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. This does increase the risk of credit default. This is something Chief Financial Officer Mark Graf needs to seriously consider. Discover Financial considers this a great opportunity in today’s challenging credit market. There is sure to be much more brainstorming at the Discover head quarters in order to create a viable program.