Abbey National is to transfer ownership of its retail credit card assets to US independent MBNA Europe Bank in a £289 million deal aimed at boosting its share of the UK market.
The arrangement, which seeks to combine Abbey's brand strength with MBNA's production capabilities, includes a premium on sale of £45 million. Under the agreement, MBNA will develop a range of new cards and manage the operations for the bank's retail credit card business on an ongoing basis. In return, Abbey will receive a commission for each new account. It is believed to be the first such arrangement between a UK high street bank and third party processor.
Andrew Pople, managing director of Abbey National's retail banks says: "We intend to transform our credit business, accelerating growth far more quickly and efficiently than would have been possible on our own."
A range of new products will be developed over the course of this year, says Pople, beginning with the launch of a new credit card within the next four months. Choices will range from the classic Visa card, to cashback cards and exclusive platinum cards. It is envisaged that customers will also be able to access their credit card accounts via the Internet, digital television and WAP mobile phones.