Emerging from what is most likely the worst financial climate in recent history, the card industry remains in a state of troubled waters and at the center of extreme public controversy heading into the New Year.  In 2009, a year of regulation and change, critical forces in the form of new legislation and economic downturn converged to create a “perfect storm”.  Challenges, change, and continued uncertainty will remain key factors during 2010 as card issuers struggle to balance compliance and customer good will with profitability and shareholder return.

Most financial institutions have an online presence and at least some online marketing activity.  Traditionally, direct mail and branch locations have been the biggest marketing channels for financial institutions.  However, the ease and ubiquitous availability of various online channels and mediums to access customers via websites, targeted emails, banner ads, SMS, MMS, etc. makes online marketing a requirement.  As the list of options has grown, it has become increasingly clear that without a robust online presence and corresponding marketing plan, your marketing strategy is incomplete.

Data quality problems cost US businesses more than $600 billion a year.  These cost estimates would be significantly higher if lost revenue due to customer attrition and customer dissatisfaction was included.  Data errors cause the steady erosion of an organization’s credibility among customers and suppliers which has a lasting impact on an organization’s bottom line.  Our data experts experience first-hand the lasting impact of data errors while resolving data quality problems in a variety of US businesses.  Data errors occur in all industries and provided below are a few examples that our experts have encountered over the years.

With imminent changes to overdraft fee policies, banks must contemplate the impact and determine what to do.  Bank of America and Chase recently announced significant changes in their programs that go into effect as early as October.  Some were similar to changes being proposed in Washington, although each bank has elements that differ.   While the ultimate financial impact on a bank will vary based on their customer base, program design and other key factors, most banks are not aware of the complexity of the changes.  
 

The political and economic events of 2008 & 2009 have created new challenges to deposit platforms and products that could have negative results on your future earnings. To fully appreciate what could happen, here’s an overview of possible sweeping changes poised to impact you this year.

It is true that change is coming.  It’s also true that it has arrived.  The Credit Card Act of 2009 has been signed into law.  The internet is inundated with articles about how this Act will positively impact customers, but very little attention has been paid to how the Act negatively impacts already-struggling financial institutions.