Discover Bank

Discover Bank product information and reviews

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More info of Discover Bank

At Busconomico we have discussed several financial institutions with a history that often exceeds 100 years.

However, there are also more recent entities that play an important role in the U.S. economy, such as Discover Bank. For this reason, we will tell you a little more about its history and current affairs.

Discover Bank's beginnings

The origin of Discover Bank is surrounded by a series of events that took place in the 1980s, when the famous Discover Card appeared.

In 1986, the launch of this product was sponsored by the Sears stores, the Coldwell, Banker & Company franchise, and the Dean Witter Reynolds brokerage firm, operating under the name of Sears Financial Network.

The situation would change in 1993, when Sears sold its financial division to Dean Witter Reynolds, which took over the Discover brand and was renamed Dean Witter, Discover & Co.

Then in 1997, this new company would be absorbed by Morgan Stanley, a company that would let Discover go (2007) to become Discover Financial Services, Inc.

Before this happened, Discover Bank was born as a product of the purchase of the Greenwood Trust Company, whose foundation dates back to 1911.

This acquisition in 1985 would later be renamed Discover Bank in 2000. It operates online only and has only one physical office on East Market Street (DE).

Highlights prior to Discover Financial Services

Much of Discover Bank's fame is due to its connection with the Discover card, a brand recognized by all Americans.

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Before Morgan Stanley facilitated the independence of Discover Financial Services and its listing on the stock exchange, there are several events worth mentioning:

• In 1995, the DiscoverCard.com website launches several applications that allow you to pay bills, receive email notifications, collect rewards and earn additional rewards through its online partners.
• In 1998, the Discover Platinum Card appears, a premium credit card with no annuity, a low interest rate, several ways to increase rewards, extended credit lines and enhanced services.
• DFS (Discover Financial Services) acquired the Pulse payment network in 2005. This purchase gave Pulse and its network of institutions (banks, credit unions and savings institutions) access to more than 4 million merchants affiliated with Discover.
• That same year (2005), the first China UnionPay card transaction in the United States was made, which meant a new strategic alliance between this company and DFS for the mutual acceptance of credit cards.
• During 2006, DFS announces its reciprocal acceptance agreement with JCB, Japan's largest card issuer. In addition, it joins forces with Visa, MasterCard and Amex to install the Payment Card Industry Security Standards Council, reinforcing transaction security.

Consolidation of DFS and Discover Bank

The listing of Discover Financial Services on the NYSE would bring with it a new phase of consolidation for this company, its products and services. This change would drive several important milestones, such as:

• The launch of the Motiva card in 2007, a plastic that rewards cardholders with cash rewards if they pay their balance on time for 6 months in a row. This year they also replaced the Platinum card with the More Card, to diversify the use of credit.
• In 2008 came the acquisition of Diners Club International, allowing Discover to become a global brand. This facilitated the integration of the Discover network with the Diners network worldwide.
• The agreement with Russia and Ecuador to issue Discover cards outside the United States for the first time in 2012. This was followed by the alliance with PayPal for its merchant network to enable this service.
• Between 2013 and 2019 the company introduces the "it" series of credit cards known for their cashback promotions in various categories. This includes the Chrome for students (2% on gas and restaurants), the Miles Card (1.5 mill x dollar), the Secured Credit Card for building credit, and the Business, which offers unlimited cashback on all purchases (1.5%).
• In 2019, Discover Bank eliminated the vast majority of fees and charges on its accounts and time deposits.

In short, Discover Bank is a subsidiary institution of Discover Financial Services, Inc.

It is an entity that only offers online services in categories such as: credit cards, student loans, personal loans, home equity loans and different types of accounts (savings, checking, CDs, IRAs, Money Market, etc.).

Due to its evolution within the U.S. market, it is ranked as the 28th largest bank in assets and the third-largest card issuer.

Español: Productos del banco online Discover Bank