Comerica Bank Statement on Direct Express Program Transition
Comerica Bank announced that the Treasury Bureau of the Fiscal Service has selected a new financial agent for the Direct Express program. Comerica, which has managed the program since 2008 serving 3.4 million cardholders, has agreed to a three-year extension of services to facilitate an orderly transition to the new financial agent.
Comerica Bank ha annunciato che il Bureau del Tesoro del Servizio Fiscale ha selezionato un nuovo agente finanziario per il programma Direct Express. Comerica, che gestisce il programma dal 2008 e serve 3,4 milioni di titolari di carta, ha accettato un prolungamento di tre anni dei servizi per facilitare una transizione ordinata verso il nuovo agente finanziario.
Comerica Bank anunció que la Oficina del Tesoro del Servicio Fiscal ha seleccionado un nuevo agente financiero para el programa Direct Express. Comerica, que ha administrado el programa desde 2008 y sirve a 3.4 millones de titulares de tarjetas, ha acordado una prórroga de tres años de los servicios para facilitar una transición ordenada al nuevo agente financiero.
Comerica Bank는 재무부 세무 서비스가 Direct Express 프로그램의 새로운 금융 대리인을 선정했다고 발표했습니다. Comerica는 2008년부터 프로그램을 관리하며 340만 카드 소지자에게 서비스를 제공해 왔으며, 새로운 금융 대리인으로의 원활한 전환을 위해 3년 연장 계약에 동의했습니다.
Comerica Bank a annoncé que le Bureau du Trésor des Services fiscaux a sélectionné un nouvel agent financier pour le programme Direct Express. Comerica, qui gère le programme depuis 2008 et dessert 3,4 millions de titulaires de cartes, a accepté une extension de trois ans des services pour faciliter une transition ordonnée vers le nouvel agent financier.
Comerica Bank gab bekannt, dass das Tresoramt des Finanzdienstes einen neuen Finanzagenten für das Direct Express-Programm ausgewählt hat. Comerica, das das Programm seit 2008 verwaltet und 3,4 Millionen Karteninhabern dient, hat einer dreiäjhrigen Verlängerung der Dienstleistungen zugestimmt, um einen geordneten Übergang zum neuen Finanzagenten zu erleichtern.
- Three-year service extension agreement secured
- Currently serves 3.4 million Direct Express cardholders
- Loss of Direct Express program contract after transition period
- Future revenue reduction from program termination
Insights
The Direct Express program transition represents a significant revenue stream loss for Comerica Bank, which has managed approximately 3.4 million federal benefit payment cards since 2008. The program provides electronic benefit payments to Social Security and other federal benefit recipients who don't have traditional bank accounts. While the three-year extension provides a buffer for orderly transition, this will ultimately impact Comerica's fee income and government services revenue segment. The bank will need to identify new revenue streams or growth opportunities to offset this loss. This development signals a material change in Comerica's relationship with federal payment systems and could affect its competitive position in government banking services.
"We have been honored to support the Direct Express program since 2008 and remain committed to serving its 3.4 million cardholders. At the request of the Fiscal Service, we have entered into a three-year extension of services to allow for the orderly transfer of services to the new financial agent."
About Comerica Bank
A subsidiary of Comerica Incorporated (NYSE: CMA), Comerica Bank is a financial services company headquartered in
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SOURCE Comerica Bank
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