Bankcard

• This development is interesting as both products potentially offer consumers and homeowners lower-interest options to refinance high-cost credit card debt.
• Multiple factors played a role in this drop, including slowing new credit demand and supply as well as rising delinquency rates.
• Total bankcard balances surpassed the $1 Trillion mark for the first time in Q4 2023, representing growth of 13% YoY.
• While delinquencies in Q4 2023 were elevated, they were in line with the expected forecasts given historic non-prime originations and balance growth.

• The move towards a cashless society started 50 years ago with the introduction of the Bankcard and was driven by technological advancements.
• But it really took off with the COVID pandemic when consumers and retailers were reluctant to handle potentially infected notes and coins.
• This raises the question, is a cashless society inevitable?

The phenomenal growth of the digital payments

• A recent report by the Australian Banking Association paints a vivid picture of the digital payment industry’s explosive expansion.
• The use of digital wallet payments on smartphones and watches has soared from $746 million in 2018 to over $93 billion in 2022.
• Cash only accounts for 13% of consumer payments in Australia as of the end of 2022, a stark contrast to 70% in 2007.
• The astonishing speed at which Australians have embraced digital payments places the country among the top users of cashless payments globally, surpassing the United States and European countries.

Are government regulations necessary?

• With increasing concern over cyber attacks, the regulations will help reduce the risk of fraudulent activities and money laundering and help identify suspicious transactions, maintaining the integrity of the financial system.
• Also, regulation will promote fair competition and market stability by levelling the playing field and by preventing monopolies.
• Consequently, regulations were introduced to hold card providers to a standard of responsible behaviour.
• The new regulations will help Australians navigate this transition more confidently.

• Book value and tangible book value per share were $27.37 and $17.723, respectively, both up $0.30 from the prior quarter.
• Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
• Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
• OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.5 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, and Boston.

• Net income for the fourth quarter of 2022 totaled $143.8 million, or $1.65 per diluted common share (EPS), compared to $135.4 million, or $1.55 per diluted common share, in the third quarter of 2022.
• Average earning assets were $32.2 billion for the fourth quarter of 2022, up $460.9 million, or 1%, from the third quarter of 2022.
• Noninterest income totaled $77.1 million for the fourth quarter of 2022, down $8.3 million, or 10%, from the third quarter of 2022.
• Occupancy and equipment expense totaled $16.9 million in the fourth quarter of 2022, virtually unchanged from the third quarter of 2022.