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MBNA CREDIT CARDS

On the 1st of January, 2006 MBNA merged with Bank of America. On June 10, 2006 MBNA changed its name to FIA Card Services. In Europe the name MBNA is still in use by the bank.

The Rise MBNA Credit Cards

MBNA was founded in 1982 by Charles Cawley. In the beginning the small bank took a role of a credit card subsidiary of MNC Financial. In search for a new way to promote MBNA credit cards, Cawley approached the Georgetown University Alumni Association with an exclusive offer to its members. The organization had a chance to generate a royalty of all revenues accumulated by the cards and cardholders were able to contribute to the alma mater and enjoy the life-long association with Georgetown. So called “affinity” cards set MBNA credit card family aside from their competition. They also added sentimental value to the product, which in combination with great customer service created devoted customers. Following this example Cawley continued pursuing similar ventures with different organizations nation wide. By 1991 MBNA has outgrown its corporate parent, MNC. With unfortunate sequence of events related to real estate market MNC had lost over $240 million in just first three quarters of 1990. This forced the company to put MBNA for sale. Passive negotiations over the bids had led to MBNA’s spin off in a public stock offering. Since that moment MBNA intensive strategy for growth led the company to the pick of credit card industry, making MBNA the largest independent credit card issuer in the nation.

What to Expect in the Future

The merger of two credit card issuing giants has brought a great new prospective for credit card holders and future clients. Although the transition was not as smooth as it was expected the MBNA customers will get more banking services from the wide range of products provided by Bank of America. MBNA, now FIA Card Services, through the merger acquired a more powerful distribution channel. Which gives the company trusted personal contacts, created by Bank of America in long lasting customer relationships, for future growth and distribution of services. It is expected that services of both FIA and Bank of America will greatly benefit from the merger, and we, as clients, have to expect great new offers in the near future. For updates and other news do not forget to visit CardFusion.com.

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