This morning, we learned that the US Treasury is expected to award the Direct Express card program contract to the Bank of New York (BNY). Just yesterday, I posted news of Comerica Bank's announcement that it will likely lose the contract based on the Treasury's preliminary notice. The current agreement with Comerica Bank ends in January 2025.
According to data in contract bid documents, more than $3 billion in combined federal benefit payments are loaded onto cards monthly. The loss of such a lucrative contract underscores how critical it is that financial services companies monitor the third parties they engage to provide services to their customers.
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