Thursday, May 28th, 2015
By: Lars Adam Akerblom
Seattle based upscale retailer Nordstrom, announced last year that it was seeking a financial partner to manage credit card receivables. It has now been announced that Toronto-Dominion Bank is acquiring Nordstrom’s Visa and private label credit card portfolio. The bank is Canada’s second largest and will soon assume control over the portfolio which totals around $2.2 billion in receivables.
Toronto based TD Bank Group markets itself as a technology forward institution and is among the world’s leading online financial services firms, with approximately 9.7 million active online and mobile customers. As of January 31st 2015, the bank’s total assets amounted to CDN$1.1 trillion, equivalent to just under USD$900 billion.
Nordstrom was adamant throughout the process that they maintain control over all aspects of the card that the customer interacts with directly, including the loyalty program. “When we began this process a year ago, our number one goal was to continue to take care of our customers directly,” said Nordstrom co-president Blake Nordstrom in a statement. “We are pleased to meet this goal through our collaboration with TD, a premiere global financial institution and experienced credit card partner.” The detailed terms of the agreement have not been disclosed, but Nordstrom announced in a news release that they will “be entitled to receive a substantial portion of net revenue generated by the credit card accounts.”