Regions Financial Corp. used to have credit cards in name only. Now, the Birmingham, Ala., bank is going all in.
On Monday, Regions said it signed an agreement to purchase the $1 billion portfolio of Regions-branded credit cards from FIA Card Services, a subsidiary of Bank of America Corp.
By acquiring the portfolio of 500,000 existing customer accounts, the bank will further diversify its revenue stream and be able to better serve customers, Regions said.
"This is an important component of our strategy to build broader and deeper relationships with our customers … we plan to grow this business as part of an expanding suite of financial solutions," said John Owen, senior executive vice president and head of Regions' consumer services, in a press release.
FIA Card Services will continue to service the accounts until mid-2012, Regions said, after which it will incorporate credit card servicing into its customer service operations.
Financial terms of the deal, which Regions expects to close during the current quarter, were not disclosed.
