Discover Financial Services’ ads focus primarily on its credit card brand, but the company is now considering highlighting its less visible online banking.
Over the past two years, the Riverwoods, Illinois-based company has wondered when to start advertising its depot products, CEO Roger Hochschild said this week.
“I guess that’s something you can expect to see in the future,” Hochschild told analysts Tuesday during a presentation at the 2021 Goldman Sachs financial services conference in the United States. “This is an important area of opportunity for us. “
Discover operates a full-service online bank that offers cash-back checking accounts, savings accounts, money market accounts and certificates of deposit, as well as personal loans and home equity loans. The company with $ 109 billion in assets also markets student loans to consumers through education channels.
Credit card receivables at the end of the third quarter made up about 78% of Discover’s $ 90 billion in loan balances, while the company had $ 10 billion in private student loans and $ 7 billion in personal loans.
Meanwhile, direct deposits to consumers accounted for 65% of the company’s total liabilities at the end of September.
Discover sees opportunities to improve its cross-marketing by raising the profile of its online banking, Hochschild said.
In recent Facebook ads, Discover cites online banking as the first of its three main services, along with credit cards and loans.
“We are a leader in multiple loan products and make it a great model where we have strong relationships with consumers on both the asset and liability side, and so we increasingly want to showcase our depot products as well, ”said Hochschild.
Giving more publicity to its online banking operations could help Discover sell banking services to its student loan borrowers, Hochschild suggested.
Student loans “are a great way to let students and their parents know our brand when they are making a very important financial decision and sometimes the first of many financial decisions,” he said.
Discover had considered launching an advertising campaign for its online banking services before the pandemic hit, Hochschild said.
“We decided not to do it because, like most banks, we saw a huge rush of cash. And we were in a situation of overfunding, so it really didn’t make sense to spend money advertising depository products, ”Hochschild said.
Discover, founded in 1985, operates a strong credit and debit card network as well as a global card network that includes the Diners Club brand. The company wants to make sure it capitalizes on all of its advertising and marketing opportunities.
“We continue to develop the Discover brand and broaden the recognition [for it], as well as making people understand that we are not just a credit card issuer, ”Hochschild said.