Resources

The massive Target data breach has reignited the debate over whether banks should do more to improve the security of the cards they issue in the United States. American Banker editors discuss why financial companies have been reluctant to upgrade their magnetic-stripe cards to the more secure chip-and-PIN cards used internationally, and what — if anything — the Target breach changes.

Wells Fargo, U.S. Bank, Regions and Fifth Third have all dropped out of the deposit advance business after federal regulators imposed new restrictions on the products, which are similar to payday loans. American Banker editors discuss the implications for banks, for the nonbank payday lenders who are facing regulation from other entities, and from the customers who may look elsewhere for alternative sources of short-term credit.

Community bank ConnectOne is selling itself to Center Bancorp of New Jersey, in a $243 million deal that the companies are calling a merger of equals. ConnectOne Chief Executive Frank Sorrentino, who will run the combined bank as Chairman and CEO, tells American Banker about the reasoning behind the deal's unusual structure and discusses his plans for the merged company's expansion in New Jersey and the New York area.

Retailers are being inventive in their use of prepaid cards and mobile wallets to improve their store loyalty programs. Many are learning to use payments technology in ways that may change the way banks view their partnerships with merchants.

Some of the nation's largest merchants are rolling out branded cards that offer many of the banking services their tens of millions of customers crave — plus loyalty rewards. For banks, the cards may pose a new threat, as well the opportunity to partner and reach new segments of the population.