Community banks have never been enthusiastic about credit cards, and plenty of consultants have tried to convince them otherwise. After almost four decades in the industry, Jerry Craft thinks he finally has devised a way to persuade banks to take the plunge.
Corserv Solutions in Atlanta, Craft's company, offers a broad menu of services — including compliance advice and fraud protection — to help community banks develop revenue streams from credit cards. Most of Corserv's rivals limit themselves to processing services, according to Corserv.
"We focus on clients' bottom line of their credit card business," Craft says. "That's not a sales pitch. It's just telling you who we are."
Craft has plenty of experience to back up his arguments. He previously worked for the First National Bank of South Carolina, which was later bought by Wachovia, running their credit card operations. Later, Craft worked for the First National Bank of Maryland, which was bought by M&T Bank (MTB). Before starting Corserv, Craft worked for First Atlanta, which was also acquired by Wachovia.
Corserv has partnered with First Data in Atlanta and Pinnacle Financial Partners (PNFP) in Nashville, Tenn., on the community bank venture. Craft is pinning his hopes for success on the sheer size of the market opportunity. There are about 7,000 banks in the U.S., and only 19% of them offer credit cards, he says.
"The complexity is what keeps community banks out of credit cards," Craft says.
