Synchrony Financial (SYF) expands partnership with Sweetwater – May 25, 2022

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Synchrony Financial (SYF Free Report) recently extended its strategic collaboration with Sweetwater, a renowned US-based e-commerce supplier of musical instruments and audio equipment. For more than a decade, SYF has extended its support for Sweetwater to provide cost-effective and easy financing alternatives. With this latest move, Synchrony Financial aims to revamp its funding program.

Following the expansion of the partnership, Synchrony Financial and Sweetwater will strengthen enterprise data sharing and bring a digital evolution in payment solutions. Data sharing paves the way for better personalization and better credit decisions. Meanwhile, Synchrony Financial’s “Direct to Device” contactless solution and prequalification capabilities will continue to be integrated into Sweetwater’s private label credit card program. These measures, in turn, will not only make the digital application and purchase process easier for the music enthusiasts, professional musicians and sound engineers Sweetwater caters to, but will also make the process of applying for credit simple and secure for customers.

With Direct to Device, a technology that enables the use of smartphones for an enhanced contactless experience, Sweetwater can send a credit request directly via email or SMS to a customer’s mobile device. Prequalification can be used to monitor customers’ credit eligibility without affecting their credit score.

Initiatives similar to the last reinforce Synchrony Financial’s ongoing efforts to provide affordable financing options in the music industry. So these consistent efforts translate into stronger customer relationships, giving way to higher card acquisitions, stronger lines of credit, increased repeat sales, and greater customer lifetime value.

Synchrony Financial’s initiatives to serve the music industry are not new. In April 2022, SYF renewed its strategic collaboration with Guitar Center, the largest musical instrument retailer, to continue providing a private label credit program to the latter so that customers can buy at any store. Guitar Center or through its website.

Not limited to the music industry, Synchrony Financial is pursuing a series of acquisitions and renewed alliances with several payment solution partners across the United States. A strong digital arm has emerged from these efforts, which has helped SYF facilitate point-of-sale financing. This, in turn, increases the purchasing power of customers as they can easily opt for credit at any time. A suite of differentiated solutions enables leading consumer financial services provider Synchrony Financial to extend safe and secure shopping to its consumers at every stage of the buying process.

An enhanced portfolio of payment and financing solutions from Synchrony Financial has made it a preferred choice among those keen to expand their business prospects and extend a seamless customer experience. SYF’s list of partners continues to grow, with 36 partners included and 38 relationship renewals last year. Starting in the first quarter of 2022, Synchrony Financial remains committed to strengthening its portfolio, as indicated by the inclusion or renewal of more than 15 programs, including Generac Power Systems, Mattress Warehouse, Guitar Center and NAPA Auto Care. A growing portfolio should pave the way for increased purchase volume and loan growth for SYF. This, in turn, could strengthen the interest income of the financial service provider.

Shares of Synchrony Financial are down 29% year-to-date, against a 13.6% drop in the sector. SYF currently carries a Zacks Rank #3 (Hold).

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Actions to Consider

Some top-ranked stocks in the financial space are Capital City Bank Group, Inc. (CCBG free report), Oaktree Specialty Lending Company (OCSL free report) and East West Bancorp, Inc. (EWBC free report). While Capital City Bank currently carries a Zacks rank of #1 (strong buy), Oaktree Specialty Lending and East West Bancorp carry a Zacks rank of 2 (buy). You can see the full list of today’s Zacks #1 Rank stocks here.

Capital City Bank’s net income beat estimates in two of the last four quarters and missed twice, with the average surprise being 1.93%. Zacks’ consensus estimate for CCBG earnings in 2022 suggests a 10.1% improvement on the figure released a year ago, while the same for revenue suggests 1.4% growth. Capital City Bank’s earnings consensus mark for 2022 has moved north 17.8% in the past 30 days.

Oaktree Specialty Lending earnings have exceeded estimates in each of the past four quarters, with the average surprise being 13.63%. Zacks consensus estimate for OCSL’s earnings in 2022 suggests a 12.5% ​​improvement on the figure published a year ago, while the same for revenue suggests 21.5% growth . Oaktree Specialty Lending’s 2022 revenue consensus mark has moved north 4.3% in the past 30 days.

East West Bancorp’s net income beat estimates in three of the last four quarters and fell short once, with the average surprise being 6.25%. Zacks’ consensus estimate for EWBC’s earnings in 2022 suggests a 14.9% improvement on the figure published a year ago, while the same for revenue suggests 16.5% growth . East West Bancorp’s 2022 earnings consensus mark has moved north 0.3% in the past 30 days.

Capital City Bank shares have gained 0.7% year-to-date. Meanwhile, shares of Oaktree Specialty Lending and East West Bancorp have lost 9% and 11.9%, respectively, over the same period.