Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Tuesday, September 06, 2011

Rogers Communications looking to start a bank

Rogers Communications wants to be your bank, as well as your phone, cable and Internet supplier.

The company says it has applied to the federal government for a banking license.

But Rogers won’t be jostling on for space on prime street corners with the Big Five banks, the company says.

Instead, it will be “primarily focused on credit, payment and charge card services,” said Carly Suppa of Rogers in an email.

“We have no plans to become a full-service deposit-taking financial institution.”

The company hasn’t set a target date for plunging into the financial services sector. In fact, it hasn’t made a final decision.

“The license, if granted, would give us the flexibility to pursue a niche credit card opportunity to our customers should this make sense at a future date,” Suppa said.

In any case, she added, the licensing process is a rigorous one that could take more than a year.

David McVay of McVay and Associates Ltd. said Rogers probably wants to capture a share of the fees generated by credit and debit cards.

When a consumer pays with a credit card, the merchant gets paid about 98 cents on the dollar for the transaction. The other two cents is divided between the card issuer and the clearing house that tracks the payments.

“I suspect they may want to get in the middle of that process to get some of that revenue,” McVay said.

Debit card transactions generate a set fee per transaction, rather than a percentage of the purchase value.

But Rogers may also be looking to new telephone technology that’s just over the horizon, McVay said.

“It may actually relate to the cellphone becoming a payment device. Not far off, you’ll be able to wave your cellphone by a payment terminal and it will debit your account or charge your credit card.”

That, too, will generate fees that Rogers, as a phone company, will want to capture more of.

If that is the goal, McVay warned it’s no slam dunk.

Wal-Mart entered the banking sector so it could issue MasterCards, he said, and has had difficulty winning market share.

“The cards that the banks offer are so rich in rewards right now, there’s not a good reason for consumers to switch,” he said.

“I think it’ll be tough slogging for anybody up against the major banks, because they are very big, and very good.”

That hasn’t deterred some retailers from offering financial services.

Canadian Tire Financial offers a MasterCard, while President’s Choice — a brand carried by grocery chain Loblaw — provides a host of other banking services including credit cards and mortgages.

Origin
Source: Toronto Star 

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