Discover Financial Services is a digital banking and payment services company. It provides digital banking products and services and payment services through its subsidiaries. The company offers credit card loans, personal loans, home loans, and deposit products. It also operates the Discover Network, the PULSE network, and Diners Club International, collectively known as the Discover Global Network. The Discover Network processes transactions for Discover-branded credit and debit cards and provides payment transaction processing and settlement services. PULSE operates an electronic funds transfer network, providing financial institutions issuing debit cards on the PULSE network with access to ATMs domestically and internationally. Diners Club is a global payments network of licensees, which are generally financial institutions, that issue Diners Club branded charge cards and/or provide card acceptance services.

• Employees: 21,100 (as of December 31, 2023)
• Geographic Footprint: Primarily in the U.S., with some international operations
• Headquarters: Riverwoods, Illinois
• Founded: 1960
• Number of locations/facilities: Multiple call centers, processing center, and corporate headquarters
• Revenue: $17.8 billion (FY2023)
• Key Subsidiaries/Brands: Discover, PULSE, Diners Club International

• CEO: Michael G. Rhodes
• CFO: John T. Greene
• Other Key Executives: Daniel P. Capozzi (President - Consumer Banking), Jason P. Hanson (President - Payment Services), Hope D. Mehlman (Chief Legal Officer, General Counsel and Corporate Secretary), Michael E. Roemer (Chief Risk Officer), Jason J. Strle (Chief Information Officer), Keith E. Toney (President - Credit and Decision Management)

Michael G. Rhodes joined Discover in February 2024. John T. Greene has been CFO since September 2019. Other executives have held their current roles since July 2023 or earlier.

• Annual Revenue: $17.8 billion (FY2023)
• Net Income: $2.9 billion (FY2023)
• Total Assets: $151.5 billion (as of December 31, 2023)
• Key Financial Highlights: Net income decreased from $4.4 billion in FY2022 to $2.9 billion in FY2023. Total loans grew by 15% to $128.4 billion. Credit card loans grew by 13% to $102.3 billion. The net charge-off rate for credit card loans increased to 3.90% and the delinquency rate increased to 3.87%. Direct-to-consumer deposits grew by 19% to $84.0 billion. Payment Services transaction volume increased by 10% to $364.6 billion.

Discover offers a range of digital banking and payment services:

• Credit Cards: Credit cards with various rewards programs, including cashback bonuses, miles, and other benefits.
• Private Student Loans: Unsecured loans for students, with options for deferment and in-school payments.
• Personal Loans: Unsecured loans for debt consolidation and other purposes.
• Home Loans: Closed-end loans secured by a first or second lien on a customer's home.
• Deposit Products: Savings accounts, certificates of deposit, money market accounts, IRA savings accounts, and checking accounts.
• Payment Services: Payment transaction processing and settlement services through the Discover Global Network, including PULSE and Diners Club.

Discover operates through two main segments:

• Digital Banking: Includes consumer banking and lending products, such as credit cards, private student loans, personal loans, home loans, and deposit products.
• Payment Services: Includes PULSE, Diners Club, and Network Partners, which provide payment transaction processing and settlement services on the Discover Global Network.

Discover's current strategic priorities include managing risk, enhancing customer relationships, and growing its business through new programs and features. The company is also focused on investing in technology to improve cost efficiencies and customer experiences. Key strategic initiatives include:

• Exploring the sale of its private student loan portfolio.
• Developing new programs, features, and benefits to attract and retain customers and merchants.
• Leveraging strategic partnerships and sponsorship properties to drive loan growth.
• Investing in technology to manage risk and service network partners and merchant relationships.

Discover operates in the highly competitive consumer financial services industry. Key aspects of the competitive landscape include:

• Primary Industry: Consumer financial services, digital banking, and payment services.
• Market Trends: Increasing competition from non-traditional providers, advancements in financial technology, and evolving consumer preferences.
• Major Competitors: Visa, Mastercard, American Express, Bank of America, JPMorgan Chase, Capital One, Citibank, and various fintech companies.

• Merger Related Risks: Risks associated with the pending merger with Capital One, including regulatory approvals, integration challenges, and potential failure to realize anticipated synergies.
• Credit Risk: Risk of loss due to borrower default, requiring effective credit risk management strategies.
• Market and Liquidity Risk: Exposure to adverse movements in market rates, prices, and liquidity, which could impact the company's ability to meet its obligations.
• Operational Risks: Risks related to inadequate or failed internal processes, people, systems, or external events, including cybersecurity threats.
• Regulatory Risks: Risks associated with compliance with laws, regulations, and supervisory requirements, which could impact business strategies and operations.