Discover 2011 Annual Report Download - page 5

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Against this backdrop, Discover performed very well in 2011, making significant progress on our performance
priorities, and positioning the company for future success with a relentless focus on serving customers well.
DIRECT BANKING IS THE FUTURE
When it comes to serving customers in U.S. retail banking, direct banking is the future. According to an
American Bankers Association study, most customers prefer the online channel over bank branches. In fact,
the big move now is not from bricks-and-mortar to online, but from personal computers to mobile devices
for online access—a trend that represents new opportunities for Discover in both direct banking and payments.
In addition to aligning with consumer preferences, direct banking allows us to broaden and deepen our
relationships with existing customers, and to attract new customers. We believe the direct model is also
inherently more efficient than the traditional branch-banking model, which means we can offer consumers
better value while still achieving strong financial returns for Discover.
Our plan for the years ahead is to continue to expand our direct banking footprint, using our Discover card
business as the cornerstone, and leveraging our expertise in customer service, online experience, direct
marketing and unsecured lending—as well as the strength and reputation of the Discover brand.
CONSUMER DEPOSITS
[Billions]
Brokered
Direct-to-Consumer
2007
21.2
3.4
$24.6
2008
22.3
6.1
$28.4
2009
19.4
12.6
$32.0
2010
13.7
20.6
$34.3
2011
13.3
26.2
$39.5
2007
$186
99
86
2008
$221
102
106
13
2009
$232
97
109
26
2010
$248
103
118
27
2011
$280
111
140
29
TOTAL NETWORK VOLUME
[Billions]
Diners Club International
PULSE
Discover Network
*Includes other consumer loans and loans held for sale
**2007–2009 Non-GAAP, as-adjusted
DIRECT BANKING LOANS
[Billions]
2010
$48.8
45.2
2011
$57.3
8.1
2.6
46.6
2007
$48.2
47.9
2008
$51.1
49.7
2009
$50.9
47.5
Personal
Student /Other*
Credit card**