2010 will mark the end of Financial Cards

The “World Consumer Organization for the People (WCOFTP)” is denouncing World Banks' conspiracy aiming at replacing, by 2010, credit and debit cards with tailored made products to fit each individual bank needs.

Mr. Fulas Hits, WCOFTP president, warns that abandoning existing standards will bring us back 20 years behind, will have devastating impacts and will not add any value to consumers.

With the best of scenario, related annual costs will exceed $100 for each mega-bank customer. For smaller establishments, costs could raise for as much as $1000. It is obvious those costs will be offloaded to their customers through new transaction charges. Constraints imposed on retail outlets can only compromise wealth and efficiency.

After univocally denying that such discussions had taken places, banks finally admitted the actual credit and debit card format is technologically outdated. Defrauders are more and more creative and bank experts consider that financial losses related to illicit activities will constitute, in 2020, an unacceptable economic risk.

"One must understand that banks have evolved over the years." according to Uluv Mijok. "Mergers have created new generations of financial institutions." For example, CitiGroup, involved as much in financial banking as in insurance, is looking for new vertical integration opportunities to capitalize on their clients' needs and increasing their capabilities at offering a one-stop shop.

Canadian Banks won't be left behind. Confronted with this offensive from the majors, Canadian Banks such as RBC, CIBC and TD have decided to take the initiative.

Mr. Hits agrees it is imperative that existing cards should evolve and their adaptation to the ever changing needs of the industry is certainly desirable. However, said Mr. Hits, "One has only to look at insurance companies business templates. They never adopted standards and they pass on to their members an annual average of $500 in various charges for managing their group insurance package. Why should we take the chance of loosing vested rights while insured people are trying to standardized this process in order to reduce this inefficient tax?", he added.