Synchrony Financial Overview

Synchrony Financial

New York is where Synchrony Financial is incorporated. The primary line of business for Synchrony Financial is financial services. Their fiscal year, as it relates to financial reporting, concludes on December 31. The SEC registration information for Synchrony Financial is available on this website, together with a summary of all the documents the company has filed (S-1, Prospectus, Current Reports, 8-K, 10K, Annual Reports).

Consumer financial services are offered by Synchrony Financial. Through partnerships with a number of national and local shops, small business owners, manufacturers, buying clubs, trade associations, and healthcare service providers, the company offers a variety of loan solutions. Retail Card, Payment Solutions, and CareCredit are the three sales platforms used to handle the company’s revenue-generating activities. It makes its credit products available through Synchrony Bank, a subsidiary (the Bank). It provides a variety of FDIC-insured deposit products through the Bank, including certificates of deposit, individual retirement accounts (IRAs), money market accounts, and savings accounts. The company provides three different credit product categories: consumer installment loans, commercial credit products, and credit cards. The business also provides a product for debt forgiveness. It provides Dual Cards and Private Label Credit Cards as its two credit card options.

The only ways to access Synchrony’s services and accounts are through its mobile banking applications and internet banking website since the bank only offers online and mobile banking. This does imply that physical branch access is completely inaccessible, but it does mean that you will be able to monitor and control your accounts whenever you want and from any location. Even so, Synchrony has produced one of the best online/mobile banking experiences available today, as evidenced by the fact that both the Apple and Android app stores have given it 4.7 stars out of 5.

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The history of Synchrony begins in 1932. During the Great Depression, GE Capital Retail Bank was established, offering clients a line of credit to buy GE products. Up until it was separated from its parent corporation in June2014, the lending division was known as GE Capital Retail Bank. On March13,2014, GE announced its plan to spin off the division of its GE Capital business devoted to retail credit cards in a filing with the Securities and Exchange Commission. The name of the new business, according to GE’s SEC filing, would be Synchrony Financial. In its first public offering on July31,2014, Synchrony Financial raised $2.88 billion.

Synchrony bought GP Shopper in 2017.

2018 saw Synchrony buy Loop Commerce, which operates the trademarked GiftNow digital gifting platform. The acquisition of PayPal’s $7.6 billion credit receivables portfolio was Synchrony’s largest program in 2018. Additionally, PayPal decided to make Synchrony Bank its only issuer for the PayPal Credit point-of-sale lending program in the US through 2028. Furthermore, PayPal consented to extend its current co-brand credit card partnership with Synchrony for an additional ten years. The “PayPal transaction” as a whole came to an official closure in July 2018.

2019 saw the announcement by Synchrony that it has acquired Pets Best, a company that provides wellness programs and insurance for dogs and cats. Pets Best will run on the CareCredit system from Synchrony. The Singapore sovereign wealth fund, GIC Private Limited, holds 7.72% of Synchrony’s stock.

The largest issuer of private label credit cards in the United States is Synchrony. Companies like Amazon, Lowe’s, Guitar Center, Gap, Cathay Pacific, Rakuten, Verizon, and Sam’s Club have worked with Synchrony. Synchrony increased the availability of its auto and home acceptance sites and value offerings in 2019. The Synchrony HOME Credit Card, which consumers may use to finance their home requirements at more than a million retail outlets across the country, was introduced by Synchrony in partnership with Discover Financial. Additionally, Synchrony expanded its Car Care acceptance network to over 500,000 sites in 25 categories, including gas stations, car washes, parking, and ride-sharing services.

There are four “Innovation Stations” owned by Synchrony, and they are situated in Hyderabad, India, Stamford, Connecticut, Chicago, Illinois, and Kettering, Ohio. Synchrony Ventures, the corporate ventures division of Synchrony, makes investments in early-stage businesses that offer cutting-edge goods and technologies.

In 2016, Synchrony Financial unveiled two new products: Digital Apply, a website for credit applications, and SyPI (Synchrony plug-in), a tool for mobile apps from merchants that allows users to access their credit card data. Nearly $2 billion in credit card payments has been processed using SyPI as of 2019 at more than 20 shops.

For users to manage their Amazon Store Cards using voice technologies, Synchrony developed the Alexa Store Card skill in 2018.

The majority of Synchrony’s retail partners have implemented Sydney, Synchrony’s virtual assistant for cardholders that is AI-enabled.

Synchrony’s Center of Excellence in Cybersecurity was introduced in2016, according to an announcement made by the University of Connecticut’s School of Engineering.

At the University of Illinois, Synchrony inaugurated an emerging tech center in 2018.

The Synchrony Digital Technology Center at the University of Connecticut’s Stamford campus was inaugurated by Synchrony in 2019. The corporation made a $1 million commitment to the “Connecticut Commitment,” a project to support lower-income Connecticut students attending the University tuition-free, during the Center’s dedication.

The U.S. Consumer Financial Protection Bureau and the Department of Justice negotiated a $225 million settlement with Synchrony in June2014, just before the company’s debut on the New York Stock Exchange, after it signed into a consent decree with the Consumer Financial Protection Bureau. According to the settlement, the business had engaged in unfair and discriminatory credit card practices while operating as GE Capital Bank, particularly with regard to shady enrollment procedures for add-on services like financial hardship assistance. The bank reportedly said it stopped using such sales tactics in 2012 and has already reimbursed more than $11 million in fees as a consequence of its own review, according to USA Today. However, the CFPB ordered additional redress in the amount of several millions of dollars, and consumer complaints to the Bureau about these actions continue to this day.