Big news item as Alliance Data shifts to Fiserv.
Alliance Data is one of the top lenders in the private label credit card space and faces Synchrony, Citi Retail Services, and Capital One PLCC. Mercator Advisory Group covered the industry in this recent Research Report.
Alliance Data recently changed executive management after a series of bumps in the road, tapping Ralph Andretta, formerly of Citi, to run the business. The timing was perfect for the management change, particularly since Alliance Data is contending with the floundering U.S. retail market and the impact of COVID-19 on sales and credit quality.
The announcement explains the processing change.
- “The strategic partnership announced today reflects our commitment to invest in competitive technology and provide greater value and service to our brand partners and their customers,” said Ralph Andretta, president and chief executive officer, Alliance Data. “Our robust suite of payment products, industry-leading data and analytics capabilities and turnkey credit marketing services, combined with a modern, flexible and scalable platform from Fiserv, will allow Alliance Data to achieve greater agility and speed-to-market for a variety of new, innovative products and solutions.”
And Fiserv’s CEO comments:
- “We are honored to support Alliance Data, a premier payment solutions provider, as they make this important strategic move as part of their broader technology modernization initiatives,” said Frank Bisignano, president, and chief executive officer, Fiserv.
The release also quotes Nick Barnes, whom I know from his days at ACI Worldwide.
- “By leveraging the resiliency, scalability, and operational efficiencies gained through the Fiserv relationship, we are able to provide new, more compelling tools for our brand partners and their customers,” said Nick Barnes, chief information officer, Alliance Data. “As part of broader technology modernization efforts, this partnership allows us to be more nimble, manage risk more effectively, and leverage efficiencies gained to focus on the strategic aspects of our business.”
Fiserv’s latest win is notable. It is an indicator of how well the First Data/Fiserv integration is going; it places Alliance Data in a position that will serve it well as the economy recovers, and as a Fiserv exec says, “We are proud to add them as a client.”
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group