Bank of America $5 debit fee exemptions
If you haven’t already heard, Bank of America announced last week that it will be charging a new $5 per month debit card fee to all of its existing banking customers beginning January 2012. However, BofA customers who have mortgages, credit cards, investments and other types of accounts may be protected from the controversial new fee.
Whether you use your BofA debit card once or 30 times in one month, the charge will be in full effect. If you don’t use your card at all, you won’t see the fee. At the same time, if you use BofA ATMs to withdraw cash, you won’t see a new charge on your checking account.
The ridiculous fee will surely force customers out of Bank of America and into other financial institutions that haven’t caught on to the nickel and dime scheme. It’s not like this bank needs any more angry customers, especially considering the institution is known for employing bulldozers to rid its list of foreclosed homes.
CNN says that the move to the $5 debit card fee coincidentally runs into a new rule which will limit the revenue banks will be able to receive from merchants. Beginning last weekend, there will be a cap on the amount of fees banks can charge retailers each time a customer swipes their debit cards. Word on the streets is that the maximum fee is now only at 21 cents, compared to the average of 44 cents before the new cap; the bank industry is expected to lose billions of dollars due to the change.
So it all makes sense now. BofA is taking out its aggression from its merchants to its customers. Smart move. We can imagine there will be an influx of new members to competing banks throughout the end of 2011. However, Wells Fargo already said last month that it will test a $3 monthly debit fee to customers in Georgia, Nevada, Oregon, New Mexico and Washington beginning October 14. JPMorgan Chase announced a similar test last year that is still in the works.
My recommendation: Go check out your neighborhood credit union.
Dell to sell cloud-based iPaaS Boomi in US$4bn deal
Global investment firm Francisco Partners and private equity platform TPG Capital have entered into an agreement with Dell Technologies to acquire cloud-based integration platform as a service provider Boomi in a cash deal valued at US$4bn. The deal is expected to complete this year.
“Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010. This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies.
“For us, we're focused on fuelling growth by continuing to modernise our core infrastructure and PC businesses and expanding in high-priority areas including hybrid and private cloud, edge, telecom and APEX. All designed to help organisations thrive in the do-from-anywhere economy.”
Dell’s Boomi sell-off follows VMware spin-off
This announcement comes just two weeks after Dell said it would spin-off its 81% equity ownership of VMware to form two standalone companies. This would result in an expected US$9.3bn cash dividend payment to Dell, which says it will use those funds to pay down debt.
When Dell acquired Boomi in 2010 for an undisclosed fee, Boomi offered the industry’s only pure SaaS application integration platform, powered by its revolutionary AtomSphere technology. Dell saw Boomi as addressing one of the top barriers to cloud adoption at that time, which was managing and integrating cloud-based applications with existing applications and databases.
Now, Boomi has more than 15,000 customers globally and is still seen as a leader when it comes to organisations connecting applications, processes and people across a range of locations and devices – a process that can take weeks rather than months.
“I am incredibly proud that through innovation, passion and relentless execution, the Boomi team has created a unified platform for the modern-day hybrid IT landscape that thousands of customers worldwide depend on to digitally transform their business,” said Chris McNabb, chief executive officer of Boomi.
“By partnering with two tier-one investment firms like Francisco Partners and TPG, we can accelerate our ability for our customers to use data to drive competitive advantage. In this next phase of growth, Boomi will be in a position of strength to further advance our innovation and market trajectory while delivering even more value to our customers.”
Francisco Partners has invested in more than 300 technology companies since its launch 20 years ago and has more than US$25bn in assets under management.
“The ability to integrate and connect data and workflows across any combination of applications or domains is a critical business capability, and we strongly believe that Boomi is well positioned to help companies of all sizes turn data into their most valuable asset,” said Dipanjan Deb, co-founder and chief executive officer, and Brian Decker, partner, at Francisco Partners
Nehal Raj, partner, and Art Heidrich, principal, at TPG Capital added: “The need for automation and data integration across applications has never been greater. Boomi's cloud-native platform enables enterprises to streamline business processes and is essential for driving digital transformation.”