DUBLIN: Consumers will be able to take out AA-branded credit cards from this summer, after the breakdown cover firm announced a partnership with Bank of Ireland to relaunch its financial services.
Over time the product range will be extended to savings accounts, unsecured consumer loans and mortgages. The credit will be provided by the BoI on a white-label basis, using the AA brand, as part of a 10-year partnership between the two.
Financial services used to be a big part of the AA’s business as it had a joint venture with HBOS before the financial crisis. Since the credit crunch, the AA has offered some financial products on a small scale, and the unit has shrunk to less than 1pc of the overall business.
The AA floated on the stock market last year after seven years of private-equity ownership, and the new management is keen to expand once more into finance.
The AA typically offers extra products to its four million members when they buy a new car or renew their car or home insurance. The company now hopes to use these occasions to increase cross-selling opportunities by advertising the new financial services range.
