Consumer banking is a very competitive industry. Banks battle for market share with advertising, free gifts, lower charges, higher interest rates and more.
So much energy and expense are spent attracting new business. But so little effort is invested in truly appreciating the customers they already have.
For example, have you ever bought a house with a housing loan? After you moved in, did the bank call to ask about your new home, or send you a housewarming gift?
Have you ever purchased a car with a car loan? Did the bank send you a note afterwards to congratulate you on your new car, or send you a friendly coupon for a free car wash and wax?
Do you have a credit card? Does your bank ever call you just to say 'Thank you' for using the card and ask if you are happy with the bank's service?
At a bankers' convention I asked if anyone in the audience of 3,000 routinely called their customers just to say 'Thank you!' The answer, predictably, was 'No'.
The bankers were stunned by their own admission.
'Relax,' I said. 'None of the other bankers here are doing it either…not yet.'
Most banking customers have accounts at more than one bank. You probably do too.
What would it take to get you to consolidate most of your banking activity to one bank? A free gift, slightly lower charges, or a higher rate of interest?
Not likely. Those incentives exist today and you still have multiple banking accounts.
But if one bank started genuinely thanking you, calling you, truly listening to your thoughts and suggestions about their banking service, would you be more inclined to rely on that bank in the future? to use them again and again? to migrate your accounts to that one bank for more comprehensive service?
What would it cost the bank to make those telephone calls to you? Not much. What might it earn the bank? A lot.
Thursday, August 30, 2007
Sunday, August 26, 2007
Bankruptcy?
Why Avoid Bankruptcy?
There was a time when bankruptcy was considered a stigma. Filing for bankruptcy was considered shameful, an admission that one could not manage one's personal finances.Today, the stigma appears to have lifted. In fact, rampant credit card debt has driven many Americans to choose the bankruptcy route -- more than 1.8 million bankruptcy petitions were filed during the 2005 calendar year.
What Is Bankruptcy
Bankruptcy was created to protect the financial health of the jobless and the infirm by eliminating high levels of debt. There are two ways to file for bankruptcy, each with its own rules. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Bankruptcy Reform Act), made many changes in bankruptcy law.Under a Chapter 7 bankruptcy filing, many debts are eliminated, but the filer must liquidate personal assets to pay down some of the debt. Personal property is sold by a bankruptcy trustee, who then uses the proceeds to pay creditors. Some assets are exempt if they are considered necessary to support the filer and any dependents, but state and federal laws vary widely. In general, a percentage of home equity and disability benefits are exempt, and Chapter 7 filers may be allowed to keep any money or property they obtain after filing. Chapter 7 bankruptcy can be filed once every eight years.A Chapter 13 filing does not erase debt. Rather, it requires the filer to set up a repayment plan, typically over a three- to five-year period, in exchange for keeping personal assets. The Bankruptcy Reform Act of 2005 states that anyone with income above the state median will have to file for Chapter 13 and pay back at least a portion of their debts. In general, homes will only be protected if owned for at least 40 months. Chapter 13 bankruptcy can only be filed once every two years.Certain debts cannot be erased under any bankruptcy filing, including alimony, child support, property settlements, criminal judgements and fines, student loans, and most taxes. In addition, a bankruptcy filing will not allow you to keep property that secures a loan, such as an automobile or home, unless you repay the loan.
Who Should File?
In general, filing for bankruptcy should be avoided. Filing, however, may help to begin a financial recovery if:
You cannot meet debt obligations on current income.
Attempts to negotiate payments with creditors have failed.
Your ratio of debt to annual income is 40% or more.
Previous attempts to reduce debt have failed, particularly with the help of a credit counselor or debt reduction plan.
You have charge-offs on your credit history. Charge-offs appear when you have debts that are more than 250 days past due that are written off by your creditors for accounting purposes. A series of charge-offs and bankruptcy are both black marks on your credit report, but a bankruptcy filing demonstrates that you have at least dealt with the debt.
There was a time when bankruptcy was considered a stigma. Filing for bankruptcy was considered shameful, an admission that one could not manage one's personal finances.Today, the stigma appears to have lifted. In fact, rampant credit card debt has driven many Americans to choose the bankruptcy route -- more than 1.8 million bankruptcy petitions were filed during the 2005 calendar year.
What Is Bankruptcy
Bankruptcy was created to protect the financial health of the jobless and the infirm by eliminating high levels of debt. There are two ways to file for bankruptcy, each with its own rules. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Bankruptcy Reform Act), made many changes in bankruptcy law.Under a Chapter 7 bankruptcy filing, many debts are eliminated, but the filer must liquidate personal assets to pay down some of the debt. Personal property is sold by a bankruptcy trustee, who then uses the proceeds to pay creditors. Some assets are exempt if they are considered necessary to support the filer and any dependents, but state and federal laws vary widely. In general, a percentage of home equity and disability benefits are exempt, and Chapter 7 filers may be allowed to keep any money or property they obtain after filing. Chapter 7 bankruptcy can be filed once every eight years.A Chapter 13 filing does not erase debt. Rather, it requires the filer to set up a repayment plan, typically over a three- to five-year period, in exchange for keeping personal assets. The Bankruptcy Reform Act of 2005 states that anyone with income above the state median will have to file for Chapter 13 and pay back at least a portion of their debts. In general, homes will only be protected if owned for at least 40 months. Chapter 13 bankruptcy can only be filed once every two years.Certain debts cannot be erased under any bankruptcy filing, including alimony, child support, property settlements, criminal judgements and fines, student loans, and most taxes. In addition, a bankruptcy filing will not allow you to keep property that secures a loan, such as an automobile or home, unless you repay the loan.
Who Should File?
In general, filing for bankruptcy should be avoided. Filing, however, may help to begin a financial recovery if:
You cannot meet debt obligations on current income.
Attempts to negotiate payments with creditors have failed.
Your ratio of debt to annual income is 40% or more.
Previous attempts to reduce debt have failed, particularly with the help of a credit counselor or debt reduction plan.
You have charge-offs on your credit history. Charge-offs appear when you have debts that are more than 250 days past due that are written off by your creditors for accounting purposes. A series of charge-offs and bankruptcy are both black marks on your credit report, but a bankruptcy filing demonstrates that you have at least dealt with the debt.
Cash in the Bank
A savings account is a savings account, right? Wrong. Savings accounts, CDs, and other cash investments can be great choices for meeting more immediate goals, since your money is safe and easily accessible. But they can vary widely in interest rates, fees, service charges, and potential penalties. So it’s smart to shop around for an account that not only keeps your money secure — but also helps it grow. Take interest in your interestIt’s no secret that the higher the interest rate, the more the account earns. But interest can be calculated in two ways — simple or compound. An account paying simple interest means you’ll only earn interest on the principal, or the amount you put into the account. But an account paying compound interest will pay interest on your interest, too — helping your account grow faster. Another thing to look for is whether you’re charged any fees or commissions for opening an account or keeping it open, since that could take a big bite out of your earnings.
Climbing to your goalsLaddering, or staggering the maturity dates of CDs can give you extra flexibility and allows you to take advantage of higher rates usually offered on longer term CDs. Let’s say you have $7,500 to invest and you are interested in a CD with a three-year term. When laddering, you actually divide your principle across multiple CDs with varying maturity dates. You might buy one $2,500 CD maturing in one year, another maturing in two years and one more maturing in three years. When the first CD matures, you could renew it into the longest term of your ladder, in this case, three years. As each CD comes due, you can easily reinvest it into the longer term. Once your ladder is established, you will have a CD maturing every year, while earning the higher rate of a longer term CD. The good, the bad, and the unexpectedLife is full of the unexpected. That’s why most experts say you should set aside three to six months’ worth of income in an easily accessible, highly liquid account that you can tap when you have unforeseen expenses.
It takes less than five minutes to ladder CDs online with ING DIRECT! Great rateGuaranteed return No market risk
Climbing to your goalsLaddering, or staggering the maturity dates of CDs can give you extra flexibility and allows you to take advantage of higher rates usually offered on longer term CDs. Let’s say you have $7,500 to invest and you are interested in a CD with a three-year term. When laddering, you actually divide your principle across multiple CDs with varying maturity dates. You might buy one $2,500 CD maturing in one year, another maturing in two years and one more maturing in three years. When the first CD matures, you could renew it into the longest term of your ladder, in this case, three years. As each CD comes due, you can easily reinvest it into the longer term. Once your ladder is established, you will have a CD maturing every year, while earning the higher rate of a longer term CD. The good, the bad, and the unexpectedLife is full of the unexpected. That’s why most experts say you should set aside three to six months’ worth of income in an easily accessible, highly liquid account that you can tap when you have unforeseen expenses.
It takes less than five minutes to ladder CDs online with ING DIRECT! Great rateGuaranteed return No market risk
Wednesday, August 1, 2007
Intelligent Banking Solutions develops, markets, services and supports CARM-Pro and its companion products to assist financial institutions in the aut
IBM today announced new solutions to allow financial services and banking customers to centralize operations and reduce overhead costs. The new IBM Systems Solutions for Branch Banking leverages IBM's growing ecosystem of partners, and also adds another option to the IBM Virtualized Hosted Client Infrastructure solution portfolio. Systems Solutions for Branch Banking is designed to serve as a secure and stable platform for branch growth, as banks continue to evolve and redevelop their traditional network of branch sites, seeking to transform them into outlets for personalized selling and highly-focused service. "IBM brings significant value to the table -- expertise from other engagements and a deep understanding for our support needs," said Luis Francisco Rivas Dueñas, Chief Information Officer of Banco de la República, the Central Bank of Colombia. "We can capitalize on IBM's expertise to further collapse multiple tiers of our computing operations into a more efficient, less complex infrastructure. This solution includes tailored features such extra security and networking applications that meet our specific needs as a financial institution." Designed specifically for the banking industry, the new Systems Solutions for Branch Banking offers banking customers a pre-configured, pre-tested, scalable and easy to maintain platform that can be used to consolidate branch infrastructure. The new banking solutions -- built on powerful Intel Xeon-based IBM BladeCenter and xSeries platforms -- include software, networking and security features so that administrators can monitor operations and centrally deploy software to branch locations. Systems Solutions for Branch Banking provides functions and services that can be used with in-branch applications, such as wireless networking, local storage backup and restore, and management of automated teller machines (ATMs). "The trend in the financial services and banking markets is towards flexible and resilient infrastructures to ease the manageability of a company's overall operations and free more IT dollars for use developing client-facing products and services," said Mark Greene, general manager, IBM Global Banking Industry. "With today's announcement of IBM's Systems Solutions for Branch Banking, IBM is providing financial customers with solutions to realize a competitive advantage in this fast-paced market." Systems Solutions for Branch Banking will help retail banks ensure the branch channel remains a key contributor of business growth in the future even with the proliferation of remote channels such as internet and telephone banking. The new banking solutions will allow retail banking networks to expand while maintaining a high quality of service for their customers. Retail banks will be able to quickly access, maintain, and analyze customer data in branch offices without having to retrieve data across the network. The offering also includes IBM Director software for central office management of the infrastructure and software deployment. Systems Solutions for Branch Banking includes a wide variety of solution options:
Using VMware virtual infrastructure, the computing platform can support several base operating systems, including versions of Windows and Linux, on a single blade server.
Provisioning systems such as Altiris Deployment Solution.
Datacom Systems has recently made available an IBM BladeCenter version of their video surveillance system. New IBM Virtualized Hosted Client Infrastructure solution with VMware and ClearCubeIBM is also unveiling the next solution in its Virtualized Hosted Client Infrastructure portfolio with BladeCenter, VMware and ClearCube. This new offering is ideal for bank branches and credit institutions and is part of IBM's new banking solution. This new IBM hosted client solution is based on VMware virtual infrastructure software to host multiple users of fully functional desktop environments on a single blade within IBM BladeCenter and leverages ClearCube client access technologies, which increases efficiencies such as utilization of computing resources and quicker deployment of new users. Users connect to their desktop environments using ClearCube Grid Center software which dynamically allocates them to the appropriate computing resource. IT administrators can manage the blades through ClearCube Control Center, which provides health status and automated alerts through graphically configured agents. IBM introduced its first Virtualized Hosted Client Infrastructure offering last month; a pre-integrated hosted client solution based on VMware virtual infrastructure software and leveraging Citrix client access technologies. IBM Global Services supportIBM Systems Solutions for Branch Banking and IBM Virtualized Hosted Client Infrastructure will be delivered by IBM Global Services (IGS) and select IBM Business Partners. IGS is currently enrolling customers for pilot implementations. IBM Global Services has skills and capabilities to help clients take advantage of virtualization and hosted client architectures to create a more secure and cost effective client infrastructure. Leveraging vast experience in delivering hosted client solutions, IGS professionals can help clients evaluate existing applications, images, user profiles and networks to plan, design, implement and manage their Virtualized Hosted Client Infrastructure. IBM can provide Systems Solutions for Branch Banking Proof of Concept services, including hardware, software, and services to plan, design and install a limited branch proof of concept. About IBMIBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key IBM Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit www.ibm.com. IBM and BladeCenter are trademarks of the International Business Machines Corporation in the United States and/or other countries. For a complete list of IBM Trademarks, see www.ibm.com/legal/copytrade.shtml. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.
Using VMware virtual infrastructure, the computing platform can support several base operating systems, including versions of Windows and Linux, on a single blade server.
Provisioning systems such as Altiris Deployment Solution.
Datacom Systems has recently made available an IBM BladeCenter version of their video surveillance system. New IBM Virtualized Hosted Client Infrastructure solution with VMware and ClearCubeIBM is also unveiling the next solution in its Virtualized Hosted Client Infrastructure portfolio with BladeCenter, VMware and ClearCube. This new offering is ideal for bank branches and credit institutions and is part of IBM's new banking solution. This new IBM hosted client solution is based on VMware virtual infrastructure software to host multiple users of fully functional desktop environments on a single blade within IBM BladeCenter and leverages ClearCube client access technologies, which increases efficiencies such as utilization of computing resources and quicker deployment of new users. Users connect to their desktop environments using ClearCube Grid Center software which dynamically allocates them to the appropriate computing resource. IT administrators can manage the blades through ClearCube Control Center, which provides health status and automated alerts through graphically configured agents. IBM introduced its first Virtualized Hosted Client Infrastructure offering last month; a pre-integrated hosted client solution based on VMware virtual infrastructure software and leveraging Citrix client access technologies. IBM Global Services supportIBM Systems Solutions for Branch Banking and IBM Virtualized Hosted Client Infrastructure will be delivered by IBM Global Services (IGS) and select IBM Business Partners. IGS is currently enrolling customers for pilot implementations. IBM Global Services has skills and capabilities to help clients take advantage of virtualization and hosted client architectures to create a more secure and cost effective client infrastructure. Leveraging vast experience in delivering hosted client solutions, IGS professionals can help clients evaluate existing applications, images, user profiles and networks to plan, design, implement and manage their Virtualized Hosted Client Infrastructure. IBM can provide Systems Solutions for Branch Banking Proof of Concept services, including hardware, software, and services to plan, design and install a limited branch proof of concept. About IBMIBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key IBM Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit www.ibm.com. IBM and BladeCenter are trademarks of the International Business Machines Corporation in the United States and/or other countries. For a complete list of IBM Trademarks, see www.ibm.com/legal/copytrade.shtml. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.
Intelligent Banking Solutions
Intelligent Banking Solutions develops, markets, services and supports CARM-Pro and its companion products to assist financial institutions in the automation of debt collection on delinquent accounts, while providing management a methodology to remain compliant with internal and external rules, policies and regulations regarding the collection of delinquent accounts and special assets.
Today, more than ever before, financial institutions need an integrated application solution that provides quality service to existing consumer credit and deposit customers, while enabling the institution to expand its services to new commercial customers.
Since 1989, IBS has been delivering real debt management and collection solutions to the financial industry. A New Hampshire-based company, today we have clients in 46 states and the District of Columbia. Our clients get state-of-the-art solutions configured and installed by our trained professionals, to meet your specific needs.
CARM-Pro, available as both a Windows and browser solution, streamlines the collection process and automates workflow. Institutional risk is reduced by using standard messages, letters and ticklers. Crystal-clear debtor documentation allows monitoring and tracking, features not previously available with traditional systems.
The IBS solution works in either data center or in-house environments, from single to multiple-core processing vendors. It will enhance documentation and reporting for all delinquent receivables: installment, mortgage, or commercial loans, credit cards - even negative balance deposit accounts.
Today, more than ever before, financial institutions need an integrated application solution that provides quality service to existing consumer credit and deposit customers, while enabling the institution to expand its services to new commercial customers.
Since 1989, IBS has been delivering real debt management and collection solutions to the financial industry. A New Hampshire-based company, today we have clients in 46 states and the District of Columbia. Our clients get state-of-the-art solutions configured and installed by our trained professionals, to meet your specific needs.
CARM-Pro, available as both a Windows and browser solution, streamlines the collection process and automates workflow. Institutional risk is reduced by using standard messages, letters and ticklers. Crystal-clear debtor documentation allows monitoring and tracking, features not previously available with traditional systems.
The IBS solution works in either data center or in-house environments, from single to multiple-core processing vendors. It will enhance documentation and reporting for all delinquent receivables: installment, mortgage, or commercial loans, credit cards - even negative balance deposit accounts.
HSBC offers New Banking Solutions for NRIs
With an increase in banking transactions between India and the US, HSBC Bank unveils new breakthrough solutions for Non resident Indians (NRIs) to smoothen out banking transactions for them.
In addition to providing a variety of US and Indian deposits, mortgage and investment products, the new products also include a series of benefits for NRIs to make cross-border transaction easier.
HSBC Bank (USA) will be providing assistance to NRIs in the US in opening account with the bank’s India unit.
At present, HSBC has a large customer base including 160,000 NRI customers between India and the US. New solutions devised by HSBC will help the NRIs in banking transactions in both the countries, says Manasije Mishra, Senior Vice President and Head NRI Services, Personal Financial Services, HSBC India.
The list of benefits for NRIs will take several significant things into account. Important of all will be assistance in free remittances to HSBC India from the US at low exchange rates by US dollar checks, free remittances from the US to India with the help of Internet banking where customers banking in both the branches can remit money to their NRI accounts held with HSBC India conveniently and fastly.
The bank is also considering coming up with another NRI center in Fremont, California to expand its New York NRI office. Currently, it is running over 450 branches in the US. Of this, it has 400 are in New York. With 47 branches, the bank is running good business in India as well.
In addition to providing a variety of US and Indian deposits, mortgage and investment products, the new products also include a series of benefits for NRIs to make cross-border transaction easier.
HSBC Bank (USA) will be providing assistance to NRIs in the US in opening account with the bank’s India unit.
At present, HSBC has a large customer base including 160,000 NRI customers between India and the US. New solutions devised by HSBC will help the NRIs in banking transactions in both the countries, says Manasije Mishra, Senior Vice President and Head NRI Services, Personal Financial Services, HSBC India.
The list of benefits for NRIs will take several significant things into account. Important of all will be assistance in free remittances to HSBC India from the US at low exchange rates by US dollar checks, free remittances from the US to India with the help of Internet banking where customers banking in both the branches can remit money to their NRI accounts held with HSBC India conveniently and fastly.
The bank is also considering coming up with another NRI center in Fremont, California to expand its New York NRI office. Currently, it is running over 450 branches in the US. Of this, it has 400 are in New York. With 47 branches, the bank is running good business in India as well.
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