Discover 2015 Annual Report Download - page 8
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Home loans
Our exit of the mortgage origination business in 2015 was a diffi cult decision, but one
that was right for our company and our shareholders. However, we continue to off er home
equity loans, which we believe can be a signifi cant growth opportunity for Discover over
the longer term.
Deposits
At 2015 year-end, Discover had $31 billion in direct-to-consumer deposits, making this
our largest funding source. Our deposit products create a “win-win” for consumers and for
Discover, providing our customers with competitive rates and terms from a trusted brand,
and providing Discover with an attractive source of funding for loans.
Payments
We have a unique set of payment assets, which presents many opportunities. Discover is one
of only two U.S. credit card issuers that operates its own network—and the only one that also
has debit capabilities. Our assets in payments include the PULSE ATM/Debit network, the
Diners Club International global payments network and the Discover Network. Near term, we
are focused on leveraging our proprietary network for our card-issuing business, including
increasing acceptance and brand diff erentiation. Longer term, our goal is to grow payments
volume by 10% annually.
Owning our network allows us to drive signifi cant value to cardmembers, and is a critical
component of our strong brand. Additionally, our network gives us fl exibility to partner with
merchants, fi nancial institutions and regional networks around the world in innovative ways.
In 2015, we expanded acceptance to 37 million global merchant locations (up 20% from a
year ago) and 1.9 million ATMs. Through the eff orts of our Payment Services segment, we
were also able to bring Apple Pay™ to Discover Cardmembers in 2015. Overall, I am pleased
with the contributions our proprietary, branded network is making to our U.S. Card business.
That said, our Payment Services segment has been grappling with signifi cant challenges,
even as we continue to enhance our competitive position for the longer term. One of our top
priorities in 2016 is to position our payments segment to resume growth in the years ahead.
Meanwhile, our “net-to-net” agreements with other networks around the world, a growing list
of agreements with alternative payments providers, and our strategy to compete for all debit
give us good reason to be optimistic about Payment Services over the longer term.
Discover.com/company