Compliance, Social Media Top FI Concerns
AUSTIN, Texas-The top items financial industry executives are currently trading on the cbanc Network include FDIC compliance management programs, social media policies and mobile device policies.
The cbanc Network says it is the largest, free online network for credit union and banking professionals to collaborate and share knowledge. It said the latest real-time data for May 2012 shows CU and bank presidents are researching and reviewing social media policies covering the usage of all the networks and holding employees accountable. FI presidents also are looking at "Your Security is Important" letters that can be used to "market" to members/customers about multi-factor authentication and online security.
Other hot topics include: information security and IT employee acceptable user agreement policies, OREO policies, loan pricing sheets, and environmental risk and liability policy for commercial loans.
"The first question smart executives ask when tackling a new problem is: what are my peers already doing on this issue?" said cbanc President Myers Dupuy.
For info: www.cbancnetwork.com
Internet Banks Pay Double Interest Rates
SAN ANSELMO, Calif.-The average interest rate paid by Internet banks for all deposit types is 0.41% compared to 0.19% at branch banks, according to the latest analysis from Market Rates Insight.
Internet banks are banks that operate purely on the Internet and have no branch network. Branch banks are brick and mortar banks operating a network of branches.
For some deposit types, such as savings, Internet banks pay four times the rate paid by branch banks-an average of 0.46% at Internet banks compared to 0.11% at branch banks, MRI said. For Money Market accounts, Internet banks pay an average rate of 0.40% compared to an average of 0.11% by branch banks. The average rate for certificates of deposits of all terms at Internet banks is 0.62% compared to 0.45% at branch banks.
In the fist nine months of 2012, the gap between Internet rates and branch rates has widened, MRI said. Although both Internet banks and branch banks lowered their deposit rates during this time period, the overall decrease in branch rates was greater than in Internet banks, thus making the gap between the two types of banks greater. During the first nice months of 2012, the national average interest rate at Internet banks decreased by 0.01% while branch banks lowered their average interest rate by 0.03%.
"The difference in the cost structure between Internet banks and branch banks makes it possible for Internet banks to offer higher deposit rates," said Dan Geller, EVP at Market Rates Insight. "Since Internet banks don't have the added expense of operating a network of branches, they can absorb a higher expense of interest rates on deposits."
For info: www.marketratesinsight.com
Equifax: Growth, Stability In Auto Credit
ATLANTA-Automotive credit balances and new accounts are increasing steadily, with the number of new accounts opened in the first half approaching pre-recession levels, according to Equifax's latest monthly National Consumer Credit Trends Report.
Auto lending is gaining strength, reflecting increasing demand for new cars, the company said. Year-to-date through June 2012, total auto lending has reached $207 billion, a 13.7% increase over the volume during the same period in 2011. Sales of new cars and light trucks increased nearly 15% during the first half of the year, dominated by sales of smaller, more efficient and cheaper vehicles. In terms of the number of auto loans originated during the first half of the year, 2012 auto lending at 10.7 million loans is the highest since 2007 when 11 million loans were opened.
Delinquency and write-off rates on auto loans and leases are well below levels seen at the start of the recession, Equifax reported. In terms of dollars at risk, write-off rates in August 2012 are one-third of what they were at the peak in March 2009 (2.1% versus 6.1%), while the number of auto account write-offs is about half of the peak volume (2.5% versus 5.2%).
Other findings from the Credit Trends Report:
* Nationally, bank credit card origination credit limits year-to-date through June have increased more than 36% from their recession low, from $55.5 billion in 2010 to $87.3 billion in 2012.
* Retail credit card origination credit limits on a year-to-date basis increased more than 15%, from $25.8 billion in 2010 to $30.4 billion through June 2012.
* Student loan new credit increased more than 15%, from $25.6 billion in 2010 to $30.3 billion through 2012 year-to-date through June. Overall balances of student loans increased throughout the recession and subsequent recovery. Write-offs totaled $10.6 billion year-to-date through August 2012, a 10% increase.
