After a six-month search, Catherine I. Marsh was named president and chief operating officer of Bank of New York's credit card subsidiary in Newark, Del.
Ms. Marsh, 44, was plucked from Buffalo-based Marine Midland Bank, where she was executive vice president of consumer products, overseeing credit cards, mortgages, auto loans, and checking and savings accounts. Marine Midland is owned by HSBC Holdings PLC, London.
At Bank of New York, Ms. Marsh replaces Robert Burke, 56, who left his post as chairman of Bank of New York Delaware to pursue part-time consulting opportunities.
Ms. Marsh will report to Alan R. Griffith, chairman of the Bank of New York Delaware and vice chairman of Bank of New York Co., who filled in after Mr. Burke's departure in March. "We were impressed with the diversification of her background, and particularly with her skills and experience in credit card operations, customer service, and marketing," said Mr. Griffith.
"She has the capabilities necessary to continue the strategic initiatives we have in place and to develop and implement new ones that will sustain the strong growth we have experienced in our credit card business," he said.
Ms. Marsh has more than 20 years of experience in the credit card business, including seven years at Bank of America, where she was vice president of credit card operations. She spent 12 years at May Department stores as vice president and general credit manager.
She will have big shoes to fill in her new post.
Mr. Burke's career at Bank of New York began in 1987, and it catapulted him into the limelight. He launched the prominent series of Consumer Edge credit card products, which feature low interest rates, no grace periods, and annual fees. After criticism of its grace period policy, the bank introduced some cards with a float.
"Bob did an excellent job of establishing the bank as a major player," said Frances Dale, president of Entandem Inc., a consulting firm in Reston, Va.
Bank of New York is the 14th-largest issuer of credit cards, with $7.6 billion in outstanding balances, according to RAM Research Corp., Frederick, Md.
The bank also issues one of the largest affinity programs, the Union Privilege card, which is offered to AFL-CIO members.
Compared to Bank of New York's flashy television commercials touting Consumer's Edge, Marine Midland maintains a low profile. The Buffalo bank has about $1.5 billion in receivables and 1.3 million cardholders.
It is widely expected that Bank of New York, which has so far shunned the cobranding frenzy, will announce a partnership with Toys 'R Us. The toy company confirmed the report in April, but Bank of New York would not comment.
Ms. Marsh was unavailable for comment.
Bank of New York's receivables have grown only 1.8% since January, according RAM Research, "which was surprising," said Robert B. McKinley, president of the firm.
"Both of the bank's programs (Consumer's Edge and Union Privilege) are very strong and price sensitive."
While the bank attracted a lot of criticism several years ago for its grace period policy, Mr. McKinley said that its customer service representatives were more up front about the bank's pricing than some of its competitors at the time.
