Ethan Riley
Elan Financial Services is a unit of Minneapolis-based U.S. Bancorp, which is the parent company of U.S. Bank. Elan Financial Services provides outsourced credit card solutions to more than 1,300 financial institutions. In 2011, Elan acquired the credit card assets of 28 financial institutions, in a portfolio comprising approximately $700 million of outstanding balances. In 2018, U.S. Bank announced its intentions to sell Elan, and Fiserv was mentioned as a likely buyer. While Elan was eventually sold to Fiserv, U.S. Bancorp retained its card issuing, corporate payments, and merchant services payments businesses, including Elan Issuing and Elan Corporate Payments.
| Characteristics | Values |
|---|---|
| Elan Financial Services' parent company | U.S. Bancorp |
| U.S. Bancorp's parent company | U.S. Bank |
| Elan Financial Services' acquisition in 2011 | $700 million in financial institution credit card portfolios |
| Elan Financial Services' acquisition in 2018 | Fiserv Inc. |
| Elan Financial Services' partners | More than 1,300 financial institutions |
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What You'll Learn
Elan Financial Services is a unit of U.S. Bancorp
In 2011, Elan Financial Services, as a unit of U.S. Bancorp, acquired the credit card assets of 28 financial institutions, in a portfolio comprising approximately $700 million of outstanding balances. The portfolio, which included small business and consumer cards, was purchased from FIA Card Services, N.A.
Following the acquisition, Elan Financial Services became the owner of the credit card assets. However, they continued to brand and market the credit cards under the respective financial institution names. This allowed current clients to continue using their existing cards until Elan issued new ones in mid-2012.
In 2018, U.S. Bancorp announced its decision to sell parts of its Elan Financial Services unit to Fiserv, Inc. for approximately $690 million. This sale included business assets and a debit card processing network. Despite this sale, U.S. Bancorp retained its card-issuing, corporate payments, and merchant services payments businesses, including Elan Issuing and Elan Corporate Payments.
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Elan acquired $700 million in credit card assets
Elan Financial Services, a unit of U.S. Bancorp, acquired the credit card assets of 28 financial institutions in 2011. The portfolio included small business and consumer cards and was purchased from FIA Card Services, N.A. The total value of the portfolio was approximately $700 million in outstanding balances.
Elan Financial Services is a leading credit card issuer for more than 1,700 clients across the United States. It provides transaction processing, terminal driving, and support services for ATMs and debit cards. The company also owns and operates the MoneyPass surcharge-free ATM network.
By purchasing this portfolio, Elan gained ownership of the assets while continuing to brand and market the credit cards under the respective financial institution names. Current clients were allowed to use their existing cards until Elan issued new cards in mid-2012.
This acquisition was a significant opportunity for Elan to expand its credit card business and provide services to a wider range of clients. The specific terms of the agreement and purchase price were not disclosed to the public.
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$19.99
Elan provides outsourced credit card solutions
Elan Financial Services, a unit of Minneapolis-based U.S. Bancorp, provides outsourced credit card solutions to banks and credit unions. Elan is a leading payments partner that offers an outsourced credit card program. Elan works with 1,300 financial institutions across the United States, providing cutting-edge technology, an innovative servicing platform, and robust credit card options.
Elan's outsourced credit card solutions enable financial institutions to offer competitive credit card programs to their customers. In 2011, Elan acquired the credit card assets of 28 financial institutions, including small business and consumer cards, in a portfolio worth approximately $700 million. This acquisition allowed Elan to own the assets while continuing to brand and market the credit cards under the respective financial institution names.
One example of Elan's outsourced credit card solutions is its partnership with Provident Bank, a leading New Jersey-based financial institution. Provident Bank chose Elan as its credit card provider to offer its customers a suite of industry-leading credit card products and exemplary cardmember service. Provident Bank's cardmembers benefit from online access to manage their accounts and 24/7 access to an account service team for assistance.
Elan has also continually developed and introduced industry-leading technologies to enhance cardmember satisfaction and drive program growth. Elan's credit card app has received high ratings from users, with an overall rating of 4.8 out of 5 stars, and offers robust functionality, ease of navigation, and a modern look.
It is worth noting that in 2018, U.S. Bank announced its intention to sell parts of Elan Financial Services to Fiserv, Inc. for approximately $690 million. However, U.S. Bancorp clarified that it remains committed to its card issuing, corporate payments, and merchant services payments businesses, which include Elan Issuing and Elan Corporate Payments.
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Elan Financial Services was acquired by Fiserv
Elan Financial Services, a unit of Minneapolis-based U.S. Bancorp, acquired the credit card assets of 28 financial institutions, totalling approximately $700 million in outstanding balances. However, in 2018, U.S. Bancorp announced its decision to sell its third-party ATM and Debit Servicing business, which was part of its Elan Financial Services unit, to Fiserv, Inc. for approximately $690 million.
The sale included business assets and a debit card processing network. This acquisition was intended to deepen Fiserv's presence in debit card processing and expand its mobile and digital payments offerings for consumers and businesses. Fiserv also aimed to enhance its market position by adding MoneyPass, the second-largest surcharge-free network in the US, with access to over 33,000 ATMs nationwide.
Fiserv, a leading global provider of financial services technology solutions, has been a trusted leader in the industry for nearly 35 years. The company has consistently been named among the FORTUNE Magazine World's Most Admired Companies for its strength in business model and innovation leadership.
Through the acquisition of Elan Financial Services, Fiserv gained access to new clients and expanded its suite of solutions, including ATM Managed Services, risk management, and enhanced debit platform capabilities. This transaction allowed Fiserv to further build on the growth of its Card Services business and create additional value for its customers.
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U.S. Bank is the fifth-largest commercial bank in the US
U.S. Bancorp is the bank holding company and parent company of U.S. Bank. U.S. Bank is the fifth-largest commercial bank by assets and was first established in 1863 as the First National Bank of Cincinnati. Over time, multiple mergers led to the formation of the bank known today for its extensive branch network and investment in improving its digital offerings. U.S. Bank has branches in more than half of the 50 states.
U.S. Bank's Elan Financial Services unit has been involved in several acquisitions and mergers over the years. In 2011, Elan Financial Services, a unit of Minneapolis-based U.S. Bancorp, acquired the credit card assets of 28 financial institutions, totalling approximately $700 million in outstanding balances. This portfolio included small business and consumer cards, purchased from FIA Card Services, N.A.
In 2018, U.S. Bank announced its intention to sell parts of its Elan Financial Services unit, specifically its third-party ATM and debit servicing business. This sale was made to Fiserv, Inc. for approximately $690 million. It is important to note that U.S. Bancorp retained several key businesses, including Elan Issuing and Elan Corporate Payments, demonstrating their continued commitment to card issuing and corporate payments.
While Elan Financial Services has been a significant part of U.S. Bank's operations, it is just one aspect of the bank's broader strategy and growth. U.S. Bank's position as the fifth-largest commercial bank in the US is a result of its extensive history, mergers, and continued focus on expansion and improvement.
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Frequently asked questions
Yes, Elan Financial Services is a unit of Minneapolis-based U.S. Bancorp, which is the parent company of U.S. Bank.
In 2018, U.S. Bank announced its intentions to sell Elan Financial Services to Fiserv, a leading provider of financial services technology.
The sale included Elan's third-party ATM and Debit Servicing business, which was bought for approximately $690 million.
Elan's card issuing, corporate payments, and merchant services payments businesses were not included in the sale and remain with U.S. Bancorp.
Elan Financial Services is a leading credit card issuer for more than 1,300 clients across the United States. It provides transaction processing, terminal driving, and monitoring and support services for ATMs and debit cards.
