Prepaid debit cards for private banking clients represent an unusual application of a payment product more commonly associated with financially underserved consumers. Through its strategic relationship with Deltec Bank & Trust, uBUCK is extending its prepaid card platform to high-net-worth individuals and families while also pursuing opportunities across private banking networks in multiple global markets.
The arrangement could also provide a foundation for broader expansion. By offering white-label card programs to financial institutions and digital asset exchanges, uBUCK can potentially support a range of prepaid products while allowing participating organizations to offer cards under their own programs.
An article in Yahoo Finance announced LiteLink’s announcement of its first shipment of uBUCK prepaid cards to Deltec:
“LiteLink Technologies Inc. (“LiteLink”) is pleased to announce that its subsidiary uBUCK Technologies SEZC (“uBUCK”) has shipped the first batch of uBUCK prepaid debit cards to Deltec Bank & Trust (“Deltec”). Under the Strategic Alliance Agreement, Deltec agreed to sell uBUCK prepaid debit cards from the uBUCK platform to their existing bank and wealth management clients, market the card program to regional private bank networks in the Caribbean, South America, Asia and Europe, as well as provide a technology platform that is a dedicated white label card programs to their existing digital asset exchange clients.”
Prepaid debit cards are most frequently associated/purchased by financially underserved households. In an interesting twist, Deltec is targeting their private banking clients, who are individuals and families with a high net worth.
“uBUCK, a Bahama based firm, plans to use its initial strategic agreement as a stepping stone to globalize their debit card reseller program, allowing any approved financial establishment to offer a debit card program to their existing or new customer base.”
There are many forms of prepaid debit cards that could be offered via the bank including payroll, general purpose reloadable, travel cards, and gift cards, to name a few. Deltec Bank & Trust will be one of the few Bahamian owned banks that offer prepaid cards.
The introduction of prepaid debit cards for private banking clients illustrates the versatility of prepaid products and their potential to serve consumers across the financial spectrum. Depending on the program design, financial institutions can use prepaid cards for applications ranging from travel and payroll to general-purpose spending and gifting.
For uBUCK, the Deltec relationship also provides an opportunity to expand its prepaid card reseller model internationally. By combining prepaid technology with white-label capabilities and Deltec’s relationships in private banking, the companies could introduce prepaid payment options to customer segments and geographic markets where these products have been less common.
Overview by Sue Brown, Director, Prepaid Advisory service at Mercator Advisory Group