Mary Schaeffer, editor, AP Now, and Dennis Lindsay, AP manager, Intermountain Healthcare, attend a writer's workshop this afternoon at FUSION 2010 at the Gaylord Texan Resort & Convention Center in Grapevine, Texas.
Showing posts with label payments. Show all posts
Showing posts with label payments. Show all posts
Sunday, May 9, 2010
FUSION 2010
Mary Schaeffer, editor, AP Now, and Dennis Lindsay, AP manager, Intermountain Healthcare, attend a writer's workshop this afternoon at FUSION 2010 at the Gaylord Texan Resort & Convention Center in Grapevine, Texas.
FUSION 2010
Susan Heider, senior audit advisor, APEX Analytix (pictured, left), and Tracy Bryant, AP manager, Mohawk Industries, attend a writer's workshop this afternoon at FUSION 2010 at the Gaylord Texan Resort & Convention Center in Grapevine, Texas.
FUSION 2010
Posted by Mark Brousseau
At a writer's workshop this afternoon at FUSION 2010, IAPP/IARP Editor in Chief Laureen Crowley Algier shared the 10 myths of business writing:
1) Quoting from Wikipedia and other websites strengthens my business writing.
Not necessarily. Remember, not everything you read on the Internet has been verified for accuracy. Using Wikipedia to research a topic is fine. Quoting from it is dicey. The Internet is like the Wild West: The rules are different there. It’s not as safe as quoting from Encyclopedia Britannica.
2) Repurposing content I wrote for another company can save me time and work.
Yes and no. If you created the content on the other company’s dime, it’s likely that company owns the material, not you. It might be in your best interest to rewrite the material entirely so it doesn’t appear that your new organization is plagiarizing your former company’s work.
3) Articles that appear on the Internet are public property.
Absolutely not. You’ll find warnings on many websites that say the content may not be reproduced without the written permission of the author. Web-based content falls under the same rules as magazine articles, newspaper stories, books, corporate reports, and most other written material. Just to be safe, assume that you need permission to use any content you find on the Internet – unless it contains a note that allows anyone to reprint it as long as the original source is cited.
4) Footnotes that cite my sources protect me legally under copyright law.
Not always. First of all, what are you doing using footnotes? These rarely are necessary. It’s a lot more reader-friendly to attribute information in the body of your copy than make people stop what they’re doing and look up a footnote. But if you must use them, you still must properly identify where you got the information and possibly obtain permission to use it.
5) If I’m using only one paragraph from another source, I don’t have to get permission from the writer.
True – but you do have to cite where it came from. If the paragraph is word for word, it should be in quotation marks or indented on both sides, or somehow set aside as something different from the body copy. And it must be attributed to the source, just as if it were a quote.
6) If I credit the original writer, I can republish as much of an article as I want.
Absolutely wrong. The rule of thumb when you’re quoting from someone else’s work is that you can’t give away “the heart” of it. Just like telling someone how a book or movie ends, you take away the work’s impact if you give away too much. Unless you have the author’s permission to reprint the entire piece, be very careful.
7) My peers will respect me more if my writing sounds academic.
Maybe. But they’ll respect you even more if they can understand what the heck you’re saying. Don’t let your message get lost in the language. Keep it simple.
8) I’m a great speller, so my work doesn’t really need editing.
False. Even the best writers and editors need editing. It’s hard to “hear” the flow of your own work. Someone with a trained ear for writing and an objective outlook can do wonders for making your writing sing.
9) The editor inserted a lot of changes, so my writing must have been horrible.
Not necessarily. Editors look for many things in the copy, and you might not be aware of all of them. Those red or blue lines throughout the article you submit might mean the editor had to trim out words and sentences to make it fit into the news hole. They might mean the editor was “translating” your work into the publication’s style. In most cases, your work will never see the light of day if it’s horrible. Just be happy that you’re being published!
10) The editor didn’t respond right away, so my writing must have been horrible.
Again, this is not necessarily true. Sometimes it’s not all about you! Just like anyone else, editors have a lot on their plates. Even though they gave you a deadline and you met it, your work might not be edited for some time. Most editors give it a first glance initially to be sure it’s in the ballpark of what they’re seeking, and then they put it in the queue of pieces to edit. They take time and truly go through the work later. You might not hear from them until they take that second look. So relax.
At a writer's workshop this afternoon at FUSION 2010, IAPP/IARP Editor in Chief Laureen Crowley Algier shared the 10 myths of business writing:
1) Quoting from Wikipedia and other websites strengthens my business writing.
Not necessarily. Remember, not everything you read on the Internet has been verified for accuracy. Using Wikipedia to research a topic is fine. Quoting from it is dicey. The Internet is like the Wild West: The rules are different there. It’s not as safe as quoting from Encyclopedia Britannica.
2) Repurposing content I wrote for another company can save me time and work.
Yes and no. If you created the content on the other company’s dime, it’s likely that company owns the material, not you. It might be in your best interest to rewrite the material entirely so it doesn’t appear that your new organization is plagiarizing your former company’s work.
3) Articles that appear on the Internet are public property.
Absolutely not. You’ll find warnings on many websites that say the content may not be reproduced without the written permission of the author. Web-based content falls under the same rules as magazine articles, newspaper stories, books, corporate reports, and most other written material. Just to be safe, assume that you need permission to use any content you find on the Internet – unless it contains a note that allows anyone to reprint it as long as the original source is cited.
4) Footnotes that cite my sources protect me legally under copyright law.
Not always. First of all, what are you doing using footnotes? These rarely are necessary. It’s a lot more reader-friendly to attribute information in the body of your copy than make people stop what they’re doing and look up a footnote. But if you must use them, you still must properly identify where you got the information and possibly obtain permission to use it.
5) If I’m using only one paragraph from another source, I don’t have to get permission from the writer.
True – but you do have to cite where it came from. If the paragraph is word for word, it should be in quotation marks or indented on both sides, or somehow set aside as something different from the body copy. And it must be attributed to the source, just as if it were a quote.
6) If I credit the original writer, I can republish as much of an article as I want.
Absolutely wrong. The rule of thumb when you’re quoting from someone else’s work is that you can’t give away “the heart” of it. Just like telling someone how a book or movie ends, you take away the work’s impact if you give away too much. Unless you have the author’s permission to reprint the entire piece, be very careful.
7) My peers will respect me more if my writing sounds academic.
Maybe. But they’ll respect you even more if they can understand what the heck you’re saying. Don’t let your message get lost in the language. Keep it simple.
8) I’m a great speller, so my work doesn’t really need editing.
False. Even the best writers and editors need editing. It’s hard to “hear” the flow of your own work. Someone with a trained ear for writing and an objective outlook can do wonders for making your writing sing.
9) The editor inserted a lot of changes, so my writing must have been horrible.
Not necessarily. Editors look for many things in the copy, and you might not be aware of all of them. Those red or blue lines throughout the article you submit might mean the editor had to trim out words and sentences to make it fit into the news hole. They might mean the editor was “translating” your work into the publication’s style. In most cases, your work will never see the light of day if it’s horrible. Just be happy that you’re being published!
10) The editor didn’t respond right away, so my writing must have been horrible.
Again, this is not necessarily true. Sometimes it’s not all about you! Just like anyone else, editors have a lot on their plates. Even though they gave you a deadline and you met it, your work might not be edited for some time. Most editors give it a first glance initially to be sure it’s in the ballpark of what they’re seeking, and then they put it in the queue of pieces to edit. They take time and truly go through the work later. You might not hear from them until they take that second look. So relax.
Tuesday, February 3, 2009
USPS Talking Points
By Mark Brousseau
The remittance space is buzzing about the Postmaster General's recent request to Congress to lift the requirement that the postal service deliver mail six days a week. There is concern from many corners about the potential impact this move would have on the industry.
To help head-off potential public relations issues, USPS prepared the Talking Points below for its staff to use when discussing the Postmaster General's plan. These were passed along by an industry observer.
RECOMMENDED TALKING AND MESSAGE POINTS
PMG TESTIMONY
UPDATED
29 JAN. 09; 2 P.M.
Confirm Testimony
Postmaster General Jack Potter testified Wednesday before a Senate subcommittee on the financial health of the Postal Service. His remarks were candid and he presented options for working our way through the current economic downturn. Potter stressed that the priority would be relief from the prepayment of retiree health benefits.
... Potter’s testimony has been posted on usps.com
Customers First
The Postal Service remains committed to providing the American people with quality, affordable service -- despite the current economic situation. Any decision made to help alleviate our financial situation starts with how it might affect our customers, the American people. We will continue to look at ways to cut costs and improve efficiencies within our system in order to guarantee to deliver the reliable, trusted service our customers have come to expect. In the past year the Postal Service has taken very aggressive cost-cutting actions, including the following:
... Halted construction of new postal facilities;
... Worked with National Association of Letter Carriers to permit a new interim agreement to enable quickly evaluating and adjusting letter carrier routes to reflect diminished volume;
... Frozen the salaries of all Postal Service officers and executives;
... Reducing authorized staffing levels at Postal headquarters by 15 percent;
... Reducing authorized staffing levels in the regional offices by 19 percent;
... Slashed travel and meeting budgets to take advantage of video conferencing technology; and,
... Consolidated some duplicative mail processing operations.
Health Care Relief a Priority
The Postal Service's first option is to restructure the prepayment of future retiree health care costs. We are the only government agency that is required to fully fund all projected retiree health care costs. Nonetheless, the Postal Service remains committed to meeting this obligation but a modified schedule of payments would allow the Postal Service to focus on current financial needs during this crisis. This change would neither increase the health benefit premiums paid by current or future Postal Service retirees, nor would it affect their benefits. Neither proposal would involve tax subsidies.
... Potter asked that the payment schedule for funding be adjusted.
... Modifying the schedule of payments would allow the Postal Service to focus on current financial needs during the economic crisis.
... This change would not increase the health benefit premiums paid by current or future Postal Service retirees.
... This proposal would not involve tax subsidies.
5 Day Delivery
Americans have come to trust and count on delivery six days a week. If the Postal Service is not allowed to postpone retiree health care benefits for at least the next two years, we would look at a temporary solution of limiting delivery to five days a week. This would come only during those periods of the year when mail volume is at its lowest and would be infrequent at best.
... This is a consideration only. No final decision has been made.
... We have no immediate plans to halt our current operating, processing or delivery procedures and systems.
... Our priority remains on working with Congress to change our contribution schedule for the retiree health benefit fund.
... No decisions have been made as to what day we may consider as the “non-delivery” day.
... Business will proceed as it always does. Service, delivery and, especially, work at BSNs continue as it is today.
... It is business as usual for the Postal Service.
What do you think of this? Post your comment below.
The remittance space is buzzing about the Postmaster General's recent request to Congress to lift the requirement that the postal service deliver mail six days a week. There is concern from many corners about the potential impact this move would have on the industry.
To help head-off potential public relations issues, USPS prepared the Talking Points below for its staff to use when discussing the Postmaster General's plan. These were passed along by an industry observer.
RECOMMENDED TALKING AND MESSAGE POINTS
PMG TESTIMONY
UPDATED
29 JAN. 09; 2 P.M.
Confirm Testimony
Postmaster General Jack Potter testified Wednesday before a Senate subcommittee on the financial health of the Postal Service. His remarks were candid and he presented options for working our way through the current economic downturn. Potter stressed that the priority would be relief from the prepayment of retiree health benefits.
... Potter’s testimony has been posted on usps.com
Customers First
The Postal Service remains committed to providing the American people with quality, affordable service -- despite the current economic situation. Any decision made to help alleviate our financial situation starts with how it might affect our customers, the American people. We will continue to look at ways to cut costs and improve efficiencies within our system in order to guarantee to deliver the reliable, trusted service our customers have come to expect. In the past year the Postal Service has taken very aggressive cost-cutting actions, including the following:
... Halted construction of new postal facilities;
... Worked with National Association of Letter Carriers to permit a new interim agreement to enable quickly evaluating and adjusting letter carrier routes to reflect diminished volume;
... Frozen the salaries of all Postal Service officers and executives;
... Reducing authorized staffing levels at Postal headquarters by 15 percent;
... Reducing authorized staffing levels in the regional offices by 19 percent;
... Slashed travel and meeting budgets to take advantage of video conferencing technology; and,
... Consolidated some duplicative mail processing operations.
Health Care Relief a Priority
The Postal Service's first option is to restructure the prepayment of future retiree health care costs. We are the only government agency that is required to fully fund all projected retiree health care costs. Nonetheless, the Postal Service remains committed to meeting this obligation but a modified schedule of payments would allow the Postal Service to focus on current financial needs during this crisis. This change would neither increase the health benefit premiums paid by current or future Postal Service retirees, nor would it affect their benefits. Neither proposal would involve tax subsidies.
... Potter asked that the payment schedule for funding be adjusted.
... Modifying the schedule of payments would allow the Postal Service to focus on current financial needs during the economic crisis.
... This change would not increase the health benefit premiums paid by current or future Postal Service retirees.
... This proposal would not involve tax subsidies.
5 Day Delivery
Americans have come to trust and count on delivery six days a week. If the Postal Service is not allowed to postpone retiree health care benefits for at least the next two years, we would look at a temporary solution of limiting delivery to five days a week. This would come only during those periods of the year when mail volume is at its lowest and would be infrequent at best.
... This is a consideration only. No final decision has been made.
... We have no immediate plans to halt our current operating, processing or delivery procedures and systems.
... Our priority remains on working with Congress to change our contribution schedule for the retiree health benefit fund.
... No decisions have been made as to what day we may consider as the “non-delivery” day.
... Business will proceed as it always does. Service, delivery and, especially, work at BSNs continue as it is today.
... It is business as usual for the Postal Service.
What do you think of this? Post your comment below.
Wednesday, October 1, 2008
System Configuration Pitfalls
By Mark Brousseau
What is the most common mistake billers make when configuring a new remittance system? Looking at the solution with too limited of a scope, says Bob Balotsky (bbalotsky@usdataworks.com) of Houston-based US Dataworks, Inc.
“Billers may think that they are expanding their horizons by implementing a new system with advanced features and functionality,” said Balotsky, citing exceptions handling and data entry tools as two examples. “But that is not enough. Automating remittance payments that come through the mail, although valuable, doesn’t address the other ways payments are made to an organization.”
Balotsky tells me that organizations need to look beyond the remittance silo and develop an enterprise-wide payment strategy. Only then can an organization take full advantage of the available payment clearing alternatives. “In order to truly maximize organizational efficiencies, billers must take a higher-level, enterprise-wide approach,” Balotsky said.
Yolanda Sanchez (ysanchez@usdataworks.com), product manager at US Dataworks, adds that when configuring a remittance system, especially an enterprise payments solution, billers want to be sure to consider the different types of transactions that were previously in different departments, and now will be coming together: “You need to consider the total throughput.” Similarly, billers need to be sure their new solution supports emerging payment types.
Sanchez also warns billers not to fall into the trap of having a new solution replicate the tasks of a legacy system, simply because the organization is familiar with those processes. “Be sure you understand how the new system can be configured to make processes more efficient, or in some cases, eliminated,” Sanchez said. “You need to get past the mental roadblock of, ‘We’ve always done it this way.’” What do you think? Post your comments below.
What is the most common mistake billers make when configuring a new remittance system? Looking at the solution with too limited of a scope, says Bob Balotsky (bbalotsky@usdataworks.com) of Houston-based US Dataworks, Inc.
“Billers may think that they are expanding their horizons by implementing a new system with advanced features and functionality,” said Balotsky, citing exceptions handling and data entry tools as two examples. “But that is not enough. Automating remittance payments that come through the mail, although valuable, doesn’t address the other ways payments are made to an organization.”
Balotsky tells me that organizations need to look beyond the remittance silo and develop an enterprise-wide payment strategy. Only then can an organization take full advantage of the available payment clearing alternatives. “In order to truly maximize organizational efficiencies, billers must take a higher-level, enterprise-wide approach,” Balotsky said.
Yolanda Sanchez (ysanchez@usdataworks.com), product manager at US Dataworks, adds that when configuring a remittance system, especially an enterprise payments solution, billers want to be sure to consider the different types of transactions that were previously in different departments, and now will be coming together: “You need to consider the total throughput.” Similarly, billers need to be sure their new solution supports emerging payment types.
Sanchez also warns billers not to fall into the trap of having a new solution replicate the tasks of a legacy system, simply because the organization is familiar with those processes. “Be sure you understand how the new system can be configured to make processes more efficient, or in some cases, eliminated,” Sanchez said. “You need to get past the mental roadblock of, ‘We’ve always done it this way.’” What do you think? Post your comments below.
Tuesday, September 2, 2008
Benefits of Shared Services
By Mark Brousseau
Implementing a shared services approach to payments processing and clearing can help organizations build value across the enterprise, Mario Villarreal (mvillarreal@usdataworks.com), president and COO of US Dataworks said during a presentation at the 2008 TAWPI Forums & Expo in Orlando last week. With a shared services approach, organizations can process more payment types, identify new payment channels, and continue adding functionality as the industry evolves, Villarreal told attendees.
“Operations typically consist of both platform and application silos,” Villarreal said. Platform silos inhibit ability to integrate customer, bank and payment data across multiple payment methods, he noted, while application silos increase costs and operations risk due to redundant processing. In either case, the cost is high to adapt and integrate legacy systems.
“There are various reasons for these silos, but at the end of the day, they inhibit an organization’s ability to integrate valuable payments data,” Villarreal explained.
Villarreal thinks the endgame solution is for organizations to implement a shared services payment strategy; this strategy would converge around all of the types of payments that an organization might have, whether they are checks, ACH, mobile or wire. Through this framework, all payments would converge into a single payments processing platform, and tools could be used to make decisions as to the best way to clear these transactions.
Villarreal said a shared services approach offers key advantages, including reduced risk, improved compliance, better technology standardization, a single source for real-time reporting and analytics, streamlined operations costs, and future road-mapping. “There are significant benefits here from the data that is inherent in all payments,” Villarreal noted.
Has your organization implemented an enterprise payments strategy?
Post your comments below.
Implementing a shared services approach to payments processing and clearing can help organizations build value across the enterprise, Mario Villarreal (mvillarreal@usdataworks.com), president and COO of US Dataworks said during a presentation at the 2008 TAWPI Forums & Expo in Orlando last week. With a shared services approach, organizations can process more payment types, identify new payment channels, and continue adding functionality as the industry evolves, Villarreal told attendees.
“Operations typically consist of both platform and application silos,” Villarreal said. Platform silos inhibit ability to integrate customer, bank and payment data across multiple payment methods, he noted, while application silos increase costs and operations risk due to redundant processing. In either case, the cost is high to adapt and integrate legacy systems.
“There are various reasons for these silos, but at the end of the day, they inhibit an organization’s ability to integrate valuable payments data,” Villarreal explained.
Villarreal thinks the endgame solution is for organizations to implement a shared services payment strategy; this strategy would converge around all of the types of payments that an organization might have, whether they are checks, ACH, mobile or wire. Through this framework, all payments would converge into a single payments processing platform, and tools could be used to make decisions as to the best way to clear these transactions.
Villarreal said a shared services approach offers key advantages, including reduced risk, improved compliance, better technology standardization, a single source for real-time reporting and analytics, streamlined operations costs, and future road-mapping. “There are significant benefits here from the data that is inherent in all payments,” Villarreal noted.
Has your organization implemented an enterprise payments strategy?
Post your comments below.
Monday, August 18, 2008
Ways To Help Prevent Fraud
Posted by Mark Brousseau
Deutsche Bank offers the following tips for proactively helping prevent fraud:
1. Know your customer
2. Create new account opening procedures
3. Never provide personal information in response to an unsolicited request
4. If you believe a contact may be illegitimate, get in touch with the financial institution yourself
5. Review account statements regularly to ensure all charges are correct
6. Know your employees
7. Employees need to be aware of and report any suspicious transactions or activity
8. Review hiring and mailroom procedures
9. Monitor activity (new accounts/establish thresholds)
10. Secure all check stock
11. Replace paper documents with electronic payments when possible
12. Move check disbursement activity to electronic payment
13. Conduct surprise audits
14. Understand the liability for fraud
15. Utilize positive pay (payee) services
16. Educate and train employees
17. Never share passwords or utilize them as generic passwords
18. Recertify users and access priveleges regularly
19. Do not write down passwords
20. Ensure segregation of duties
21. Assign priveleges based on job responsibilities, not convenience or availability
22. Do not deviate from procedures without a documented exception approval process
23. Carefully destroy papers with sensitive or identifying information
24. Ensure supervisory oversight by making managers accountable
For more information, you can access Deutsche Bank's Payments Fraud Prevention Webcast at www.highlinewebseminars.com/deutschebank or visit www.db.com/gtb.
Deutsche Bank offers the following tips for proactively helping prevent fraud:
1. Know your customer
2. Create new account opening procedures
3. Never provide personal information in response to an unsolicited request
4. If you believe a contact may be illegitimate, get in touch with the financial institution yourself
5. Review account statements regularly to ensure all charges are correct
6. Know your employees
7. Employees need to be aware of and report any suspicious transactions or activity
8. Review hiring and mailroom procedures
9. Monitor activity (new accounts/establish thresholds)
10. Secure all check stock
11. Replace paper documents with electronic payments when possible
12. Move check disbursement activity to electronic payment
13. Conduct surprise audits
14. Understand the liability for fraud
15. Utilize positive pay (payee) services
16. Educate and train employees
17. Never share passwords or utilize them as generic passwords
18. Recertify users and access priveleges regularly
19. Do not write down passwords
20. Ensure segregation of duties
21. Assign priveleges based on job responsibilities, not convenience or availability
22. Do not deviate from procedures without a documented exception approval process
23. Carefully destroy papers with sensitive or identifying information
24. Ensure supervisory oversight by making managers accountable
For more information, you can access Deutsche Bank's Payments Fraud Prevention Webcast at www.highlinewebseminars.com/deutschebank or visit www.db.com/gtb.
Wednesday, August 6, 2008
Final Call For Checks
Posted by Mark Brousseau
An interesting article from Compass Bank on remote deposit capture:
The Check isn’t in the Mail—it's on Life Support
In a speech to a trade group in Las Vegas last fall, Federal Reserve Board vice chairman Donald L. Kohn noted that a check-less society has been predicted for decades. “The decline in check use has already caused the Reserve Banks to reduce by half the number of offices at which they process paper checks,” he stated.
To some observers, the idea of a checkless society echoes predictions of a cashless society that have been circulating since the advent of the first electronic payment forms. In fact, while there are clearly identifiable changes taking place in how payments are transacted, it’s unlikely that anyone alive today will live to see a time when either cash or checks become extinct.
The amount of U.S. paper currency in circulation actually has risen dramatically over the past 30 years, up to $731 billion in 2006 from $81 billion in 1975, and it’s unlikely cash will ever disappear. The use of paper checks, on the other hand, clearly is on the wane, declining by 12% from 1996 to 2004, according to research published in the Review of Network Economics in June 2006. Check usage for transactions between $20 and $80 fell more than 20% during the same period. That trend is likely to accelerate, and even where checks continue to be used, the way they are processed is evolving with the spread of new technologies such as remote deposit capture (RDC).
The advantages of RDC
“RDC is particularly significant for businesses because it opens up the way they collect their receivables on several levels,” says Joan Baraba, executive vice president at Compass Bank. “A host of industry surveys make it clear that RDC is on a rapid growth track throughout the banking industry,” she adds.
RDC offers a number of benefits to business customers, most notably improved cash flow resulting from later posting deadlines and efficiencies from eliminating the need for branch deposits. It may expedite bad-check detection in some cases, improving a business’s ability to collect on funds, and it offers the potential of significant transportation and time cost-savings.
Remote deposit capture uses imaging equipment to take paper checks and convert them into electronic images, which are transmitted to the company’s bank for processing. The convenience and time- and cost-savings from eliminating the need to physically transport paper checks to the bank coupled with the positive impact on cash flow are so compelling that market researcher Celent Communications predicts the number of business locations using RDC will grow from about 100,000 at the end of 2006 to about 1.4 million in 2012.
While RDC offers significant benefits to many types of businesses, Baraba warns it is important to keep in mind that there is no one-size-fits-all solution when it comes to payment systems—and that is a key reason why a truly cashless or check-less society is unlikely to develop any time soon.
“There are so many variables to consider when it comes to payment systems, starting with the type of payment involved,” she explains. Four general categories of payment types are business-to-business, business-to-consumer, consumer-to-business and consumer-to-consumer. Each comes with different value statements in terms of the volume, dollar value and amount of information involved.
“Regulation and fraud prevention are other issues that must be considered,” she adds. Much existing fraud-prevention technology is embedded in the paper of a check and does not survive the imaging process, for example.
“The bottom line is that RDC is just one of many different tools available to process payments,” Baraba says. “Businesses need to sit down with their financial partners and put together payment solutions that best meet their needs. In many cases, those solutions will involve multiple components.”
An interesting article from Compass Bank on remote deposit capture:
The Check isn’t in the Mail—it's on Life Support
In a speech to a trade group in Las Vegas last fall, Federal Reserve Board vice chairman Donald L. Kohn noted that a check-less society has been predicted for decades. “The decline in check use has already caused the Reserve Banks to reduce by half the number of offices at which they process paper checks,” he stated.
To some observers, the idea of a checkless society echoes predictions of a cashless society that have been circulating since the advent of the first electronic payment forms. In fact, while there are clearly identifiable changes taking place in how payments are transacted, it’s unlikely that anyone alive today will live to see a time when either cash or checks become extinct.
The amount of U.S. paper currency in circulation actually has risen dramatically over the past 30 years, up to $731 billion in 2006 from $81 billion in 1975, and it’s unlikely cash will ever disappear. The use of paper checks, on the other hand, clearly is on the wane, declining by 12% from 1996 to 2004, according to research published in the Review of Network Economics in June 2006. Check usage for transactions between $20 and $80 fell more than 20% during the same period. That trend is likely to accelerate, and even where checks continue to be used, the way they are processed is evolving with the spread of new technologies such as remote deposit capture (RDC).
The advantages of RDC
“RDC is particularly significant for businesses because it opens up the way they collect their receivables on several levels,” says Joan Baraba, executive vice president at Compass Bank. “A host of industry surveys make it clear that RDC is on a rapid growth track throughout the banking industry,” she adds.
RDC offers a number of benefits to business customers, most notably improved cash flow resulting from later posting deadlines and efficiencies from eliminating the need for branch deposits. It may expedite bad-check detection in some cases, improving a business’s ability to collect on funds, and it offers the potential of significant transportation and time cost-savings.
Remote deposit capture uses imaging equipment to take paper checks and convert them into electronic images, which are transmitted to the company’s bank for processing. The convenience and time- and cost-savings from eliminating the need to physically transport paper checks to the bank coupled with the positive impact on cash flow are so compelling that market researcher Celent Communications predicts the number of business locations using RDC will grow from about 100,000 at the end of 2006 to about 1.4 million in 2012.
While RDC offers significant benefits to many types of businesses, Baraba warns it is important to keep in mind that there is no one-size-fits-all solution when it comes to payment systems—and that is a key reason why a truly cashless or check-less society is unlikely to develop any time soon.
“There are so many variables to consider when it comes to payment systems, starting with the type of payment involved,” she explains. Four general categories of payment types are business-to-business, business-to-consumer, consumer-to-business and consumer-to-consumer. Each comes with different value statements in terms of the volume, dollar value and amount of information involved.
“Regulation and fraud prevention are other issues that must be considered,” she adds. Much existing fraud-prevention technology is embedded in the paper of a check and does not survive the imaging process, for example.
“The bottom line is that RDC is just one of many different tools available to process payments,” Baraba says. “Businesses need to sit down with their financial partners and put together payment solutions that best meet their needs. In many cases, those solutions will involve multiple components.”
Monday, July 28, 2008
Unisys Confronts Signs Of The Times
Posted by Mark Brousseau
Interesting article on Unisys in today's Philadelphia Inquirer:
By Mike Armstrong
It’s a sign of the times when furor over a sign can cause a company to rethink whether it wants to do business in Philadelphia.
Unisys Corp. said in December it would move its corporate headquarters from Blue Bell into Center City. It agreed to lease 90,000 square feet in Two Liberty Place and relocate 225 employees there.
Some scoff that that’s not a lot of jobs, but it is for the city that’s been bleeding jobs for decades.
Symbolically, the city could do worse than attract another Fortune 500 company into its core.
Who could foresee that Unisys’ plans would not be well-received by some well-heeled tenants in the million-dollar condos on the top floors of Two Liberty. Nothing against information technology; they have a problem with the red corporate logo Unisys wants to affix to the building outside the 38th and 39th floors.
That red sign has thrust Unisys into a federal lawsuit with those tenants. Plus, opponents will vent about it at a zoning hearing board meeting in September. That would be the second hearing on the sign after one last week.
Nothing of this surprises me. But to hear a Unisys spokesman say the company would have to reevaluate its plans if it isn’t able to stick its name on Two Liberty?
Does anyone really think that if Unisys loses in this sign whine that that would be the reason it doesn’t move into the city?
Come on, this company is beset by challenges.
Unisys has been the incredible shrinking computer company since it was formed in 1986 by Burrough Corp.’s acquisition of Sperry Corp. At $5.7 billion, it generates $4 billion in revenue less than it did 20 years ago. Over the same period, the company shed 62,500 jobs to bring its current global workforce to about 30,000.
And if you read the transcript of Wednesday’s conference call with analysts, the company is likely to get smaller.
“We recognize that to succeed in today’s market, we need to either be very big and highly diversified or else smaller and highly focused,” said Unisys CEO Joseph W. McGrath. “We believe the best path forward is the latter one, to build on the work we have done and further focus and refine our business model.”
If getting smaller and more focused makes Unisys more profitable, that’s great. But after 20 years, it hasn’t figured out what it’s really good at? Given some of the comments by McGrath on that call, it still sounds like it’s trying to come up with the right strategy.
I can understand brand-building, and that’s part of why Unisys wants to be in Center City. (How many times can management entertain clients at Alison at Blue Bell, right?) But lots of opponents of the Unisys sign see Philadelphia’s “brand” trumping this corporate one.
I think some of the opposition has blinders on to have missed all of the corporate logos that have been affixed to buildings around the city.
But whatever the zoning board decides, it’s going to be fascinating to see what Unisys does. If it loses, will it quietly press ahead with the move into the city? Or will it move to Radnor next to Lincoln National Corp., which moved its headquarters and 400 jobs out of Center City in 2007?
If it wins, will its branding effort be seen as innovative or annoying to the other corporate elite around town? If it wins, does it really lose?
Interesting article on Unisys in today's Philadelphia Inquirer:
By Mike Armstrong
It’s a sign of the times when furor over a sign can cause a company to rethink whether it wants to do business in Philadelphia.
Unisys Corp. said in December it would move its corporate headquarters from Blue Bell into Center City. It agreed to lease 90,000 square feet in Two Liberty Place and relocate 225 employees there.
Some scoff that that’s not a lot of jobs, but it is for the city that’s been bleeding jobs for decades.
Symbolically, the city could do worse than attract another Fortune 500 company into its core.
Who could foresee that Unisys’ plans would not be well-received by some well-heeled tenants in the million-dollar condos on the top floors of Two Liberty. Nothing against information technology; they have a problem with the red corporate logo Unisys wants to affix to the building outside the 38th and 39th floors.
That red sign has thrust Unisys into a federal lawsuit with those tenants. Plus, opponents will vent about it at a zoning hearing board meeting in September. That would be the second hearing on the sign after one last week.
Nothing of this surprises me. But to hear a Unisys spokesman say the company would have to reevaluate its plans if it isn’t able to stick its name on Two Liberty?
Does anyone really think that if Unisys loses in this sign whine that that would be the reason it doesn’t move into the city?
Come on, this company is beset by challenges.
Unisys has been the incredible shrinking computer company since it was formed in 1986 by Burrough Corp.’s acquisition of Sperry Corp. At $5.7 billion, it generates $4 billion in revenue less than it did 20 years ago. Over the same period, the company shed 62,500 jobs to bring its current global workforce to about 30,000.
And if you read the transcript of Wednesday’s conference call with analysts, the company is likely to get smaller.
“We recognize that to succeed in today’s market, we need to either be very big and highly diversified or else smaller and highly focused,” said Unisys CEO Joseph W. McGrath. “We believe the best path forward is the latter one, to build on the work we have done and further focus and refine our business model.”
If getting smaller and more focused makes Unisys more profitable, that’s great. But after 20 years, it hasn’t figured out what it’s really good at? Given some of the comments by McGrath on that call, it still sounds like it’s trying to come up with the right strategy.
I can understand brand-building, and that’s part of why Unisys wants to be in Center City. (How many times can management entertain clients at Alison at Blue Bell, right?) But lots of opponents of the Unisys sign see Philadelphia’s “brand” trumping this corporate one.
I think some of the opposition has blinders on to have missed all of the corporate logos that have been affixed to buildings around the city.
But whatever the zoning board decides, it’s going to be fascinating to see what Unisys does. If it loses, will it quietly press ahead with the move into the city? Or will it move to Radnor next to Lincoln National Corp., which moved its headquarters and 400 jobs out of Center City in 2007?
If it wins, will its branding effort be seen as innovative or annoying to the other corporate elite around town? If it wins, does it really lose?
Wednesday, July 23, 2008
Thrivent Plans Online Bill Pay
Posted by Mark Brousseau
If you’re among the nearly 75 percent of Thrivent Financial members who mail in account payments, a new payment features may change the way you pay your premiums.
According to the most recent issue of Thrivent magazine, Thrivent Financial is introducing a feature that allows members to make online payments for their traditional, universal and variable universal life contracts; fixed and variable annuities; and disability income, long-term care and Medicare supplement contracts. Members also can make a purchase into their existing mutual fund accounts.
As an added benefit, the system allows members to quickly submit a payment in a “just in time” situation to avoid the potential lapse of a contract due to nonpayment.
The online payment feature will be available this summer and can be accessed through www.thrivent.com.
If you’re among the nearly 75 percent of Thrivent Financial members who mail in account payments, a new payment features may change the way you pay your premiums.
According to the most recent issue of Thrivent magazine, Thrivent Financial is introducing a feature that allows members to make online payments for their traditional, universal and variable universal life contracts; fixed and variable annuities; and disability income, long-term care and Medicare supplement contracts. Members also can make a purchase into their existing mutual fund accounts.
As an added benefit, the system allows members to quickly submit a payment in a “just in time” situation to avoid the potential lapse of a contract due to nonpayment.
The online payment feature will be available this summer and can be accessed through www.thrivent.com.
Tuesday, May 27, 2008
Macy's Increases Use of Vending Machines
Posted by Mark Brousseau
An interesting article from last week's Chicago Sun Times:
Macy's increases 'no fuss' gadget vending machines
ELECTRONICS Sell iPods, digital cameras, headphones
May 23, 2008
BY SANDRA GUY sguy@suntimes.com
Macy's is doubling the number of Chicago-area stores that sell consumer electronics in vending machines.
The machines, first called ZOOM and renamed e-Spot, use electronic arms to grab an iPod, earphones or digital camera and dispense the items.
Macy’s is doubling the number of local stores that sell consumer electronics, including iPods, in its e-Spot vending machines. Items range in price from $14.99 to $349.99.
A Macy's executive said shoppers want "one-stop, no-fuss shopping," and electronics that reflect their personal styles, and that's why the machines are in demand.
The electronics include the iPod touch, shuffle, nano and classic; Canon and Samsung digital cameras; MyVu personal media viewers, and Bang & Olufsen and Harman Kardon headphones. Prices range from $14.99 to $349.99.
New strategy
New machines have been installed at Macy's stores at Northbrook Court in Northbrook, Oakbrook Center in Oak Brook, Orland Square in Orland Park, Hawthorn Center in Vernon Hills, and River Oaks in Calumet City.
Macy's stores that already have the machines are at State Street, Water Tower Place, Woodfield in Schaumburg, Old Orchard in Skokie and Fox Valley in Aurora.
Macy's recently launched a "My Macy's" strategy in which each of 20 districts with 10 stores each is headed by a senior merchant, and assortments differ by region based on what shoppers want.
An interesting article from last week's Chicago Sun Times:
Macy's increases 'no fuss' gadget vending machines
ELECTRONICS Sell iPods, digital cameras, headphones
May 23, 2008
BY SANDRA GUY sguy@suntimes.com
Macy's is doubling the number of Chicago-area stores that sell consumer electronics in vending machines.
The machines, first called ZOOM and renamed e-Spot, use electronic arms to grab an iPod, earphones or digital camera and dispense the items.
Macy’s is doubling the number of local stores that sell consumer electronics, including iPods, in its e-Spot vending machines. Items range in price from $14.99 to $349.99.
A Macy's executive said shoppers want "one-stop, no-fuss shopping," and electronics that reflect their personal styles, and that's why the machines are in demand.
The electronics include the iPod touch, shuffle, nano and classic; Canon and Samsung digital cameras; MyVu personal media viewers, and Bang & Olufsen and Harman Kardon headphones. Prices range from $14.99 to $349.99.
New strategy
New machines have been installed at Macy's stores at Northbrook Court in Northbrook, Oakbrook Center in Oak Brook, Orland Square in Orland Park, Hawthorn Center in Vernon Hills, and River Oaks in Calumet City.
Macy's stores that already have the machines are at State Street, Water Tower Place, Woodfield in Schaumburg, Old Orchard in Skokie and Fox Valley in Aurora.
Macy's recently launched a "My Macy's" strategy in which each of 20 districts with 10 stores each is headed by a senior merchant, and assortments differ by region based on what shoppers want.
Tuesday, March 25, 2008
Small Banks Seek Lockbox Solutions
By Mark Brousseau
Demand from community and mid-sized banks for image-based lockbox solutions is on the upswing, says Bob Pangrac (rpangrac@creditron.com), national account manager for bank lockbox providers at Creditron. The reason? Smaller banks are looking to defend their commercial account base from large “national banks,” which Pangrac says are now showing up in regional and small markets with cash management services such as wholesale and retail lockbox processing.
“Previously, the cost of an image-based payments solution was cost-prohibitive for a smaller financial institution,” Pangrac told me. “With the introduction of Microsoft-based solutions, smaller banks can now afford a solution that will provide new revenue streams for the bank.”
But why not outsource?
One reason is that banks can keep more of the revenue from their lockbox services, Pangrac said. Another factor is that in-house systems offer better cost-controls than outsourced providers. Finally, in-house systems allow banks to clear exceptions “as they happen” or at the end of the day, rather than waiting for them to arrive from the outsource provider. “With an in-house system, exceptions can be handled the same processing day, benefiting the bank and the bank’s customer – retail or commercial – alike,” he explained.
As an example, Pangrac recounts the story of a $250 million bank that sensed that they were experiencing holdover with their lockbox provider. “By bringing their lockbox processing in-house, they seldom have holdover, which translates into more efficient customer service, deposit management, and cash management. The bank can also handle their ‘on-us’ accounts, such as the bank-branded Visa card, and their home and car loans,” Pangrac said.
So what functions are smaller banks looking for in image-based lockbox systems? Pangrac said ease of use tops the list, followed by ease of account setup, an R&D path for electronic payments, and the ability for customers to research items and receive invoices via the Web.
Are you a small bank that has successfully deployed an image-based lockbox solution? E-mail me at m_brousseau@msn.com.
Demand from community and mid-sized banks for image-based lockbox solutions is on the upswing, says Bob Pangrac (rpangrac@creditron.com), national account manager for bank lockbox providers at Creditron. The reason? Smaller banks are looking to defend their commercial account base from large “national banks,” which Pangrac says are now showing up in regional and small markets with cash management services such as wholesale and retail lockbox processing.
“Previously, the cost of an image-based payments solution was cost-prohibitive for a smaller financial institution,” Pangrac told me. “With the introduction of Microsoft-based solutions, smaller banks can now afford a solution that will provide new revenue streams for the bank.”
But why not outsource?
One reason is that banks can keep more of the revenue from their lockbox services, Pangrac said. Another factor is that in-house systems offer better cost-controls than outsourced providers. Finally, in-house systems allow banks to clear exceptions “as they happen” or at the end of the day, rather than waiting for them to arrive from the outsource provider. “With an in-house system, exceptions can be handled the same processing day, benefiting the bank and the bank’s customer – retail or commercial – alike,” he explained.
As an example, Pangrac recounts the story of a $250 million bank that sensed that they were experiencing holdover with their lockbox provider. “By bringing their lockbox processing in-house, they seldom have holdover, which translates into more efficient customer service, deposit management, and cash management. The bank can also handle their ‘on-us’ accounts, such as the bank-branded Visa card, and their home and car loans,” Pangrac said.
So what functions are smaller banks looking for in image-based lockbox systems? Pangrac said ease of use tops the list, followed by ease of account setup, an R&D path for electronic payments, and the ability for customers to research items and receive invoices via the Web.
Are you a small bank that has successfully deployed an image-based lockbox solution? E-mail me at m_brousseau@msn.com.
Using Credit Cards For Traffic Fines
Posted by Mark Brousseau
An interesting article in today's York Daily Record:
Credit card payments taking off
By EUGENE PAIK
Daily Record/Sunday News
About three months since they were first accepted, credit card payments at District Justice Richard E. Martin's office [in York, PA] have surged in popularity.
“Not a day goes by when there aren't credit card sales,” said Patty Albright, Martin's office manager.
She said $3,130 in January was paid with credit, which includes the 3 percent fee added to each credit card transaction. In February, it was $5,450, she said.
So far this month, there has been about $2,500 paid with credit cards.
In December, the county began accepting credit cards at Martin's office to address increasing demands for credit payments at some district justice offices.
“It’s mostly citizens who have traffic citations who ask to pay by credit card,” said Freya Sponseller, manager for District Justice Dwayne A. Dubs’ office in Hanover, where credit card payments are expected to be implemented in mid-April.
Despite the demand, the county resisted providing the service because it had trouble finding a provider that would not charge the county.
The 3 percent fee prevents taxpayers from paying for operating costs.
Martin's office accepts MasterCard and Visa, and it uses a swipe format similar to machines found in grocery stores, restaurants and shops.
The results were better than the office imagined, Albright said, even though clerks were uncertain if people were open to paying the added charge. Most have been willing to pay more money for the convenience of credit, she said.
As planned, the payment system will expand to five other district justice offices in the county.
The offices of Dubs and district justices Linda L. Williams, Nancy L. Edie, Scott J. Gross and Harold D. Kessler are slated to accept credit card payments in mid-April, York County Treasurer Barbara Bair said.
Further expansion is uncertain at this point, she said.
An interesting article in today's York Daily Record:
Credit card payments taking off
By EUGENE PAIK
Daily Record/Sunday News
About three months since they were first accepted, credit card payments at District Justice Richard E. Martin's office [in York, PA] have surged in popularity.
“Not a day goes by when there aren't credit card sales,” said Patty Albright, Martin's office manager.
She said $3,130 in January was paid with credit, which includes the 3 percent fee added to each credit card transaction. In February, it was $5,450, she said.
So far this month, there has been about $2,500 paid with credit cards.
In December, the county began accepting credit cards at Martin's office to address increasing demands for credit payments at some district justice offices.
“It’s mostly citizens who have traffic citations who ask to pay by credit card,” said Freya Sponseller, manager for District Justice Dwayne A. Dubs’ office in Hanover, where credit card payments are expected to be implemented in mid-April.
Despite the demand, the county resisted providing the service because it had trouble finding a provider that would not charge the county.
The 3 percent fee prevents taxpayers from paying for operating costs.
Martin's office accepts MasterCard and Visa, and it uses a swipe format similar to machines found in grocery stores, restaurants and shops.
The results were better than the office imagined, Albright said, even though clerks were uncertain if people were open to paying the added charge. Most have been willing to pay more money for the convenience of credit, she said.
As planned, the payment system will expand to five other district justice offices in the county.
The offices of Dubs and district justices Linda L. Williams, Nancy L. Edie, Scott J. Gross and Harold D. Kessler are slated to accept credit card payments in mid-April, York County Treasurer Barbara Bair said.
Further expansion is uncertain at this point, she said.
Tuesday, January 8, 2008
Market Slowdown in 2008?
By Mark Brousseau
Fifty-eight percent of those responding to a recent TAWPI Question of the Week said they had an optimistic outlook for the economy in 2008, while 42 percent of respondents said they didn’t (note: those responding in the positive did so before the recent stock market dive).
Clint Shank (cshank@sortlogic.com) of SortLogic SYSTEMS, a division of Omni-Soft, Inc., sides firmly with the pessimists. “In this election year, a lot of what we’ll see is the same as what we’ve seen these first few weeks of January, and that’s a lot of volatility. There’s been a significant drop in the stock market, and that’s telling,” Shank told me. “A lot of people aren’t comfortable with how things might work out; how stable their job is, as an example.”
“In our market, we could see a slow down because of the volatility,” Shank said. “Good, bad or indifferent, market volatility will affect the banking market as users pull back and wait to see how things turn out with the economy and the election. There’s a sense that there could be a change of parties in the White House, and that would bring new tax rules and guidelines, among other things. Banks will want to see what happens before making big investments.”
“I personally don’t think this is going to be a great year for vendors,” Shank said. “I think next year, if the new presidency gets off to a good start, we could see more of an up tick.”
What do you think? E-mail me at m_brousseau@msn.com.
Fifty-eight percent of those responding to a recent TAWPI Question of the Week said they had an optimistic outlook for the economy in 2008, while 42 percent of respondents said they didn’t (note: those responding in the positive did so before the recent stock market dive).
Clint Shank (cshank@sortlogic.com) of SortLogic SYSTEMS, a division of Omni-Soft, Inc., sides firmly with the pessimists. “In this election year, a lot of what we’ll see is the same as what we’ve seen these first few weeks of January, and that’s a lot of volatility. There’s been a significant drop in the stock market, and that’s telling,” Shank told me. “A lot of people aren’t comfortable with how things might work out; how stable their job is, as an example.”
“In our market, we could see a slow down because of the volatility,” Shank said. “Good, bad or indifferent, market volatility will affect the banking market as users pull back and wait to see how things turn out with the economy and the election. There’s a sense that there could be a change of parties in the White House, and that would bring new tax rules and guidelines, among other things. Banks will want to see what happens before making big investments.”
“I personally don’t think this is going to be a great year for vendors,” Shank said. “I think next year, if the new presidency gets off to a good start, we could see more of an up tick.”
What do you think? E-mail me at m_brousseau@msn.com.
Monday, October 15, 2007
Get Ready For More RP Vendor Consolidation
By Mark Brousseau
You might have been surprised to hear this morning that long-time remittance and lockbox solutions vendor JB Software, Inc. is being acquired by India-based 3 i Infotech Ltd.
3 i Infotech signed a deal to acquire the TAWPI Hall of Fame member and its units for $25.25 million in cash, according to a Dow Jones report. The move will give the Indian company a greater footprint in the payments processing business in the U.S.
“This company has a payments processing product which is well accepted in the U.S. market. We expect strong growth for this product in markets outside the U.S. as well,” 3 i Chief Financial Officer Amar Chintopanth told the Dow Jones Newswires.
While Chintopanth might be expecting growth for JB Software, several industry watchers I spoke with today are anticipating more consolidation among remittance solutions vendors. “I expect to see continued consolidation among the remittance solutions providers, fueled by the growth opportunities offered by remote deposit,” Creditron President Wally Vogel (wally_vogel@creditron.com) told me, noting that JB Software was only an occasion competitor to Creditron, which was acquired this summer.
“Remote deposit, integrated with the accounting functions of remittance processing, provides a powerful tool with business implications for accounting application providers, banks, large corporations and remittance technology companies,” Vogel said. “There is an intersection of opportunities for these diverse players that makes this an exciting time for our market.”
Steve McNair (mcnairs1@aol.com), president of FTP Consulting Services, Inc., in Southlake, TX, also expects more consolidation among remittance solutions providers. Going forward, he believes we could see more end-user interest in payments outsourcing than in remittance software license sales.
“This deal is significant because it’s further evidence of the consolidation of the remittance market,” McNair told me. “What’s also interesting is that the deal is with an international company with little background in remittance processing. Given that, I’m wondering whether JB Software will be changing focus towards global engagements, and specialized processing efforts, such as government and custom applications.”
To that end, McNair said 3 i Infotech, by virtue of being based in India, could likely provide JB with the people necessary to deliver on custom programming efforts.
Clint Shank (cshank@sortlogic.com), president of Omni-Soft, Inc., the parent company of SortLogic SYSTEMS, sees this deal as part of a worrisome larger trend. “In my view, our market is eating itself from the inside out. The big sales based on big hardware and expensive software are gone, and in their place is a commodities market,” he said. "The folks that did well in the past are falling flat in this market. For instance, how long was IBM the most dominant player in our market? Forty years? Fifty years? What does it mean now that they aren’t even present? Look at BancTec and you see pretty much the same thing.”
“What we are experiencing is a real sea change,” Shank continued. “The big players are too slow to respond to an overnight shift in the market and the new guys are filling the void. It used to be that the big ate the small. Now it’s the quick that eat the slow.”
The question everyone I spoke with was asking was: “Who is the next to be eaten?”
What do you think? E-mail me at m_brousseau@msn.com.
You might have been surprised to hear this morning that long-time remittance and lockbox solutions vendor JB Software, Inc. is being acquired by India-based 3 i Infotech Ltd.
3 i Infotech signed a deal to acquire the TAWPI Hall of Fame member and its units for $25.25 million in cash, according to a Dow Jones report. The move will give the Indian company a greater footprint in the payments processing business in the U.S.
“This company has a payments processing product which is well accepted in the U.S. market. We expect strong growth for this product in markets outside the U.S. as well,” 3 i Chief Financial Officer Amar Chintopanth told the Dow Jones Newswires.
While Chintopanth might be expecting growth for JB Software, several industry watchers I spoke with today are anticipating more consolidation among remittance solutions vendors. “I expect to see continued consolidation among the remittance solutions providers, fueled by the growth opportunities offered by remote deposit,” Creditron President Wally Vogel (wally_vogel@creditron.com) told me, noting that JB Software was only an occasion competitor to Creditron, which was acquired this summer.
“Remote deposit, integrated with the accounting functions of remittance processing, provides a powerful tool with business implications for accounting application providers, banks, large corporations and remittance technology companies,” Vogel said. “There is an intersection of opportunities for these diverse players that makes this an exciting time for our market.”
Steve McNair (mcnairs1@aol.com), president of FTP Consulting Services, Inc., in Southlake, TX, also expects more consolidation among remittance solutions providers. Going forward, he believes we could see more end-user interest in payments outsourcing than in remittance software license sales.
“This deal is significant because it’s further evidence of the consolidation of the remittance market,” McNair told me. “What’s also interesting is that the deal is with an international company with little background in remittance processing. Given that, I’m wondering whether JB Software will be changing focus towards global engagements, and specialized processing efforts, such as government and custom applications.”
To that end, McNair said 3 i Infotech, by virtue of being based in India, could likely provide JB with the people necessary to deliver on custom programming efforts.
Clint Shank (cshank@sortlogic.com), president of Omni-Soft, Inc., the parent company of SortLogic SYSTEMS, sees this deal as part of a worrisome larger trend. “In my view, our market is eating itself from the inside out. The big sales based on big hardware and expensive software are gone, and in their place is a commodities market,” he said. "The folks that did well in the past are falling flat in this market. For instance, how long was IBM the most dominant player in our market? Forty years? Fifty years? What does it mean now that they aren’t even present? Look at BancTec and you see pretty much the same thing.”
“What we are experiencing is a real sea change,” Shank continued. “The big players are too slow to respond to an overnight shift in the market and the new guys are filling the void. It used to be that the big ate the small. Now it’s the quick that eat the slow.”
The question everyone I spoke with was asking was: “Who is the next to be eaten?”
What do you think? E-mail me at m_brousseau@msn.com.
Sunday, September 30, 2007
Mobile Devices: New Payments Tool
By Mark Brousseau
New analysis from Frost & Sullivan finds that the number of users of mobile banking services in the United States could reach 21.27 million in 2010.
“Mobile devices are becoming important tools in the payments and banking space and can definitely be expected to play an important role in the U.S.,” said Frost & Sullivan Strategic Industry Analyst Vikrant Gandhi. “There is a flurry of recent activity around both payments and banking, with investments, operator adoption and development of innovative solutions driving these markets.”
Various mobile payment solutions allow peer-to-peer (P2P) money transfer between individuals through the mobile phone, while increasing penetration of mobile data services such as messaging, mobile Internet and others offer multiple avenues for providing mobile banking services.
However, gaining subscribers’ confidence and educating them about the capabilities of mobile financial services offerings poses a major challenge, Gandhi said. There are bound to be concerns about storing subscriber information on the handset or losing connectivity in the middle of an important financial transaction.
“A strong push by FIs and mobile operators is required to help in the adoption of mobile financial services,” said Gandhi. “Specialized industry participants from the mobile payments and mobile banking segments need to work closely to offer solutions capable of satisfying a wide range of financial needs of mobile subscribers.”
The key success factor will lie in giving customers the option of performing various financial transactions on the move, Gandhi predicted. While mobile payments and banking may never fully replace online interactions, they could prove to be an ideal fit for particular types of transactions such as micro-transactions. These services can also be tailored to the needs of a particular niche or category of customers by adjusting various parameters.
Integrated mobile banking and payments services are likely to be a key future trend, according to Frost & Sullivan's research. Where is your financial institution in the rollout of its mobile payments and banking offerings? E-mail me at m_brousseau@msn.com.
New analysis from Frost & Sullivan finds that the number of users of mobile banking services in the United States could reach 21.27 million in 2010.
“Mobile devices are becoming important tools in the payments and banking space and can definitely be expected to play an important role in the U.S.,” said Frost & Sullivan Strategic Industry Analyst Vikrant Gandhi. “There is a flurry of recent activity around both payments and banking, with investments, operator adoption and development of innovative solutions driving these markets.”
Various mobile payment solutions allow peer-to-peer (P2P) money transfer between individuals through the mobile phone, while increasing penetration of mobile data services such as messaging, mobile Internet and others offer multiple avenues for providing mobile banking services.
However, gaining subscribers’ confidence and educating them about the capabilities of mobile financial services offerings poses a major challenge, Gandhi said. There are bound to be concerns about storing subscriber information on the handset or losing connectivity in the middle of an important financial transaction.
“A strong push by FIs and mobile operators is required to help in the adoption of mobile financial services,” said Gandhi. “Specialized industry participants from the mobile payments and mobile banking segments need to work closely to offer solutions capable of satisfying a wide range of financial needs of mobile subscribers.”
The key success factor will lie in giving customers the option of performing various financial transactions on the move, Gandhi predicted. While mobile payments and banking may never fully replace online interactions, they could prove to be an ideal fit for particular types of transactions such as micro-transactions. These services can also be tailored to the needs of a particular niche or category of customers by adjusting various parameters.
Integrated mobile banking and payments services are likely to be a key future trend, according to Frost & Sullivan's research. Where is your financial institution in the rollout of its mobile payments and banking offerings? E-mail me at m_brousseau@msn.com.
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