Mutual of Omaha Bank, on a growth streak since its 2007 launch, has signed a long-term merchant-services agreement with First Data Corp., the companies announced Aug. 30.
First Data will provide broad processing services for the bank’s merchant clients, which include a broad range of small businesses and national companies. The Atlanta-based processor will handle credit and debit card processing and gift card and check-verification services, Matt Minchow, executive vice president of national bank products for the Omaha, Neb.-based bank, tells PaymentsSource.
The agreement enables the bank to streamline and expand its merchant-processing services to clients, replacing “four or five regional acquirers” that previously handled the business, Minchow says.
Since its launch four years ago “from scratch,” the full-service bank, a unit of Mutual of Omaha Insurance Co., has expanded its reach through a series of acquisitions, Minchow says. The financial institution, with $5 billion in assets, bills itself as one of the fastest-growing banks in the U.S. In its 2010 annual report, the bank said its assets and deposits are growing at a rate of 20% annually.
“We’re seeing demand for a broad range of banking services from our business customers that are already partners through our (parent), and we see the opportunity to cross-sell more financial services products to them,” Minchow says.
The bank on Aug. 10 also announced plans to issue MasterCard-branded rewards-based credit cards for consumers and small-business customers through an agreement with Des Moines, Iowa-based TMG Financial Services, a sister company of The Members Group.
“Our goal with both of these announcements is to consolidate our offerings and position ourselves for further growth,” Minchow says.
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