Intrust Bank has a new partnership for its credit card services and is close to finalizing a deal on its merchant services business, too.
“They’re essentially joint ventures,” says CFO Brian Heinrichs.
“From a customer standpoint, our products and services are going to be enhanced substantially.”
The bank has finalized a deal with Elan Financial Services to handle new credit cards for customers starting in the fourth quarter.
Elan is a wholly owned subsidiary of Minnesota-based U.S. Bancorp.
A second deal for merchant services, which is based around credit card machines at businesses, isn’t finalized yet but is expected to be before the end of the second quarter.
Heinrichs says Intrust will maintain a percentage of the revenue going forward in both partnerships.
The bank has sold Elan the credit card receivable portion of that business.
“We’re essentially going from one card option today to multiple options,” Heinrichs says.
He says that will range from secured cards for first-time credit card users to “affluent cards that match any other robust card offering.”
“We’ll be able to compete across the entire spectrum and be a leader in the marketplace.”
He says Intrust doesn’t have the in-house technology to fully compete now.
“We just don’t have the economies of scale that you need in that business.”
Heinrichs says customers who like credit cards that promote favorite colleges still will be able to have those.
“All those relationships stay intact.”
Heinrichs says there are about 30 employees in the credit card and merchant services areas.
He says some of their jobs will change.
“We’re going to great lengths to take away the possibility that we might actually have to eliminate people.”
He says that will be accomplished through attrition, retirements and not hiring for some new positions.
“We think … any employee impact will be minimal.”
Heinrichs says the credit card changes are significant for the bank.
“This is a huge win.”