Discover Financial Services investor relations material

Credit Card Experts

Established in 1985 as a subsidiary of the department store Sears, Discover Financial Services has grown into a prominent figure in the financial services industry. Initially recognized for launching the Discover Card, it was one of the earliest credit cards to introduce a cash-back rewards system. Over the years, Discover has expanded its portfolio beyond credit cards to encompass a variety of banking services such as savings accounts, personal loans, and debit cards.

Sears Subsidiary

Discover Financial Services was established in 1985 as a subsidiary of Sears. That same year, it introduced the Discover card, which stood out from other companies at the time by not having an annual fee and offering a Cashback Bonus to its users. In time, this has become something standard for credit card providers to offer. In a significant move the following year, Discover set up its own merchant network. This was something that helped Discover stand out, as most new credit cards typically operated on established networks. The company was spun off from Sears during the mid-’90s and eventually ended up under the ownership of Morgan Stanley, who in turn divested from Discover Financial in 2007, which is when the current form of the company went through a separate listing.

The Services

Discover Financial Services offers a diverse range of financial products and services. Beyond its credit card offerings, the company also provides various types of loans. Their banking arm, Discover Bank, offers a variety of deposit products such as savings accounts, checking accounts, certificates of deposit, and money market accounts. This is all done under an online bank structure, something that means that Discover is able to keep costs down for both the company and the customer. Discover is now one of the major card brands globally, alongside Visa, MasterCard, and American Express.

The Discover Global Network

Discover Global Network represents the third-largest payment network in the world, encompassing Discover Network, Diners Club International, PULSE, and various allied networks. This extensive network ensures a broad reach, enabling acceptance in more than 190 countries and territories globally. With millions of merchant acceptance locations and over a million ATM and cash access points, the company also forms partnerships with regional payment networks, ensuring a more robust local presence and versatility.