BMW Financial Services is leveraging U.S. Bank‘s resources to launch a co-branded credit card in January 2020, a move that will enable the captive to concentrate on the auto industry “rather than act as a bank,” a U.S. Bank spokeswoman told Auto Finance News. As a part of the agreement, U.S. Bank will acquire BMW Bank’s existing credit card portfolio.
The new program will allow consumers to apply for vehicle financing with a one-click application process on mobile devices and receive an instant decision from U.S. Bank, which will underwrite the loans.
The card will feature a rewards program by which consumers can earn and redeem points towards BMW products and services, some of which have not been fully defined. The card integrates with existing digital wallets, such as Apple Wallet, and will have a tap function to be used at contactless readers.
In the five months leading up to the launch of the card, U.S. Bank and BMWFS will need to complete building the new product and integrate with BMW’s channels and systems, a bank spokeswoman said.
“Our drive to enhance the customer experience through the products and technology capabilities of today’s payment services is our key objective,” said BMWFS North America Chief Executive Ian Smith.
The partnership is a move by both the captive and U.S. Bank to prioritize boosting customer experience with technology. “Putting the customer at the center is a commitment we share at U.S. Bank,” said John Steward, president of retail payment solutions at U.S. Bank.