KeyCorp to Combine Credit, Debit Card Centers
KeyCorp announced plans Thursday to merge its eight credit card operations centers into a single financial institution.
The combined operations centers would form a nationally chartered bank headquartered in Salt Lake City. Its assets would be approximately $360 million.
Company officials said that they expect regulators to approve the consolidation plan in the third quarter.
The new bank would manage both the credit and debit card products offered by the 10 Key Bank subsidiaries nationwide.
Allen J. Volkenant, spokesman for Albany-based KeyCorp, said cutting costs was not the only reason for the consolidation.
"It's just more efficient to have a central location for the [card] operations, as opposed to having each bank have its own operation," Mr. Volkenant said.
The new bank, yet unnamed, would lease a building in Salt Lake City separate from the existing operations of Key Bank in that city.
KeyCorp declined to estimate how much the consolidation would save.