Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news. ––––––––––––––––
FDIC BANKS SEE DOUBLE-DIGIT GROWTH IN FOURTH QUARTER
Declines in expenses for litigation at a few large banks combined with moderate revenue growth lifted fourth-quarter net income at FDIC-insured institutions to $40.8 billion, an increase of $4.4 billion or 11.9% compared with fourth quarter 2014, according to the FDIC’s quarterly banking profile.
The improving trend in earnings was widespread, data shows, with more than half of all banks, or 56.6%, reporting year-over-year increases in quarterly net income. Most of the margin improvement occurred at larger banks, whose asset portfolios were better-positioned to benefit from the increase in short-term interest rates late in the quarter. To see the full report, click here.
FIS, PAYPAL EXPANDING ‘CARDLESS CASH’ MOBILE APP FOR ATM WITHDRAWALS
Jacksonville, Fla.-based FIS Global and PayPal are expanding their “cardless cash” technology that allows consumers with a mobile banking app to withdraw money from virtually any ATM. Launched in January 2015, Cardless Cash was the first mobile ATM solution on the market that avoids the plastic debit card. The technology provides banks with a new revenue opportunity from transactions at their ATMs and allows for enhanced digital marketing in their branded experience by leveraging the white-label technology.
In the past 12 months, the solution has securely processed millions of dollars in withdrawals and hundreds of thousands of transactions across the U.S., company officials said. Many more banks across the country are deploying Cardless Cash in 2016. Founded as Systematics Inc. in 1968, and later acquired by Alltel Information Services in 1990, and eventually bought by Jacksonville, Fla.-based Fidelity National Financial in 2003, FIS is now the world’s largest provider of banking payment technologies with more than 20,000 financial clients in over 130 countries.
CREDIT CARD PURCHASES NEARLY $5 TRILLION IN 2015, UP 7.8%
American Express, Discover, MasterCard, and Visa brand consumer and commercial credit, debit, and prepaid cards issued in the U.S. generated $4.786 trillion in purchase volume in 2015, up 7.8% versus 2014, according to The Nilson, a leading publication covering the card and mobile payment industries.
Visa brand debit cards generated $1.374 trillion in purchase volume last year, up 7.9% versus 2014. For the seventh year in a row, no other credit or debit card brand generated more spending at merchants. Credit card purchase volume for American Express at $717.29 billion was up 4.8% in 2015 versus an 8.1% increase in 2014. This included spending at merchants on cards issued by 10 network partners. American Express remains the second largest credit card brand in the U.S., a position it has held since 2011 when it moved past MasterCard.