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

  • Ferulic Acid Market 2019 Forecasts Company Profile, Product Specifications & Capacity
    ‘Market Research Report on Global and Chinese Ferulic Acid (CAS 1135-24-6) Industry, 2009-2019’ is a top-notch market study report that delivers thorough understanding of market landscape and key-aspects of the ferulic acid industry. The research report systematically incorporates numerous elaborative sections and segments that aim at delivering most-accurate business statistics and premium industry insight to [...]
  • Overview of Global and Chinese 3D Printing Market 2015-2020
    ‘2015 3D Printing Industry Report -Global and Chinese Market’ is a comprehensive research report that describes the scope of the Global and Chinese 3D printing industry, analyzing the end-users behavior and the latest industry trends. Also, the report evaluates the growth prospects and the up-coming opportunities in the industry over the forecast period of 2015-2020. [...]
  • Schottky Diode Industry Research – 2015 Global and Chinese Market Overview
    ‘2015 Schottky Diode Industry Report – Global and Chinese Market Scenario’ is a top-notch research report, delivering premium industry insights and explanations of complex business scenarios. The report systematically articulates various growth prospects and current market challenges being faced by the existing industry players. The research report also drafts a meticulous business forecast that provides [...]
  • Codeine (CAS 76-57-3) Industry Research Report – 2009-2019 Market Forecast
    ‘Global and Chinese Codeine (CAS 76-57-3) Industry, 2009-2019 Market Research Report’, a systematically structured research report, that aims to deliver a detailed understanding of vivid market scenarios prevalent in the Codeine (CAS 76-57-3) industry to the user.  The report articulates various sections that thoroughly describe all key-aspects of the Codeine (CAS 76-57-3) industry. The report [...]
  • Global and Chinese Mainframe Banking Industry 2015 Outlook
    2015 Banks Mainframe Industry Report -Global and Chinese Market is a detailed market research report, delivering premium industry insights and analyzing the growth prospects of the industry over the forecast period of 2015-2020. The systematically structured sections of the research report, aims at conveying a strong business understanding to the user, enhancing the decision making [...]
    • The Oil Drilling Rig Industry
    • The Oil Drilling Rig Industry is characterized with a few typical work specific to this industry only. The work begins with the search for new oil basins or construction of wells. During this time the services of drilling contractors and se…

    • HER2-Negative Breast Cancer’s Therapeutic Market
    • HER2-Negative Breast Cancer is the most common form of cancer occurring in women. The long term survival of patients diagnosed with HER2-Negative Breast Cancer depends solely on its early detection as till now there is no medicine that can …

    • The Market of Plate Heat Exchanger
    • Plate heat exchanger is not only very useful but its also easy to maintain, its compact design makes it more efficient, the product is highly cost-efficient and also the materials of this product are easily available. There are some limitat…

    • The Industry of Binding Machines
    • Binding of books and papers is one of the most important aspect of buying and selling books and thus the demand of binding machines. There are different kinds of binding machines available in the market. The binding type determines the bind…

    • The Boom In Women Infertility Market
    • Infertility is an abnormality in the regular functioning of the human reproductive system. Anyone of male or female might be suffering from this issue. Infertility in woman is caused by either a genetical factor or factors such as aging or …

  • The Indian Prepaid Card Market
    Published: 30-Sep-2010        Price: US 3000 Onwards        Pages: 100
    Synopsis • This VRL report incorporates a detailed breakdown of the socio-economic factors expected to drive the growth of Indian credit and debit cards, and gives you the information you need to successfully enter this growing market • A recent estimate by Visa Inc puts the target population for credit and debit cards in India at 200 million. Yet there are about 400 million Indian people who don't have a bank account. It is this combined 600 million which should be viewed as the true targ......
  • Cards and Payments in Asia-Pacific
    Published: 31-Jan-2012        Price: US 3000 Onwards        Pages: 103
    Synopsis • This VRL report looks at the key drivers, historic performance and future prospects for cards and payments regionally • Card trends are projected out to 2015 • The relationship between banks, telco providers (fixed and mobile) as well as banked and unbanked consumers are explored • The regional imbalance caused by both China and India results in these countries being given specific prominence Summary The Asia-Pacific region is becoming more cashless, since card reading......
  • The Asian Prepaid Cards Market
    Published: 29-Feb-2012        Price: US 3800 Onwards        Pages: 50
    Coverage includes not only the behemoths of China and India, but also Hong Kong, Vietnam and countries in South East Asia Drivers for success and the regulatory environment are analysed Relevant examples are picked-up and discussed Transit schemes are one of the key uses - Hong Kong, Singapore and Malaysia are dealt with Summary Cash is the main payment instrument in Asia; yet the use of cards has increased, supported by strong economic growth, the region's e......
  • Card Payment Fraud
    Published: 30-Apr-2012        Price: US 3800 Onwards        Pages: 98
    This VRL report contrasts moves being taken to defraud corporates and individuals using cards and the action being taken to counter the fraud It details types of fraud practised in the market It looks at some country based examples of how technology is being used to fight fraud It examines what collective moves are being taken by industry leaders, stakeholders and associations to fight fraud Summary The latest available statistics in 20......
  • Emerging Opportunities in the Indian Prepaid Card Market: Market Size, Strategies, Products and Competitive Landscape
    Published: 10-May-2012        Price: US 1950 Onwards        Pages: 80
    Synopsis The report provides detailed market analysis, information and insights into the Indian prepaid card market, including: • Current and forecast values for the Indian prepaid card market • Current and forecast values of the various categories in the Indian prepaid card market • Analysis of the key trends, drivers and challenges in the Indian prepaid card market • Summary of the current regulatory framework in the Indian prepaid card market • Detailed analysis of the marketi......
  • Market Opportunities and Emerging Trends in the Prepaid Card Market in the Middle East
    Published: 18-May-2012        Price: US 2950 Onwards        Pages: 67
    Synopsis The report provides detailed market analysis, information and insights into the Middle Eastern prepaid card market, including: • Current and forecast values for the Middle Eastern prepaid card market • Comprehensive, country-specific analysis of the industry’s market attractiveness, covering key trends and drivers • Detailed analysis of the marketing strategies adopted for selling prepaid cards used by various bankers and other institutions in the market • Detailed analys......
  • The Prepaid Advantage for Governments
    Published: 22-May-2012        Price: US 3800 Onwards        Pages: 0
    This VRL report looks at why prepaid is such a winning proposition in the public sector It examines factors such as paperless processes, lower costs and greater efficiency The report shows why the government sector promises a stable and growing market for companies offering prepaid solutions Case studies highlight the efficiency of prepaid cards in areas such as benefit payments and emergency relief Summary Prepaid solutions represent one of the most innovati......
  • Prepaid Paves the Way for Payroll
    Published: 22-May-2012        Price: US 3800 Onwards        Pages: 0
    A study of the benefits for employers, employees and issuing partners of using prepaid cards over paper and cash based methods The VRL report gives an overview of the market's size worldwide, as well as looking forward to future growth prospects The report finishes with a selection of case studies highlighting the successful implementation of prepaid payroll solutions for different entities in different countries Summary Prepaid solutions represent one of the most ......
  • Market Opportunities and Emerging Trends in the Prepaid Card Market in BRIC Countries
    Published: 01-Jun-2012        Price: US 2950 Onwards        Pages: 107
    The report provides market analysis, information and insights into the prepaid card market in the BRIC countries, including: Current and forecast values for the prepaid card market in the BRIC countries Comprehensive, country-specific analysis of the industry's market attractiveness, covering key trends and drivers Detailed analysis of the marketing strategies adopted for selling prepaid cards used by various bankers and other institutions in the market......
  • 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