors—individuals who make frequent credit card purchases, yet satisfy their debts monthly. More often than not, this customer segment represents the crème de la crème of a community bank’s demand deposit accountholders—a segment that Capital One is willing to invest big dollars in for an opportunity to lure them away. “Community banks’ best customers are under attack, but you don’t have to offer products that are loss-leaders to keep them,” says Broughton. “ICBA Bancard and its partners have developed solutions for community bank credit and debit issuers that can stack up against anything the competition has to offer without putting your budget in the red.
Shape Up Your Credit and Debit Portfolios
The stage is now set for other credit card issuers, such as American Express Co. and Discover Card Services, to begin issuing debit cards. Neither issuer has publicized such an intention, but the debit arena is no doubt growing more attractive in helping capture the entire household relationships. Debit transactions are also poised to overtake cash purchases in as few as three years. “Community banks can beat these guys at their own game,” says ICBA Bancard’s Senior Vice President Scott Broughton. “ICBA Bancard’s credit card platform has supported a house-holding structure for several years.” He adds that banks can pool their customers’ credit and debit rewards, even in instances where the 12 | NetworkNEWS
tact ation con ore inform 0. For m -242-477 rd at 800 ca ICBA Ban