Wachovia Puts Credit Card Unit Under Consumer Banking Umbrella

Wachovia Corp.'s high-profile, highly profitable credit card unit has moved into a new part of the company.

Consumer credit services, which includes the fast-growing, $4 billion credit card business, was folded into the recently formed general banking division led by G. Joseph Prendergast. The restructuring was announced last week.

W. Doug King will continue to supervise credit card, residential mortgage, sales finance, and Wachovia On-Call activities. Mr. King now reports to Mr. Prendergast instead of Wachovia chairman and chief executive L.M. Baker Jr.

As the new head of Wachovia Consumer Services, Mr. King added oversight of retail banking support and marketing functions currently under Will B. Spence Jr.

Mr. Spence is moving to South Carolina to replace Anthony L. Furr, who is retiring, as chairman and CEO of Wachovia's bank subsidiary there.

The changes do not affect the internal status of the bank card services division in Atlanta under Beverly Wells. She became its president last August in place of Mr. King, who had overseen the operation for an interim period after the departure of Jerry Craft to First Data Corp.

Wachovia has grown rapidly in recent years to become one of the nation's top 20 credit card players. It is noted for an aggressive "price leader" strategy with well-targeted marketing, a highly efficient back office, and a remarkably low level of credit losses.

Ms. Wells continues to report to Mr. King, who said the restructuring reflects a long-term repositioning by the $39 billion-asset superregional and an even deeper commitment to cards and other credit services.

"We have been evolving over the past two and a half years to more of a consumer financial services approach," said Mr. King. Service and access, he believes, are the primary components of a consumer-oriented strategy.

"We are integrating our nontraditional and traditional businesses," he said. "This new division was the next logical step in that evolution."

Formed last November, the general banking division gives Mr. Prendergast overall responsibility for Wachovia's member banks and consumer services. Accordingly, Mr. Prendergast is seen as a rising star in the Winston-Salem, N.C.-based banking company.

"This restructuring places consumer credit and consumer banking functions under one umbrella and completes the organization of the general banking division," Mr. Baker said last week.

"Joe Prendergast and Doug King are exceptional leaders. Combining their efforts and talents will result in superior coordination of activities among member banks."

Mr. King maintains the moves will "allow us to support (credit cards) more efficiently. It is a high-growth, meaningful business and a major contributor to our bottom line."

A 21-year Wachovia veteran, Mr. Prendergast, 49, has also served as president of Wachovia Corporate Services Inc., where Ms. Wells worked for many years. He currently holds the title of chairman of Wachovia Bank of Georgia.

Mr. King, 56, has had several assignments with Wachovia since joining the company in 1992. Previously he was president of South Carolina National Bank, the predecessor of Wachovia Bank of South Carolina.

Mr. King began his banking career in 1963. He is a Wake Forest University graduate and attended the School of Banking of the South at Louisiana State University.

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