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Discover Horizon (Newsletter)- Spring 2012

Discover is pleased to provide you with the Spring edition of the Horizon newsletter to keep you up-to-date on the latest news and information regarding the credit issuance landscape, as well as Discover. This issue includes information on card growth in the credit union industry, generational marketing tips, and more.

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Overview

Discover Financial Services (NYSE: DFS) is a leading credit card issuer and electronic payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer. Its payments businesses consist of Discover® Network, with millions of merchant and cash access locations; PULSE®, one of the nation's leading ATM/debit networks; and Diners Club International®, a global payments network with acceptance in 185 countries and territories. For more information, visit www.discoverfinancial.com.

Discover Network

Discover markets and supports a full range of credit, debit, and prepaid payment products and provides customer-centric tools and programs designed to help issuers, acquirers, and merchants drive loyalty, increase transaction volume, and run their business more effectively. Leveraging its rich legacy of fraud prevention, customer service, and innovative partner marketing practices, as well as its hands-on merchant, issuing, and acquiring knowledge, Discover sets itself apart by delivering meaningful and differentiated solutions.

Solutions

Discover offers a turnkey suite of solutions for credit unions spanning credit, debit and prepaid card programs. Solutions are built to attract and retain members through expanded, enhanced and competitive solutions as well as fit the needs of different credit union issuers. Credit unions may choose one or multiple products to suit their member base, satisfying both consumer and business needs. For credit unions interested in pursuing the small business marketplace, Discover also offers valuable small business industry resources.

Payment network solutions drive member loyalty and acquisition, responsible consumerism, product differentiation and innovation. Discover provides thoughtful customer service and support through a collaborative approach that includes a Discover Network Relationship Manager to help create programs and marketing materials to fit the unique needs of each credit union.

Moreover, Discover is committed to providing competitive economics for credit union issuers. Interchange rates are at parity with the other networks. Further, Discover does not have licensing fees or a sponsorship process, which eliminates a set of fees charged by other networks. In addition, its turnkey marketing solutions reduce campaign development costs for credit union issuers. The company’s analytics and research allow issuers to target campaigns to the appropriate audiences to get the maximum return on their investment.

NAFCU Member-Only Benefits

NAFCU member credit unions that join Discover receive a significant discount of the implementation fee. The standard implementation fee of $20,000 is reduced to $1,000 per credit union. If a credit union chooses to use an uncertified processor for their Discover program, the processor set-up charge is reduced from the standard process set-up fee of $20,000 to $1,000.

Educational Resources

Discover Horizon (Newsletter)- Spring 2012
Discover is pleased to provide you with the Spring edition of the Horizon newsletter to keep you up-to-date on the latest news and information regarding the credit issuance landscape, as well as Discover. This issue includes information on card growth in the credit union industry, generational marketing tips, and more.
Emerging Payments: Understanding and Leveraging the Opportunities (Podcast and Presentation)
As we all know, the payments landscape is changing. EMV is here. Mobile payments are growing and mobile sales in the U.S. are expected to increase at a 68% compounded annualized growth rate over the next five years. This session will provide you with an understanding of the impact and value these initiatives can bring to your credit union. Learn how to leverage the opportunities with key data and actionable take-aways for implementing a successful emerging payment strategy.
Discover Horizon (Newsletter) - Winter 2012
Happy New Year and welcome to Horizon. The past year brought some good news for Discover® credit card issuers, ending with positive growth in overall credit card spending, according to estimates by Mercator Advisory Group. Be sure to read more of their predictions for the 2012 credit market in this issue.
Credit Card Portfolio Growth Strategies for 2012 (Article)
As 2011 draws to a close, it has been another challenging year for credit unions and their members. Credit unions are focused on two goals: (1) continually seeking new ways to serve their members’ changing financial needs; and (2) growing membership specifically with Generation X and Y. One product that is often overlooked during this exercise is the credit card program.
Personal Financial Management Tools: A Platform for Member Engagement (Webcast)
Credit unions are known for the unique value they provide their members and the lasting relationships they build. In this webcast we take a look at one solution in particular that helps boost member engagement, generate new business and attract new members – Personal Financial Management tools.
How Discover® Helps Credit Unions Serve Their Members Better! (Webinar)
Are your debit and credit card products competitive in today’s market? Watch this recorded webinar as we uncover the reasons why more and more credit unions are choosing Discover as their credit and debit card solutions provider. You will learn about new growth opportunities for your card portfolio, what’s competitive in today’s market and how your credit union measures up.
Discover's Horizon (Newsletter) - Issue #5 - Summer 2011
There have been many exciting developments in the legislative and regulatory arenas so we’re including a lengthy “Washington Viewpoint” with as much up-to-date information for the financial services industry as possible. Also included is an overview of the Discover U.S. Spending Monitor on the current spending habits and trends in the economy as a whole, as well as some credit union–specific customer spending details.
2011 Debit Issuer Study from PULSE (Webcast)
In order to stay competitive in today’s market, it’s critical to benchmark your credit union’s programs against other best-in-class financial institutions. In this webcast, we review trends and best practices for your debit programs as revealed in the Annual PULSE 2011 Debit Issuer Study.
Credit, Debit and Prepaid Cards Industry Update: 2011 Study of Payment Trends and Member Preferences (Webinar)
What do the latest consumer card trends mean for your credit union? Watch this recently recorded webinar where we uncover the key findings from Discover’s second annual study on member card payment preferences and credit, debit and prepaid card market trends. Most importantly, we discuss how to use this valuable data to deliver well-executed programs, innovative tools and member-focused services that drive interest, adoption and usage within your member base.
Getting Started with Social Media (Webcast) - Members-Only
As the use of social networking continues to grow among credit unions and your members, you may be wondering how it all works and some helpful tips to get started with your own social media strategy. In this webcast we are joined by Kristi Lockhart, Business Development Manager for Discover Network, to discuss how credit unions are successfully using social media and some simple strategies to get started. (Viewable only to NAFCU Members)
Discover's Horizon (Newsletter) - Issue #4 - Spring 2011
The year 2010 was an interesting time for cards and payments, with legislative, as well as economic, challenges. This issue of the Discover Horizon Newsletter includes a report on growth in the card industry, an outlook on the 2011, an update on congressional activity affecting the consumer credit industry, and more.
Discover's Horizon (Newsletter) - Issue #3 - Winter 2011
Although this past year had its challenges with legislative issues and a slow economy, 2011 appears to have some exciting opportunities on the horizon. In this issue: Mobile Marketing — Timely, Relevant and Empowering; Suite of Products to Enhance Loyalty; Joint Venture to Build National Mobile Commerce Network; and Discover Orange Bowl.
21st Century Business: Credit Union Credit Card Options (Video Clip)
21st Century Business educates the business and consumer audience in an informative, objective format on the latest technologies, strategies and approaches impacting corporations, operations, and the public at large. Discover, along with NAFCU Services, provided viewers with key insights on how credit unions can increase membership and loyalty through their product offerings.
Key Findings from the 2010 Debit Issuer Study (Webcast)
PULSE® commissioned Oliver Wyman to conduct the 2010 Debit Issuer Study, the definitive assessment of the debit card market. The study was based on primary research with 64 financial institutions, was conducted in February and March 2010, and sampled 78.7 million debit cards, balanced across FI size, geography and network participation.
How Credit Unions Can Attract and Retain Next Generation Members (Article)
How well do you know your members? Gen Xers and Millennials seem to be cut from a slightly different cloth than their parents or grandparents. They live in a world without walls; believe there are no limits to what they can do; think that being a celebrity is a viable career option; and are comfortable living in an online world that affords them instant access and answers.
Discover® U.S. Spending Monitor Update - October 2010 (Webinar)
Learn latest trends in spending intentions and financial confidence of your members! Discover recently launched its quarterly Discover U.S. Spending Monitor Report for Credit Unions. The report gives credit union executives better insight into how members feel about the economy and managing their personal finances. In addition, credit union members are looked at in comparison to non-credit union members.
How Issuers Can Deliver Mobile Payments Today: A Guide for Contactless Sticker Issuance (Whitepaper)
Since the introduction of contactless payments in the earlier part of this decade, the payments industry has made steady progress creating consumer awareness while building the merchant point-of-sale infrastructure necessary to support widespread issuance of contactless payment devices. However, the “boom” in contactless payments has been delayed in large part because the introduction of mobile devices with embedded Near Field Communications (NFC) capabilities has not evolved as quickly as expected. Card issuers and mobile carriers continue to evaluate the best business model for offering this technology to their customers and a stalemate has persisted for the past two to three years. As a result, a new payment technology has taken center stage to ‘bridge the gap’: contactless stickers.
Market Update on Credit, Debit and Prepaid: An In-Depth Study of Member Payment Preferences (Presentation)
In this timely session at NAFCU's 43rd Annual Conference & Exhibition, detailed results from a recent data study on credit union member attitudes and preferences towards credit, debit and prepaid payment vehicles were presented.
Discover's Horizon (Newsletter) - Issue #1 - Summer 2010
We're excited to share with our credit issuing community the first issue of a publication you will be receiving on a regular basis. This newsletter will provide valuable information and insight into our business and the card-issuing marketplace.

News

Discover Financial Services Reports First Quarter Net Income of $631 Million or $1.18 Per Diluted Share (April 4, 2012)
Discover Financial Services (NYSE: DFS) today reported net income of $631 million for the first quarter of 2012, as compared to $465 million for the first quarter of 2011.
Survey Finds Credit Union Members Confidence on Personal Finances and the Economy Drops (January 18, 2011)
Discover U.S. Spending Monitor Survey finds credit union member confidence on personal finances and the economy drops. Sentiment among members of credit unions turns cautious post-holiday; increased spending expected on gas, groceries, mortgage.
The Credit Union Times - Discover Survey Finds CU Members More Confident About Finances (October 27, 2010)
Credit union members feel better about their personal finances than consumers generally and tend to have more money left over after paying monthly bills.
Discover's VP, Kevin O'Donnell mentioned in the Credit Union Journal (August 16, 2010)
CHICAGO–Offering both credit and debit cards goes a long way toward members seeing greater value in the credit union. The finding is one of several from a recent data study conducted by Discover Financial Services on credit union member attitudes and payment preferences.
NAFCU Selects Discover for Preferred Partner (May 6, 2010)
WASHINGTON — NAFCU Services Corporation (www.nafcu.org nafcuservices) announced today the addition of Discover® (www.nafcu.org discover) to its Preferred Partner Program for national payment network solutions for credit unions.