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Cadence Bank Hits $500M in Transactions with Debit Program

HOUSTON and BIRMINGHAM, Ala., Sept. 15, 2015 — Cadence Bank today announced it has surpassed $500 million in transactions through its Cadence Bank signature debit card program powered by Discover® Debit.

“This is a significant milestone for us,” explained Rick Claypoole, director of retail marketing and product development. “As an early adopter of Discover Debit, we saw great promise in a program that could provide cardholder value while simultaneously taking us down the road toward greater profitability.”

Cadence first launched its signature debit card program in April 2013 to enhance cardholder experiences with a compelling new alternative that offered lowest purchase price guarantee and fraud protection. For Cadence, aligning with Discover Debit also meant maximizing revenue potential through highly competitive interchange fees, lower network fees, simplified reporting and fee transparency.

Claypoole added that fee income is more challenging to acquire in today’s highly regulated environment. Debit interchange is one opportunity banks can capitalize on to generate fee income, particularly those banks with assets under $10 billion.

“We applaud Cadence Bank for helping to pioneer the Discover Debit program,” said Christine Walika, EVP of American Bankers Association, which has endorsed the program through its subsidiary, the Corporation for American Banking. “The availability of a powerful alternative debit card program for financial institutions at much lower costs to issuers is advantageous for the entire banking industry. We’re pleased to see our member banks are benefiting from this compelling alternative.”

Cadence views its debit card as a relationship product with the potential to offer significant customer retention value and drive higher deposits. While debit rewards programs have been on a decline following the introduction of the Durbin Amendment, Cadence has been successful in building a profitable program. “We’ve been proactively incentivizing cardholder usage with our debit rewards program,” said Claypoole.

Through Cadence’s Buzz Points Rewards Program, cardholders earn points with every purchase which they can redeem for gift cards to their favorite local businesses. The program’s ‘shop local’ approach also has had the added advantage of furthering relationships with merchants in the communities the bank serves.

“The customer relationship aspect of all our products is a critical factor in determining overall profitability,” Claypoole continued. “We are highly attuned and responsive to how our customers wish to interact with us. Adopting a debit card program with clear value to the customer has led to faster-than-expected debit card transaction volume and steady year-over-year deposit growth.”

In celebration of Cadence’s $500 million transaction milestone, the bank awarded five Apple Watches™ and 5,000 Buzz Points to five of its program participants. To be automatically entered, participants were required to use their Cadence Bank debit card to make at least one purchase during the month of August. Those who were not Cadence Bank debit card holders were invited to enter by completing an online entry form.

“Discover Debit has been foundational for us in developing a solid and successful program,” Claypoole said. “We continue to move forward, and with one major milestone realized, we’re now on a trek to hit $1 billion in transactions.”

About Cadence Bank

Cadence Bank, N.A., based in Birmingham, Ala., is a $5.7 billion bank with more than 100 locations in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Backed by 126 years of financial expertise, Cadence serves commercial and consumer clients with a full range of innovative banking and financial solutions designed to keep pace with their lives. These products and services include commercial and consumer banking, small business banking, treasury management, international banking, specialized lending, commercial real estate, wealth management, investment and trust services, financial planning, retirement plan management, business and personal insurance, consumer loans, mortgages, home equity lines and loans, and credit cards. Cadence Bank and its affiliates, Linscomb & Williams and Cadence Insurance Agency, are wholly owned subsidiaries of Houston-based Cadence Bancorp, LLC. Additional information about Cadence Bank is available at Cadence Bank, N.A. Member FDIC. Equal Housing Lender.

Contact Information: 

Danielle Kernell

Cadence Bank, N.A.
713-871-4051 direct | 713-392-7709 mobile

[email protected]

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