Money Talk: GDP revised estimate shows U.S. economy grew 0.8% in first quarter

Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news.

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GDP REVISED ESTIMATE SHOWS U.S. ECONOMY GREW 0.8% IN FIRST QUARTER
The U.S. economy grew at a tepid 0.8% in the first quarter of 2016 even as corporate profits for American companies increased by $6.5 billion, compared to a decline of $159.6 billion in the fourth quarter of 2015, according to the “second” Gross Domestic Product estimate released Friday (May 27) by the U.S. Bureau of Economic Analysis (BEA).

The revised estimate of the first quarter percent change in real GDP is 0.3 percentage points more than the advance estimate issued last month, primarily reflecting upward revisions to private inventory investment, to residential fixed investment, to exports and a downward revision to imports, the BEA reported. Despite the three-tenths of a percentage point gain, the U.S. economy has decelerated in three consecutive quarters from the strong 3.9% growth in the second quarter of 2015. Growth in the third quarter of 2015 was 2%, while fourth quarter GDP has now been revised to 1.4%. The third and final GDP estimated for the first quarter will be released June 28.

FDIC REPORT SAYS MOBILE BANKING WILL HELP ENGAGE THE ‘UNBANKED’
The Federal Deposit Insurance Corp. (FDIC) has released a new white paper that explores ways of how mobile financial services mobile financial services (MFS) can help better engage unbanked and underbanked households in the banking system.

Mobile devices, such as smartphones and tablets, have emerged as technology with the potential to change the way consumers interact with banks, the report concludes. In response, banks are rapidly making MFS available to their customers.

The findings from the paper resulted from focus groups that explored whether and how MFS helps meet underserved consumers’ financial services needs. It also identifies a set of strategies for banks to consider that can better position them to meet underserved consumers’ needs, and thus provide more opportunities for the underserved within the traditional banking system.

To view the report, called “Opportunities for Mobile Finance Services to Engage Underserved Customers,” click here.

SIMMONS BANK HIRES AL DRUSO TO MANAGE BANK CARD DIVISION
Al Druso has been named senior vice president and bank card manager for Pine Bluff-based Simmons Bank.

Druso, a graduate of Ashland College in Ohio, began his banking career with Society Bank in Cleveland. From 2000-03, Druso was the general manager of a credit card and merchant center for Marshall & Ilsley Corp. – Metavante. He was responsible for more than 225 employees servicing almost 350 financial institutions across the country. The center was responsible for more than two million credit cards and almost 30,000 merchants.

In 2003, Druso became the first vice president of card services for First Financial Bank of Cincinnati. He managed debit card products, credit card products, ATMs and merchant services. He worked for First Financial until joining Simmons earlier this month.

“Bank card is one of the most dynamic industries in which we compete,” said Larry Bates, Simmons’ executive vice president for specialty lending. “Al brings a unique set of skills to Simmons. He’s committed to excellent service and will ensure that we offer the best product benefits and features.”