As a part of a strategy Wachovia Corp. is ready to join hands with General Electric Corp. This process is a part of a strategy to re enter the credit card business by providing purchasing as well as commercial credit cards. These credit cards will be provided to treasury service and wholesale customers. There has been a proper bifurcation of activities between the companies. GE Money- Corporate Payment Services will take care of the back office activities while Wachovia will be responsible for selling, managing and owning the portfolio.
This announcement has come after Wachovia said it had ended a five-year joint marketing agreement with MBNA. MBNA is the largest independent card issuer and has re entered the credit card business. The new retail credit card products were introduced by Wachovia in July. Wachovia is the largest bank in Philadelphia on the basis of local deposits. It is also one of the nation’s largest diversified financial-services companies.
