Sovereign Bank recently made public its plans to purchase the particular Sovereign-branded credit card portfolio, previously owned by FIA Card Services, N.A. This according to a press release issued last week by the company. Sovereign Bank happens to be a “wholly owned subsidiary of Banco Santander, S.A.”
What does that mean, per se? Well, the portfolio itself is worth a respectable $200 million in balances and consists of a good 105,000 credit card relationships. The majority of these accounts, having just been acquired, were customers who had an existing relationship with the bank.
In the press release, Nuno Matos (the managing director of retail banking for Sovereign) said about the historic acquisition: “our portfolio will strengthen our relationship and provide more convenient service to customers.”
As it sits now, the Sovereign brand of credit cards is currently issued and administered by FIA Card Services, N.A. And such it will continue until the transaction is finalized next year.”We are gaining the flexibility to design a line of cards with different value propositions,” said Eduardo Tobon, head of Santander’s U.S. Cards Division.
He also offered this prediction for the future of credit card usage for the bank’s customers: “offering a full suite of Sovereign/Santander credit cards will enhance our entire line of plastics and give customers more options to help them meet their everyday financial needs.”
The array of specific terms and conditions surrounding the deal, though, were not disclosed.