In a recent trend, regional financial institutions are beginning to roll out their own branded credit cards instead of hiring a larger firm and taking a share of the proceeds.
MarketWatch reports that as delinquency rates continue to fall, industry insiders like Leigh Allen have been telling clients such as Regions Financial Corporation and KeyCorp to buy rights to their program from major providers such as Bank of America. Allen, managing director at Kressler Financial Services, said that banks had quite a bit of money to work with in order to get their programs back.
According to some regional bank organization employees, the firms are not looking to compete with the major credit card providers.
“You can’t compete credit card to credit card with the likes of Capital One Financial” said Dave Bowen, the bank’s director of product management in consumer banking, in an interview with the source. “You’d have a tough row to hoe.”
Financial institutions are also trying to take advantage of the growing popularity of rewards cards. In a release, NetSpend Holdings said that it had come to an agreement with Dollar General to introduce the PayPal Prepaid MasterCard program to be used at credit card terminals.Back To Blog