83 Financial Institutions Sell Credit Card Operations to Elan Financial in 2006

Elan Financial Services signed agreements with 83 financial institutions in 2006 to create partnerships for credit card outsourcing services to their customers. The new agreements, which include a partnership with City National Bank of West Virginia, cover $324.6 million in combined outstanding balances, represent a 53 percent increase over 2005.

Dan Roads, Elan first vice president of portfolio acquisitions, said this growth is attributed to a variety of factors. “I believe financial institutions choose to partner with Elan over other options not only because of Elan’s long-standing, more than 40-year record of service, but also because we offer a best in-class product package that meets the needs of all customers.”

Craig Stilwell, executive vice president of City National Bank agrees with Roads that Elan is the best choice when looking for a credit card partner. "When we were looking at potential credit card partners, one of our goals was to find a card program that offered our customers a world class product suite," said Stilwell. "Not only does Elan have superior products, their partnership model allows us to provide the credit card products our customers want with a compensation package that meets our needs."

Roads goes on to discuss other reasons why financial institutions may be looking to outsource their credit card program. “While service and product needs are the primary concerns, 2006 saw the rising cost of funds and other issues, such as fraud risk, which was what truly opened the door to discussions on portfolio sales and ensuing outsourcing partnerships.”