Study: Debit Transactions Grow 14.4% In 2007
HOUSTON–Debit card issuers, including credit unions, experienced a 14.4% growth in debit transactions in 2007, but that was a four-percentage-point decline from 2006. The results were tabulated as part of the 2008 Debit Issuer Study, which surveyed 62 credit unions, community banks and large banks and was commissioned by PULSE and conducted by Oliver Wyman. The study found overall 14.4% transaction growth was made up of a 15% increase in signature debit transactions and a 14% growth for PIN debit.
The institutions in the survey issued more than 74 million debit cards, some 28% of the debit cards in the U.S., and were balanced according to institution size, type, geography and network participation.
Of the debit transactions made last year, 65% were authorized by signature and 35% by PINs.
Among the other findings:
* Average debit card penetration rate was 73%–a 1% increase over 2006.
* Active cardholders, on average, performed 16.6 point-of-sale transactions a month during 2007, versus 16.1 transactions a month the year before.
* The average amount transacted was $43 for PIN debit and $38 for signature debit, compared with $42 and $40, respectively, the year before.
* Nine percent of PIN debit purchases included cash back. ATM cash withdrawals exceeded PIN debit cash-back withdrawals by a ratio of nine transactions to one.
* Twenty-five percent of the issuers surveyed charged a PIN debit transaction fee at the point of sale to at least some cardholders. That compared with 28% in 2006 and 32% in 2005.
FIs Are Changing Fraud Management Strategies
BOSTON–Aite Group has released a new report that examines the fraud management strategy of U.S. financial institutions today, and how it is expected to evolve over the next three years.
Based on a survey of 13 U.S. banks and credit unions conducted between January and March, the report provides a measurement of fraud components and evaluates fraud management system requirements.
“Institutions surveyed displayed a common concern for the ability to achieve enterprise-wide clarity when it came to monitoring fraud,” Aite Group said. “The largest internal cause for concern related to the lack of robust enterprise-wide case management, with 62% of interviewees considering this an important or extremely important impediment. Enterprise case management tools and enterprise fraud management dashboarding ranked highest in priority for investment in the next 24 months.”
For info: www.aitegroup.com.
Customer Service Scores Show Room For Improvement
MILWAUKEE–A new study has found most Americans rank the customer service at their financial institution as above average when it comes to service, but there is still room for improvement.
The study, conducted by Harris Interactive on behalf of the American Society for Quality (ASQ), found that:
* 96% rate the customer service at their financial institution as–above average or average.
* 85% are very satisfied or satisfied with the products and services available.
* 89% feel that it is easy to open a new account.
* 27% of adults have experienced a problem with their account in the past year.
* 68% who experienced a problem are satisfied with the process to get the problem resolved.
According to the American Customer Satisfaction Index (ACSI), banks have either maintained or gained in customer satisfaction each year since 1999, to where the industry is now at an all-time high of 78 (on a scale of 0-100). This is despite an overall decline of .4% in the ACSI to 74.9.
