Synchrony Selects Atlanticus for Preferred Second Look Financing Program

Rhea-AI Summary

Synchrony (NYSE: SYF) has announced an enhanced partnership with Atlanticus Holdings (NASDAQ: ATLC) focusing on second look financing solutions. This partnership will provide preferred second look financing for private label credit cards and installment loans under the Fortiva brand. The collaboration aims to increase sales and brand loyalty for Synchrony merchants by offering more customers access to credit. This program will streamline enrollment processes and offer favorable merchant pricing. The initiative is expected to attract a broader customer base, including underserved populations. The partnership, which began in 2019, leverages Atlanticus' analytics and technology to offer inclusive financial solutions and potentially allow customers to graduate to Synchrony credit products.

Positive

• Enhanced partnership with Atlanticus to increase customer access to credit.
• Expected increase in sales and brand loyalty for Synchrony merchants.
• Streamlined enrollment process and favorable merchant pricing.
• Potential to attract a broader customer base, including underserved populations.

Negative

• None.

Insights

Financial Analyst

The enhanced partnership between Synchrony and Atlanticus is an important strategic move, particularly for Synchrony's merchants and partners. From a financial perspective, this collaboration is expected to result in higher sales and increased brand loyalty for merchants by expanding credit access to a broader customer base. Atlanticus, known for its robust analytics and technology, will play a important role in implementing a seamless, secure and user-friendly second look financing system. For investors, this translates to the potential for higher revenue growth and a stronger market position for both companies. However, it’s essential to monitor how quickly and effectively these benefits materialize in financial statements. Short-term gains may be modest, but the long-term projection appears favorable, positioning both companies to tap into underserved markets and promote inclusive financial solutions.

Market Research Analyst

The expanded partnership significantly impacts the consumer credit landscape. The program's ability to provide a preferred second look financing solution is a compelling value proposition for merchants struggling to capture financially underserved consumers. This can drive customer acquisition and retention for Synchrony’s merchants by enabling more flexible credit options. Additionally, the ease of use and streamlined enrollment process are critical factors that could lead to higher adoption rates among small businesses and healthcare providers. From a market dynamics perspective, this partnership could pressure competitors to enhance their own credit offerings, possibly leading to a shift in industry standards. Investors should watch market share movements and customer feedback to gauge the partnership's success over time.

Credit Market Expert

This partnership underscores a broader trend towards more inclusive financial solutions. By addressing the needs of financially underserved consumers, Synchrony and Atlanticus are tapping into a significant market segment often overlooked by traditional lenders. The ability for customers to graduate to Synchrony credit products over time fosters a pathway to credit improvement and financial inclusion. It's also worth noting the favorable merchant pricing aspect, which could make these financing products more appealing to a variety of businesses. However, the success of this partnership hinges on effective implementation and the actual credit performance of the newly acquired customers. Investors should remain cautious but optimistic, looking for concrete metrics on customer acquisition and repayment behaviors to fully assess the program's impact.

Enhanced Multi-Year Partnership Aims to Drive Merchants' and Partners' Business Growth with Seamless Customer Experience

STAMFORD, Conn. and ATLANTA, June 26, 2024 /PRNewswire/ -- Synchrony (NYSE: SYF) announced today an enhanced partnership with Atlanticus Holdings Corporation (NASDAQ: ATLC). Atlanticus, through its bank partnerships, facilitates second look point-of-sale consumer credit programs spanning general purpose credit cards, private label credit cards, and installment loans predominately under the Fortiva brand. This enhanced partnership will deliver Synchrony merchants and partners a preferred second look financing solution designed to easily offer more customers access to credit, helping to increase merchants' sales and brand loyalty. 

Under this multi-year partnership, the program managed by Atlanticus will be the preferred second look financing solution for private label credit cards and installment loan products across Synchrony businesses. Synchrony merchants, including small businesses, healthcare providers and retail partners, will now have a streamlined enrollment process, a system that prioritizes ease of use and security, and favorable merchant pricing with Atlanticus.

"Synchrony and Atlanticus have partnered since 2019 to support merchants across industries in maximizing their growth potential by responsibly offering financing solutions to more customers," said Florin Arghirescu, senior vice president and chief product officer at Synchrony. "This partnership aligns with our mission to help merchants and providers build loyalty through flexible products, capabilities and a great customer experience."

The availability of this solution is expected to attract a broader customer base, including those financially underserved and those interested in general purpose credit cards, private label credit cards and installment loan product offerings made available through the program. This partnership will enable consumers who may not receive offers from Synchrony to obtain an instant second look for a credit or financing product.

"We are excited to expand our partnership with Synchrony to be the preferred second look financing platform for private label credit cards and installment loan products," said David Caruso, chief commercial officer at Atlanticus. "This partnership furthers the ability to offer inclusive financial solutions, allowing our merchant partners to say, 'yes' more often."

For more than 25 years and through multiple economic cycles, Atlanticus has leveraged proprietary analytics and innovative technology to enable its bank partners to offer fair credit products to meet the financial needs of everyday Americans.

This partnership is designed to allow customers who demonstrate responsible usage and repayment behavior over time the opportunity to graduate to a Synchrony credit product when appropriate. 

Since 2019, Synchrony has offered multi-source financing solutions to merchants and partners across the enterprise in the form of private label credit cards, general purpose credit cards and short term and long-term installment loan products through one seamless, digital application.

Learn more about this partnership and how to enroll at www.syf-frc.com.

About Synchrony
Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our "partners."  We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences.  We offer the right financing products to the right customers in their channel of choice. For more information, visit www.synchrony.com.

About Atlanticus Holdings Corporation (NASDAQ: ATLC)
Empowering Better Financial Outcomes for Everyday Americans

Atlanticus' technology allows bank, retail, and healthcare partners to offer more inclusive financial services to everyday Americans through the use of proprietary analytics. We apply the experience gained and infrastructure built from servicing over 20 million customers and $40 billion in consumer loans over our more than 25 year operating history to support lenders that originate a range of consumer loan products. These products include retail and healthcare private label credit and general purpose credit cards marketed through our omnichannel platform, including retail point-of-sale, healthcare-point of-care, direct mail solicitation, internet-based marketing, and partnerships with third parties. Additionally, through our CAR subsidiary, Atlanticus serves the individual needs of automotive dealers and automotive non-prime financial organizations with multiple financing and service programs.

Media Contacts

Synchrony
Lisa Lanspery
Lisa.Lanspery@syf.com

Atlanticus
Investor Relations
investors@atlanticus.com
770-828-2000

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SOURCE Synchrony Financial

FAQ

What is the enhanced partnership between Synchrony (SYF) and Atlanticus?

Synchrony (SYF) and Atlanticus have enhanced their partnership to provide preferred second look financing solutions for private label credit cards and installment loans.

How will the SYF and Atlanticus partnership impact merchants?

The partnership will streamline the enrollment process, offer favorable merchant pricing, and potentially increase sales and brand loyalty by providing more customers access to credit.

When did Synchrony (SYF) and Atlanticus start their partnership?

Synchrony (SYF) and Atlanticus started their partnership in 2019.

What types of credit products are included in the SYF and Atlanticus partnership?

The partnership includes private label credit cards and installment loans under the Fortiva brand.

Who can benefit from the SYF and Atlanticus second look financing program?

The program aims to benefit a broader customer base, including financially underserved populations, by providing access to credit products.