Abbey leads the way in UK by outsourcing credit card business.(Brief Article)

Banker, The, April, 2001

Abbey National has become the first UK bank to outsource its credit card operations. It has sold the business to MBNA, the US specialist and the biggest independent credit card lender in the world, for [pound]289m ($412m), bringing a pre-tax premium on sale of {pound]45m.

Abbey will continue to sell its own branded cards, but produced by MBNA, with the aim of substantially increasing the number of cards held by its customers as part of its general diversification strategy. The group said it "plans to shake up the UK credit card market by delivering more choice, better value and a customised portfolio of credit cards to meet its customers' needs".

Under the deal, Abbey will receive commission for each new account opened, at a value taking into account...

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