2400 E. Missouri Avenue
Phoenix, AZ 85016
Monday, October 4, 2010
Recent legislative changes involving debit cards make it imperative that debit card issuers maximize the potential of their existing portfolios. This panel will discuss ways to maximize value in existing portfolios. Topics they will address include:
- Managing customer relationships
- Building brand synergy
- Regulatory Compliance
- Balancing risk and reward
- Cardholder data security
- Fraud deterrence
How does the performance of your debit portfolio compare with your peers? How are various players reacting to regulatory changes in the industry? Join Oliver Wyman and PULSE as they discuss key performance metrics related to debit cards, transactions, Reg E, debit economics, rewards, fraud and more. Using data from the 2010 Debit Issuer Study, the definitive study of the debit card market based on primary research with 64 financial institutions representing more than 78 million debit cards, they will examine the performance of peer issuers. The session will also focus on issuers outlook on the future, where the major opportunities and challenges reside, and effective ways to stay ahead of the curve as the industry adapts to the new regulatory framework.
An increasing number of issuers are questioning the value of debit rewards programs. Do they cause customers to use their cards more or are issuers simply paying for behavior that would have occurred anyway? Can rewards program improve customer acquisition and reduce attrition, or is the cardholder value proposition too weak to make a difference? Will rewards still be viable under different pricing scenarios? This panel of major debit issuers with highly regarded rewards programs will share their views.
Historically, debit has been a significant contributor to bank revenue and earnings. For debit card managers, the primary goal is to grow debit spend, both overall and as a share of customers' overall payments mix - and the results over the last decade have been very impressive. In this panel discussion, successful debit card issuers will describe strategies to drive superior card performance, focusing on the primary metrics of Penetration, Activation and Usage.
- Penetration - how are cards issued to new customers? how are bankers incented? the merits of instant issuance?
- Activation - what tactics and marketing messages can (cost effectively) get customers to use their cards?
- Usage - Which customer segments are the best prospects for debit use? Where are the growth opportunities now?
- Regulation - What new strategies will be needed in the new environment?
Tuesday, October 5, 2010
Over the last few quarters, consumers have shown an increased appetite for using debit products to pay for their purchases in both the physical and online spaces. Yet with the growth in online sales comes another less exciting set of statistics. In 2008, it is estimated that $4 billion was lost to online payment fraud losses absorbed by merchants, consumers and financial institutions. These numbers beg the questions, which this panel will address:
- How secure are internet and mobile payments?
- Should consumers be concerned about using their debit products for online purchases?
- How can merchants decrease their losses associated with such payments?
- How will financial institutions benefit from making these payments more secure?
General Purpose Reloadable and Payroll Cards are gaining market share, but at whose expense? Are consumers turning away from traditional banking accounts to take advantage of these accessible and functional transactional products? Are FI-issuers missing a market opportunity by not incorporating GPR cards into their account segmentation strategies? These are some of the questions that will be explored by a panel of industry stakeholders representing the financial institution and prepaid card markets in a session designed to address the challenges and opportunities for financial institutions as they consider whether to compete or cooperate with the GPR card market.
With its acquisition of Wachovia in 2009, Wells Fargo undertook a wholesale revamping of their loyalty strategy to launch a next-generation rewards program that combines the best practices and leading technologies of todays best loyalty programs. The goal of this new strategy was to build loyalty and increase spend among its debit card holders. In addition to rewards infrastructure changes, Wells Fargo focused on leveraging shopping partners- retailers, travel, and other merchants- as a coalition capable of delivering unique value to debit card members. This has created a new economic model for funding rewards points and discounts that is reaping big rewards.
- How the business case was developed to drive this new major initiative
- How loyalty shopping with partner merchants changes the economic model for rewards
- What best practices and technologies were most critical to drive the success of their program
- How Wells Fargo is creating sustained differentiation with their loyalty program
- What lessons can be applied to drive loyalty beyond debit cards