BOSTON -- The $125 million Taunton Federal Credit Union,headquartered in Taunton, Mass., has sold its card portfolio toElan Financial Services, a subsidiary of US Bank. The purchasebrings Elan a portfolio of 2,500 accounts worth roughly $3.4million.

"We had a couple of choices in front of us," says John Damaso,CEO, Taunton Federal Credit Union. "We could upgrade our creditcard program on our own, or we could sell our portfolio outright.Neither option was appealing on its own. Once we realized that apartnership with Elan would provide the best of both worlds, aworld class program to our members in our name and an attractivepremium for our portfolio, it was an easy decision for us to chooseElan."

Damaso explained that the CU's card program had penetrated 35%into the CU's membership and Taunton doubted whether they couldgrow the program enough to have the economies of scale sufficientto offer the members rewards and other benefits that members hadsaid they wanted.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.