PNC Bank to Drop MBNA as Card Issuer; Will Issue Own Card

by Patrick Lunsford, CollectionIndustry.com

PNC bank announced Tuesday that it is severing credit card issuing ties with Bank of America unit MBNA and will pursue issuing their own credit card.

Starting this week, PNC will begin issuing its own credit card in a deal with Minneapolis-based U.S. Bank. Under the arrangement, PNC will oversee strategic decisions for marketing and credit policy, while holding the credit-card receivables on its balance sheet, Senior Vice President Dan Tuccillo told American Banker. U.S. Bank will handle card origination, risk management and issuing statements.

PNC is among the largest banks in the country, with $96 billion in assets. It counts more than 2 million people as customers. The bank operates retail offices in 8 states and the District of Columbia.