TSYS fills critical job of Netspend president with London executive Knutson
Credit-card processor TSYS has filled the top position in its key prepaid card business line with a veteran executive from London.
The Columbus-based firm said Friday that Kelley Knutson has been promoted to TSYS senior executive vice president and president of Austin, Texas-based Netspend, which markets and distributes prepaid debit cards to both individual and commercial customers. He reports directly to Troy Woods, the chairman, president and chief executive officer of TSYS.
Knutson replaces Chuck Harris, who left Netspend in December to oversee the “Texas Exes,” the nonprofit University of Texas Alumni Association. Harris, a Texas graduate, had led Netspend since 2010.
“Kelley’s vast experience in the financial industry and TSYS made him the ideal candidate to lead our Netspend business,” Woods said in a statement. “He has been the driver of our international issuing business and continues to deliver financial targets year after year.”
Knutson has been with TSYS since 2003. That’s when he became executive vice president at TSYS and president of London-based International Issuer Solutions. Prior to that, he was CEO of Clear Money Ltd., which offered electronic bill management services for commercial clients in the United Kingdom. He also has worked with GE Capital and Visa.
“I am thrilled to join the talented Netspend team who serve the millions of Americans who choose prepaid as their financial tool,” Knutson said in a statement. “I’m impressed with Netspend’s customer-first mentality and innovative approach to developing market leading solutions and confident in the future growth opportunities, as we continue to focus on the customers and businesses we serve.”
Knutson takes the helm of Netspend with the Consumer Financial Protection Bureau saying Friday that it has finalized updates to the 2016 prepaid rule that protects customers using the cards. The rules include requirements for treatment of funds on lost or stolen cards, error resolution and investigation, upfront fee disclosures, access to account information and overdraft features if offered in conjunction with prepaid accounts. The bureau also delayed by a year the implementation of the rules, which now take effect in April 2019.
TSYS spokesman Cyle Mims released a statement Friday concerning the delay in the new rules.
“Netspend supports robust and smart regulation of our industry that promotes financial inclusion and empowerment for American consumers and businesses, including those without access to traditional financial services,” the company said. “The adjustments to the prepaid accounts rule preserve consumer access to prepaid accounts, while also providing additional time for compliance. Netspend remains committed to developing innovative financial solutions and products that give consumers the choice and control they need to improve their financial lives.”
It was last April that Netspend settled a complaint by the Federal Trade Commission that it deceived customers in its marketing campaign over several years about access to funds deposited onto their cards. Terms of the settlement, which included Netspend not admitting any wrongdoing, called for the prepaid card operator to help customers involved in the complaint to access their funds. Netspend also agreed to refund millions of dollars in fees incurred by customers.
Netspend is a major revenue generator for TSYS, which purchased it in 2013 for $1.4 billion. Last year, the prepaid operation did a gross dollar volume of just over $32 billion, which was up more than 11 percent from $28.7 billion in 2016.
This story was originally published January 26, 2018 at 3:46 PM with the headline "TSYS fills critical job of Netspend president with London executive Knutson."