Academic journal article ABA Banking Journal

Key Tech Applications Yield In-House Credit Card Operation for Wachovia

Academic journal article ABA Banking Journal

Key Tech Applications Yield In-House Credit Card Operation for Wachovia

Article excerpt

Wachovia launched a new credit card operation more than five years after setting a troubled, $8 billion portfolio to Bank One in 2000. The protagonist in its own phoenix story, the $808.9 billion-assets institution went back to in-house credit at a time when many in the industry were either scaling back or relying only on private-label card programs, as Wachovia had itself done in a dear with MBNA spanning recent years.

Despite the financial ebb and flow of credit within the bank, and current challenges in other areas, Wachovia moved ahead in July 2006 with the most current iteration of its credit card program, believing that the key to success is tapping into the requirements of demographic segments. Early performance has borne that out--with 1.3 million customers booked and $2 billion in revenue generated. The bank continues to promote credit as a linchpin of the basic banking package.

"The fact is, a credit card is important to consumers. It's a toot they use with basic checking and savings accounts and we need to offer our customers options," says Ann Watkins, a senior vice-president in the Card and Payments Solution Group. Accordingly, however, when the bank first made the decision to go with an internally developed card, it needed to measure risk with a finer gauge--and it wanted more control over credit policy and credit card terms generally.

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IT partner lets bank customize

A key technical building brock, even a foundation, in this operation was a rapidly-deployed IT system from Zoot, a reading provider of advanced instant credit decision making and loan origination systems based in Bozeman, Mont. …

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