Pioneer Credit has signed a memorandum of understanding (MoU) with Goldfields Money, an ASX-listed authorised deposit-taking institution, for the development and distribution of banking products including credit and debit cards.
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The MoU will include the development of a debit card product and a credit card product under the ‘Pioneer Credit’ brand.
Issued by Goldfields, the debit card will be distributed to Pioneer Credit’s 110,000 customer base, while the credit card will be offered initially to Pioneer customers who have paid their accounts in full.
Under the agreement, Pioneer Credit will manage systems for customer acquisition and operational development. The MoU will deliver opportunities for Goldfields Money to cut costs and leverage Pioneer Credit’s development capability.
The MoU aligns with Goldfields core strategy of using its banking status to deliver financial products and services to non-ADI financial service providers. It aims to offer growth opportunities to Goldfields Money as well as a range of longer term strategic options for Pioneer Credit.
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By GlobalDataGoldfields Money CEO David Holden said: "The partnership with Pioneer Credit is part of our core differentiation strategy to upscale through investment in distribution arrangements and to increase our core earnings by providing banking products to non-ADI financial services providers.
"We are excited about the potential that the outcomes of the MOU with Pioneer Credit will bring to Goldfields Money and look forward to a mutually profitable relationship with the rollout of the card products intended to commence later this calendar year," added Holden.
In April 2015, Pioneer Credit has acquired a 14.1% stake in Goldfields Money.
