Wells Fargo enhances its identity theft protection

Wells Fargo has unveiled an Enhanced Identity Theft Protection service, providing customers with an easy way to monitor their credit and check for inaccuracies that may indicate identity theft, is now available. The company has expanded and enhanced the service in response to customer demand.

The improved version of the current Identity Theft Protection service represents an enhanced service that delivers monthly triple credit bureau reports and scores, online calculators, credit score tracker and credit score alerts. The extended version is available through Wells Fargo Insurance and provided by Trilegiant Corporation.

The new version offers a variety of tools to help customers manage credit, including an online "Credit Score Simulator" that lets customers see how a credit score changes if they decide to reduce debt on mortgages or credit cards, refinance a loan, apply for a credit card or consolidate debt into a new account.

Customers' solid interest in protecting against identity theft is one example of a broader concern-managing credit and finances in a turbulent economy, as said Robert Dudacek, Wells Fargo Insurance Direct Response Group Manager. The Enhanced Identity Theft Protection service is available now and customers can receive their credit report and score online in seconds.

8 million Filipinos now use mobile banking

Over eight million Filipinos are now using mobile banking services in the country, which the central bank says would boost more efficient financial services in rural and other hard-to-reach areas at relatively lower costs.

Central bank Deputy Governor Nestor Espenilla Jr. said there are now 49 rural banks offering mobile banking from none before 2005.

These eight million users use the electronic money (e-money) services of major telecommunications companies Smart Communications and Globe Telecom, which offer Smart Money and G-Cash, respectively, BSP said.

These allow mobile subscribers, particularly those without bank accounts, to deposit, transfer, and withdraw money from one e-money account to another in the telecom company's business centers nationwide.

Espenilla noted that the Philippines has been recognized by international organizations for its microfinance initiatives and is considered as the leading pioneer in mobile banking solutions for the poor.

Some banks even lowered interest rates on microfinance loans for clients who use text-a-payment platform by 50 basis points on monthly rates, Espenilla added.

"Technology extends outreach of microfinance and banking services to a large number of bankable but un-banked especially those in rural and hard to reach areas at lower costs and higher efficiency," he said.

He explained that the mobile phone industry in the Philippines serves all income groups especially low income groups and more than 75 percent of the population have mobile phones.

Electronic transactions, which involve the payment of purchased goods and services, could also be used for remittances from Filipinos abroad, Espenilla noted.

“The amount of e-money transactions is already huge, and we expect it to grow further," the BSP official added.

The BSP said it has ordered firms offering e-money services to register with the central bank as an electronic money issuer (EMI).

These could include banks, non-bank financial institutions, and money transfer agents. Those qualified as EMI include stock corporations with a minimum paid-up capital of P100 million. E-money is also not considered a bank deposit and is not covered by the deposit insurance provided by the Philippine Deposit Insurance Corp. (PDIC).

The guidelines also limit the maximum amount that can be loaded to any e-money instrument to P100,000 a month.

Reserve Bank of India prefers the bank-led mobile banking model

The Reserve Bank of India (RBI) prefers the bank-led mobile banking model over the mobile operator-led one, as it offers facilities such as deposit insurance, access to affordable credit and payment system, not just remittance, the RBI governor D Subbarao has said.

The growing concerns about money laundering and financing of terrorism is also a reason the central bank favours a bank-led model.

“World over, there are two distinct models - the ‘bank-led’ model and the ‘mobile operator-led’ model. The RBI has a clear preference for the bank-led model,” Subbarao said while addressing a banking event in Hyderabad last week.

On interoperability of technological solutions, the governor said the priority clearly has to be to facilitate ‘inclusion’ first. ‘Interoperability’ is no doubt important but it can follow. Clearly inclusion cannot wait for interoperability to happen.”

Subbarao also expressed concerns over the tech barrier between banks and customers as the absence of human touch can be intimidating for those just entering the banking network. He asked banks to take extra care to ensure poor are not scared away by technology.

Referendum possible on UBS handing client data to US

The controversial plan for UBS to hand over client data to American tax authorities may be put to a referendum in Switzerland.

Last week, the lower house of the Swiss parliament voted against allowing the data to be passed on to the US, which alleges that almost 4,500 American citizens are avoiding tax by holding secret accounts with UBS.

While it has now reversed its decision and voted in favour of the plan, the lower house has also called for a referendum of Swiss citizens to take place on the issue.

But the idea of a ballot has been opposed by the upper house of the parliament, along with Switzerland's bankers' association, reports the Financial Times.

The referendum proposal is complicated by the fact that under Swiss law, citizens are granted 100 days to get the 50,000 signatures needed for a plebiscite.

If the full period was taken up, the August 19th deadline agreed between the US and the Swiss on delivering the customer information would be broken.

An agreement on what is to be done will have to be made between the two houses before the end of this week, when parliament is scheduled to break up.

Last week, a spokesman for the Inland Revenue Service warned: "We continue to monitor the events in Switzerland and we stand ready to pursue all legal options available to us should the Swiss fail to provide the required information."

The dispute has been rumbling for some time, with UBS agreeing to a $780 million settlement of criminal charges brought against it by US authorities in relation to aiding tax evasion back in February 2009.

A civil action was pursued against the bank in an attempt to access the names of the clients, with the Swiss agreeing to pass over the data in August last year.

European Parliament: Bank bonuses should be capped at 50% of salary

Bankers' bonuses should be capped at a figure equivalent to half of their annual salary, a European Parliament committee has suggested.

The Economic and Monetary Affairs Committee has also called for bank directors at firms which received bailouts to be paid no more than €500,000 ($616,000) a year until all public money has been refunded by their company.

It also wants to see 40 per cent of any bonus payout deferred for a five-year period.

Sharon Bowles, chair of the committee, told Bloomberg: "If bankers and traders want to leave and go to other jurisdictions, it just shows that they do not have confidence in their own performance.

"To those that would leave I say good riddance."

The proposals set out by the committee will be voted on by the full European Parliament in July.

MEP Arlene McCarthy initially proposed the 50 per cent cap for banking bonuses back in March, while she also suggested that up to 60 per cent of such payouts should be deferred over the course of three years.

FSA chairman welcomes chancellor’s plans for regulatory reform

The Chairman of the Financial Services Authority (FSA), Lord Turner, has welcomed the changes to financial regulation outlined by the Chancellor of the Exchequer in his Mansion House speech and Hector Sants’ agreement to remain as Chief Executive of the FSA, leading the transition and the creation of a new prudential authority.

Lord Turner said: "The FSA now has the clarity of direction and timescale as well as the leadership that we need to meet the challenges ahead.

"In particular I am delighted that Hector, who has done so much to transform the FSA during the past few years, has agreed to lead the transition to the new structure in 2012, and to become the first Chief Executive of the Prudential Authority and a Deputy Governor of the Bank of England."

"The crisis demonstrated the need for new regulatory approaches and more intense supervision, and the FSA has already implemented major change. But it also demonstrated the need to bridge the gap between macro-prudential policy and the supervision of individual firms. The Chancellor's proposals for prudential regulation will enable us to do that, while building on the major changes we have made over the last few years. The timescale will enable us to manage the transition in a smooth and orderly way.

"On retail customer protection, the FSA has recognized the need for a shift in our past approach, moving to the more interventionist approach which we set out in our recently published Retail Conduct Strategy. The new Consumer Protection and Markets Authority will have a strong focus on this challenge, while also maintaining strong focus on conduct issues in wholesale products.

"There are important issues still to be resolved – in particular the arrangements for our Enforcement activities and for those Markets activities which relate to exchanges, clearing infrastructure and prudential issues – and we look forward to working closely with the government in considering the relative merits of different possible arrangements for these. But the overall future shape of financial regulation is now much clearer and we are in a strong position to create a future regulatory system which builds on the FSA's achievements over the last few years of major change."

Mobile payments set to double

The value of purchases made by mobile phones is set to more than double by 2012 on back of increase in smartphone usage and greater consumer acceptance of new payment methods

Analyst Jupiter Research has forecast that the rise in smartphones will fuel an increase in mobile payment transactions that will see their value more than double to US$200 billion by 2012.

Jupiter Research said the availability of secure, easy-to-use payment applications and the growing realization of users that they can make e-commerce purchases by mobile will drive the value of payments for physical and digital goods from under $100 million this year to $200 million in two years.

Other findings from the “Mobile Payments for Digital & Physical Goods: Players, Markets & Opportunities, 2010-2014” report indicate that the frequency of physical goods purchased will be higher than average in developed regions such as North America and Western Europe; and brands, retailers and merchants have an opportunity to increase their revenues through targeted marketing campaigns, using apps and mobile web payments as a convenience play for users.

Report author Howard Wilcox said: “Our research showed that the purchase experience has been enhanced by improved mobile commerce transaction processes due to faster mobile networks, more powerful devices and much more user-friendly smartphone apps.

“Amazon Payments for example has recently introduced payment processing tools for mobile devices, enabling smartphone users to buy with one click.”