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SlideshowShould Telcos Become Banks?

Not many in the industry believe telcos should become banks.
Not many in the industry believe telcos should become banks.

Phil Harvey 1/23/2020 | 11:44:37 AM
Verizon Has a Credit Card This is more like affinity marketing but it does get Verizon a little more time inside the customer's wallet and closer to influencing and steering their spending habits.

Here's the text of the press release:

BASKING RIDGE, NJ and STAMFORD, Conn. – January 23, 2020 – Today, Synchrony (NYSE: SYF) and Verizon (NYSE: VZ) announced a partnership in which Synchrony will become the exclusive provider of Verizon's co-branded consumer credit card. Together, the companies will launch the first credit card designed specifically for Verizon customers.

"We are thrilled to be working with Verizon as they continue to bring innovation to their customers. This partnership is a great growth opportunity for Synchrony as we continue to diversify our portfolio," said Margaret Keane, CEO, Synchrony.

"Verizon's loyal customers expect the best possible experiences and today's announcement extends that commitment to the credit card market," said Ronan Dunne, Executive Vice President and Group CEO - Verizon Consumer.

The new Verizon credit card from Synchrony is expected to launch during the first half of 2020.
jerehada 1/7/2020 | 4:26:17 PM
There is something in this Banks look at cost income ratio to measure efficiency and you would think like all the Challenger Banks telcos would be able to compete with lower operaiting cost models. Telcos also seem to manage debt, issue corporate bonds and achieve favourable rates due to the predictability of their revenue flows. All the same reasons PE is buying telco assets. They run phone leasing (loans), scaled customer service operations which would easily support banking applications and manage lots of customer data albeit difficult to explot under operating licences. Orange was also a leader on Quad Play which is now normal practice so who's to say in 5 years Banking could not be the 5th play. On the debit side CSPs are comparatively poor at developing software for pure digital experiences but no wose than most major Banks. Question is if there is any profit in Banking in the segments they identify. Challenger banks seem to struggle with profitability higher profits bring higher risks in lending portfolios. 
buyuktopcuhakan 1/3/2020 | 6:36:29 AM
We are approaching time for consolidation of distinct Services. .

 
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