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Discover capabilities


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Discover capabilities

  1. 1. Current capabilities and Differentiation in 2015and BeyondJoseph DeLisle IS714December 12, 2011
  2. 2. Discover is not just a payment network• But a bank holding company• Has relationships with customers not just merchants and banksTraditional Card Network- No relationship with cardholder
  3. 3. Discover has direct relationships with cardholders in addition to providing the payment networkLooking to the future…Leverage Consumer Data-credit and purchase history…To offer revenue maximizing bank products through newly acquiredstudent loan corporation and current savings and loan products
  4. 4. Core Capability 2015 and beyond: Creating deep relationships with cardholders With a network roughly 2% the size of Visa and Mastercard, Discover must increase the revenue per cardholder.People- Cardholders and Discover’s merchant network will continue to supplyDiscover with consumer purchasing data and Discover personnel will leverage thatto deepen relationshipsGovernance- Discover must adhere to governmental and industry consumerstandards to protect consumer privacy and to combat fraud. In addition it shoulduse the data collected to help shield itself from excessive bad debt and charge-offsTechnology- Discover should leverage its online presence which gives it acompetitive advantage over “brick and mortar” banks. Discover’s embrace oftechnology and a digital rather than physical footprint can allow it to price morecompetitively and expand its networkProcess- Discover should analyze the large amounts of consumer behavior andcredit history data to target cardholders with “traditional bank” products like CDs ,savings accounts, personal and student loans and mortgages