Type: Public (NYSE: DFS)
Industry: Financial Services
Founded: Carol Stream, Illinois, United States
Revenue: $8.241 Million
Website: http://www.discovercard.com

Company History

Discover Financial Services was founded in the year 1986 and has become one of America’s most commendable financial services organizations. This direct banking and payment service company is one of the biggest card issuing institutions in the country. The Discover card was introduced at the Super Bowl in 1986 and is the pioneering cash rewards card. Discover has gained a reputation for being the first credit card that offered cash back as rewards and were instated with no annual fee. The DFS message was simple and the company stands true to it even today, ‘Very few things cost you nothing to get                                                                        and pay you back every day.’

Over the years, the company has offered consumers a variety of payment networks like Discover Network, Diners Club as well as PULSE. This ensures that customers enjoy the use of their Discover cards in more than 185 countries and territories worldwide. With millions of locations based all over the globe, clients enjoy cash access globally and usage of cards at a multitude of merchant locations. This publicly owned financial entity offers a variety of services like online savings accounts, money market accounts, certificates of deposit and personal as well as student loans. The credit card function remains the company’s most well evolved one with a multitude of cards like the simple cash rewards card, Discover More, Discover Open Road, Discover Motiva, Discover Business and Business Miles, and the Discover Student More card.

Key Facts and Figures

  • Ranked No.1 in customer loyalty as per the 2010 Brand Keys Customer Loyalty Engagement Index.
  • Won recognition in the credit card function for more than 13 years in a row.
  • DFS won first spot in identity fraud safety and resolution through Javelin Strategy & Research.
  • Cater to billions of transactions every year through well established networks.
  • Discover’s technology and innovations department has been ranked amongst the top few by Technological innovations in 2009.
  • Facilitates global use of their credit cards.
  • Known for the ease of use and convenience that offered to clients.
  • Discover cards offer a 0 percent introductory APR (Annual Percentage Rate) on their balance transfers and purchases made using the card.

Building Your Own Credit Card

Amongst the many cash back offers and functionality that the Discover Financial Services Company offers, prized services include the ‘Card Builder’ function. This online processing option allows you to design the specifications of your card. A customer can select the rewards program and pick a card designed to complement their personality. Card specifications like introductory APR and its duration, introductory balance transfer rates and durations as well as standard purchase rate array can be chosen by the customers themselves, making it a highly personalized card.

In order to help customers make the right choice of card and services, Discover offers financial education resources on their online portal which allows customers to browse through important tips and facts about debit, the economy today, credit management, identity theft as well as savings solutions.

Financial Summary

Discover Financial Services stocks have been on the ‘Buy’ list for many years now and are considered a sound investment which is a testament to the financial strength of the company. Both Moody’s and Better Business Bureau rate the company as stable with a good financial outlook.

Competition

Discover Financial Services issues its own cards through their Discover Bank arm. Their competitors for leading card brand are -

  • Visa
  • MasterCard
  • American Express

Other credit card issuing financial services that are considered competitors are:

  • Bank of America
  • JPMorgan Chase
  • Citigroup