Description: The following passage mainly covers the point of mysynchrony payment login. We can see the interview of Synchrony Financial CEO talking about the content that higher interest rates are not the bad things, there will be a good but tough economy.
When I listened to those calls, it was almost like a flashback and I told the team we headed into a tough economy, I think the calls are better now, I think there are people working which is a big one.
I think we see a positive trend and people are able to pay their bills, synchrony also makes consumer loans, so as interest rates go up, what impact will that have on your business?
As they go up, but we don’t anticipate, our loans are fairly small, so we’re changing an interest rate which is not that big of a deal for the consumer from an actual payment perspective for small.
So what are we hearing from economist? It sounds like the Federal. Reserve will begin raising interest rates a little later this year, are you doing anything to prepare for that?
Because we haven’t raised interest rates in a while, one thing is going to happen, it’s not going to be one incremental raise in September, but maybe there might be another one in the first quarter next year.
So we have to be ready to handle those changes interest rates now, what will we be saying? Where’s the interest rate level? I’m not an economist and I am not going to try to say that.
What is it going to be? I think they’re going to be up, I’ll say that, I think it’s going to be small increments, I think the Fed is going to take their time to move rates and see how the economy is moving.
So I think it’s not going to be a big shock in a strange way, I think rising interest rates tells us the economy is back on track and it’s not a bad thing Margaret, you’re tuned in to consumer attitudes about spending after all synchrony is the largest provider of private label credit cards.
So if you had to be on a scale of one to ten rate, how strong is consumer spending with 10 being the best? What would you say? I’d say it’s somewhere in the six six or seven, you know consumers are back in spending.
However, consumers are still cautious and we can tell by the size of the basket, how often are they shopping? So I do think consumers are still being thoughtful about how they spend those extra dollars.
We haven’t seen the gas prices that have come down, we haven’t seen that transforms into big retail sales, so I think consumers are still very thoughtful about how they spend their money.
How about paying their bills? What about delinquencies? Delinquencies are fantastic now, they’re in our business, it’s almost out of historic lows, so you know the good news.
What you’re seeing is that people have some extra dollars from gas, they are putting it towards paying down their bills, which I think is good for the overall economy, I understand that you listen in on the customer service calls from time to time.
What are you learning about people and their money issues? I did this during the crisis, I listen to calls every single week collection calls, because I want to get a sense of what was happening out there and you know I started out as a collector back in 1980 and that’s at Citigroup.