Vintage Filings Business Blog

If you are a senior executive a company that accepts consumer payments, you understand that the easier you make the transaction process, the higher volume of sales you can incur.  With that in mind it is very exciting to hear that Visa and Nokia announced plans this past week to deliver Visa payment and payment-related services – including contactless payments, remote payments, money transfer, alerts and notifications – for Nokia’s next generation handsets beginning with the Nokia 6212 Classic, expected to be available starting October 2008.  These forms of payment have been widely accepted in Europe and Asia, and now the latest mobile evolution is causing it to enter the market domestically.

The Visa applications will first be made available for trial use by interested financial institutions and will allow consumers with the Nokia 6212 classic and a relationship with a participating Visa issuing bank to use their Visa account to pay for goods and services; initiate mobile money transfers to other individuals with Visa accounts; receive near real-time notifications of activity on their Visa account; and “opt in” to receive offers and discounts from merchants.

“Mobile payments and services are one of the most vibrant areas of innovation at Visa, as we seek to accelerate the migration from paper forms of payment to digital money,” said Tim Attinger, Head of Global Product Innovation at Visa Inc. “Visa is already better money – more convenient, reliable and secure than cash. Putting Visa payments and exciting new services into the NFC-equipped Nokia 6212 classic adds another layer of convenience and security for Visa account holders and Nokia customers around the world.”

The Nokia 6212 classic includes integrated Near-Field Communications chipsets (NFC) which lets the mobile device behave like a contactless payment card, where consumers simply wave it within a few inches of a special point of sale reader to complete a Visa transaction. Nokia and Visa first demonstrated NFC technology in December 2005 with the launch of the first large scale NFC trial in the United States at the Phillips Arena in Atlanta.

The plans announced today represent the next phase in an ongoing effort between Visa and Nokia to make mobile payments a reality for consumers around the globe. The long-term collaboration between Nokia and Visa has already resulted in multiple trials of Visa mobile payments enabled through NFC technology on four continents, including in the United States with Wells Fargo Bank; in Malaysia with Maybank and Maxis; in Taiwan with Chinatrust Commercial Bank and Chunghwa Telecom; and London with Barclays Bank.

“NFC-capable devices such as the Nokia 6212 Classic are set to change the way mobile phone users interact with devices and services in their surroundings,” says Jeremy Belostock, the Head of Near Field Communications, Nokia. ”With our partnership with Visa, we’re bringing the value of electronic payments and services directly into the mobile phone, making our customers’ everyday lives more convenient.”

With the credit crisis at full tilt and new car leasing programs on the endangered species list, consumers are uncertain how they will finance their next auto purchase – and a substantial number may opt out of the new car market, buy a less expensive new car or a used vehicle, or postpone their purchase entirely.  If you are a company in the auto finance or dealer industries, this is a key post for you.

These findings above are from a new nationwide survey of 1,000 consumers conducted by market researcher Synovate of Chicago for Global Debt Network Automotive – the nationwide online loan portfolio marketplace where automobile dealers, banks, credit unions, hedge funds and other financial institutions can come together to securely evaluate, price, sell and purchase asset-backed debt.

In response to the question “The auto leasing business has experienced a shake-out of late: What do you plan to do if leasing becomes less available to you?” 37 percent of respondents said the recent sharp decline in new-car leasing programs may cause them to select a used car instead (19 percent), postpone their auto purchase for the time being (11 percent), or purchase a less expensive new car (7 percent).

Twenty-one percent of those surveyed said they would consider purchasing rather than leasing their car of choice, while only 2 percent reported they would pursue obtaining a new car lease from an alternative source, such as a finance company, bank or credit union. Almost 40 percent said they were uncertain how the shake-out in auto leasing might affect their auto purchase plans.

“The survey confirms what we’ve been hearing in the marketplace: that American consumers are uncertain how they will finance their next automobile and this uncertainty is causing them to consider a variety of options, including buying a less expensive new car, a used car, or postponing a purchase until conditions are more favorable,” said Michael Sheridan, founder and president of GDNAuto. “Although these results are bad news for car manufacturers and lenders who have discontinued popular leasing programs, and for the new car dealers who have relied on these programs to boost sales, there is a tremendous opportunity for used car dealers and lenders to grow their business by introducing financing options that will have broad appeal to low- and moderate-income consumers being driven in growing numbers to used car lots.”

More than 40 million used cars are sold in the U.S. each year. That number is expected to skyrocket thanks to a soft economy, higher gas prices and fewer new-car leasing programs. Until recently, leases accounted for 55 percent of total new car sales at Daimler AG’s Mercedes-Benz, 43 percent at Toyota Motor Corp.’s Lexus and 42 percent at General Motors Corp.’s Cadillac, according to JD Power.

Among the survey’s other key findings:

• Uncertainty? It’s Not So Much a Guy Thing. Forty-three percent of women are uncertain about their course of action in response to the auto leasing drought, compared with 36 percent of men. Of those who are more certain of a specific course of action, women are marginally less likely than men (19 percent to 24 percent) to purchase the same car they might otherwise have leased, or to purchase a used car (17 percent, vs. 24 percent of men).
• Age Matters. Almost 20 percent of those 65 and older expect to postpone an auto purchase. At the opposite end of the age scale, consumers ages 18-24 are the least likely (11 percent) to buy the same new car they otherwise would have leased, and 14 percent of that age group say they probably will purchase a less expensive new car. Survey respondents ages 25-34 are the most likely to buy a new car (25 percent) even if a lease isn’t an option, while used cars are the most attractive option for the 35-44 age group (22 percent). Even so, 45 percent of this age group reports they are uncertain how to proceed.
• Money Matters, Too. When it comes to buying vs. leasing the same car, household income is powerfully correlated with consumer expectations. Those with yearly incomes of less than $25,000 virtually ruled out the purchase option (2.2 percent), while that prospect grows as income rises: 15 percent of those in the $25,000-$50,000 bracket, 24 percent of those earning $50,000 to $75,000, and 34 percent of those earning more than $75,000 annually. Those in the $25,000-$50,000 bracket are marginally more likely to opt for a used car or to postpone the decision altogether. Those earning less than $25,000 recorded the highest level of uncertainty of any demographic in the survey (52 percent).
• Doubtful in Dixie. Fully 47 percent of respondents from the South say they are uncertain about the best course of action, which may be why only 15 percent said they would be likely to purchase rather than lease a new car. Those in the Midwest are most likely to purchase rather than lease (27 percent), while those in the South are least likely to do so (15 percent). Those in the West are least likely to go the used car route (14 percent) and most likely to forego the transaction entirely (15 percent).
• My Other Car is a Job. Consumers employed full-time are most likely to purchase rather than lease the same car (25 percent) – but the self-employed are least likely to do so (14.5 percent). Interestingly, retirees are as inclined to buy the car they originally had in mind as those employed full-time (22 percent), but are also relatively more likely to sit out the transaction (15 percent).
• Higher Education = Newer Car. The greater the level of education, the greater the likelihood that a consumer will purchase a new car when leasing isn’t an option. Of those reporting at least some post-graduate education, 37 percent say they would buy a new car even if a lease isn’t available, vs. 21 percent of those with some college or a degree, and 13 percent of those with high school or less. Some 44 percent of that last group said they were unsure about how to proceed.

With the current credit crisis triggering more than $400 billion in asset write-downs among the financial services industry, enterprise risk management (ERM) programs and components are in high-demand now more than ever to help institutions aggregate risk and treat it holistically. According to a global survey of 316 financial services executives, over 70 percent of respondents believed that the losses stemming from the credit crisis were largely due to failures to address risk management issues.

The results of a global survey conducted in July 2008 by the Economist Intelligence Unit on behalf of SAS, the leader in business intelligence (BI) and analytics, gained insight into enterprise risk management strategies.

Executives now appear to be paying attention, with 59 percent of survey respondents saying the credit crisis has prompted them to scrutinize their risk management practices in greater detail. In anticipation of closer scrutiny from regulators, many institutions are revisiting their risk management practices. In addition, recent reports by the Financial Stability Forum (FSF) and the Institute for International Finance (IIF) are now calling for closer scrutiny of the risk management process.

TowerGroup analyst Rodney Nelsestuen agrees. “Enterprise risk management has taken on new importance as stockholders, boards of directors and regulators demand better, more timely analysis of risk and a deeper understanding of how the institution is impacted by the dynamic risk environment of a global financial community.”

Survey respondents identified several challenges such as data and company culture, which have affected the implementation of comprehensive risk approaches. For many executives at financial services firms, access to relevant, timely and consistent data is a major obstacle. In addition, almost half of the respondents believed fostering a culture of risk management was the most widely encountered challenge.

Firms participating in the survey are recognizing that successful integrated risk programs go beyond quantitative benefits. In areas such as credit and market risk, an integrated approach can efficiently allocate capital and provide better loss containment; it also serves as a form of protection against a damaged reputation.

“This survey is evidence that the risk management needs of financial institutions are evolving to go beyond regulatory risk and must break down traditional risk silos to drive toward a firm-wide risk view,” said Alastair Sim, Global Director for Risk, SAS.

As your partners in the EDGAR filing industry, we feel a strong obligation to keep you informed on all of the breaking news events that occur in the market as they happen.  And with that in mind, it’s very important to note that on September 18th the U.S. Securities and Exchange Commission announced an order mandating that hedge funds will now be required to report all short selling through EDGAR. As of September 22nd, 2008, certain institutional investment managers will be required to file a report on new Form SH with the SEC on the first business day of every week following a week which resulted short sales. The first SH form will be required to be filed on September 29th, 2008.

Let Vintage Help You
Vintage Filings is prepared to assist you in this new matter. As the fastest growing EDGAR and financial printing company in the nation, we continue to be at the forefront with respect to regulatory developments. We look forward to continuing to manage your disclosure needs for you. Please feel free to contact us anytime.

For more information, read the release or contact Shai or Seth directly.