Archive for January, 2009
Pennsylvania State Employees Credit Union is First to Add Free FICO Credit Scores to Online Banking
In what I hope is the beginning of a trend, Pennsylvania State Employees Credit Union (PSECU) is offering free FICO credit scores to its online banking customers. The CU says more than 200,000 members are eligible to receive free scores.
Although, Wamu and HSBC (note 1) both offer free scores for their respective credit card customers, PSECU is the first financial institution to offer scores to checking account customers within the online banking area.
There is no charge for the service, but members must enroll to participate. A new score will be posted online each month in the online banking area. Members also have the option to receive alerts when their scores are updated.
The service is powered by Fair Isaac’s MyFICO service. According its press released today, the company is talking with other financial institutions about participating in the Scores on Statements program. Currently, 1.5 million consumers have access to free credit scores through the service.
Bottom line: Without knowing the financial arrangements, it’s impossible to estimate the ROI. But credit scores have real value to consumers and any financial institution providing them for free is likely to improve its standing. It’s also possible that a free credit score service could be a profit center if fee-based credit report monitoring options are marketed to enrollees of the free service (note 2).
Bank of America $50 Checking Bonus
Sign up for a personal checking account at Bank of America and receive a free $50 bonus. The minimum deposit needed to attain this bonus is only $100, so this is a very hot deal.
Offer expires 2/29/09.
EFT Network Inc. Launches Remote Deposit Capture via Fax
Remote deposit capture (RDC) via mobile phone has to be the coolest way to make paper checks disappear from your office and reappear in your account. But from a usability standpoint, it leaves something to be desired, limiting its appeal to geeks with a check to deposit every once in a while.
Businesses with several checks or more every week need something more convenient and easy to use. Proprietary scanners connecting to PC-based software apps work well, but require installation and training, not to mention $30+ per month in service fees.
Enter FAXTellerPLUS, a new solution from Hawthorn, NY-based EFT Network, that uses the common fax machine for the input mechanism. The bank runs the software on its end freeing the user to get back to their business once the fax transmits.
Today’s press release says the four banks using the system are processing “thousands of transactions per month.”
How it works:
Bank sends customers a special sleeve that holds up to 3 checks to be transmitted and includes info on the customer so deposit can be directed to the correct account.
Customer transmits the check (front and back) to the bank via standard fax machine.
Bank sends confirmation back to customer via fax or email.
Funds are deposited in customer’s account and images viewable online.
If this works as billed, it could put RDC into the hands of micro- and small-businesses as well as consumers with access to fax machines at home or work. If any readers have used or tested the system, please let me know your experience by commenting here or emailing.
DollarSavingsDirect 4.00% APY Savings
Considering that the Federal Reserve has cut the target federal funds rate to below 0.25%, it is shocking to see that DollarSavingsDirect is still running a 4.00% APY online savings account.
I’m curious how they can afford to pay out such a high interest, and I’m also very wary of the fact that they have a 1 star Bankrate Safe & Sound® rating. But hey, this is a killer rate and it’s FDIC insured, so this could be a nice place to stash some cash.
Lending Club Regains Momentum, Posts 40% Gain in P2P Loan Originations Compared to Dec. 2007
If you think your 2008 was stressful, imagine having to shut down for an extended and unknown period (it turned out to be 6 months) just 10 months after launch. Then spending hundreds of thousands of dollars on SEC paperwork that your major competitor avoided (temporarily it turns out), all the while watching that same competitor take your market share while you keep your mouth shut via SEC mandate.
That was Lending Club’s year. But unlike so many horror stories of the past year, this one has a happy ending, at least so far. Not only did Lending Club reopen for business Oct. 14 at our Finovate conference (demo video here), within weeks they had already moved ahead of last year’s origination pace (note 1).
As you can see in the table below, Dec. 2008 was substantially ahead of Dec. 2007 in all measures except average loan size and approval rate, which dropped a full 2 points:
Number of applications increased by 78%
Number of approved loans increased by 43%
Dollars originated increased by 29%
Average loan size approved declined by $1,000 (9.4%)
Overall approval rate was 8.5% last month compared to just over 10% a year ago
Table: Lending Club loan origination results: Dec 2008 vs. Dec 2007
| Dec 2008 |
Dec 2007 |
Change | % Change | |
| Number of loans originated | 238 | 167 | + 71 | 43% |
| Dollars originated | $2.28 mil | $1.77 mil | + $0.5 mil | 29% |
| Number of loan applications | 2,798 | 1,575 | + 1,223 | 78% |
| Approval rate | 8.5% | 10.6% | (2.1%) | (20%) |
| Dollar value of all applications | $24.2 mil | $14.4 mil | + $9.8 mil | 68% |
| Average loan size approved | $9,600 | $10,600 | ($1,000) | (9.4%) |
| Average loan size declined | $8,600 | $9,000 | ($400) | (0.4%) |
| Site traffic (unique visitors) | 78,000 | 58,000 | 20,000 | 35% |
Source: Loan volume from Lending Club, site traffic from Compete, calculations by Online Banking Report, 8 Jan 2009
Here’s the monthly origination chart (in US Dollars) courtesy of LendingClubStats.com who compiled the figures from data provided by Lending Club.
Source: LendingClubStats.com, 8 Jan 2009
Also, site traffic is up 35% year over year according to Compete.
Source: Compete, 9 Jan 2009
Citibank FREE $25 Savings Account
Here is a hot deal from Citibank. Sign up for the Ultimate Savings Account (2.50% APY) with $1000 minimum deposit, and they will give you a $25 bonus after 3 months.
This is your bailout money at work, people! Citi stands to drain up to $300bn in bailout funds from the Treasury, FDIC, and Federal Reserve, and yet, here they are giving away free cash!
It is your duty as an American and a taxpayer to take advantage of this deal! They’re paying you with your own money
FREE Luggage Tags at TripAdvisor
This deal has nothing to do with banking, but it is a nice deal nonetheless. TripAdvisor is giving out 2 free luggage tags just for filling out a short form (source: MyMoneyBlog).
If you travel a lot, this is a nice and free tag to strap onto your luggage to make it easier to spot on the conveyor belts.
Can’t beat free.
Bank of America Launches a Blog Finally
What better way to start the new year than to blog about a blog. And it’s big news. Bank of America, through its Center for Future Banking (see note 1), launched a blog called The Future Banking Blog. The blog, quietly began after Thanksgiving (note 2), has averaged about 2 posts per week, about right for a banking blog (note 3).
The content so far has been wholly unrelated to Bank of America or its products. The blog is part academic, part strategic, bringing insights from the Center’s joint team of MIT academics and BofA business execs.
The design however, is pure Bank of America (see below). It uses the BofA color palette and includes a prominent powered by logo in the upper right. It’s also housed under a bank URL <futurebanking.bankofamerica.com>.
All in all it’s a good effort, positioning BofA as a thought leader in the upside-down world of commercial banking circa 2009.
Note:
1. The Center is seeking an Executive Director. The position was posted on Dec. 16, but given the holiday, it’s not too late to toss your name in the hat.
2. Hat tip to Colin Henderson at The Bankwatch for writing about it.
3. For more info on financial institution bloggin,
National City $150 Bonus
National City Bank is running a FREE $150 bonus. You need to sign up for their checking account, link your account with direct deposit, and swipe your check card 10 times to qualify.
Offer expires Dec 31, 2008.
Chase FREE $50 Checking Deal
Chase is running a FREE $50 bonus for opening a checking account. You will need to follow the link above and enter your email to get details. Keep in mind that direct deposit is required to qualify for the bonus.
Offer Details
To qualify for the reward you must open a new Chase Checking(SM) account with a $100 minimum opening deposit of new money (money not currently held by Chase or its affiliates). Also, within 60 calendar days of account opening, you must initiate a monthly direct deposit such as payroll, pension or Social Security, or other government benefits. The reward will be deposited into your new account within 10 days after the initial direct deposit has posted to your account. Limit one personal checking account-related reward/premium per customer, per calendar year.
