Synchrony and Atlanticus Forge Groundbreaking Partnership to Expand Consumer Financing Options

Synchrony Financial and Atlanticus Holdings have announced a significant expansion of their existing partnership, creating a new multiyear agreement that aims to broaden financing options for consumers and merchants. The partnership positions Atlanticus, the parent company of the Fortiva brand, as the preferred provider of second-look financing for Synchrony's private label credit cards and installment loan products.

Unlocking Diverse Financing Solutions for Consumers and Merchants

Enhancing Synchrony's Ecosystem

Florin Arghirescu, senior vice president and chief product officer at Synchrony, emphasized the strategic importance of this enhanced partnership, highlighting the need to consider all three key components of Synchrony's ecosystem: partner banks, consumers, and merchants. With over 71 million active customers and 460,000 merchant locations, Synchrony recognizes the importance of developing solutions that cater to both consumer and merchant needs.The decision to deepen the partnership with Atlanticus was driven by extensive market research and merchant feedback. Synchrony's recent survey of its merchant base revealed a growing demand for what Arghirescu described as "multisource financing." Merchants expressed a desire for an integrated program that would streamline the onboarding and underwriting processes, as well as provide a seamless consumer application experience.

Streamlining the Enrollment Process

A key aspect of the expanded partnership is the streamlined enrollment process for both merchants and consumers. For merchants, the integration is described as "turnkey," eliminating the need for separate underwriting and integration processes when working with a secondary lender. This means that if Synchrony signs up a specific merchant, Atlanticus and its Fortiva brand will be seamlessly integrated into the overall ecosystem.On the consumer side, Arghirescu emphasized the focus on a "fully integrated experience that starts with one app." This includes features like mobile wallet provisioning and QR code presentation, aiming to enhance the customer experience and simplify the application process.

Diversifying Payment Solutions

The partnership aligns closely with Synchrony's broader strategy of offering diverse payment solutions and expanding its product suite. Arghirescu highlighted the company's commitment to "unique experiences and relentless innovation" in how it presents its products, emphasizing the importance of omnichannel and digital capabilities.A key component of this strategy is Synchrony's focus on installment loans and pay-later options. Arghirescu stressed Synchrony's belief in the "power of choice," offering installment products alongside traditional credit options to cater to diverse consumer needs. This includes the scaling of Synchrony's pay-later product, the Synchrony installment offering, which aims to broaden the utility of the company's product portfolio.

Serving Underserved Consumers

While the expanded partnership is designed to serve consumers with thin credit files or those new to credit, Arghirescu was quick to clarify that this is not necessarily indicative of broader economic conditions. He emphasized that the consumer remains "very, very strong" and that the partnership is more about providing credit utility to specific segments of the population, particularly those looking to build credit.The collaboration is expected to benefit a wide range of Synchrony merchants, including small businesses, healthcare providers, and retail partners. By offering a preferred second-look financing solution under the Fortiva brand, which includes general-purpose and private-label credit cards as well as installment loans, the partnership aims to help merchants grow by providing responsible financing solutions to a broader customer base.For consumers who may not qualify for initial credit offers from Synchrony, the partnership provides an opportunity to receive instant second-look offers through Atlanticus' program. Arghirescu stated that this approach aligns with Synchrony's commitment to financial inclusion and responsible lending practices.

Fostering Credit Building and Graduation

The partnership also includes a provision for customers who demonstrate responsible usage and repayment behavior to potentially graduate to Synchrony credit products over time, further emphasizing the companies' commitment to helping consumers build and improve their credit profiles. This collaboration is expected to not only increase Synchrony's customer base but also provide Atlanticus with access to Synchrony's extensive merchant network.David Caruso, chief commercial officer at Atlanticus, expressed satisfaction with the deepened partnership, stating, "This collaboration enhances our ability to provide inclusive financial solutions, helping our merchant partners serve more customers effectively."