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View from CBA October 3, 2014
Durbin Amendment Three Years Later – Consumers Pay the Price
This week marks the third anniversary of the Durbin Amendment which capped the amount retailers pay to accept debit cards, in theory passing the purported savings onto consumers. However this has not turned out to be the case. Phoenix Marketing International conducted a survey sponsored by the Electronic Payments Coalition which asked 3,400 consumers about pricing at retailers. The survey found "94 percent of consumers have seen prices that have increased or remained the same over the past three years." This includes retailers such as pharmacies, home improvement stores, supermarkets, restaurants and gas stations among others. In addition, 16 percent of survey respondents have even reported retailers placing a surcharge on debit transactions. You can learn more about this study atwww.WheresMyDebitDiscount.com.
Bank Branches Fall to Lowest Number Since 2005
New data released this week by the FDIC shows bank branch numbers in the U.S. have fallen to their lowest point since 2005. Branches fell 1.7 percent to 94,725 since the previous year's data was released - 4,825 branches less than their peak in 2009. Branch closures were even across bank sizes as many shifted spending to mobile technology. With consumers increasingly relying on digital platforms to bank on their terms, this transformation in banking will only continue. The good news is many of our banks are meeting consumer needs by offering mobile apps and transitioning to smart branches. With the recent introduction of Apple Pay and many other non-banks attempting to become financial services providers, our industry should remain mindful of this new competition and how they are attracting consumers. Now is not the time to rest.
CFPB Checking Account Event Next Week
The CFPB will host an event in Washington, D.C. next week on checking account screening policies and practices. It will take place on Wednesday, October 8, 2014 at 8:30 a.m. EST. The event will focus on how checking account screening policies and practices impact consumers and will feature remarks from CFPB Director Richard Cordray, as well as presentations from consumer groups, federal and local government officials, and industry representatives. This event is open to the public, but RSVP is required to attend. You may RSVP here.
Cybersecurity Attacks and Costs Increasing
A recent survey by PricewaterhouseCoopers LLP (PwC) confirms what many of us have learned in the wake of Target, Home Depot, and now Jimmy Johns – cybersecurity attacks are a part of doing business in today's world. PwC surveyed 9,700 business technology executives from around the globe who reported logging "117,339 incoming attacks each day, or more than 42.8 million annually." Note these figures did not include undetected attacks, which would surely push these figures much higher. Read the full report and supporting documents here.
Mid-Tier Retail Executive Forum in D.C. Next Week
CBA is looking forward to welcoming members of our Mid-Tier Retail Executive Forum to Washington, D.C. for two days next week. On the agenda are meetings with the CFPB, the OCC and the Federal Reserve. In addition, they will also host a business roundtable. Former CBA Board Chairman Bob Kottler of IBERIABANK will lead the Forum.
Committee Leadership Changes
Nancy Elkus, Senior Consumer Lending Product Manager at Fifth Third Bank has taken the reins of the Home Equity Committee. Thank you to longtime Chair Cindy Balser, Senior Vice President at Key Bank for her years of leadership to the Committee.
Jeff Turley, President at PNC Dealer Finance Corp. has become the new Chairman of the Auto Finance Committee, while Tom Wirth, Senior Vice President at U.S. Bank is the Committee's new Vice Chair.Paul Wible, Senior Executive Vice President at Bank of the West rotates off as Chair of the Committee. He has done a fantastic job and will continue to be a great resource for CBA.
Larry Tewell, Senior Vice President - Consumer Credit Solutions Division at Wells Fargo takes over as Chair of the Default Management Committee. Many thanks to Todd Hammond, Senior Vice President - Director, Consumer Risk Operations at KeyBank for leading the Committee.
Bank of America CEO Brian Moynihan has been named chairman of the board. He succeeds Charles "Chad" Holliday Jr.
KeyBank has announced the appointment of Norman Bliss, Senior Vice President and Director of Community Development to their Corporate Responsibility segment at KeyBank.