Tag: Financials

Royal Mail: Online bankers still want paper statements (UK)

Posted by | Feb 4, 2008 | |

Some 19 per cent of online bankers would switch providers if they were no longer able to receive statements and confidential information through the post, a Royal Mail survey has found.

Banking via the internet is a popular choice for many these days and can allow borrowers access to functions such as overdraft extensions, direct debits and up-to-the minute statements.

However, research commissioned by Royal Mail found that 68 per cent of those who conduct their money matters on the web still liked receiving paper correspondence, while seven in ten believed it was safer to receive confidential data this way.

When asked about utility providers, 35 per cent of consumers said they would take their custom elsewhere should their current supplier decide not to send statements by mail.

“Many companies are currently actively encouraging people to transact with them online, but they need to ensure that this is what their customers really want,” commented Abi Wood, head of financial sector marketing at Royal Mail.

“This research demonstrates the importance and value that many people place on having a hard copy record of their transactions.”

According to UK payments association Apacs, the number of card payments on the internet reached 426 million in 2006.

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India Post fights to retain marketshare in small savings

Posted by | Feb 2, 2008 | |

minimum of seven lakh small accounts during the April-October 2007 period to commercial banks.

This has been primarily due to the postal department’s inability to offer market-related interest rates and the withdrawal of 10pct bonus on monthly income scheme (MIS).
This declining trend is, however, expected to change now.

The government has reintroduced the bonus on MIS from December 2007, albeit at a lower 5pct rate, and is going to make the five-year postal term deposits and senior citizen savings scheme eligible for tax rebate under Section 80C of the Income Tax Act from April 2008.

Small post office savings schemes include MIS (at 8pct interest rate), term deposits and recurring deposits (7.5pct interest), senior citizen savings scheme (9pct interest) and savings bank account (3.5pct interest).

Till November 2007, the fall in number of accounts is significant, especially in MIS and senior citizen savings scheme. MIS collection received the first blow in February 2006 when the government withdrew the 10pct bonus on maturity.

The postal term deposits and senior citizen savings had also failed to compete with commercial banks during the period under review as banks were offering significantly higher interest rate on deposits. For instance, the State Bank of India (SBI) was offering a 9.5pct annual rate for 4-5 years deposits while the postal term deposits offer just about 7.5pct per annum.

According to latest available statistics as of October 2007, the number of live savings accounts with the postal department’s West Bengal circle stood at 1.78 crore. This is compared to 1.85 crore live accounts as of March 31, 2007.

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Consumer interest in mobile commerce extends beyond banking

Posted by | Jan 30, 2008 | |

Consumers across the United States are ready to adopt a broad set of mobile commerce applications, according to new research from Dove Consulting. The research, sponsored by PSCU Financial Services, was conducted using focus groups in multiple cities, and gauged consumer interest in and predicted future use of three major mobile applications: mobile banking (using a mobile device to access banking information), mobile payment at the point-of-sale (using a mobile device to make purchases), and mobile person-to-person payments (using a mobile device to send money to another mobile device).

When asked which of these mobile applications they were most excited about using, nearly two-thirds of study participants chose mobile banking and 30 percent chose mobile payment at the point-of-sale. Only a handful indicated they were excited about mobile person-to-person payments.

According to Chris Allen, a director with Dove Consulting and head of the payments strategy team, these results are in line with the direction the financial services industry is moving.

“Given everything financial institutions have done to encourage the adoption of mobile banking, it isn’t surprising that more people are comfortable with the technology and interested in using it,” Allen said. “I expect as more applications are developed that allow people to use their phones and mobile devices to pay for goods and services, consumer interest in this technology will grow and we will see it move into the mainstream, probably within the next two-to-four years.”

Participants indicated they are ready to start using mobile banking and mobile payment at the point-of-sale now. For both applications, adoption is likely to begin with a smaller group of tech-savvy users embracing the applications early, and the majority of consumers adopting soon afterwards once the product is more established. Person-to-person mobile payments did not resonate as strongly with participants, with few indicating they would adopt at any point in time.

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Western Union Pilots Personal Loans Offer in Hong Kong

Posted by | Jan 30, 2008 | |

Western Union customers in Hong Kong can soon apply for small personal loans from PrimeCredit Limited (“PrimeCredit”), a wholly owned subsidiary of Standard Chartered Bank PLC, following an agreement signed by the two companies to offer a pilot consumer lending program.

Effective from 18 February 2008, the program will allow Western Union consumers in Hong Kong to draw 12- to 18-month installment loans from PrimeCredit, then remit the borrowed money via Western Union Money Transfer.

“One of Western Union’s strategic objectives is continually to explore new service offerings that meet our consumers’ needs,” said Isabella Lau, regional vice president, Marketing, Asia Pacific, Western Union. “Our business model is to generate revenue from loan origination and repayment.

“We know that our consumers often do not have access to banking and financial services. With Western Union’s extensive experience serving this segment, we are well-placed to identify and provide access to quality services that meet their needs.”

Internal research found that 79 percent of consumers sending money transfers are receptive to other financial services offerings from Western Union, and that one in four Western Union consumers would consider applying for a loan product associated with Western Union.

PrimeCredit has more than 10 years of experience serving migrant workers in Hong Kong, with 17 of its 31 branches focused specifically on overseas workers. Many of PrimeCredit’s Hong Kong branches are open on Sundays, offering additional flexibility for consumers.

Initially, the program will be offered to Western Union’s Filipino consumer base in Hong Kong. The offer is expected to be extended to other consumer segments and other markets in the Asia Pacific region once the program matures.

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Globe Telecom and Western Union Join Forces to Deliver Money Transfers through Mobile Phones in the Philippines

Posted by | Jan 29, 2008 | |

The Western Union Company, Globe Telecom and its wholly owned subsidiary, G-Xchange, Inc., announced today that they will join forces to introduce a cross-border mobile money transfer service supporting low-principal, high-frequency remittances.

Globe Telecom, a leading telecommunications provider in the Philippines, offers its GCASH service with an “electronic wallet” feature that allows users to send and receive cash and make payments, including bill payments, donations and online purchases via texting. Globe Telecom had more than 19 million subscribers as of the end of September 2007 and close to half a million active GCASH users.

Once the Western Union(R) mobile money transfer pilot has launched, the service will connect operators to Western Union’s existing global money transfer system. Once connected to the Western Union service, operators will be able to use their own “mobile wallet” software to enable person-to-person mobile money transfers over Western Union’s cross-border remittance network. The Mobile Money Transfer service will enable consumers to transfer money to or from mobile wallets and will offer a global network of Western Union Agent locations for cash-to-mobile and mobile-to-cash transactions.

Mobile networks now cover more than 80 percent of the world’s population, and 3 billion people have a mobile phone,(2) creating a unique opportunity to extend the benefits of financial services to many of the world’s families for the first time.

The agreement with Globe is part of the pilot program of Western Union and the GSM Association, a global trade association representing over 700 GSM mobile phone operators, to facilitate the development of cross-border mobile money transfer services.

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