Spanish consumer finance firm, Avantcard, is to acquire the UK retail giant’s Irish credit card portfolio, consisting of around 27,000 customer accounts
Avantcard and Tesco Bank have reached an agreement to acquire the UK retail giant’s Irish credit card portfolio, subject to regulatory approval. The deal between the Spanish consumer finance business and Tesco Bank consists of around 27,000 customer accounts. Financial details of the agreement have not been disclosed.
Last May, Tesco said it would stop accepting applications from new customers for its credit card service.
The move follows a decision from the UK supermarket last May to stop accepting applications from Irish customers for its credit card services, and may be Brexit related.
Once the integration is complete, current Tesco Bank customer accounts will be migrated to the Avantcard platform. The transition of the Bank’s customer accounts to the new credit card is expected be carried out in autumn.
Avantcard first arrived in Ireland in 2012 when it bought the MBNA credit card business. Avantcard is based in Leitrim and has been servicing customers in Ireland for over 20 years. It also has an office in Dublin. Avantcard employs approximately 200 people in Ireland.
The consumer finance business reentered the Irish market last year with a fresh digital and customer-service-led approach in a bid to acquire new customers.
Managing director Chris Paul said that Avantcard’s strategy is to be a leading consumer finance provider in Ireland by 2020. He said this will be achieved through ongoing product innovation, continuing investment and strategic partnerships.
Director of transactional banking at Tesco Bank, Will Curley said that they believe that their customers will be well served by Avantcard’s strong digital servicing platform. He added that the bank’s priority now is to work closely with Avantcard to ensure a seamless transition for its customers to their new credit card provider.
In 2017, Avantcard partnered with Chill Money, acting as issuer and servicer for its loans and credit cards.