Wells Fargo Continues Credit Card Push
For the past year, Wells Fargo CEO John Stumpf has had a major corporate directive for his bank to capture a greater share of the credit card market. Wells Fargo took another step toward this goal by entering into a credit card agreement with Dillard’s.
Wells Fargo will fund, issue and service Dillard’s-branded private label and co-branded credit cards. In addition, the nation’s fourth-largest bank will manage the retailer’s cardholder loyalty program.
The partnership should begin later this year, and will be in effect for ten years. The retailer’s current credit card agreement is with the General Electric consumer finance unit.
“We are pleased with this new partnership on many levels, from the financial arrangements to our shared vision for future program growth. We talked with a number of potential bank partners and we believe Wells Fargo’s vision for the success of our credit card program is completely aligned with ours,” said Dillard’s President Alex Dillard in a statement.
This agreement continues a surge in credit card activity for Wells Fargo. Last August, it began issuing cards that would be accepted by the American Express network. According to Reuters, 37% of the bank’s retail customers had a Wells Fargo credit card at the end of 2013, a substantial increase from 27% at the end of 2011.