Synchrony Financial SYF

Synchrony Financial (Synchrony), incorporated on September 12, 2003, is a consumer financial services company. The Company provides a range of credit products through programs it has established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. The Company's revenue activities are managed through three sales platforms: Retail Card, Payment Solutions and CareCredit. It offers its credit products through its subsidiary, Synchrony Bank (the Bank). Through the Bank, it offers a range of deposit products insured by the Federal Deposit Insurance Corporation (FDIC), including certificates of deposit, individual retirement accounts (IRAs), money market accounts and savings accounts.

The Company's Retail card is a provider of private label credit cards, and also provides Dual Cards and small- and medium-sized business credit products. Its Payment Solutions is a provider of promotional financing for consumer purchases, offering private label credit cards and installment loans. The Company offers various types of promotional financing, including deferred interest (interest accrues during a promotional period and becomes payable if the full purchase amount is not paid off during the promotional period), no interest (no interest on a promotional purchase) and reduced interest (interest is assessed monthly at a promotional interest rate during the promotional period). CareCredit is a provider of promotional financing to consumers for health and personal care procedures, products or services, such as dental, veterinary, cosmetic, vision and audiology.

The Company offers customers a CareCredit-branded private label credit card that may be used across its network of CareCredit providers. The Company offers three types of credit products: credit cards, commercial credit products and consumer installment loans. The Company also offers a debt cancellation product. It offers two types of credit cards: private label credit cards and Dual Cards. The Company's private label credit cards are partner-branded credit cards or program-branded credit cards that are used for the purchase of goods and services from the partner or within the program network. In Retail Card, credit under its private label credit cards is extended on standard terms only, and in Payment Solutions and CareCredit, credit under its private label credit cards is extended pursuant to a promotional financing offer. Most of its private label credit card business is in the United States. For some of its partners having locations in Canada, it also supports the issuance and acceptance of private label credit cards at their locations in Canada and from customers in Canada.

The Company's Dual Cards are credit cards that function as private label credit cards when used to make purchases of goods or services from its partners, and as general purpose credit cards when used to make purchases from other retailers wherever cards from those card networks are accepted or for cash advance transactions. It issues Dual Cards for use on the MasterCard and Visa networks and it has the ability to issue Dual Cards for use on the American Express and Discover networks. The Company offers private label cards and co-branded cards for commercial customers that are similar to its consumer offerings. It also offers a commercial pay-in-full accounts receivable product to a range of business customers. It offers commercial credit products through its Retail Card platform to the commercial customers of its Retail Card partners. Installment loans are closed-end credit accounts where the customer pays down the outstanding balance in installments. The Company also offers a debt cancellation product to its credit card customers online and, on a limited basis, by direct mail.

The Bank takes deposits through third-party securities brokerage firms that offer its FDIC-insured deposit products to their customers. The Company markets its deposit products through multiple channels including digital, print and radio advertising. Fiserv, Inc. provides the Company's platform for online retail deposits, including a customer-facing account opening servicing platform. The Company offers rewards to customers based on their tenure or balance amounts, including reduced fees, travel offers and concierge telephone support. It originates credit accounts through various channels, including in-store, mail, Internet, mobile, telephone and pre-approved solicitations.

The Company competes with Alliance Data Systems, American Express, Chase, Citibank, TD Bank, Wells Fargo, PayPal, Ally Financial, Capital One 360 (ING), Discover, Goldman Sachs, Nationwide, Sallie Mae and United Services Automobile Association.