MBNA Canada to Acquire Credit Union Card Issuer

MBNA Canada Bank and CUETS announced an agreement for MBNA to acquire CUETS, the largest and most respected MasterCard credit card issuer for credit unions in Canada.  Under the terms of the agreement, CUETS will become a subsidiary of MBNA Canada Bank, leveraging superior capabilities of both companies to increase customer value and grow market share in Canada.

The acquisition significantly increases the size and capabilities of MBNA Canada Bank, a subsidiary of Bank of America, solidifying its position as the country’s leading provider of affinity and co-branded consumer lending products and the second largest MasterCard issuer in Canada based on loans outstanding.

"We are bringing together two great consumer lending organizations with highly complementary strengths, similar business models, and a shared passion for serving the unique needs of Canadians," said Debra Armstrong, president, MBNA Canada Bank. "By partnering together, CUETS and MBNA have raised the bar in the marketplace, providing credit unions with a greater opportunity to provide superior payment products to Canadians."

CUETS is currently jointly owned by Credit Union Central of Saskatchewan (SaskCentral) and Credit Union Central Alberta Ltd. The agreement is subject to regulatory approvals. The new MBNA Canada subsidiary housing the CUETS business will be led by Stan Kuss, currently chief executive officer of CUETS. CUETS’ workforce, which is primarily based out of a head office in Regina and a service centre in Winnipeg, will be combined with the current MBNA workforce, which works out of MBNA’s head office in Ottawa.

CUETS board chair and CEO of SaskCentral, Sid Bildfell, said the sale is a strategic move that is in the best interest of CUETS, its credit union clients and their members.  "CUETS and its clients will now have the opportunity to incorporate the MBNA products, service and marketing strategies to achieve even greater results with their programs."

Bildfell also noted that CUETS will stay committed to the communities in which it operates.  "Our sale arrangement with MBNA includes a continued presence for CUETS and employment of CUETS employees in our home cities of Regina and Winnipeg."