Discover Credit Cards – Private Label
Discover Financial Services is considering entering the private label market. Private label credit cards allow Discover to enter into relationships with outside companies to develop new and innovative credit card products. The move has been inspired by card-issuing banks such as HSBC. There are more risks associated with these type of credit products. Typically top-tier credit scores are not required. Less than perfect credit scores does increase the possibility of credit default. An increase in credit defaults is something Chief Financial Officer Mark Graf needs to consider seriously. Discover Financial considers this a great opportunity in today’s challenging credit market. There is sure to be much more brainstorming at the Discover headquarters to create a viable program.