Sunday, February 7, 2010

HSBC appoints Gemalto to facilitate the EMV migration of its credit cards across 19 markets in Asia Pacific

Gemalto, the world leader in digital security, has been appointed by the HSBC Group, one of the world’s largest banking and financial organizations, to supply a comprehensive end-to-end EMV migration service across its 19 markets in the Asia Pacific region. Gemalto’s services cover three main areas; provisioning of EMV credit cards, secure personalization services, and business recovery planning services. Gemalto’s strong track record in delivering end-to-end solutions for financial institutions will help the company meet the bank’s requirements.


Gemalto is a recognized industry expert in supporting banks around the world through the EMV migration process. Its strong presence in the Asia region is facilitated by its multiple sales offices, production and personalization sites. It is able to provide all the logistics and processes necessary for a successful implementation to be adequately and securely managed. In addition, it provides strong contingency and backup capabilities for business continuity.

“We want to make sure we deliver the best value right down the line to the end-consumer,” commented Tan Teck Lee, President for Gemalto Asia. “We bring these world-class solutions to our banking customers so that their customers in-turn benefit from the secure, fast and efficient banking provisioning capabilities: whether it’s a new card being issued, or an emergency replacement of a lost card, we make sure the card is the last thing our customers need to worry about.”

With increasing use of credit cards in day-to-day financial transactions in the region, it is important for these cards to be equipped with security features that give consumers peace of mind during transactions. Fraud has been the key driver of the ongoing migration exercise for credit cards in the Asia-Pacific region. By replacing the traditional magnetic stripe with an EMV version, sensitive customer data can be kept more securely, allowing end-users the freedom to enjoy using their credit card with ease and confidence.

Moody's: Asian Structured Finance 2009 Review & 2010 Outlook

Despite challenges, cross-border issuance likely to revive as market improves in 2010


Moody's Investors Service says in a new report that issuance in the Asian structured finance market will rise moderately in 2010, as investor interest makes a comeback, and the price gap between investors and sponsors narrows.
"The performance outlook for Korean RMBS and auto loan ABS is stable.

Korean residential mortgage loans have a recovery rate of over 99%, while the performance of Korean auto loans has been stable, with no marked deterioration during the credit crisis," says Jerome Cheng, a Moody's Vice President and author of the report.

"The performance outlook for Korean credit card ABS and Singaporean CMBS is negative. The negative outlook on Korean credit card receivables is based on potential deterioration in cardholders' payment ability. Korean household debt is at an all-time high, and a rise in interest rates would
hurt cardholders' ability to pay down unsecured credit card receivables.

For commercial properties in Singapore, the oversupply of office and industrial space and a weak economy are adding pressure to both vacancy and rental rates," says Mr. Cheng.

However, Moody's sees no rating implications on the rated transactions due to asset performance. "Given the level of subordination and the structural mechanisms present, we do not expect any rating actions, even for the two asset classes on which we have a negative outlook," says Mr. Cheng.

In its outlook for activities in 2010, the rating agency says that Korea, the largest securitization market in this region, will issue some cross-border ABS, RMBS, and covered bond transactions. Investor interest is evident, given that Korean receivables did not deteriorate much during the crisis. Rather, they have all improved, as Korea's economy started to improve.

In its review of 2009, Moody's notes that the fallout from the credit crunch significantly impacted the issuance from the Asian structured finance market -- with the exceptions of the domestic markets in Korea and India.

Korea's domestic and cross-border issuance in 2009 was USD33.0 billion, 87.6% of the region's total USD37.7 billion issuance. Korea's domestic market was dominated by project finance securitizations and RMBS, while its cross-border market generated all the foreign currency-denominated issuance in the region, including Asia's first covered bond transaction.

Moody's rating actions in 2009 were mainly downgrades related to changes in counterparty ratings and the change in Korea's local currency bond ceiling. "The downgrades were not driven by pformance deterioration in the underlying receivables. If anything, the performance of these receivables is well within our expectations," explains Mr. Cheng.

Moody's also changed its assumptions for three transactions, as perceived levels of risk increased. Two of them are deferred payment transactions in Singapore where the underlying residential property buyers' default risk had increased and the property values had declined. The third one is a Real Estate Investment Trust (REIT) in Taiwan where the REIT had acquired a new property through increased leverage. The ratings of these three transactions were subsequently downgraded.

The report discusses Moody's expectations for the Asian structured inance market in 2010, examines the outlook for cross-border Korean RMBS and ABS and Singaporean CMBS, summarizes issuance activities in 2009, and discusses collateral performance and the rating downgrades in
2009.

The report, "Asian Structured Finance: 2009 Review and 2010 Outlook" can be accessed at www.moodys.com.

Friday, January 29, 2010

TMB Selects SAS Solution for End to End Business Intelligence Platform Project

Thai Military Bank Public Co., Ltd. (TMB) selected the Credit Scoring Solution for Banking of SAS for its End to End Business Intelligence Project with a project value of almost 20 million Baht.


This Project is developed to offer effective and transparent risk management through powerful analytical tools which can support all stakeholders involved in Credit activities in the assessment and monitoring of the portfolio’s risk performance.

“Previously, the credit assessment process was complex manual and slow due to redundant verification of data reliability before executing reports along with operational and security problems,” said Mrs. Fabienne Libert, Senior Vice President, Retail Credit Group, TMB Bank Public Co., Ltd. . “This Project will enhance our operational efficiency and allow us to directly manage credit risks with data models while establishing governance standards data processing effectively at greater speed. Moreover, it creates transparency risk management information for all and one version of the Truth.”

“TMB decided to select SAS for the End to End Business Intelligence Project since October 2009 as SAS solutions can comprehensively cover our requirements, especially end-to-end straight through process of data starting from data extraction until delivery of information to end-users with advanced analytical tools.”
About SAS

SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world The Power to Know

Sunday, January 24, 2010

HSBC VISA PLATINUM AND PREMIER MASTERCARD MEMBERS ENJOY UP TO 12% CASH BACK IN MOMENTS OF JOY AT CENTRAL AND ZEN

HSBC Credit Card is offering a superb shopping privilege to its Visa Platinum and Premier MasterCard members - courtesy of a new ‘Joyful Moments’ promotion – who use their cards at any Central and Zen department store. Members will enjoy up to 12% cash back in the form of 72,000 HSBC Reward points for same-day spending of just 60,000 Baht. The privilege is valid from now until 21 February 2010.

Photo shows Ms. Salinla Seehaphan (left), Senior Vice President, Marketing and Communications, HSBC in Thailand and Ms. Piyawan Leelasompop, Vice President Marketing, Central Department Store Limited, introducing the new shopping promotion.

Sunday, January 17, 2010

Heartland Payments Systems agree to provide Visa issuers $60 million for data security breach claims

Princeton, NJ and San Francisco, CA, January 8, 2010 - Heartland Payment Systems, one of the nation's largest payments processors, and Visa Inc. today announced a settlement agreement under which issuers of Visa-branded credit and debit cards will have an opportunity to obtain a recovery from Heartland with respect to losses they may have incurred from the 2008 criminal breach of Heartland's payment system environment. Heartland will pay up to $60 million to fund the settlement program, which is subject to certain conditions, including a specified level of participation by U.S. Visa issuers. Visa will present details of the settlement to eligible issuers in the coming days.


"We believe issuers will benefit by participating in this settlement program because it offers an immediate recovery with respect to losses they may have incurred from the Heartland intrusion," said Ellen Richey, chief enterprise risk officer, Visa Inc. "Helping financial institutions mitigate costs after a data security breach has been a long-standing component of Visa's security strategy, along with promoting new security technologies, preventing fraud and leading efforts to secure sensitive data across the entire payment system."

Bob Carr, Heartland's chairman and chief executive officer, stated, "We are pleased to have reached a fair settlement agreement that helps issuers obtain a recovery with respect to losses they may have incurred from the intrusion. At Heartland, we are also committed to helping issuers - as well as all stakeholders in the payment ecosystem - mitigate future risk. We have assumed a leadership position in the development of enhanced data security and fostering the sharing of information."

The Visa/Heartland settlement agreement is contingent upon acceptance by financial institutions representing 80 percent of the eligible issuers' U.S. accounts that Visa considered to have been placed at risk of compromise during the Heartland intrusion. The settlement also includes mutual releases between Heartland and its sponsoring bank acquirers, on the one hand, and Visa on the other.

Heartland will fund up to $59.22 million of the amounts to be made available to Visa and its issuers under the settlement program. Additionally, Visa will credit the full amount of intrusion-related fines it previously imposed and collected from Heartland's sponsoring bank acquirers towards the $60 million maximum funding of the program. The settlement amount represents a significant recovery to Visa issuers for losses they may have suffered from the Heartland data security breach.

All U.S. card issuers who participate in the program will be eligible to receive a portion of the specified recovery. The settlement also includes recovery for international issuers of accounts Visa considered to have been placed at risk of compromise.

Participation in the settlement program supplants any other recoveries that may be available to issuers through Visa and requires accepting issuers to release Heartland, its sponsoring bank acquirers and Visa from any legal and financial liability related to the Heartland intrusion.

Visa will be notifying eligible issuers in the coming days with details about the program and how to participate, and Visa will send eligible issuers their formal offers to participate in the program on January 14, 2010. To facilitate payment, eligible issuers will have until 5:00 pm PT on January 29, 2010 to opt-in to the program before the offer expires.

Wednesday, December 16, 2009

Bangkok Bank launches ‘China UnionPay’ credit card, widely accepted in China, Hong Kong, Macau and 31 countries worldwide

Bangkok Bank, in collaboration with China UnionPay (CUP), the largest credit card and debit card provider in China, has introduced ‘Bangkok Bank China UnionPay’ as Thailand’s first platinum credit card widely accepted in China, Hong Kong, Macau and 31 other countries worldwide. Thai cardholders will receive the same privileges as local Chinese.


Bangkok Bank Credit Card Division Manager Mr. Shoke Na Ranong said that working with China UnionPay or CUP, the largest credit card and debit card provider in China; to create ‘Bangkok Bank China UnionPay’ was another important step for Bangkok Bank’s credit card services. Bangkok Bank China UnionPay is Thailand’s first platinum credit card offering the same privileges as local Chinese receive.

‘This emphasizes Bangkok Bank’s success and leadership in continuous financial innovation, including credit cards using modern technology. In 2005, the bank replaced magnetic stripes with EMV-chip technology in its credit cards while developing compatible merchant credit card payment terminals. In 2008, we launched the Bangkok Bank Blue Wave credit card, a contactless credit card and launched EMV-chip technology in its debit cards in 2009. All becoming the first bank in Thailand to provide both EMV-chip technology and contactless technology in a credit card, giving customer’s security in their credit card spending. The Bangkok Bank China UnionPay credit card will launch on February 2010 coincides with Bangkok Bank’s recent receipt of a license from the Chinese government to operate Bangkok Bank China, a locally incorporated bank in China, which will open on December 28, 2009. We will be the first Thai bank, and one of fewer than 30 foreign banks, to achieve this milestone,’ said Mr. Shoke.

The card is widely accepted by 1,350,000 merchants in China, Hong Kong, Macau and 31 other countries worldwide. Every transaction has strong security protection as cardholders need to enter their PINs at the point of payment. Credit card reader machines requiring PINs have been widely installed by merchants across China.

China UnionPay Global Business Development Head – International Division Mr.Wang Li Xin said the company is the largest credit card and debit card provider in China, established in 2002 with a head office in Shanghai. The company focuses on creating and expanding services to the international market. China UnionPay services provide convenience, safety and reliability for businesspeople and travelers in all their shopping and spending around the world. China UnionPay is widely accepted by 1,970,000 merchants and 3,000,000 point-of-service locations, while 890,000 ATMs around the world are available for cash withdrawals. China UnionPay has 190 million credit cardholders and 1,900 million debit cardholders worldwide.

Bangkok Bank China UnionPay is perfect for travelers to China, including businesspeople and students, and especially for Thai-Chinese. The cardholder will receive platinum discounts and privileges from China UnionPay as well as a special warm welcome and the convenience of shopping at 1,350,000 merchants in China, Hong Kong, Macau and 31 other countries worldwide. In Thailand, cardholders are also eligible for discounts and privileges from participating merchants. Bangkok Bank China UnionPay will be ready to launch its full service in February 2010.

Tuesday, December 15, 2009

SK Telecom to Acquire Stake in Hana Card

SK Telecom (NYSE:SKM) announced today that its board decided to take over a 49% stake (or 57,647,058 shares) in Hana Card Co. for some KRW 400 billion. The deal will make SK Telecom the second largest shareholder of Hana Card after Hana Financial Group Inc with 51% stake. With the deal, the company expects to bring its services to a new level by adding ICT-based advanced services to its current mobile settlement business including T Cash, thereby securing an edge in tomorrow’s commerce market.


SK Telecom’s CEO Man-Won Jung said, “The partnership is aimed at introducing and expanding the use of mobile credit cards while promoting next-generation payment and settlement services. With this deal, the two companies will maximize business synergies so as to create a new telecommunications and finance convergence market.”

Mobile credit card is a next-generation smart card that allows customers to use their mobile phones as credit cards and receive real-time information provided by card companies such as event notices and discount offers simply after inserting credit card information into their mobile phones.

It allows users to check credit card settlement information including details of credit card usage, remaining credit card limit and reward points as well as other real-time information like bank accounts and membership. At the same time, it provides optimal decision-making information based on user’s past purchasing record and location information while offering an integrated service that includes discount coupons, ads, membership and mileage points during credit card purchases.

All the stakeholders are expected to benefit from the widespread use of mobile credit cards: Customers will be able to receive information and benefits including coupons on their mobile phones; credit card merchants will be able to boost sales and attract more customers by using information such as consumer purchasing patterns; and card companies will generate greater sales with increases in micropayment transactions and number of merchants, reduce time for plastic credit card issuance and save costs of plastic credit card production, delivery and replacement.

SK Telecom plans to introduce mobile credit card and smart payment service in the second half of next year and deliver greater customer benefits by linking them with SK Telecom’s membership programs and SK Group’s OK Cashbag service.

Meanwhile, SK Telecom said it will later determine and finalize the number of its staffs to be dispatched to Hana Card by taking into consideration the number of employees requested by Hana Card and the result of its internal staff selection process.