Advanzia Bank Takes Over Catella Credit Card Portfolio in Luxembourg
FACTS
- The Luxembourg-based online bank Advanzia Bank acquires the credit card portfolio from the Swedish Catella Bank.
- Advanzia Bank is one of the leading online credit card issuers in Germany, with strong geographical presence in Luxembourg, in Austria and in France.
- They acquired more than 300,000 new customers in 2018, including Miles & More in France, which launched a Mastercard Gold card in October with Advanzia.
- Catella Bank specialises in consulting services and property investments, with operations in 14 countries. They manage more than €20 billion in assets.
- This transaction likely to be worth nearly €35 million, should be completed by March 2019.
About Advanzia Bank
- Founded in 2005 in Luxembourg
- Core business: Issues BtoC & BtoBtoC credit cards and payment solutions
- 1.2 million credit cardholders
- €1.2 Bn outstanding loans (+31%)
- €2.3 Bn turnover in 2017
- 140+ partner companies, and banks
CHALLENGES
- Advanzia further reaches out for Europe. Their current portfolio of 140 partners is being provided 65 new client banks in 12 countries. This buyout will be added to their “turnkey” BtoBtoC card issuing offer called Omnium.
- For Catella, the idea is to let go of an activity which does not fully match their core business (investment, corporate and private banking), as well as of a customer portfolio which comes with strong regulatory constraints.
MARKET PERSPECTIVE
- Prior to this transaction, Advanzia also bought out My Money Bank’s French portfolio of revolving consumer loans in 2017, which significantly improved their position on the French credit card market.
- Considering their encouraging growth, Advanzia plans to aim for Spain in 2019, too. And, they are designing a mobile app for improving customer interactions with their services in Germany.