ATLANTA -- Working on absorbing a huge new client's card portfolio has caused InfiCorp, long a significant purchaser of CU card portfolios, to back away from its aggressive purchasing strategy for now.
In December of 2006, InfiCorp announced that the $181 billion Suntrust Banks had chosen it as its agent issuing partner over FIA Card Services, the former MBNA card issuer that was purchased by Bank of America.
That program is going to involve millions of card accounts, explained Keith Floen, InfiCorp's managing director. He also noted that that the firm saw 20% growth from within its agent programs, as opposed to from purchasing new portfolios, in 2006.
"We are focusing on our organic growth for now," Floen said. He also noted that the rising premiums for CU card portfolios had made the firm more cautious about some of the deals. "We decided it was better to focus on bringing Suntrust on board and on our own growth while the market goes through this period of irrational exuberance," he added.
Even though InfiCorp had been a strong player in the credit union card portfolio market, Floen doubted that the firm's backing away from aggressive portfolio bids would have much if any impact on the market. As InfiCorp has slowed down, Wescom Credit Union came on board with its card portfolio purchase program and TNB Card Services raised an additional $60 million in capital to use, at least partially, in its card portfolio acquisitions.