TSYS, long a credit card processor for only the largest card issuers, has unveiled a program aimed at providing turnkey card processing and portfolio management aimed a credit unions and community banks.
Currently the processor works with only a few credit unions, including Navy Federal with its $4.3 billion card credit card portfolio.
"Over a period of years, the top issuers competed aggressively with marketing techniques, such as mass solicitations and teaser rates, to gain greater market share to the point that many smaller banks felt they couldn't effectively compete. Recent regulatory changes have altered the landscape and we believe the case for re-entry is there if we can demonstrate a compelling and profitable business case," said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS.
The program targets the regional and community banks and credit unions interested in re-entering the credit card market, including those that want to maximize the profitability of their existing card programs and those that wish to start up a new credit card program, the company said.
TSYS' solution includes profitability analysis, portfolio management and campaign and marketing support combined with TSYS' core capabilities in data processing, card and statement production, customer care, analytics and loyalty, TSYS added.
"This solution offers an alternative to the traditional agent-bank relationships that exist today. Through this solution, we have solved the problem of start-up costs and created a win-win for the financial institutions and for TSYS," said Tomlinson.
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