29 Hoosier Banker January 2015 Juanita Cox, wire transfer clerk of Springs Valley Bank & Trust Company, French Lick, has retired after 30 years of service. She most recently served at the Jasper banking center. t 5.7 basis points for signature debit and 0.7 basis points for PIN debit. Another measure found that loss rates from international transactions were more than six times greater in 2013 compared to 2012. The study found that international transactions experienced loss rates of 51 basis points, compared to 2 basis points for domestic card-present transactions (PIN and signature combined). Broad commitment to EMV. Highly publicized data breaches have helped many financial institutions overcome their hesitancy to commit to EMV. The cost of the Target breach, paired with EMV’s promise to reduce card fraud, provided the catalyst for financial institutions to re-examine their strategies to migrate to EMV technology. Most issuers said they would begin issuing EMV debit cards by 2015, with the most common strategy to provide accountholders with EMV debit cards as part of their regular card reissuance cycle. As a result, institutions indicate the migration will take about three years. International travelers and heavy debit users will be first to migrate, in many cases in advance of the liability shift in October 2015. Issuers focus on growth. Despite the security issues surrounding several high-profile data breaches, there was growth in both consumer and business debit in 2013. This was a welcome development, following a turbulent 2012 with significant regulatory changes. During 2013, active cardholders increased their usage of debit and increased transactions per active card to 20.1 per month, from 19.4 a year earlier. Metrics such as penetration, active rate and ticket size remained consistent year-over-year. Business debit card usage grew, with transactions rising to 14.5 per active card per month from 13.5. There was a continued decline in signature debit’s share of total transactions. In 2013 signature debit made up 62 percent of consumer transactions, down slightly from 64 percent in 2012. This continues a trend and is driven by the development that large debit issuers now tend to prefer PIN transactions, due to lower processing costs. Rewards programs, which declined following Regulation II implementation, are rebounding. Many financial institutions are moving to merchant offers, as traditional debit rewards programs have unsustainable economics in the post-Reg II environment for regulated issuers. Almost half (47 percent) of issuers are offering debit rewards programs. Of those, 55 percent feature merchant offers. The study also revealed continued growth in general purpose reloadable (GPR) prepaid cards, with issuers expecting spending to increase 20 percent and card loads projected to jump 7 percent between 2013 and 2016, to around $250 billion. However the study shows the percentage of financial institutions that issue prepaid cards dropped 4 percentage points in 2013 to 80 percent. Overall the 2014 study shows that debit has been continuing to grow, proving its resilience as a preferred method of payment, even after a turbulent year. t John P. McBride, president and chief executive officer of West End Bank, Richmond, and West End Indiana Bancshares Inc., has retired. He served in the capacity of president/ CEO for 11 years and continues to serve as chairman of the board of the bank and holding company. McBride has been active in the community, serving as past chairman of the board of the Chamber of Commerce; past chairman of the Reid Hospital Foundation, chair of the finance committee and board member of the executive committee of Reid Hospital and Health Care Services, mayoral appointment to the Wayne County Economic Development Commission and member of the Mayoral Economic Vitality Committee. In addition he has been active with Boys and Girls Club of Wayne County, The Starr-Gennett Foundation, Wayne County Foundation and Richmond Symphony Orchestra. Renee Clesi , senior vice president and human resources director of Springs Valley Bank & Trust Company, French Lick, has retired. She served with the bank for 25 years. takIng It easy Follow Us on Twitter Follow the Indiana Bankers Association on Twitter @IndianaBankers for late-breaking news about Association and advocacy issues.
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