CardWorks Expands its Influence with Strategic Acquisition
CardWorks Enhances Market Position with Recent Acquisition
Acquisition strengthens CardWorks' role as a premier credit card issuer and servicer.
CardWorks, Inc. has successfully completed the acquisition of Ally Financial's credit card portfolio and platform, which includes a talented team and a significant customer base of 1.3 million active cardholders. This strategic move positions Merrick Bank, a wholly-owned subsidiary, to acquire a portfolio with $2.2 billion in credit card receivables, solidifying its standing as a top provider in the non-prime and near-prime credit markets.
"This acquisition underlines CardWorks' strength in identifying strategic opportunities and executing them effectively," stated Don Berman, Founder and Executive Chairman of CardWorks. "Our existing relationship with the Ally Card team, through our partnership, proved invaluable, and incorporating them into our organization enhances our market presence. It's a beneficial arrangement that broadens our reach in the near-prime sector while significantly increasing value for our stakeholders. I am incredibly proud of our team's dedication to bringing this acquisition to fruition and look forward to our path ahead."
Rob Habgood, founder of Fair Square—acquired by Ally Financial—shared his enthusiasm for the transition, commenting, "Having CardWorks as our new home fills us with excitement. We can now amplify our impact and assist more customers on their financial journeys. CardWorks has prioritized a smooth transition for our employees and customers, placing our newly combined team in a great position to advance our together shared mission."
Dan Pillemer, CEO of CardWorks, expressed the organization's eagerness to welcome Ally's credit card customers and team members. "This acquisition underscores our ongoing commitment to strategic growth within the near-prime credit space, augmenting our team with exceptional talent and capabilities. We anticipate leveraging both organic and strategic growth initiatives as we continue evolving into a larger financial entity and specialty finance company," Pillemer noted. "We believe this acquisition showcases our strength to acquire and integrate high-quality credit platforms effectively."
About CardWorks
CardWorks is recognized as a top player in the credit and payments industry, highlighted by its people-first ethos, innovative approaches utilizing data and technology, and strong dedication to compliance. Founded in 1987, CardWorks has transformed millions of customer experiences by partnering with businesses to deliver tailored financial solutions geared towards success. The company excels in addressing challenges overlooked by others, merging deep expertise with a steadfast commitment to doing right by customers and clients.
About Merrick Bank
Merrick Bank, a subsidiary of CardWorks, specializes in empowering non-prime and near-prime consumers to achieve financial success. Established in 1997, it operates as an FDIC-insured industrial bank, with approximately $8 billion in assets. Merrick Bank serves millions of customers nationwide through its credit card and recreational lending programs while striving to offer responsible financial solutions that enhance customers' credit profiles, backed by exceptional service. As a leader within the non-prime lending sector, Merrick Bank combines advanced technology, insightful data analytics, and compassionate service to facilitate financial wellness pathways for underserved consumers. Furthermore, the bank provides merchant acquiring and payment solutions to over 120,000 businesses across the nation.
Frequently Asked Questions
What is the significance of CardWorks' acquisition of Ally's credit card portfolio?
This acquisition strengthens CardWorks' market position and enhances its services in the near-prime credit sector.
What does the acquisition mean for Ally's credit card customers?
Ally's credit card customers will become part of the CardWorks family, benefiting from enhanced services and support.
How has CardWorks positioned itself in the credit card market?
CardWorks is a leading issuer in the credit card market, known for its innovative approaches and commitment to customer service.
What plans does CardWorks have following the acquisition?
CardWorks intends to leverage both organic and strategic growth initiatives to expand its presence in the financial sector.
Who will lead the integration of Ally's team into CardWorks?
The integration will be led by CardWorks' Executive Chairman, Don Berman, and supported by CEO Dan Pillemer, ensuring a smooth transition.
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