Hedging the bet

Article Abstract:

First Union Corp is relying on technology to improve its competitiveness in the banking industry. Under the stewardship of Chmn and CEO Edward E. Crutchfield, the bank is spending a huge budget for alternative delivery and database marketing and other strategic projects. Although some industry analysts are questioning the wisdom of First Union's technology strategy, Crutchfield is betting on the potential of information-based technologies to increase the company's market share. Crutchfield is investing in discretionary strategic projects by acquiring branch networks. First Union has proven that this strategy can work to its advantage with the takeover of First Fidelity Bancorp in 1996. Crutchfield's focus is to continue building the bank's East Coast network while strengthening selected businesses on the national level.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Banking industry, Banks (Finance), Science and technology policy, First Union Corp., FTU, Crutchfield, Edward E., Jr.

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Deals on tap

Article Abstract:

Renowned deal-maker H. Rodgin Cohen forecasts a busy year for bank mergers and acquisition (M&A) in 1997 as banks try to pursue growth. The Sullivan & Cromwell attorney is convinced that the merger volume will exceed 1996's $46.2 billion but is not likely to reach the record levels of 1995. He further predicts a more varied deal pattern as potential buyers consider a broader range of financial services companies. Cohen believes that regional brokerage houses and investment boutiques will become acquisition targets of banks in 1997. He also believes that bank-on-bank deals will be prevalent. However, the bank M&A adviser foresees some problems, including increasing antitrust-related restrictions and the more relaxed investigations of risk exposures of target banks.

Legal services, Attorneys, Offices of Lawyers, Investment advice, Investment Advisory Services, Forecasts and trends, Lawyers, Bank mergers, Interview, Investment advisers, Cohen, H. Rodgin

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Rush for position

Article Abstract:

Atlanta, GA-based First Data Corp, the credit card company which has been perceived as the future of the payments industry, has adapted electronic commerce in its move to re-focus its processing business. It was the company CEO Henry C. Duques who felt the urgency of getting into the Internet. After divesting the company into various industries, he plans to focus on online bill payments, processing support for Internet marketers and Web site setup. One advantage of e-commerce to First Data is that online consumers and marketers are more likely to prefer credit card payment medium. David Togut, an analyst at Morgan Stanley Dean Witter, estimates that First Data will increase earnings by 10 cents a share through e-commerce.

Advertising Management-Electronic Media, Credit Mgmt NEC, Management, Information services, Electronic commerce, E-commerce, Credit and debit card industry, Payment, Credit management, Electronic marketing, First Data Corp., FDC

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