Discover Financial Service Analysis: Draft 1

18 Aug 2011 Wattanapong Veerakul

Purpose of This Presentation: To analyse opportunities with Discover Financial Service.

Agenda

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2

Discovery Financial Service Snapshot

Opportunities

Discover Business

Discover has two major businesses as below. It has three payment networks as purse debit network, discover network, and diners club.

Direct Banking Business

Payment Network Business

Payment Networks

Pulse has strong debit card and ATM card networks. Although Discover network serves only in US market, discover network volume is close to that of pulse.

Pulse focuses on domestic debit card network and on ATM network globally. In US alone, Pulse serves 289,000 ATMs.

Discover focuses on credit card in domestic market (US).

BBL would benefits from pulse networks as cardholders can come from over 80 countries

Payment Networks

Pulse has the highest volume among all payment network of Discover.

Both transactions and volume of pulse significantly increase.

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Discover Card

Clearly, discover card is the leading of US country. However, discover card is strong in credit card position.

Consumer Deposit

Clearly, discover has grown to be a leader in direct deposits.

Personal Loan

Discover focus on prime segmentation. However, its share in prime market is just only 8% of total market.

Purpose of This Presentation: To analyse opportunities with Discover Financial Service.

Agenda

1
2

Discovery Financial Service Snapshot

Opportunities

Opportunities

Case 1 can generate $0.61 million per year and case 2 can generate $1.65 million per year.
If we allow pulse network to connect with BBL ATM networks

1. With Pulse Networks

Pulse allows only US domestic connecting to BBL ATMs

All Transactions 1.22 Bn

Projection of Transactions

121,801

Projections of Transaction Fees $609,003

Year 2010: 3.3Bn from 783K ATMs Suppose only 0.01% of US people come to Thailand so it is 1.22Bn from 289K ATMs
All Volumes $44 Bn Projection of Volumes $4.4 millions

Year 2010: 3.3Bn from 783K ATMs Suppose only 0.01% of US so it is 1.22Bn from 289K ATMs people come to Thailand
Pulse allows global people connecting to BBL ATMs
All Transactions 3.3 Bn Projection of Transactions 330,000

From estimated 121,801 transactions and BBL charged for $5 per transaction.

Projections of Transaction Fees $1.65 millions

Year 2010
All Volumes $118 Bn

Suppose only 0.01% of global people come to Thailand

Projection of Volumes $12 millions

Year 2010

Suppose only 0.01% of global people come to Thailand

From estimated 330,000 transactions and BBL charged for $5 per transaction.
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Opportunities

Need to explore more details on this solutions.

2. Use Discover Network

If we allow our BBL cardholder can use discover networks

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THANK YOU

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