This TowerGroup Research Note analyzes and projects global noncash payment transaction volumes. It is based on research that TowerGroup has collated into the new TowerGroup Payments Database, which covers the five noncash main payment types in use today: debit and credit card, check, credit transfer, and direct debit. The report discusses the trends by payment type and major global region to inform the strategies of vendors and financial services institutions alike as they pursue business.

On April 29, 2009, the French National SEPA Committee, La Federation Bancaire Francaise, and Banque De France announced a delay in the launch of SEPA Direct Debit (SDD) in France until November 1, 2010, because of complexities of implementing the European Commission's Payment Services Directive. The parties to the announcement also stated they would need to consider the consequences of the European Central Bank's decision disallowing interchange in SDD over the long term and in those markets that apply to domestic direct debit schemes. This report studies the implications of the announcement for the future of the Single Euro Payments Area in general and the SDD scheme in particular.

The current economic crisis, some early direct banking successes, and the shifting consumer propensity to interact online are among the factors that will spur an influx of new US direct banking competitors hungry to acquire consumer banking deposits as a low-risk, low-cost funding source. TowerGroup expects that US direct consumer banking deposits will surge from $168 billion in 2008 to over $350 billion in 2012. New competitors must consider a myriad of factors prior to launching a direct bank or risk becoming yet another entry on the long “dot-bomb” list. This TowerGroup Research Note discusses an array of issues to consider based on best practices of successful direct banks.

Business contraction caused by recessionary conditions, linked to a lack of available funds, is the biggest challenge facing Europe's consumer bankers in 2009. Some markets, such as France, will maintain the status quo, except for the effects of recession. Others, such as the United Kingdom, will undergo a more fundamental change to managing this business. The winners in 2009 will be institutions best able to meet three goals: assess and price risk correctly to manage capital; capture and retain customer deposits to boost capital; and have sufficiently flexible processes and procedures to engage with customers to achieve organic growth or manage for default during the recession.

Consumers already have myriad ways to avoid surcharges at automated teller machines (ATMs). With the acquisitions of Washington Mutual by JPMorgan Chase and of Wachovia by Wells Fargo, two new large US nationwide ATM networks will soon add to Bank of America's 18,000 ATMs and Citi's 8,900 ATMs. To compete with these big banks, smaller institutions have formed surcharge-free networks or found other methods to negate the effects of small ATM fleets. This TowerGroup ViewPoint addresses the decline of surcharging at bank-owned ATMs in the United States. Their decline will be accelerated by competition from the new national networks created through recent acquisitions.

This TowerGroup ViewPoint suggests that credit card issuers consider the relevancy of their reward programs in the disrupted US economy. Mainstream programs that offer vacation plans and high-end products to reward card usage may not suit consumers suffering from a decrease in confidence in the economy, reduced disposable income, and less easily available credit. In an environment that demands better credit quality for issuers' portfolios rather than more spending, issuers will have to adapt their programs to ensure better payment and account maintenance rather than spend velocity.

In 2007, the European Parliament approved a legal framework for European payments called the Payment Services Directive (PSD). Viewed by many industry participants and observers as oriented toward consumer protection in the provision of payment services, the PSD has serious implications for business customers of all sizes and their banking providers. This TowerGroup Research Note describes the scope of the PSD and its relationship to the Single Euro Payment Area (SEPA) initiative, examines the implications of the PSD for corporate banking products and services, and recommends action steps for banks and business clients.

This TowerGroup Research Note is the third part of a series that will aid financial services institutions in evaluating business process outsourcing (BPO) options in mortgage lending. The Note reviews vendors that offer mortgage BPO services and technology, presenting for each a company overview and details on salient criteria for vendor selection: business strategy and service emphasis, breadth of mortgage processes performed, IT platforms, clients, training and certifications, and TowerGroup view of outlook. The vendors covered in this Research Note are IBM Daksh, iGATE Global Solutions Ltd., Infosys BPO, ISGN, Metavante BTS, and Nipuna Services Ltd. 

This TowerGroup Research Note is the second part of a series evaluating options in mortgage lending business process outsourcing (BPO) and the vendors that offer BPO services and technology. Each of the reviews presents a company overview of a BPO vendor followed by details according to salient criteria for vendor selection: business strategy and service emphasis, breadth of mortgage processes performed, IT platforms, clients, training and certifications, and TowerGroup view of outlook. The mortgage BPO vendors covered in this Note are Accenture Custom BPO, Equinox Corporation, EXL Service Holdings, Inc., GenPact, Fidelity National Information Services, and HCL Technologies Ltd.

This Research Note is the fourth part of a series that will aid financial services institutions in evaluating business process outsourcing (BPO) options in mortgage lending. The Note reviews vendors that offer mortgage BPO services and technology, presenting for each a company overview and details on salient criteria for vendor selection: business strategy and service emphasis, breadth of mortgage processes performed, IT platforms, clients, training and certifications, and TowerGroup view of outlook. The vendors covered in this Research Note are Nirvana BPO, Ocwen Financial Corporation, Optimus Outsourcing Company, String Information Services, WNS Global Services, and Zenta.