2020 Foresight Report: Best Practices in Managing the Credit Risk Cycle

Publisher Name :
Date: 29-Apr-2013
No. of pages: 89

Synopsis

The report provides information and insights into best practices in managing credit risks associated with credit cards:

  • Provides a global snapshot of card fraud and key fraud hotspots across the world
  • •Comprehensive analysis of card fraud market size in developed and emerging markets
  • •Analysis of various types of card frauds and its implication on issuers and acquirers, customers and merchants
  • •Detailed analysis of macroeconomic, regulatory and operational challenges in managing credit card risks
  • •Provides emerging trends in credit card risk management by governments, regulatory bodies and market participants
  • •Provides a detailed framework of best practices in credit card risk management, segmented by issuers, acquirers, network providers and merchants
  • •Includes case studies showcasing the best practices with examples and their impact assessment

Summary

The convenience offered by credit cards to make payments is exploited for fraudulent activities, resulting in the loss of millions of dollars every year around the world. In order to control and limit these risks and losses, a proper risk management framework is required to be established. Over the last five years, card issuers, acquirers, merchants and network operators have adopted and implemented a host of security measures, regulations and business strategies to lower the chances of fraud and credit losses. However, they are limited by several macroeconomic, regulatory and operational challenges. The management of risk associated with credit cards requires continuous efforts from every participant of the card payment industry. However, to do so, development of a best practice framework is of utmost importance. A well developed framework facilitates a better understanding of risks and areas which require attention from the intended parties, and formulates strategies to address them.

Scope

  • This report provides a comprehensive analysis of best practices in credit card risk management with emerging trends in market practices by issuers, acquirers, network operators and merchants
  • •The report also covers regulatory developments across key regions such as Europe, North America and Asia-Pacific
  • •It provides current fraud statistics in developed and emerging markets
  • •It outlines key macroeconomic, regulatory and operational challenges in managing credit card risks
  • •It illustrates adoption and implications of best practices with the help of detailed case studies

Reasons To Buy

  • Credit card risks result in the loss of millions of dollars every year impacting every participant of the cards and payments industry
  • •Gain insight into various risks resulting from macroeconomic developments, customer protection laws and operational difficulties
  • •Understand the emerging trends in managing risk and limiting exposure to credit loss
  • •Assess the regulatory landscape in key regions around the globe
  • •Gain insight into the development of an effective risk management framework

Key Highlights

  • Although card fraud is much higher in value terms in developed economies such as the US, the UK and France, these countries have been successful in limiting the growth of fraud by adopting advanced security measures, innovative products and strict regulations. Emerging economies like China and Russia have lagged behind in introducing such measures and have therefore witnessed significant growth in card fraud.
  • •Among the developed markets, the value of card fraud was highest in the US.
  • •Regulations such as the single euro payment area card framework (SEPA) and anti-money laundering regulation have indirectly helped in the managing of these risks. Other measures taken by regulatory bodies which include restriction on issuance of credit cards to high risk customers, increases in age requirement, high income requirements for issuance of a credit card and a limit on the number of cards a consumer can have has also helped in managing risks.
  • •Industry participants have adopted and implemented a host of security measures, regulations and business strategies to lower the chances of fraud and credit losses. These measures include EMV chip and PIN credit cards, anti-skimming technologies, guarantors for high risk customers, secured credit cards and charge cards, behavior analysis, high-end security for online shopping such as virtual keypads, SMS verifications and one-time passwords.

2020 Foresight Report: Best Practices in Managing the Credit Risk Cycle

Table of Contents

1 Executive Summary

2 Mobile Point of Sale Terminals (MPOS) Market Dynamics
2.1 Emergence of MPOS
2.1.1 Adoption by country
2.1.2 Mobile POS framework
2.1.3 Product launches
2.1.4 Trials and pilots
2.2 The Technical Side of MPOS
2.2.1 The hardware
2.2.2 The software

3 Global Market Size and Drivers
3.1 Market Size and Outlook
3.2 Drivers for Mobile POS
3.2.1 Business drivers
3.2.2 Consumer drivers
3.3 Challenges
3.3.1 Operational challenges
3.3.2 Technical challenges
3.3.3 Regulatory challenges

4 MPOS Strategies
4.1 Customer Targeting Strategy
4.1.1 Targeting retail sector to tap into ever growing market
4.1.2 Targeting restaurants and hotels to exploit on their specific needs
4.1.3 Capitalizing on local transit services
4.1.4 Targeting payment-on-delivery options
4.1.5 Individual service providers
4.1.6 Entertainment industry's need to provide better customer service
4.2 Expansion Strategies
4.2.1 Organic expansion
4.2.2 M&As
4.3 Pricing Strategy

5 Implementing Mobile POS
5.1 Best Practice Framework
5.1.1 Security of sensitive information
5.1.2 Establishing identity of the merchant and the cardholder
5.1.3 Validation of the payments
5.2 Case Examples
5.2.1 The Home Depot Inc.
5.2.2 Horny Goat Brewing Company
5.2.3 Nordstrom Inc.
5.2.4 Nebraska Book Company
5.2.5 Gaylord Hotels

6 Competitive Landscape and Industry Dynamics
6.1 Industry Structure
6.1.1 Facilitators and mobile solution providers
6.1.2 Solution integrators
6.1.3 Component vendors
6.2 Motorola Solutions, Inc.
1 Executive Summary
2 Credit Card Fraud Dynamics
2.1 Global Snapshot of Card Fraud
2.1.1 Card fraud hotspots around the globe
2.1.2 Card fraud in developed and emerging economies
2.2 Overview of Card Fraud and its Impact
2.2.1 Types of card fraud
2.2.2 Ramification of card fraud
2.3 Challenges in Managing Credit Card Risks
2.3.1 Macroeconomic challenges
2.3.2 Regulatory challenges
2.3.3 Operational challenges
3 Emerging Trends in Managing Credit Card Risk
3.1 Role of Government and Credit Bureaus in Managing Credit Card Risk
3.1.1 Global developments
3.1.2 Europe
3.1.3 North America
3.1.4 Asia-Pacific
3.1.5 Other key countries
3.2 Trends in Risk Management at Financial Institutions and Service Providers
3.2.1 Issuers and acquirers
3.2.2 Network providers
3.2.3 Merchants
4 Best Practice Framework in Credit Card Risk Management
4.1 Risk Management Framework
4.1.1 Issuers
4.1.2 Acquirers
4.1.3 Network providers
4.1.4 Merchants
4.2 Best Practices Case Studies
4.2.1 Adoption of modern tools and analytical applications
4.2.2 Best practices - adoption of innovative products
4.2.3 Best practices - adoption of EMV Chip-PIN technology
4.2.4 Best practices - third party expertise to manage delinquencies
5 Appendix
5.1 Late Payments and Non-Payments
5.1.1 Types of delinquency
5.1.2 Key reasons for delinquencies
5.1.3 Non-payments
5.2 Methodology
5.3 Background
5.4 Contact Us
5.5 About Timetric
5.6 Disclaimer

List of Tables

Table 1: Card Fraud in Developed Economies (US$ Million), 2008-2012
Table 2: Card Fraud in Developing Economies (US$ Million), 2008-2012
Table 3: Real GDP Growth (%), 2007-2012
Table 4: Unemployment Rates in Developed Economies (%), 2007-2012
Table 5: Unemployment Rates in Emerging Economies (%), 2007-2012
Table 6: Charge Card Industry Market Size (Million), 2008-2012

List of Figures

Figure 1: Credit Card Fraud Dynamics
Figure 2: High Risk Zones
Figure 3: Card Fraud in Developed Economies (US$ Million), 2008-2012
Figure 4: Card Fraud in Developing Economies (US$ Million), 2008-2012
Figure 5: Key Challenges in Managing Credit Card Risks
Figure 6: Real GDP Growth (%), 2007-2012
Figure 7: Unemployment Rates in Developed Economies (%), 2007-2012
Figure 8: Unemployment Rates in Emerging Economies (%), 2007-2012
Figure 9: Trends in Credit Card Risk Management
Figure 11: Credit Ratings and Requirements
Figure 12: Adoption of Risk Management Tools
Figure 13: Launch of Contactless Cards Worldwide, 2008-2012
Figure 14: Worldwide Contactless Card Market Size, 2008-2017
Figure 15: Online Security Device
Figure 16: Emergence of Charge Cards (Million), 2008-2012
Figure 17: Overview of PCI Data Security Standards
Figure 18: PIN Entry Device Security Requirements
Figure 19: Payment Application DSS Requirements
Figure 20: Verified by Visa and MasterCard SecureCode
Figure 21: Best Practice Framework in Credit Card Risk Management
Figure 22: Best Practices For Issuers
Figure 24: Best Practices For Network Providers
Figure 26: The Case of CartaSi
Figure 27: The Case of Banco BHD
Figure 28: The Case of China Merchants Bank
Figure 29: Key SAS Products
Figure 30: The Case of Viseca Card Services SA
Figure 31: Falcon® Fraud Manager
Figure 33: The Case of Intesa Sanpaolo Card
Figure 34: BankAmericard® Secured Credit Card Features
Figure 35: The Case of Bank of America
Figure 36: Key Features of iZettle's EMV Chip-PIN Card Reader
Figure 37: The Case of Visa and iZettle
Figure 38: Key Features and Benefits of CUCollectTM Credit Card Collections Solution
Figure 39: The Case of HEWFCU
Figure 40: Delinquency Levels and Risk
Figure 41: Recessions and Delinquencies in the US

  • Challenges in the Tourism Industry in Thailand
    Thailand has always been a popular tourist destination and tourism provides a major boost to the country’s economy. Bangkok, Hua Hin, Krabi, Samui, Phuket and Cha Am are some of the most attractive tourist destinations in the country. In 2012, Thailand had a very high number of arrivals. Even the number of Thai citizens who [...]
  • Future of the US Consumer Electronics Market
    The market for consumer electronics has been growing steadily. Some of the factors that are contributing to the growth in the market are technological advancement, rise in disposable income and increasing demand for new products. During 2012, consumer electronics market in the US demonstrated positive expansion, although the growth rate slowed down considerably following the [...]
  • Overview of the Global Retail Market
    The global retail industry continued to grow despite the difficult economic conditions in the world. In the fiscal year of 2011, sales-weighted, currency-adjusted revenue rose by 5.1% to $4.271 trillion for the world’s top 250 retailers. According to GRDI (Global Retail Development Index), in 2013 Brazil occupied the top spot in retail development. Chile and [...]
  • Bright Future Predicted for the Tourism Industry in Singapore
    Travel and tourism industry in Singapore has been growing at a steady rate and is considered to be a major contributor to the economic growth of the country. In 2012, Singapore’s IVA (International Visitors Arrivals) reached a record high of 14.5 million, with a growth rate of 10.1% year-on-year. In recent years, inbound travel to [...]
  • Potential of Staffing Market in United States
    The staffing industry places individuals into contract, temporary and permanent positions in firms around the world. Major staffing markets include France, Spain, Italy and Japan as well as many emerging markets. Temporary staffing around the world has been growing, but in US temporary market has been flat since 2006. The majority of staffing revenue majorly [...]
  • Graft-Versus-Host Disease (GVHD) Treatment Market worth $407 million by 2018
  • The graft-versus-host disease (GVHD) treatment market value will increase from $297 million in 2013 to $407 million by 2018, at a Compound Annual Growth Rate (CAGR) of 6.59%, according to research and consulting firm GlobalData. The company’s latest report* states …

  • Poland Pharmaceutical Industry Growing at 8.3% CAGR to 2020
  • Factors such as the growing elderly population, increasing availability of affordable medicines, and transparent regulatory guidelines will provide the necessary impetus for the growth of the Polish pharmaceutical market, but a decrease in mark-up prices and the country’s stringent drug …

  • Asia-Pacific, Led by China, Drive the Global Methanol Industry
  • China is driving the global methanol industry, with tremendous demand from both its energy and petrochemicals sectors. It accounts for 87.9% of Asia-Pacific’s (APAC) methanol capacity, and 51.9% of the global methanol capacity. Despite a large planned capacity increase in …

  • Diagnostic X-ray Imaging Market worth $4.0 billion by 2020
  • GlobalData estimates that the global diagnostic X-ray imaging market, worth $2.4 billion in 2012, will reach almost $4.0 billion by 2020, increasing at a Compound Annual Growth Rate (CAGR) of 6.7% during the forecast period. Many players are active in …

  • Graft-Versus-Host Disease Market Forecast to 2023
  • Graft-versus-host disease (GVHD) is a common complication of allogeneic hematopoietic stem cell transplantation (HSCT) that occurs when the donated (graft) cells are rejected and attack the host’s cells as foreign. GVHD can progress from mild to severe forms as either …

  • Hong Kong Commercial Banking Report Q4 2014
    Published: 17-Sep-2014        Price: US $1295 Onwards        Pages: 73
    BMI's commercial banking forecast series covers 62 countries accounting for 80% of global GDP. Each report, researched at source, features BMI's independent assessment and 5-year forecasts to end-2017 for the commercial banking sector in each market. Using its expertise in both country risk and financial markets analysis, BMI has created exclusive models to forecast a wealth of key variables on the commercial banking sector. Historic and forecast data are provided for the sector's total asset an......
  • Japan Insurance Report Q4 2014
    Published: 17-Sep-2014        Price: US $1295 Onwards        Pages: 70
    BMI View: Japan's insurance market is very well developed with high rates of penetration, however, opportunities for growth remain, particularly in terms of product innovation, organisational efficiencies and reduction in claims. We therefore expect to see slow but steady growth across a range of key insurance market indicators. Japan's demographic trends mean that the country is faced with an aging population and a low birth rate which places increasing pressure on state resources. Medical expe......
  • Kazakhstan Commercial Banking Report Q4 2014
    Published: 17-Sep-2014        Price: US $1295 Onwards        Pages: 69
    BMI's commercial banking forecast series covers 62 countries accounting for 80% of global GDP. Each report, researched at source, features BMI's independent assessment and 5-year forecasts to end-2017 for the commercial banking sector in each market. Using its expertise in both country risk and financial markets analysis, BMI has created exclusive models to forecast a wealth of key variables on the commercial banking sector. Historic and forecast data are provided for the sector's total asset an......
  • Kuwait Commercial Banking Report Q4 2014
    Published: 17-Sep-2014        Price: US $1295 Onwards        Pages: 81
    BMI's commercial banking forecast series covers 62 countries accounting for 80% of global GDP. Each report, researched at source, features BMI's independent assessment and 5-year forecasts to end-2017 for the commercial banking sector in each market. Using its expertise in both country risk and financial markets analysis, BMI has created exclusive models to forecast a wealth of key variables on the commercial banking sector. Historic and forecast data are provided for the sector's total asset an......
  • Latvia Commercial Banking Report Q4 2014
    Published: 17-Sep-2014        Price: US $1295 Onwards        Pages: 70
    BMI's commercial banking forecast series covers 62 countries accounting for 80% of global GDP. Each report, researched at source, features BMI's independent assessment and 5-year forecasts to end-2017 for the commercial banking sector in each market. Using its expertise in both country risk and financial markets analysis, BMI has created exclusive models to forecast a wealth of key variables on the commercial banking sector. Historic and forecast data are provided for the sector's total asset an......
  • South Africa Insurance Report Q4 2014
    Published: 17-Sep-2014        Price: US $1295 Onwards        Pages: 86
    BMI View: The headwinds in the South African economy have weighed on both life and non-life insurers in 2014. However, we see the life sector as being able to ride out the storm better due to the more diversified footprint of the larger life insurance players across the whole of Africa. Over the 2015-2018 period, we expect total gross premiums to average 16.0% annual growth and we see the life segment outperforming the non-life segment during this period. The South African market is facing a myr......
  • The Insurance Industry in Puerto Rico, Key Trends and Opportunities to 2018
    Published: 16-Sep-2014        Price: US $1950 Onwards        Pages: 135
    Synopsis The report provides in-depth industry analysis, information and insights into the insurance industry in Puerto Rico, including: The Puerto Rican insurance industry's growth prospects by insurance segment and category The competitive landscape in the Puerto Rican insurance industry The current trends and drivers of the Puerto Rican insurance industry Challenges facing the Puerto Rican insurance industry Detailed regulatory framework of the Puerto Rican insurance industry ......
  • The Insurance Industry in Suriname, Key Trends and Opportunities to 2018
    Published: 16-Sep-2014        Price: US $1950 Onwards        Pages: 136
    Synopsis The report provides in-depth industry analysis, information and insights into the insurance industry in Suriname, including: The Surinamese insurance industry's growth prospects by insurance segments and categories The competitive landscape in the Surinamese insurance industry The current trends and drivers of the Surinamese insurance industry Challenges facing the Surinamese insurance industry Detailed regulatory framework of the Surinamese insurance industry Summary ......
  • Life Insurance in Iran, Key Trends and Opportunities to 2018
    Published: 16-Sep-2014        Price: US $1950 Onwards        Pages: 279
    Synopsis The report provides in-depth market analysis, information and insights into the Iranian life insurance segment, including: The Iranian life insurance segment's growth prospects by life insurance categories Key trends and drivers for the life insurance segment The various distribution channels in the Iranian life insurance segment The detailed competitive landscape in the life insurance segment in Iran Detailed regulatory policies of the Iranian insurance industry A desc......
  • SERVICES
    Value for Money
    We believe in "optimum utilization of available budget and resources". While servicing our clients' (your) market research requirements, we keep the same approach in focus to help you get the best value for your $$s.
    Ever Growing Inventory
    Ranging from the smallest feasible / required data (datasheets, data facts, SWOT analysis, company profiles, etc) to full research reports that help you make decisions, our inventory is updated almost on a daily basis with the latest industry reports from domain experts that track more than 5000 niche sectors.
    One Stop Solution
    Need a custom research report on medical devices market? Require all available business intelligence on 3D printing industry? Exploring F&B sector of a particular country/region? RnRMarketResearch.com is your one-stop-solution to all market intelligence needs. We not only offer custom research and consulting services, we also "bundle" reports to meet your needs and help you fetch the data analysis you require for your business.
    Dedicated Client Engagement
    Not limited to only "finding" relevant reports for you, our client engagement team dedicates its efforts to understand your "business need" and accordingly maps available research data to help you move forward. Call "your" client engagement executive any time of your day and get your questions answered in order to make the correct business decision.
    Saving Time and Efforts
    Simply share your research requirement details with us and let us do all the hard work to find required intelligence for you. When you add up our "one stop solution" and "dedicated client engagement" services mentioned above, you obviously know the time and effort saving you do by working with us.
    Payment Flexibility
    Working with Fortune 500 organizations, we understand the importance of being flexible for payments. Share your payment terms with us and we will surely match up to them to ensure you get access to required business intelligence data without having to wait for the payment to be done.
    Post-Purchase Research Support
    Have questions after reading a report / datasheet bought through us? Not sure about the methodology used for data available in the research? Talk to us / Share your questions with us and if required, we will connect you with the analyst(s)/author(s) of the report(s) and ensure you get satisfactory answers for the same. Need more data / analysis / report(s) on the topic of your research/project? The RnRMarketResearch.com team is here for you 24X7 to support you with your post-purchase requirements. Subscription Offers & Packages (Get in touch with us for more details - [email protected] / +1 888 391 5441 )
    • Ad Hoc
    • Pay - as - you - go / Bucket Subscriptions
    • Fixed Cost for #of reports
    • Customize / Personalize as per your needs