EU companies in search of the Euribor

While the debt crisis in full swing and the European Union - or at least the euro area - appears to be on the verge of bankruptcy, the European Commission tries to make the household among the speculators and "arrangements between friends." The current situation also appears to arise largely from certain financial transactions that some would not Catholic. The European Commission said Wednesday it had raided the eve of the financial companies’ active in derivatives on the benchmark inter-bank euro (Euribor). This indeed suspects that a cartel has been established.

"The Commission is concerned that the companies concerned were able to violate the antitrust rules that prohibit cartels and restrictive business practices," the Commission said in a statement ... without naming the main question. The Commission does not specify whether the inspections were carried out on its own initiative or upon the termination of the cartel by one of its participants.

Recall that the Euribor is, for a given maturity, the fixing calculated each business day at 11am French time, published by the Banking Federation of the European Union (FBE), an average rate at which a sample of 57 large banks established in Europe lend in white (that is to say that without the loan is pledged by securities) to other banks.

Following the release of the Commission, Euribor-EBF was ready to share its data with the authorities.
Cedric Quemeneur, director of Euribor-EBF, institution that compiles the interbank rate also reported apartheid 'confidence in the management of the Euribor. ""With the number of banks that are involved in determining the rate, determine the rate artificially would be impossible. I think the Commission is not familiar with how the reference rates are determined. We are ready to help, "he told Reuters.

According to sources familiar with the matter based in Frankfurt, the offices of Deutsche Bank in London would be part of institutions searched by investigators from the European Commission.

Potential for promoters and brands in co branded Credit cards Part.III

Then, the positioning of retail banking networks will play a key role in the organization of the market around these cards, to date, it remains to be determined. By partnering with offers co-branded, they risk a drop in sales of traditional credit cards, implying a de facto decrease in revenues related to contributions (the co-branded cards being offered at a price much lower). In contrast, waive offer these products may cause a loss of market share when demand for co-branded cards for the benefit of credit card companies 'captive' (subsidiaries of the distribution, automotive ...) or new entrants. The tactics seem to apply the major banking groups is to rely on their own subsidiaries consumer credit to play the complementary offers, while reducing the risk of cannibalization ...

Finally, a technical constraint - but significant - just reduce the potential of these credit cards. The choice of "cash payment" or "credit payment" in cash is not possible outside the network of retail partners, including the lack of standardization of EMV terminals.

This uncertainty is reinforced by the lack of feedback potential. Indeed, the very special place of the bank card in France compared to our European neighbors (almost all of the park to the EMV standard, high number of transactions, psychological ...) renders inconclusive any analogies with the co- branding practiced by our European neighbors. Under these conditions, the first move will engage in enhanced listening market reactions. For their part, the traditional players in the market for payment card will now have to think to optimize their organization in the event of a redeployment of their strategy for success of co-branding.

On a broader front, it is an additional axis to be included in the reconfiguration strategies means of payment that must implement the banks to adapt to new regulatory requirements (SEPA, PSD) and market developments (innovative means of payment for retail, process for STP of corporate cash management ...)

Potential for promoters and brands in co branded Credit cards Part.II

The co-branded cards allow, a technical point of view, to combine:

    * The functions of a card "private" (when used one mode "on us", that is to say in a shopping partners). It opens all the specific services: credit, loyalty ...
    * The functions of a card "banking" (when used on mode "on them", that is to say, outside partner stores). It can then pay for purchases at any merchant equipped with an electronic payment terminal (EPT) or remove hope in vending machines (ATMs).

This device should allow going further in terms of loyalty. Besides disseminating the image of the brand with every new spending set by the wearer, the method allows to increase the accumulation provisions of points and possibly create a new need among customers not yet equipped cards.

More discrete, the arrival of co-branding will also allow retailers to renegotiate rates and commission charged plates with company’s consumer credit outstanding that manage card or to change partners.

Uncertain scope

Many uncertainties remain about the success of this system:

First, the process of replacing a store card with a Visa or MasterCard co-branded (or the systematic use of it if replacement is required by the sign) does not always value added significantly to the holders. This determination should be largely influenced by the potential affinity with the brand or the provision of fringe benefits.

This trend may be in favor of high-potential brands identification of dream or ostentatious (luxury, automobile, travel ...) but less favorable to the everyday consumer brands (supermarkets, health, fast food ...) they may have to pay more benefits to customers will finally convince a "subprime" (involving an increase in the cost and risk is a decline in the commission of the sign by the company credit ...)

Potential for promoters and brands in co branded Credit cards Part.I

After issuing co-branding interest on credit cards for many retailers (supermarkets, car, tour operators, telecom ...). The increase in sales, the new potential of loyalty or the innovative images of the brand are often cited as advantages of the device. However, this new model card is it so attractive it is understood, particularly for carriers that have already greatly expanded an offer for "credit card"?

The provision of means of payment through non-bank is not new. Credit cards say "private", which bear the logo and colors of the sign that the commercial offer, are already widespread (one person in four has at least one store card in Europe). These allow the wearer to pay for purchases in stores of the brand or brands in a community of partners (equipped with specific payment terminals capable of reading the map). End of period, the balance of expenditure is deducted from the customer's bank account specified in the subscription card.

For the wearer, the main advantage of these cards is access to credit facilities in the form of consumer credit. For the merchant, this device allows to increase sales through financing provided to customers. That is why they are often offered free of charge and available direct in store.

These systems of credit cards are designed and managed by the players specialized in consumer credit. Largely in competition in this market segment, they offer innovative and customized services to retailers. Thus, these payment methods usually offer several additional features:

* Choose from several formulas settlement at the time of checkout: cash payment, use of the reserve revolving unique to the card, credit depreciable independent promotional rates (especially during Christmas or birthday of the brand ...)
* Advantages of a traditional loyalty card: accumulation of points, good management and specific reductions, access to targeted campaigns (type balances private ...)
* Insurance and other additional services

In addition, this system is transparent to the user, since these cards are promoted and distributed by the sign at the point of sale.

Micro Insurance and Micro Credit Part.III

In Model "producer-distributor coach," the producer performs all product development activities and sometimes after-sales service, while the distributor is responsible for the act of selling the product that was previously recommended by the attendant.
Networks to aid the economic initiative are well equipped to play the role of accompanist, using the leverage of their existing networks and building on already established relationships of trust with the micro entrepreneurs during assembly files microcredit. The staff of these networks still needs to be trained in insurance products to be able to perform its consulting business.
The coach may also carry out the deed, but more often it is the producer or a third actor playing the role of distributor. Contractors in the supply of the city, networks of support are not selling, they are responsible to the requirements and redirect to the creators of the City Contractors who takes care of distributing (without commission) micro-insurance products through its association and support the service remaining the sole representative of the member. The combination takes advantage of this special role to provide support (including legal) in the Proceedings of the insured.
Conversely, insurance products are better developed, based on specifications developed based on needs and financial capacities of micro entrepreneurs by insurers who have the expertise and capital required.

It is clear that the design of both products presented above are based on models of classic products insurance (liability, property and casualty business,) well understood by insurers and distribution models have proven otherwise. The innovation of this type of product then essentially comes from the mix design "optimized" (an insurance policy and a simplified marketing price equal to the cost of production) and distribution "local" (accompanied by networks of initiative Economic and associations).

The need for micro-entrepreneurs in terms of insurance is not new and it is questionable why such offers micro-insurance have not been developed earlier. According to Mr. Schinzler, Chairman of the Supervisory Board of Munich Re, "the premium income is low administrative costs are relatively high and the infrastructure is lacking, as many arguments as to why the lack of interests of insurers in this market professionals. "
Micro insurance, such as microfinance in general, should not be seen as a vast market of the future with enormous future profits (insurers partners do not profit margin on products and distribution fees are zero). Today, it should rather be seen as an activity to meet the challenges of sustainable development in Financial Services, a theme which is too often accused the professionals of this sector of disinterest. The many recent initiatives in this area indicate the contrary a real desire...