FICO Launches Optimization “Starter Kit” to Reclaim Card Profitability

Advanced Analytics Give Issuers Precision Needed to Carefully Grow Card Revenues

MINNEAPOLIS--(BUSINESS WIRE)--FICO (NYSE:FICO), the leading provider of analytics and decision management technology, announced today the general availability of a “starter kit” for credit line optimization (CLO). This starter kit is bundled with the industry-leading FICO® TRIAD® Customer Manager to help card issuers apply analytic precision to credit line increase strategies.

“The Credit CARD Act passed this year in the US, combined with a challenging economy in markets worldwide, has put tremendous pressure on card profits”

The Credit Line Optimization Starter Kit enables clients to take their TRIAD credit line increase strategies to the next level of performance, find opportunities for responsible profitable growth and control losses while making the best use of limited exposure. Issuers can rapidly model the credit line decision, set portfolio constraints and objectives, and build decision strategies that optimize those objectives. Many FICO clients have seen improved profit of $8-$12 per card account in 12 months by using decision modeling and optimization to change credit limits on cardholders.

“The Credit CARD Act passed this year in the US, combined with a challenging economy in markets worldwide, has put tremendous pressure on card profits,” said David Lightfoot, FICO vice president for product management. “Many issuers have reduced line increases or abandoned them altogether. Our experience shows that analytically determining credit lines can boost revenue growth even in today’s economy, and the CLO Starter Kit makes that easier than ever before.”

The starter kit is specifically designed to enable card issuers to develop more profitable strategies in today’s highly regulated environment. The starter kit can produce an optimized strategy 3-9 months faster than building your own solution with an optimization tool. At the same time, the starter kit takes full advantage of FICO’s advanced analytic methodology, which has been proven on decision modeling and optimization projects with more than 50 banks, and includes components to help lenders address new regulations in many countries requiring that customers “opt in” to line increases.

Decision strategies built using the Credit Line Optimization Starter Kit can be easily integrated into TRIAD, which is used to manage about two-thirds of credit card accounts worldwide. These strategies segment the card issuer’s portfolio using analytically derived criteria and thresholds, and assign the ideal credit increase or decrease amount to each cardholder. TSYS, one of the world’s leading payments providers, has integrated FICO’s credit line optimization service into its customized TRIAD offering, giving its clients a market-leading advantage.

“We have grown our card portfolio profitably using advanced analytics, including FICO’s credit line optimization services and TRIAD,” said Mark Merritt, Chief Credit Risk Officer at Canadian Tire Financial Services, one of Canada’s leading lenders and its second-largest MasterCard franchise. “FICO optimization gives us the precision we need to set the right line for every customer, and their experience in strategy design means we can build the right approach for our portfolio. With the slim margins in the cards business today, we view FICO credit line optimization as a competitive imperative.”

About FICO

FICO (NYSE:FICO) transforms business by making every decision count. FICO's Decision Management solutions combine trusted advice, world-class analytics and innovative applications to give organizations the power to automate, improve and connect decisions across their business. Clients in 80 countries work with FICO to increase customer loyalty and profitability, cut fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. FICO also helps millions of individuals manage their credit health through the www.myFICO.comwebsite.

Contacts

FICO

Media:

Steve Astle, 415-446-6204

stephenastle@fico.com

or

Investors/Analysts:

Michael Pung, 800-213-5542

investor@fico.com

Permalink: http://www.businesswire.com/news/home/20100709005048/en/FICO-Launches-Optimization-%E2%80%9CStarter-Kit%E2%80%9D-Reclaim-Card

MasterCard's New Master - Ajay Banga

MasterCard's New Master

Naazneen Karmali, 07.09.10, 04:00 AM EDT - Forbes

Former Citibanker Ajay Banga is pushing for new markets and new ways to pay.

MasterCard CEO Ajay Banga

MUMBAI -- In April, MasterCard's board met in Singapore where it named Indian-born Ajay Banga, the company's chief operating officer and president, to succeed outgoing chief executive Robert Selander. The choice was symbolic of where the world's second-largest card payment processor sees its future. "Credit cards are alive and well in Asia. There's a huge runway for growth in the developing card markets of China and India"; says Banga, 50, who took charge as chief executive on July 1.  The former Citigroup ( C - news - people ) executive cites the...<<read more>> 

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Visa's Transactions Up 19.4% in Gulf Region

Visa sees Gulf transactions up 19pc Manama: 4 hours and 16minutes ago

Visa has reported a growth of 19.4 per cent in payment transactions across the GCC in the first quarter of the year. The increase in transaction growth followed a successful year for Visa in terms of extending its debit business in the region.  The payment solutions provider formed a number of key debit partnerships with leading GCC-based banks last year which aimed to improve the card payment experience for cardholders, by providing increased debit card capabilities and convenience.  Visa's successful debit signings for this year include deals with Bahrain Islamic Bank, ADIB, NBD, HSBC, Dubai Islamic Bank, Doha Bank, NBK and KFH Kuwait. As part of the partnerships, Visa will support all eight banks to develop their debit portfolios and enhance customer experiences by increasing usage capabilities.  read more>>

50% of Consumers Think Cash will be Obsolete by 2030

You Don't Want it?  Send it on over...

Half of consumers think cash will be obsolete in 20 years - survey

With Brits increasingly turning to cards, cash could be obsolete by 2030, according to 52% of users of discount Web site MyVoucherCodes.



The survey of 1938 people shows 71% prefer to pay for items in store using a card rather than cash, with just 14% choosing notes and coins as their ideal method.  Over a third of respondents say they 'rarely' carry cash around with them. Nearly half feel safer without cash on them and 82% agree it is 'easier' just to carry a card.  <<read more>>

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Green Dot Sets IPO Terms: 3.85 Million Shares at $32-$35

Prepaid financial services company Green Dot sets IPO terms

7/9/10

Green Dot Corporation, which is a leading provider of reloadable prepaid debit cards in the US under its Green PlaNET platform, announced terms for its IPO on Friday. The Monrovia, CA-based company plans to raise $129 million by offering 3.85 million shares at a price range of $32-$35 with all shares to be sold by insiders.  At the mid-point of the proposed range, Green Dot will command a market value of $1.5 billion. Green Dot Corporation, which was founded in 1999 and booked $235 million in sales for the 12 months ended July 31, plans to list on the NYSE under the symbol GDOT. J.P. Morgan and Morgan Stanley are the lead underwriters on the deal, which is expected to price during the week of July 19th.

View IPO Profile: GDOT         

Related Links: Upcoming IPOs

Source: www.RenaissanceCapital.com

NRF Launches "Mobile Retail Initiative"

Mobile phones have come a long way since their introduction over 30 years ago. By 2015, shoppers around the world are expected to use their mobile phones to purchase goods and services worth close to $120 billion.    In order to help retailers adapt to the new technology, the National Retail Federation has launched its  Mobile Retail Initiative  to offer best practices and learning opportunities for retailers entering the mobile space.This Mobile Retail Initiative has produced a Mobile Blueprint to guide retailers in planning and implementing initial mobile applications, including customer marketing, payments and internal operations. For a synopsis of the Mobile Blueprint, read the Executive Summary To see a summary and to download individual chapters of the Mobile Blueprint, go to the Table of Contents Download the entire  Mobile Blueprint The Mobile Blueprint Committee Chair Richard Mader would like to thank all who participated in this effort, with special thanks going to the subcommittee chairs Dave Dorf of Oracle, Jona Buus of Cellpoint Mobile and Cathy Medich of Smart Card Alliance.

FIS Announces Pricing of $1.1 Billion of Senior Notes

JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS^™ (NYSE:FIS), one of the world’s largest providers of banking and payments technology, announced today that it has agreed to sell $600 million of 7.625% senior unsecured notes due 2017 and $500 million of 7.875% senior unsecured notes due 2020 (collectively, the "Notes"). The Notes will be guaranteed by certain subsidiaries of FIS. The offerings of the Notes are expected to close on July 16, 2010. The company intends to use the net proceeds of the Notes, together with borrowings under a combination of a new Term Loan B, incremental Term Loan A, revolving credit facility and accounts receivable facility, (1) to repurchase shares of common stock, (2) to repay in full the outstanding amount under, and terminate, the credit facility assumed in connection with the acquisition of Metavante Technologies, Inc. and (3) to pay fees and expenses.

The offerings of the Notes will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes will not be registered under the Securities Act and may not be offered or sold without registration unless pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and all applicable state laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Contacts

FIS

Marcia Danzeisen, Senior Vice President, Global Marketing and Communications, 904.854.5083

marcia.danzeisen@fisglobal.com

or

Mary Waggoner, Senior Vice President, FIS Investor Relations, 904.854.3282

mary.waggoner@fisglobal.com

Permalink: http://www.businesswire.com/news/home/20100708006687/en/FIS-Announces-Pricing-1.1-Billion-Senior-Notes

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CyberSource Announces Early Termination of HSR Waiting Period

MOUNTAIN VIEW, Calif., July 8 /PRNewswire-FirstCall/ -- CyberSource Corporation (Nasdaq:CYBS) ("CyberSource"), a leading provider of electronic payment, risk management, and payment security solutions, announced today that the U.S. Department of Justice and Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR Act"), with respect to the planned acquisition of CyberSource by Visa Inc. (NYSE: V) ("Visa"), which was announced on April 21, 2010.  Accordingly, the requirement under the merger agreement for the expiration or termination of any waiting period under the HSR Act has been satisfied.

The closing of the transaction still remains subject to other conditions in the Agreement and Plan of Merger by and among Visa, CyberSource and Market St. Corp., a wholly-owned subsidiary of Visa, including approval by CyberSource's stockholders at the Special Meeting of Stockholders, scheduled for July 20, 2010 at 10:00 a.m. Pacific time, at CyberSource's headquarters inMountain View, CA.  

About CyberSource

CyberSource solutions enable electronic payment processing for Web, call center, and POS environments.  CyberSource also offers industry-leading risk management and payment security solutions for merchants accepting card-not-present transactions. CyberSource Professional Services designs, integrates, and optimizes commerce transaction processing systems. Approximately 305,000 businesses use CyberSource solutions, including half the companies comprising the Dow Jones Industrial Average. The company is headquartered in Mountain View, California, and has sales and service offices inJapan, Singapore, the United Kingdom, and other locations in the United States including Bellevue, Washington and American Fork, Utah. For more information on CyberSource please visit www.cybersource.com or email info@cybersource.com.  For more information on Authorize.Net small business solutions, please visit www.authorize.net or email sales@authorize.net.

Cautionary Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. The reader is cautioned not to place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties, risks, assumptions and other factors, many of which are outside the control of Visa and CyberSource. The forward-looking statements in this release address a variety of subjects including, for example, satisfaction of other conditions under the Merger Agreement and approval by CyberSource stockholders.  The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that CyberSource's business will not be successfully integrated with Visa's business; matters arising in connection with the parties' efforts to comply with and satisfy applicable closing conditions relating to the transaction; and other events that could adversely impact the completion of the transaction, including industry or economic conditions outside of our control. In addition, actual results are subject to other risks and uncertainties that relate more broadly to Visa's overall business, including those more fully described in Visa's filings with the SEC including its annual report on Form 10-K for the fiscal year ended September 30, 2009, and its quarterly report filed on Form 10-Q for the first quarter of 2010, and CyberSource's overall business and financial condition, including those more fully described in CyberSource's filings with the SEC including its annual report on Form 10-K for the fiscal year ended December 31, 2009, and its quarterly reports filed on Form 10-Q for the current fiscal year. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement, except as required by law.

Additional Information about the Merger and Where to Find It

In connection with the proposed merger, CyberSource filed a definitive proxy statement with the SEC on June 11, 2010 ("Proxy Statement"). Additionally, CyberSource will file other relevant materials with the SEC in connection with the proposed acquisition of CyberSource by Visa pursuant to the terms of the Agreement and Plan of Merger by and among Visa, CyberSource and Market St. Corp., a wholly-owned subsidiary of Visa. The materials to be filed by CyberSource with the SEC may be obtained free of charge at the SEC's web site at www.sec.gov.  Investors and stockholders also may obtain free copies of the proxy statement from CyberSource by contacting its investor relations department by telephone at (650) 965-6000 or by mail at CyberSource Corporation, Investor Relations, 1295 Charleston Road, Mountain View, California 94043. Investors and security holders of CyberSource are urged to read the Proxy Statement and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed merger because they will contain important information about the merger and the parties to the merger.

CyberSource, Visa and their respective directors, executive officers and other members of its management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of CyberSource stockholders in connection with the proposed merger. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of certain of CyberSource's executive officers and directors in the solicitation by reading CyberSource's Annual Report on Form 10-K/A for the fiscal year ended December 31, 2009 containing Part III information filed with the SEC onApril 30, 2010, the Proxy Statement and other relevant materials filed with the SEC in connection with the merger when they become available. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Visa's executive officers and directors by reading Visa's proxy statement for its 2010 annual meeting of stockholders, filed with the SEC on December 1, 2009. Information concerning the interests of CyberSource's participants in the solicitation, which may, in some cases, be different than those of CyberSource's stockholders generally, is set forth in the Proxy Statement and may be supplemented by other relevant materials filed with the SEC in connection with the merger when they become available. Additional information regarding CyberSource directors and executive officers is also included in the Annual Report on Form 10-K/A for the fiscal year ended December 31, 2009, containing Part III information, which was filed with the SEC on April 30, 2010.

©2010 CyberSource Corporation. All rights reserved. CyberSource and Authorize.Net are registered trademarks of CyberSource Corporation in the U.S. and other countries. All other brands and product names are trademarks or registered trademarks of their respective companies.

SOURCE CyberSource Corporation

Pew: 60% of American's Access Wireless Internet, 38% with Cell Phones

Mobile Access 2010  

by Aaron Smith

Six in ten American adults are now wireless internet users, and mobile data applications have grown more popular over the last year.

As of May 2010, 59% of all adult Americans go online wirelessly. Our definition of a wireless internet user includes the following activities:

• Going online with a laptop using a wi-fi connection or mobile broadband card. Roughly half of all adults (47%) go online in this way, up from the 39% who did so at a similar point in 2009.
  
  


• Use the internet, email or instant messaging on a cell phone. Two in five adults (40%) do at least one of these using a mobile device, an increase from the 32% of adults who did so in 2009.

Taken together, 59% of American adults now go online wirelessly using either a laptop or cell phone, an increase over the 51% of Americans who did so at a similar point in 2009.[1]

Cell phone ownership has remained stable over the last year, but users are taking advantage of a much wider range of their phones’ capabilities compared with a similar point in 2009. Of the eight mobile data applications we asked about in both 2009 and 2010, all showed statistically significant year-to-year growth.

This year we also asked for the first time about seven additional cell phone activities. Among all cell phone owners:

• 54% have used their mobile device to send someone a photo or video


• 23% have accessed a social networking site using their phone


• 20% have used their phone to watch a video


• 15% have posted a photo or video online


• 11% have purchased a product using their phone


• 11% have made a charitable donation by text message


• 10% have used their mobile phone to access a status update service such as Twitter

African-Americans and Latinos continue to outpace whites in their use of data applications on handheld devices.

Continuing a trend we first identified in 2009, minority Americans lead the way when it comes to mobile access—especially mobile access using handheld devices. Nearly two-thirds of African-Americans (64%) and Latinos (63%) are wireless internet users, and minority Americans are significantly more likely to own a cell phone than their white counterparts (87% of blacks and Hispanics own a cell phone, compared with 80% of whites).  Additionally, black and Latino cell phone owners take advantage of a much wider array of their phones’ data functions compared to white cell phone owners. It is important to note that our data for Hispanics represents English-speaking Hispanics only, as our survey did not provide a Spanish-language option.

Young adults are heavily invested in the mobile web, although 30-49 year olds are gaining ground.

Nine in ten 18-29 year olds own a cell phone, and these young cell owners are significantly more likely than those in other age groups to engage in all of the mobile data applications we asked about in our survey. Among 18-29 year old cell phone owners:

• 95% send or receive text messages


• 93% use their phone to take pictures


• 81% send photos or videos to others


• 65% access the internet on their mobile device


• 64% play music on their phones


• 60% use their phones to play games or record a video


• 52% have used their phone to send or receive email


• 48% have accessed a social networking site on their phone


• 46% use instant messaging on their mobile device


• 40% have watched a video on their phone


• 33% have posted a photo or video online from their phone


• 21% have used a status update service such as Twitter from their phone


• 20% have purchased something using their mobile phone


• 19% have made a charitable donation by text message

Although young adults have the highest levels of mobile data application use among all age groups, utilization of these services is growing fast among 30-49 year olds. Compared with a similar point in 2009, cell owners ages 30-49 are significantly more likely to use a range of mobile data applications on a handheld device.

The mobile data applications with the largest year-to-year increases among the 30-49 year old cohort include taking pictures (83% of 30-49 year old cell owners now do this, a 12-point increase from 2009); recording videos (39% do this, an 18-point increase from 2009); playing music (36% do this, a 15-point increase); using instant messaging (35% now do this, a 14-point increase); and accessing the internet (43% now do this, a 12-point increase compared with 2009).

About the Survey

This report is based on the findings of a daily tracking survey on Americans' use of the Internet. The results in this report are based on data from telephone interviews conducted by Princeton Survey Research Associates International between April 29 and May 30, 2010, among a sample of 2,252 adults ages 18 and older, including 744 reached on a cell phone.  Interviews were conducted in English.  For results based on the total sample, one can say with 95% confidence that the error attributable to sampling and other random effects is plus or minus 2.4 percentage points.  For results based cell phone owners (n=1,917), the margin of sampling error is plus or minus 2.7 percentage points.  In addition to sampling error, question wording and practical difficulties in conducting telephone surveys may introduce some error or bias into the findings of opinion polls.

Data about sending photos or videos to others using a cell phone and texting charitable donations are based on telephone interviews with a nationally representative sample of 1,009 adults living in the continental United States. Telephone interviews were conducted by landline (678) and cell phone (331, including 104 without a landline phone). The survey was conducted by Princeton Survey Research International (PSRAI). Interviews were done in English by Princeton Data Source from June 17-20, 2010. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is ±3.7 percentage points.

---

[1] Because of changes in question wordings over time, our current wireless internet user definition is not directly comparable to any pre-2009 findings.