In This Issue…
• Credit card market continues expansion
• Registration open for 2019 Community Bankers Leadership and Senior Management Conference
• OBA Bankers’ Night Out programs ready for spring
• OBA Intern Program looking for participating banks
• OBA education corner …
Credit card market continues expansion
Credit card use continued to increase in the third quarter of 2018, according to the American Bankers Association’s latest quarterly Credit Card Market Monitor.
Compared to the previous quarter, purchase volumes increased for both subprime and super-prime accounts but moderated for prime accounts. On an annual basis, monthly purchase volumes rose across risk tiers, led by super-prime accounts (+10 percent) which saw their strongest year-over-year growth in nearly eight years. Super-prime accounts are held by consumers with the strongest credit.
The January 2019 Monitor, which consists of credit card data from July through September 2018, also found the number of total credit card accounts continued to rise but at a slower year-over-year pace. Meanwhile, the total number of new accounts (those opened in the previous 24 months) decreased by nearly 6 percent compared to year-ago levels, reflecting sharp declines in new prime and subprime accounts.
On a quarterly basis, average credit lines among all accounts rose for prime and subprime cardholders, while the average credit line for super-prime accounts was essentially unchanged. Among new accounts, the average credit line for subprime accounts rose 2.4 percent compared to the previous quarter but remains well below its post-recession peak. Meanwhile, average credit lines among new prime and super-prime accounts fell 0.9 percent and 1.2 percent on a quarterly basis, respectively.
Third quarter data also show that the share of Transactors (i.e., those who pay their monthly balance in full each month) fell 0.2 percentage point to 30.2 percent, but its current level marks the second-highest reading since ABA began tracking this metric in 2008. The share of Dormant accounts also fell slightly to a 10-year low of 25.6 percent in Q3, while the share of Revolvers (i.e., those who carry a monthly balance) rose 0.4 percent to 44.1 percent.
Credit card credit outstanding as a share of disposable income rose 4 basis points to 5.42 percent in Q3, but remains 200-300 basis points below pre-recession levels and has seen little growth over the past six years. Meanwhile, the effective finance charge yield (which measures interest payments relative to total outstanding credit in the market) increased 24 basis points to 12.80 percent in the third quarter. Though recent Federal Reserve interest rate hikes have put upward pressure on the effective finance charge yield, the metric has increased at a slower pace than the Fed’s benchmark interest rate, suggesting that an improvement in consumers’ ability to manage credit card debt has partially offset rising interest rates. The Fed lifted its benchmark interest rate a total of 200 basis points from Q3 2015 through Q3 2018, while the effective finance charge yield rose 171 basis points during this period.
Registration open for 2019 Community Bankers Leadership and Senior Management Conference
The Oklahoma Bankers Association 2019 Community Bankers Leadership & Senior Management Conference is scheduled for April 7-9 at the Sheraton Grand at Wild Horse Pass in Phoenix, Arizona.
One of the key benefits of the conference will be talking to your peers. Attendees at the OBA 2019 Community Bankers Leadership & Senior Management Conference will be surrounded by those with similar titles, similar workloads, similar problems and likely solutions to issues that can be just as similar.
If you have any questions or want to get signed up, contact the OBA’s education department at 405-424-5252, or download a brochure and registration form by clicking here!
OBA Bankers’ Night Out programs ready for spring
The dates for the OBA Bankers’ Night Out programs have been finalized. Mark your calendar for the date of the program that’s in your area of the state and plan to attend. Bring your coworkers with you so that everyone can be up to speed on topics affecting their job. In addition to state and federal legislative updates, the program will include a discussion on the recent developments regarding hemp.
As in the past, the schedule for each of these meetings is:
5:30 p.m. – Drinks
6:15 p.m. – Program
7 p.m. – Dinner
PRE-REGISTRATION IS REQUIRED. The cost is $50 per person. Click here for a registration form.
Locations and dates for this year’s events are:
- Lawton, March 26.
- Tulsa, March 27.
- Oklahoma City, April 17.
- Krebs, April 18.
- Enid, April 23.
- Guymon, April 25.
OBA Intern Program looking for participating banks
One education program, in particular, to be aware of is the OBA Intern Program. The Intern Program will again be active in 2019 and we’re looking for participating banks! For more information on this IMPORTANT program – important not only to aspiring students but also to participating banks – Click here for more information or contact the OBA education department at (405) 424-5252!
OBA education corner …
January is behind us, which means we’re one month closer to warm weather. Until it actually gets here, though, you can stay warm with fellow bankers in our educational seminars, webinars and conference! Take note of the following:
- Top 25 Safe Deposit Compliance Issues, Feb. 20, webinar — Because of last minute changes, the annual IRA Update and Review Webinar is a “must attend.”
- Legal Issues of Checks, Feb. 21, webinar — Understanding endorsements and handling checks are crucial to making sound check cashing decisions.
- ACH Rule Changes: What’s New in 2019, Feb. 22, webinar — It may seem that ACH Rule changes were a bit stagnate for a few years, but there are more coming.
- Excel Explained: Minimize Spreadsheet Errors, Feb. 25, webinar — In this comprehensive presentation, Excel expert David Ringstrom, CPA, shares a variety of tricks and techniques you can use to improve the integrity of your Excel spreadsheets.
- Opening Minor Accounts, Feb. 26, webinar — During this webinar, you will learn how to answer your adult account holder’s questions on how to set up accounts for grandchildren, for college, and many other reasons to set up minor accounts.
- OnBoarding Your New Hire, Feb. 26, webinar — This dynamic program will help raise the bar when it comes to engaging and training new employees from the start.
- TRID Checkup, Feb. 27, webinar — This two-hour introductory level webinar will cover the following and will be presented as always, in a Plain English format!
- W-9, W-8BEN and W-8BEN-E, Feb. 27, webinar — During this program, we will do a line-by-line review of the W-9 and W-8BEN forms and the subsequent tax reporting to the IRS. This program will focus on what a US financial institution has to do from the tax reporting and documentation process.
- Federal Benefit Payments: Garnishment Requirements, Feb. 28, webinar — This program will include a general review of the requirements for processing garnishments and state tax levies under the final rule and more.
- Prepaid Accounts Final Rules, Feb. 28, webinar — During this webinar, you will receive a compliance checklist and a comprehensive look at the rule. Sample policy and procedure language will also be provided.
- Call Report Seminar, March 12, Oklahoma City — The Call Report Preparation seminar will help preparers and reviewers understand the preparation process and eliminate errors.
- 2019 Branch Managers School, March 13, Oklahoma City — Developing leadership at the branch is what Branch Manager School is all about!
- 2019 Woman in Banking Luncheon, March 28, Oklahoma City — The 2019 Women in Banking Luncheon will feature guest speaker, Natalie Bartholomew and include discussions about women in banking.
Also, the OBA is proud to promote the recognition of bankers who have devoted 50 or more years of service to the banking industry. All eligible nominees will be honored at the 2019 OBA Convention on May 20-22 at the Edmond Convention Center and Hilton Garden Inn in Edmond.