PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Bizarre Love Triangle: MetaBank, NetSpend, and the OTS

Ben Jackson by Ben Jackson
November 4, 2010
in Uncategorized
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

On October 6, 2010, the Office of Thrift Supervision (OTS)issued a Supervisory Directive to MetaBank that requires MetaBankto obtain written approval from the OTS before entering into newbusiness.Meta says the OTS determined the bank had”engaged inunfair or deceptive acts or practices” in its iAdvance short-termloan program and ordered the bank to stop making iAdvance loans byOctober 13, 2010.

The scope of the OTS order against Meta should put theindustry on notice that the regulators – even the one that isscheduled to be merged into another agency within the next year orso – are watching.

The timing of the order was interesting because it came onthe eve of NetSpend Holdings Inc.’s initial public offering ofstock. NetSpend says that MetaBank issued about 71 percent of itsactive cards. Despite the timing of the order and rumors, NetSpendcompany sold its stock on October 18 for $11 a share, which was inthe middle of its planned range of $10 to $12. This shows thetroubles didn’t scare investors away.

The OTS order has created an opportunity for banks thatare interested in getting into the prepaid business. NetSpend hasalready said that it would seek to diversify its group of issuers,and other program managers are likely to do the same.

Tags: Banking ChannelsCustomer RetentionDebitMercator InsightsMerchant AcquiringMobile PaymentsPrepaidSocial Media
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Online Grocery Sales Efforts Take A Giant (Stores) Step Forward

    Did Payments Innovation Kill Brick-and-Mortar?

    October 2, 2023
    open-banking Data-Sharing as a Solution to Cash Flow Issues standa

    Disjointed Open-Banking System in U.S. Leaves Opening for Permissioned Data Providers

    September 29, 2023
    FedNow

    FedNow Could Mean a Renaissance for Smaller Financial Institutions

    September 28, 2023
    Best Merchant Practices for Dealing with Supply Chain Disruption

    Nearly Half of Merchant Data is Probably Wrong. Here’s Why it Matters.

    September 27, 2023
    Mitigation of P2P Fraud Begins with Education

    Mitigation of P2P Fraud Begins with Education

    September 26, 2023
    digital payments

    Mass A2A Payment Adoption in The U.S. Contingent on Compelling USP

    September 25, 2023
    Samsung trackable cashless payments mobile

    The Synergy Between Cashless Payments and Seamless Mobile Coverage

    September 22, 2023
    The Power of AI and How its Transforming the Financial Landscape

    The Power of AI and How It’s Transforming the Financial Landscape

    September 21, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result