Synchrony Financial Roars into Q3 with Record-Breaking $50 Billion in Purchase Volume
In a remarkable display of growth, Synchrony Financial has announced its strongest third-quarter results to date, highlighted by a staggering 8% increase in total purchase volume to nearly $50 billion.
The company's President and Chief Executive Officer, Brian Doubles, attributed the impressive performance to broad-based purchase volume growth across each of their five sales platforms. Spend within Synchrony's Diversified & Value platform increased by 13% compared to last year, primarily driven by partner expansion and higher gas prices.
The Home & Auto platform saw a 9% increase in purchase volume, thanks to the performance of new programs, select furniture retailers, and the impact of higher gas prices. In contrast, the Lifestyle platform reported a 6% growth in purchase volume, driven by strength in categories like other apparel and luxury, as well as the impact from new programs.
The company's digital platform sales grew by 5%, fueled by strong customer engagement across partners with broad diversified offerings and refreshed value propositions. Notably, Health & Wellness purchase volume increased by 3%, primarily reflecting growth in pet-related spending.
Synchrony's co-branded cards played a significant role in the quarter's success, with total spend reaching $26.5 billion – an increase of 23% compared to last year. This impressive growth was driven by new programs and product upgrades that delivered enhanced value propositions and increased utility, as well as higher broad-based spend across their card programs.
Discretionary and non-discretionary out-of-partner spend on consumer co-brand cards both grew by double digits, with strength in discretionary spend coming from categories like electronics and entertainment. Meanwhile, gas station and discount store spend drove growth in the non-discretionary category.
The company's proprietary underwriting and data analytics platform, PRISM, was instrumental in unlocking purchasing power for credit-ready customers, particularly among Gen Z and millennials. This demographic has seen significant growth across Synchrony's portfolio, with spend growing fastest in the Diversified & Value, digital, and Home & Auto platforms.
Synchrony is leveraging over 9,000 data variables in cash flow underwriting to responsibly deliver purchase power to credit-ready customers, even when they are earlier in their financial journeys. This approach has enabled Synchrony to build relationships and deliver experiences that can unlock greater financial flexibility over time.
As a testament to the company's commitment to providing innovative financing solutions, Synchrony recently introduced CareCredit Pay Later – an enhanced installment loan product designed for Health & Wellness-related expenses. This move further solidifies the company's position as a leader in responsible and customer-centric lending practices."
