Bank Talk

Bank Notes: Green Dot, Nicholas Financial, H&R Block, VISA

Adam Rust — Mon, 17 Jun 2013 20:44:34 +0000

BHPH yields still sky-high: Subprime auto finance company Nicholas Financial (“NICK”) reported that its portfolio is yielding 29.48 percent, based on a weighted average contractual rate of 23.4 percent. NICK’s revenues derive from loans that it purchases at a discount from buy-here pay-here dealers. On average, dealers have to take 8.5 percent off of the... Read More

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The Metrics of Enrollment at a For-Profit College

Adam Rust — Thu, 13 Jun 2013 14:11:02 +0000

How does a sales guy at a for-profit college measure the success of the sales people working in his or her boiler room? Enrollment management, also known as the “EM Funnel,” makes it easy. Consider these widely accepted standards for “admissions officers.” Conversion rate: The share of completed applications as a percentage of leads. Cost... Read More

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Never Say Never: SpendSmart’s Bieber Card to Bounce?

Adam Rust — Wed, 12 Jun 2013 14:34:05 +0000

SpendSmart, the prepaid company that dropped millions of dollars on Justin Bieber to serve as a pitch man, may not be around much longer. SpendSmart is bleeding cash. Accountants tend to be about as rash as oak trees, but in looking over the financials of SpendSmart, they spoke loudly. SpendSmart describes their take: “There exists... Read More

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Bank Notes: Green Dot, Retirement, Small-Dollar Credit

Adam Rust — Tue, 11 Jun 2013 15:28:03 +0000

Green Dot purchase may attract a challenge from advocacy groups: One board member of a national advocacy group sent out an email yesterday which hinted that his organization may challenge Green Dot’s acquisition of GE Capital Retail Bank’s MoneyCard program. “We can discuss not only pending and challenged by NCRC members merger applications by Renasant,... Read More

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Green Dot to Buy and Issue the Wal-Mart MoneyCard

Adam Rust — Mon, 10 Jun 2013 15:06:31 +0000

Late last night, Green Dot announced that it will acquire the Wal-Mart reloadable prepaid card program (Wal-Mart MoneyCard) currently issued by GE Capital Retail Bank. The MoneyCard is one of the largest prepaid cards in the country. When combined with Green Dot, Green Dot Bank will have a sizable lead over any other bank in... Read More

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Ten Businesses that Love a Blighted Strip Mall

Adam Rust — Wed, 05 Jun 2013 15:49:16 +0000

Everyone knows a blighted strip mall that is somehow managing to keep going with a set of less-than-desireable tenants. In the aftermath of the recession, some malls are now being fought over by investors that specialize in extracting a profit from a once-dead mall. It is an art form whose elements are a pastiche of... Read More

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In Six Mile, Town Wants a Bank Branch, then a Bank

Adam Rust — Mon, 03 Jun 2013 22:13:35 +0000

When the departure of First Citizen’s Bank left Six Mile, South Carolina without a bank branch, the leaders of this small town in Northwestern South Carolina decided that they had to do something. Like most towns suddenly left un-banked, people in Six Mile could not believe that their bank would suddenly decide that it no... Read More

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An Institutional Approach to Prepaid Cards

Adam Rust — Fri, 31 May 2013 17:42:15 +0000

Traditional banks face an interesting choice when the pick a strategy to acquire customers for their prepaid cards. At first blush, most of the big bank cards have generated customers by reaching out into the community, often through unusual channels, to find people. Example One: Chase recently presented its marketing strategy to policy makers at... Read More

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