Comerica Bank Statement on Direct Express Program Transition

Rhea-AI Summary

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.

Positive

• Three-year service extension agreement secured
• Currently serves 3.4 million Direct Express cardholders

Negative

• Loss of Direct Express program contract after transition period
• Future revenue reduction from program termination

DALLAS, Nov. 21, 2024 /PRNewswire/ -- Comerica Bank has issued the following statement regarding today's announcement by the Treasury Bureau of the Fiscal Service of its new selected financial agent for Direct Express program.

"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 Dallas, Texas, and is strategically aligned by three business segments: The Commercial Bank, The Retail Bank and Wealth Management. Comerica, one of the 25 largest commercial U.S. financial holding companies, focuses on building relationships and helping people and businesses be successful, providing nearly 380 banking centers across the country with locations in Arizona, California, Florida, Michigan and Texas. Founded on Aug. 17, 1849, in Detroit, Michigan, Comerica continues to expand into new regions, most recently in the Southeast, including North Carolina and Mountain West Market in Colorado. Comerica has offices in 17 states and services 14 of the 15 largest U.S. metropolitan areas, as well as Canada and Mexico. Comerica reported total assets of $79.7 billion at Sept. 30, 2024. Learn more about how Comerica is raising expectations of what a bank can be by visiting www.comerica.com, and follow us on Facebook, X, Instagram and LinkedIn.   

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SOURCE Comerica Bank

FAQ

What is happening to Comerica Bank's (CMA) Direct Express program?

Comerica Bank's Direct Express program is being transferred to a new financial agent, with Comerica agreeing to a three-year extension to ensure smooth transition of services.

How many cardholders does Comerica Bank's (CMA) Direct Express program serve?

Comerica Bank's Direct Express program currently serves 3.4 million cardholders.

When did Comerica Bank (CMA) start managing the Direct Express program?

Comerica Bank has been managing the Direct Express program since 2008.

How long is Comerica Bank's (CMA) transition period for Direct Express program?

Comerica Bank has agreed to a three-year extension of services to facilitate the orderly transfer to the new financial agent.