Good morning, everyone. Welcome to Synchrony's 2021 investor day. We're very excited to have you join our discussion of Synchrony's business model, long-term growth trajectory, and financial operating framework, and current quarter outlook. Throughout the course of today's event, members of our executive leadership team will reference a PowerPoint presentation that'll be broadcast as we move through the discussion. Once today's event is concluded, we'll post a separate PDF file of this presentation with the event webcast link for downloading and free scrolling purposes. Please note, all presentations were previously recorded last week. The Investor Day webcast link and presentation will be accessible on the Investor Relations section of our website, synchronyfinancial.com. Before we get started, I'd like to remind you that our comments today will include forward-looking statements. These statements are subject to risks and uncertainty, and actual results could differ materially. We list the factors that might cause actual results to differ materially in our SEC filings, which are available on our website. During today's event, we'll refer to non-GAAP financial measures in discussing the company's performance. You can find a reconciliation of these measures to GAAP financial measures in our materials for today's call. Finally, Synchrony Financial is not responsible for and does not edit nor guarantee the accuracy of our teleconference transcripts provided by third- parties. The only authorized webcasts are located on our website. This morning, you'll hear from some of our leadership team, and we'll conclude with a live Q&A session. To that end, for those of you who registered to attend and are viewing through our virtual event platform, please be sure to submit your questions on the Q&A tab located on the right side of your screen. You can submit questions throughout the course of today's presentation. This will allow us to collate them and kick off the Q&A session as swiftly as possible. With that, Brian, I'll hand things over to you. Take it away. Good morning, thank you all for joining us today. I'm really excited for today's session. On behalf of everyone at Synchrony, we appreciate you taking the time to hear more about our business and the long-term vision we continue to execute against. The foundation of our business goes back almost 90 years. I think that's important because it really speaks to the experience we have in this space, but it also shows how we've constantly reinvented ourselves in the face of different economic cycles, changing consumer and partner preferences, and evolving payment and financing trends. We're a business that constantly challenges the status quo. We invest heavily in innovation and technology, and we clearly recognize that how we've done things in the past will not be how we do things in the future. I think the last seven years are certainly evident to that. We have continuously evolved and adapted our business over the years, and I think we've delivered some pretty impressive results. Since our IPO in 2014, we've generated over $900 billion of purchase volume on our products, reached almost $80 billion of receivables, and we serve more than 65 million customers and secured 29 patents. We've also really diversified our business during that time. In the last seven years alone, we added over 130 new partners. We renewed and expanded more than 160 partnerships, and we completed four acquisitions. This expansion has really positioned us well in areas where we see a lot of opportunity and where we have a real competitive advantage. We kick today's event off with a video that really highlights the breadth and depth of our partner network today. We make it easy to finance anything from appliances, electronics, and home improvement projects to apparel, health and wellness, and power sports. Regardless of whether it's happening in person, online, or on a mobile phone, we're focused on providing our partners and customers with both choice and a seamless customer experience. Our ability to leverage our strengths while continuously evolving our products and our tech platform has enabled us to drive significant growth. Over the last decade, we've doubled our purchase volume and almost doubled both our receivables and net interest income. We've done all this at consistently strong risk-adjusted returns. Over the last decade, our average risk-adjusted yield was 15.6%, 570 basis points higher than the average of our direct peers. We also pride ourselves on our track record of execution and delivering on our commitments. We've built considerable value for all of our stakeholders, including our people and our communities. We've made it our priority to continue to foster and support our people in every way possible. That includes investing in things like continuing education opportunities and providing comprehensive health and wellness resources. We also recognize that diversity strengthens our team. It rounds out our perspectives and really powers our thought leadership. We rank fifth on the Fortune list of best places to work for diversity. We're really proud that 10,000 of our employees, which is about 60% of our workforce, are members of one or more of our eight diversity networks. We have an incredibly diverse board of directors. I'm so proud of all that we've accomplished together as a team. By delivering products and solutions with compelling value for our partners and customers, we've delivered continued strong performance. That financial strength has generated significant capital for investment back into our business. That's enabled further growth and significant expansion of our partner network and customer base. We've achieved massive scale and deep reach in the industries we play in. We're deeply embedded with partners, both big and small, across the U.S. in nearly every segment of consumer spend. We help people finance everyday needs as well as special purchases and home improvement projects, and we do this at almost 450,000 locations nationwide. At the same time, we fostered a culture of technology and innovation. In fact, we've invested more than $5 billion in our digital and technology platform since our IPO. We have more than 200 agile build teams that are focused on meeting the needs of our partners and delivering a comprehensive product suite and a seamless customer experience. Synchrony has evolved our consumer lending business into a digitally powered financial ecosystem. We've only just scratched the surface. Today, Synchrony is positioned as a leader in the digital commerce revolution. We're well-positioned to take advantage of the opportunities in front of us. Our strong business foundation and our culture of innovation will elevate the ways in which we connect our partners and customers every day. Today, we serve a massive addressable market. There's more than $5 trillion of consumer spend across the many industries that we operate in today. Throughout today's discussion, the team will talk about how we see significant opportunity to penetrate more of that market with existing as well as new partners. We'll also spend some time describing how we're leveraging our integrated product set to get even further embedded with our partners and help them drive sales. Lastly, we'll take you through some of the really exciting new adjacencies like health systems and pet insurance, as well as other markets where we see good growth opportunities at attractive returns. One of the things I'm most excited about is how we've positioned our business to more effectively go after that opportunity. Our five sales platforms are organized by industry vertical, which really helps us build scalable products and solutions for our partners. Whether we're integrating into a large-scale digital partner or a small dental practice, the products and capabilities need to be both scalable, but also address the unique demands of that individual partner or provider. This is why I feel we are so well-positioned. Our platform leaders and commercial teams have deep domain expertise, which allows them to really anticipate what our partners need to best serve their customers. Lastly, you'll hear how our platforms and commercial teams are supported by three scalable functions that are really focused on making smart, strategic, innovative growth investments to drive our business forward. We've always taken a lot of pride in our partner model in really getting embedded with them to help them drive sales and create lasting customer relationships. Our partners want to be able to serve more customers and to offer the best possible experience they can. Consumers today want to have a say in how they transact. They want choice, and they want products that address their specific need at that time. With these considerations in mind, we have built a product suite and digital platform to be able to do a few things. First, reach more customers more effectively, but also more efficiently. As you'll hear later today, we have the lowest cost to originate new accounts in the industry. Second, provide them with greater choice in the types of products they want to use and the channel they want to interact. Third, be able to say yes to them more often with great products with compelling value. Our integrated product set and ability to drive seamless customer experiences has really helped our partners succeed and has made us their partner of choice. There's no need to take my word for it. I'd love for you to hear from one of our largest partners, PayPal. Hi, everyone. I'm Dan Schulman, the President and CEO of PayPal. When Brian reached out to me to talk at his Investor Day, I gladly accepted. I'm a firm believer that the only way to truly create a great value proposition for consumers and merchants is through partnerships across our industry. The full potential to satisfy customer needs and demands can only be realized through collaboration that leverages the best of our respective talents. Our work with Synchrony is a powerful example of that. We have very high expectations of our partners. After all, we have 400 million active accounts on our platform. We serve over 30 million merchants on our platform, and we need leading-edge capabilities that can meaningfully scale. We need partners that will consistently evolve with us and innovate with us and do so with the highest regard to regulatory compliance. Synchrony lives up to all of that. We push them hard and they consistently deliver. The launch of our Venmo Credit Card is just one example of many. We bet on Synchrony's technical platform, on their technical prowess to create what I consider to be a best-in-class product. Not only did they deliver it on time, but they over-delivered on features, and they did so in a collaborative manner with us. As a result, we plan to do much more with Synchrony. We trust their team. I trust their leadership team. We know their technical capabilities, we know their engineering teams, we couldn't be more pleased with the success of our joint efforts, and we look forward to much more in the quarters ahead. Thank you for the opportunity to share my thoughts, and I hope all of you have a great rest of your Investor Day. We are so honored to partner with Dan and the PayPal team, and we're so excited to continue to collaborate and innovate together. At the heart of Synchrony's continued success for our partners and customers is our digitally powered product suite. By combining the most complete product suite of any of our closest competitors, we can really deliver a financial ecosystem that meets our partners and customers however they want to be met and optimizes their experience through our dynamic tech platform. As we talked about, we serve a very diverse set of partners and providers today, and we know that our product strategy has to align with their objectives and feel customized to their goals and their strategies. Whether they're a single store merchant, a large-scale digital-first partner, or a leading health system, our products have to be both scalable, yet able to cater to the specific demands of our unique partners. We also know that customers want to utilize different payment and financing products depending on a number of factors, including affinity with the brand that they're engaging with, the type of purchase they're making, and ticket size. Based on a complete understanding of what both our partners and customers are trying to achieve, we can really tailor our offerings to fit that need. Our goal is to provide the right product at the right time for the right purchase. In some cases, that'll be more of a transactional product, like buy now, pay later for one-time use. In some cases, that'll be a revolving product with buy now, pay later and installment options, which facilitates easy reuse and supports multiple purchases in an ongoing relationship with the customer, which is really important for a lot of our partners. In other cases, it might be a dual card, which offers the ability to make multiple purchases as well as earn rewards on out-of-store spend. Mike Bopp is going to go deeper on our integrated product strategy and why we feel this is a real competitive advantage. It's all about offering the right product at the right time for the right purchase, both for our partner and our customer. Our product strategy and our focus on delivering seamless customer experiences reflects a combination of billions of dollars of investment in our proprietary tech platform, as well as hundreds of strategic investments and partnerships that we've made over the years. We've invested heavily in areas like dApply, Synchrony Plug-in or SyPi, Synchrony PRISM, which is our advanced underwriting platform, and of course, hundreds of new APIs, which we use to integrate seamlessly with partners like Venmo. We've also made strategic investments and completed a number of acquisitions in areas where we knew we could accelerate our strategy and bring new products and capabilities to market quicker. For example, our acquisition of GPShopper back in 2015. GPShopper really enabled us to accelerate our seamless integration into our partners' mobile apps. Our Pets Best acquisition enabled an immediate entry point into the rapidly growing pet insurance market. This allowed us to really leverage our scale and experience in the vet space. In fact, we've already tripled the number of pets we cover since we acquired that business just two years ago. How do we bring all this together? You'll see today as we move through the discussion that we've built a very strong foundation and transformed our business from a more traditional consumer lender into a dynamic ecosystem for day-to-day commerce. We're leveraging our core strengths and continuously evolving the ways in which we reach, engage, and serve our partners and customers in an ever-changing landscape. In short, we're well-positioned to outperform over the long- term as we continue to provide our partners and customers with the power of choice. We'll continue to win new partners and renew existing ones, at the same time, we'll further diversify our programs, products, and the markets we operate in. Lastly, underpinning it all is our laser-like focus on our integrated product set and providing that seamless customer experience. If we deliver on those key objectives, we'll continue to drive sustainable growth at attractive returns and unlock even greater value for our stakeholders. Here's the team that is executing on this vision and taking the company into the future. Each of these leaders has deep domain expertise, both in the industry as well as in our business. In just a minute, I'll hand our discussion over to Mike Bopp to talk about Synchrony's addressable market, the power of our data and integrated product suite, and how those are real differentiators for us. From there, Carol Juel will talk about our tech platform and the ways in which our digital capabilities really enable us to easily integrate with our partners and drive that seamless customer experience. Henry Greig will talk about PRISM, our proprietary underwriting model, and how it incorporates more data on demand and drives greater predictive power to approve more customers for a similar level of risk. We'll shift the discussion to our platform leaders. They'll go deeper into each industry vertical, why our partners choose us, and the opportunities we see to drive sustainable growth. Brian Wenzel will tie all this together and talk about how everything you heard today will continue to translate into strong financial performance and value creation for our investors. Let's jump into it, and I'll hand it over to our Chief Growth Officer, Mike Bopp. Thanks, Brian. Good morning. I'm looking forward to talking through why we believe we are so well positioned for growth here at Synchrony. Today, I'd like to focus on four areas where we feel we have distinct advantages relative to our peers and how these advantages help us accelerate growth. Our customer base, our privileged access to data, our complete product suite, and our investments in the customer experience all add up to what we believe is an over-indexed ability to grow relative to the market. Let's start with the first one of these distinctives, the sheer scale of our customer base. We now have over 60 million customers and 65 million active accounts. These numbers represent the highest number of customers and second highest number of accounts among any of the top US consumer credit card issuers. It was not our intention to build a 60 million consumer customer franchise, but that's exactly what we have. We built it partner by partner, platform by platform, as we saw opportunities in the market. As we take our lens up to a broader level, this customer base provides tremendous strategic opportunities for us. First, it gives us an immense amount of data about our customers, their financing needs, their shopping preferences, even how they like to be serviced. Second, you've heard a lot about companies and their ability to drive new customers to their partners' platforms. Well, we've got 60 million customers, and we work very hard every day to bring these 60 million customers to our partners' virtual and physical front door. Because we have an existing relationship with these customers, we know about their needs. It gives us an opportunity to provide additional credit products, whether as upgrades or as additional products in their wallet. We feel great that this scale puts us in an advantaged position relative to our peers. I'd like to spend a minute talking about the spend opportunity that we see within our customers. As we dig deeper into the opportunity, this slide speaks to how we think about going after that addressable opportunity strategically. These are credit sales. Recall we do $139 billion in sales annually. Our very own customers are spending another $110 billion at our existing partners. Existing partners, existing customers. The pool of opportunity is $110 billion. We do a lot to try to get this opportunity today, and we continue to dig deep into the programs that will increase our wallet share of sales at our partners. There's also opportunity to acquire customers who don't have our card but are shopping at our partners. This represents another $360 billion of opportunity. This is where our acquisition strategies come into play, our credit strategies that you'll hear about later. Lastly, we look at spend that our consumers are doing outside of our partners, where almost $460 billion of total spend sits. This spend is a little bit harder to get because we're competing on sales that are not happening within our partners. This is where we drive a lot of our dual card strategies and our top-of-wallet card strategies to grab our share of that $460 billion, because just a couple 100 basis points makes a huge difference in our growth rates. We believe we have the value props, the rewards and incentives, the digital capabilities, and perhaps most critically, the economic alignment with our partners to make this happen. You'll hear from our platform leaders about how these opportunities split across our five platforms and the specific strategies they're using to go after these opportunities. The main point here is we've got an incredible opportunity to gain incremental wallet share with our current cardholders and drive new account acquisitions. Opportunities that are unique to Synchrony, given our size and scale. Let's look at some of the statistics about our partner base and how we leverage it to support growth in our business. Today, we have two main marketplaces that face consumers: mysynchrony.com and carecredit.com. We get hundreds of millions of visits to these sites on an annual basis. Both these marketplaces provide consumers with a one-stop shop to find partners, shop with partners, and find providers in our CareCredit network. We also allow them to service their accounts on these platforms. These are broad and deep networks, as evidenced by the data you see on the slides. Hundreds of thousands of partner locations, millions of referrals. These drive significant referral volume for our partners. We will continue to expand these marketplaces and their applications. Now let's look at some statistics about our partner base and how we leverage it to support growth in our business. We've seen the benefits of this unique competitive advantage through our proven ability to drive repeat sales, thereby significantly enhancing the lifetime value of a customer for both Synchrony and our partners. Among our network products, repeat sales have increased from 43% just four years ago to 52% in the second quarter of 2021, proving our ability to bring repeat purchasing volume to our partners. An additional metric we focus on is sales per active for our network products. Here we compared the sales to the average buy now, pay later products that we see in the marketplace. We see increased sales per active by a factor of 1.5, 1.9, and our Home and Auto networks generate 2x the amount of sales on buy now, pay later products in a given month. These are significant increases and imply a deep customer relationship that we have with our network products. The ability to leverage the networks to drive new customers and repeat sales to our partners at higher spend levels has and will continue to be a huge growth lever for us moving forward. We will look to invest even deeper into this strategy. What powers all this? As you'd expect, and something that receives well-deserved attention, is data. At Synchrony, we have privileged access to first-party and other data that is fuel for the types of programs that deepen penetration and drive higher share of wallet. Through a combination of data received from our proprietary networks and data shared with us through our strong partnerships, we drive data insights that power program performance and enhance the customer experience. We've invested significantly in a data ecosystem that integrates, analyzes, and builds decision-making matrices. We have over 7 trillion data points in this ecosystem. We have over 200 analysts and data scientists who synthesize, analyze, and make actionable recommendations off of all this data. It allows us to say yes more often to our consumers, to create a more hyper-personalized customer experience, and to drive profitable growth. One other note worth mentioning is that given all the noise regarding potential changes around the usage of consumer data, we feel very good that much of this data is first-party data, giving us more flexibility in how and when it is used to benefit the customer. Net, we have about a number one when it comes to breadth, depth, and application of data analytics to drive increased card acquisition, higher spend and reuse, and a higher customer lifetime value. A powerful example of applying this ecosystem to our business strategy is with data sharing. We've spoken a few times about this in the past, so we wanted to provide a brief update on this exciting growth initiative. First, we have greatly expanded the amount of data and penetration of the program across our partner base, as evidenced by the 512 different unique attributes that we receive, as well as the fact that we receive partner data on 75% of our active accounts. That's 75% of 65 million active accounts where we're receiving unique and proprietary data from our partners. On the right side, pretty much in every instance where we've partnered with our clients to implement this, we've seen lifts. Our partners' most highly engaged customers get better credit line assignments, oftentimes 20%-30% higher credit lines, and use these lines to spend more, both at our partner and outside our partner. We see 15%-20% lifts just in that initial month of purchase. Other use cases include using data share elements for fraud mitigation, collections, and authentication. Pretty much across the profit and loss statement, we are seeing significant benefits to this data sharing program. It will continue to be a core strategy for us moving forward as we work hand in hand with our partners, both large and small, to increase the amount of data that we bring into the ecosystem. This next slide walks through another significant application of this data ecosystem. This slide shows a schematic of how we think about and structure our process for product optimization. We employ proprietary analytics to identify which private label cardholders that our dual card product would be a good fit for, giving them added store utility and a more robust rewards program. We then leverage additional modeling techniques to predict profitability for a given cohort. These models, both the targeting models and the financial models, allow us to offer the upgrade product to customers who are more likely to generate the greatest incremental returns based on the risk-reward trade-offs that we see. This slide shows the business impact of optimizing that product journey. By utilizing our data and analytics to upgrade the right set of customers, we see lifts of 98% in sales and 78% in balances. This drives significant incremental risk-adjusted return once that product gets upgraded. These dynamics then drive a 1.6 x increase in a customer's lifetime value. We consistently look for the right time and the right customers to upgrade, and having the product suite and analytic capability to effectively migrate customers into products with more utility is a key for us to drive success. Building this capability takes time, several years in fact. We've been at this for over 15 years, and we will continue to leverage this experience to drive growth through product optimization. Now that we've established a few of our distinctives, the unique customer base, and our data and analytics prowess, let's talk about the next variable in the equation, and that is the product set that brings all this to life for consumers. From a complete line of evolving products for consumers and small businesses that offer consumers utility, value through promotional financing and loyalty programs, and ease of use, to robust installment offerings, including our own buy now, pay later product, SetPay, we have the breadth, depth, and experience to meet the broad set of consumer financing needs. We are also expanding into complementary offerings. Products like pet insurance and GiftNow, and the opportunity with health systems in our health and wellness vertical are natural extensions of the financial ecosystem that we are building and operating in. The next slide compares this product set to the market, including some of the buy now, pay later firms. As you can see, across both the revolving product set and the installment product set, our suite of products covers a broad set of consumer financing needs. While we know there's always work to do to maintain the most relevant and meaningful products for consumers, our current offering puts us in a unique advantage position. Let's talk buy now, pay later. We want to spend a few minutes walking through how we see the world of buy now, pay later in installments and do a little bit of a deeper dive. As Brian has spoken about in the past, we currently offer both short-term and long-term fixed payment products across our entire product suite and have approximately $15 billion in receivables on these promotions today. Here you see just a few of the many short and long-term installment offers that we provide in the market. It's worth noting that we work extraordinarily closely with our partners to seamlessly integrate these offers into the buy path, as you can see here. We are at the moment of consideration with these products with a great many of our partners today. These offerings are provided through the vehicle of the existing card products, meaning that the customer has ongoing utility for additional purchases and additional promotions after their initial loan is paid off. We see this particular dynamic where a customer can open up a credit card, put an installment loan on that credit card, but keep the utility of that credit card moving forward as a win-win for consumers, our partners, and Synchrony. In addition to these products, we also offer our Synchrony-branded installment product, SetPay, across the 3+ month terms and are doing volume on this product today. These are closed-end loans and typically have order values above $500, and oftentimes it's significantly higher than that. These two products attract tremendous flexibility for our consumers and partners to offer the right product for the right kind of purchase to the right kind of consumer. As we looked across our product set, the competitive landscape, and customer feedback, we did see the demand for a shorter duration pay in four type product. We're excited to announce that we'll be launching our own Synchrony-branded short-term buy now, pay later product. Branded under the Synchrony umbrella, this product will be a pay in four product with no interest in fees and be a completely digital customer experience. As laid out on the prior page, this product will begin to be available for our partners in October, and we're excited to be bringing it to the market. With this new product launch, we feel even better that the Synchrony product suite provides our partners and consumers the broadest and deepest set of financing solutions to meet their broad set of needs. Staying on this topic, as we reviewed how we think about the buy now, pay later installment lending landscape, I want to spend a few minutes looking at some comparative views that we felt might be helpful as we think about our model deploying a full product suite, having real advantages relative to other players whose strategy is more focused on the buy now, pay later space only. Looking across key performance indicators, our model helps us acquire more accounts, do more business with these accounts, and just as crucially, charges partners one- quarter the transaction cost. The way we do this is exactly what we've been talking about. Deploying the right product to the right customer, not only in acquisition, but throughout the customer life cycle. It's the depth and breadth of our product suite that allows us to do this and will continue to allow us to grow. When we think about the challenges that respective financial services players face, us included, it begins and ends with acquiring new customers, responsibly driving sales growth, and building a compelling economic equation for our partners. The winners in this space will be those who can bring the broad set of products, including buy now, pay later, to market in a seamless and customer-centered way, and we're very well- positioned to do just that. Let's talk about what a customer's journey through the full Synchrony product suite might look like. Left to right, this slide walks through that journey, starting with a buy now, pay later or an installment type product under the SetPay branding. As the customer's credit matures, their wallet potential gets larger, their shopping needs increase, and their product needs become more complex. We often see customers starting to show some loyalty to one of our partners as well. This is where the data analytics and our product experience come into play, to provide a private label product to the right set of customers for repeat purchasing capabilities. Further down the life cycle of the consumer, we may identify that they are eligible for, and would be profitable with a dual card product, enabling more purchasing utility for consumer and even more comprehensive and compelling value proposition. It's also worth noting that often, as is the case most of the time today, a customer begins their Synchrony journey with a private label product or a dual card product, and that works very well for us as well. The strategy includes ways to engage a customer throughout their journey with what their preference is. Ultimately, it's about making the right offer at the right time to the right consumer that maximizes our growth and profit while providing our partners enhanced program economics. How does all this show up for our merchants, and how does this all show up for our consumers? Both dimensions are obviously critically important to success. We've invested heavily in our go-to-market technologies, modernizing to ensure ease of access to our range of products as we believe there is power in providing choice to partners and customers. You'll hear a lot more from Carol shortly about the exciting progress here. We also have evolved to become a more experience-driven business where we seek to engage consumers throughout the purchase journey, from awareness and consideration of a product all the way through to the purchase. Given the opportunity that lies in front of us, we have built these capabilities and customer experiences to evolve over time as both merchant and consumer needs are continually evolving. Bringing all this together to create a smooth customer experience is also something we spent a lot of time on. Much of the benefit has been evidenced in our recent launch with Walgreens, where we've launched a program with all the available components of a seamless customer experience, including top-of-funnel sales marketing, Direct to Device in-store acquisitions, contactless cards, and seamless integration into customers' digital wallets. We know that there's never been more intense competition in this market, and we're up for it. With the most recent launches, we feel great that we are providing the most integrated product and data-driven experiences for consumers. In closing, to review our distinctives and how they have positioned us for growth. We have unmatched customer scale and a vast partner base. We've got privileged access to data and made huge investments in our data ecosystem. We have comprehensive product offerings optimized for each customer. We have an exceptional digital experience. We believe all of this will help us drive an over-indexed growth rate relative to the market. Thank you for your time, and Carol, I'll turn it over to you. Thank you, Mike. Good morning, everyone. I'm Carol Juel, the Chief Technology and Operating Officer here at Synchrony, and I'm so pleased to have the opportunity to share with you today some details about our technology strategy and our investments and how they have drive differentiation and competitive advantage for Synchrony, really allowing us to stay on the forefront of an evolving landscape. We've built a leading financial services ecosystem that connects seamlessly to our partners and our customers. This ecosystem delivers on the power of choice, is experience-driven, and is designed and built to evolve. Innovation is core at Synchrony, ensuring that we have a comprehensive set of products that we can provide to our customers at the right time in their journey. This helps our partners grow their sales and develop that deep brand loyalty. Innovation also drives us to ensure we are delivering exceptional customer experience across all channels. The technology strategy and investments helped us build this dynamic and scalable environment, we are positioned for the future, we are excited to tell you more about it. Let's jump into how it powers our success. I want to take you back in time. When we had the opportunity to become Synchrony, it was a unique opportunity. I would even say a once-in-a-lifetime opportunity. We had the opportunity to rethink, reimagine, and invest in our foundation in a way that positioned the company uniquely. We had the opportunity to redesign our technology foundation from the ground up. Why is this important? When we were becoming Synchrony, this is back in 2013 and 2014, technology was changing drastically. We were entering a new age of cloud and AI and data lakes, our ability to take advantage of those technologies was available to us because of the decisions we made to invest heavily. Over the time horizon here, we invested over $5 billion in our platform. That is critical when we think about how we were able to make decisions around technology foundation that will position us for all the change that's happening in our industry. The acceleration of consumer expectations, digital transformation, AI transformation, all of these things were part of how we thought about our investment strategy back in 2013 and 2014. We were focused, we were deliberate, and we wanted to make sure what we were doing was going to drive innovation and speed for our company. What we built is a fast and flexible technical foundation. You'll see in this chart here, moving left to right, over the time horizon, we were dramatically able to reduce our dependency on legacy technology. Why does this matter? Many of our competitors still have a significant amount of legacy technology. Legacy slows you down. Legacy is complex. Legacy isn't where innovation is happening. Our ability to shift from legacy to modern technology was critically important for Synchrony and for how we thought about our future. Our competitors have a different set of challenges that we no longer have, that has allowed us to really revolutionize many of the things we are doing, for how we build digital capabilities, to how we underwrite, to how we use data, to how we build unique customer experiences. Let's talk a little bit more. How does this platform come to life? It's really important. In our business, we reach more partners. Through our platform, we are able to meet our partners where they are. As you know, we have a broad spectrum of partners who have various degrees of technical sophistication. The way we've approached our investment strategy and how we build and deploy, we can meet them where they are. That is really important. We can meet the smallest partner in a local dental shop to a marquee digital payments company. This multidimensional nature of our platform allows us to power growth across all of our platforms, regardless of their stages of investment. Additionally, we provide more options to our customers. Flexibility and scale allows us to create environments where customers choose how and when they want to engage on the journey with us, the power of choice. We have a differentiated ability to translate data into action. We have a robust data set through our data, partner share, as Mike was talking to you about, third-party data. We bring that together in actionable insights that help us to continue to drive program performance and more sales for our partners. Let me talk to you a bit about how we partner. We have technology to meet our partners where they are on their digital journey, from small retailers to big dynamic ones. Our platform can power those brands to reach their goals regardless of their level of sophistication. Venmo is a huge tech giant, as you know. They have a huge focus on their user experience. When you are in the Venmo app, you know you're in the Venmo app in terms of how the experience works. They wanted to ensure that the customer experience in the app was as they wanted it to be. That created a unique opportunity for us to build a deeply integrated technology solution in how we deliver financing within the Venmo app. Venmo owns the experience, but it's powered by Synchrony's real-time APIs and alerting solutions. This results in an incredibly seamless customer experience. Let's talk about it. While in the Venmo app, the Venmo user and potential Synchrony customer sees she is pre-approved for the Venmo Credit Card and decides to apply. She enters a few pieces of information to complete the application process. Venmo leverages Synchrony's APIs to get the user's history as a Synchrony customer and ultimately creates her account. The customer is approved and now has multiple ways to transact with her card. First, her card has been linked to her Venmo account and is usable for any Venmo payments, which is done by seamlessly calling a Synchrony API. She'll also receive a physical card that will have a QR code for easy activation and usage. There's also a third option here where she requests a virtual card, also powered by Synchrony APIs, which she can then use to complete online purchases. Within the Venmo digital ecosystem, Synchrony then translates purchase details and publishes an event to Venmo to provide the real-time alert to their customers. As we brought this digital integrated solution to life, Venmo uses more than 20 Synchrony APIs to deliver the full digital customer experience in the Venmo app. What's really important here is this deep integration is incredibly powerful for our partners and their customers. We're able to accomplish this because of the terrific partnership with Venmo. Also because of the investments that we've been making along the way in our innovation, in our cloud, in our digital, and in our real-time APIs. Our differentiation is that our digital and innovation investments have created a platform to cover this broad spectrum of partners with integration capabilities across industries, regardless of their tech investment or level of sophistication. Our approach is really to give our partners flexibility. Flexibility in how they integrate, but also in the products that they offer to their customers. From a complete line of revolving products that offer consumer utility, value, and ease of use, to robust installment offerings, including our own BNPL product, SetPay. We have breadth and depth of experience across the broad set of consumer financing needs. One of the industries you see listed here is health systems. We think this is a great space for CareCredit and is one of our focus areas. Health systems have made investments in information technology, but not generally in the payments or the financing area. Instead, they're focused on their business. Patient health records, electronic medical records, areas they should be. There's an opportunity for Synchrony here to think about payments in that ecosystem. The leader in patient health records is a platform called MyChart from Epic. You may have used this if you've experienced it in your doctor's office, if you've viewed a test result or anything like that. We decided to create the right financing solution to health systems, and we wanted to integrate CareCredit into the MyChart experience. This is the Epic App Orchard, the App Store for MyChart. Just like you download apps from the App Store on your iPhone, health systems use the App Orchard to download MyChart capabilities for their customers. This enables patients like the one you see here, who has had an unexpected medical expense, utilize his CareCredit account to seamlessly pay his bills through MyChart. He has choice and flexibility to select the right financing offer for his family and his overall needs. Synchrony's ability to provide this level of simplicity for both the health system and the customer was enabled through our investments in technology and innovation in our APIs and our digital tools. Just like we meet our partners where they are, we meet our customers who use our products where they are on their digital journey. You could be shopping for furniture in a store. You could be taking your dog to the vet or sitting on your couch looking for a new couch. We create compelling touch points and experiences that power their life. Whether they're looking for traditional private label credit card products or one of our many equal payment products, we have the right financing product for them in the right channel. Providing customers choice and optionality is driven by our flexible platform that delivers exceptional digital experiences, seamless integration across partner channels. Our flexibility and scale is differentiated here. Our ability to adapt and respond to our customers' digital shifts is critically important, and this is all powered by the flexibility of our platform and our technical capabilities and innovation to engage them along that journey. By offering choice and a seamless experience, we can drive these customers back to our partners' business again and again, compounding loyalty and driving higher lifetime value of these cardholders. Why does this matter? It matters because we work with our partners to ensure we represent their brands correctly. We work with our partners to engage in the channels where all of their customers are, and this is really important and differentiated for us. Let's jump to an example. Across a big omni-channel retail partner, Lowe's. We are deeply integrated across their channels with their brand and their customer experience. At Lowe's, we offer consumer products for customers, for pros, and soon we'll be offering a BNPL installment loan product, and we do it across multiple channels. Let's jump in and show how we integrate with Lowe's across the various platforms they have. Here's a loyal Lowe's customer named Jeff who's about to check out at Lowe's and wants to use his Lowe's Advantage Card. Unfortunately, he left it at home. Fortunately, though, we allow him to look up his account number from his phone quickly and securely. This is enabled by our digital and authentication technologies. Jeff provides a few pieces of information and is authenticated behind the scenes. He can now shop in store with a virtual card and receive all the benefits of the Lowe's Advantage Card. When it's time for Jeff to pay his bill, he can do that easily through our digital servicing platform. While scheduling his payment, our automated alerts catch his eye. He takes a couple minutes to sign up. While Jeff can completely manage his account through e-service, Lowe's also likes their customers to download their native app to further drive digital adoption and engagement. In order to help our partners drive customers to their app, we created SynPi, our native app plugin, so that we can easily embed Synchrony's digital capabilities into a client's native application, allowing customers to use their card and service their card in the Lowe's digitally native experience. Let's recap. You've seen a lot of ways customers engage with Synchrony through the Lowe's omni-channel experience. They leverage Synchrony technology across so many touch points, and this is the flexibility and the adaptability and the scalability in our platform that allows this to happen. The choice that we can give to our customers across the spectrum integrated into Lowe's is truly differentiated. This really highlights Synchrony's capabilities. It is the power of choice, it's experience-driven, and it's designed to build and evolve with partner and customer needs. We've been talking about how our technology and innovation investments and strategy have helped us reach more partners and provide more options for our customers. Really important components. The third and really key piece of our competitive advantage is our differentiated ability to translate data into action. Mike shared the details of our data-share strategy, how we work with our partners. The combination of our data plus partner data enabled through really deep integration and oftentimes APIs and third-party data is a differentiator for Synchrony and brings immense value to our partners and their programs. We have invested heavily in our large data lake ecosystem. These investments in big data management tools, analytics, and machine learning allow us to use the data to power actionable insights that drive program performance and meaningful outcomes around personalization, customized experiences, better credit decisions, and fraud reduction. The application of this data is continuing to grow. Our investments in big data management tools, analytics, and machine learning allow us to use that data to power actionable insights that help drive program performance. Meaningful outcomes include personalized offers, customized user experiences, which are increasingly more important in today's digital world, better credit decisioning, and fraud reductions. The application of data and analytics is growing. We are continuing to invest to ensure that we are positioned to leverage and enhance the customer experience and drive program results. Let's walk through an example. Here you see a potential customer, Jennifer, applying for a Zulily credit on her phone. Our dApply platform uses our phone-based authentication. You can see most of Jennifer's application can be pre-filled. She only has to enter four pieces of information and accept the terms. Once she applies, though, that's when the real magic happens. There's a lot happening behind the scenes. First, we confirm that the phone number Jennifer is using to apply actually belongs to her. Then we pull her credit bureau score. Once upon a time, that would have been our primary means of decisioning her application. But now we can do so much more. We call our data lake, and we find that Jennifer is a CareCredit customer in good standing. We get Zulily's insight through client data share on her payment history with them. Ultimately, we are able to get an incredibly well-rounded view of Jennifer in just a few seconds. This is all possible because of our powerful orchestration engine. We use this engine to call APIs and to make the optimal credit decision. All of this resides in our cloud and is directly enabled by our data lake and API investments. You might have noticed here that we added a new data source, utility payment data. The most powerful part of this story is not any one data source. Instead, it is the dynamic engine that allows us to easily incorporate and test new data sources of useful data and rapidly evolve our decision-making capabilities. Here we are. We talked a lot about how we reach more partners, provide more options, and our platforms are built to evolve. This is really important. We continue to invest in our tech platforms. We continue to be on the forefront of a rapidly evolving landscape. It is critically important for us to continue to understand where our partners are going, where the market is going, and ensuring that the technology that we're investing in is going to continue to help us drive to the future. Thank you, and I will pass it over to Henry. Thanks, Carol. That was a great presentation. We really rely on you, and I think it'll show here as I walk through this presentation. Hi, I'm Henry Greig. I'm happy to be here to represent the whole Credit and Capital Management Team. Before we get into the actual underwriting process, I'd like to talk a little bit about what our objectives are for the underwriting team. First and foremost, we're looking for a stable, consistent underwriting process. Our clients and partners really depend upon us to deliver that to them and their customers over time. Second, we underwrite it to a risk-adjusted return that is attractive for both us and our clients. Again, that's extremely important, that stable, consistent performance to attractive returns. That sort of sets up for us what our loss underwriting targets are. Over time, with the mix of clients we have, we are trying to get to a 5.5%-6% net loss rate for the whole portfolio. Let me just take a moment and now sort of transition to how do we underwrite. Underwriting is where we can actually start to maximize that solution for our clients, partners, and for Synchrony in that 5.5% and 6% loss rate range. Let me tell you a little bit about Synchrony PRISM, our underwriting process here at Synchrony. It is really based on the common theme that we want to underwrite to the customer-centric approach, such that make the customer experience better, and a better customer experience will lead to better results. What does that mean? That means that if we focus on the customer, if we focus on understanding everything there is to know about the customer, that in turn will lead to a better experience, will lead to better results. Results being higher approval rates, better credit lines, and overall a better customer experience. What are the key components of PRISM? For us, there are really three big concepts. First and foremost is data. We want as much data as we can get on our customers, and we want to be able to get that data to the point we can actually use it. The second pillar is it needs to be on demand. Data doesn't help us, it doesn't do any good at all if we have data available to us in our customer warehouses, but not at the point where we can actually use it to decision for our customers. Third pillar is deeper insights. Point in time, we have over $100 million when you consider those that are inactive at various points in their life cycle. That data is driven by billions of transactions that those customers do with us. Sales, payments, customer inquiries, all of that data can be brought together and is unique to Synchrony in driving results. Secondly, client data. Our clients have their own data, and that's unique to them, which they can then give to us. For example, if a customer's applying with us and we actually get data from our client that says, "This is a customer that uses that particular retailer a lot," that's information we can use in the underwriting process to help set credit lines, and that drives better results. Proprietary to us, Synchrony, is both data that we have and our clients have. Let me spend a moment on credit bureau data. There has been a huge transformation over the last few years in credit bureau information. Few years ago, it was all relatively standard. You'd go to one credit bureau or the other and get relatively similar information. That's changed dramatically and is changing dramatically in the past few years. Using that alternative data to help differentiate between one credit bureau and another sort of tells us that sometimes what we need to do is use multiple credit bureaus in the process. There are other alternative data. Data about digital footprints, identities of the customer. All of this data can be brought together to deliver better insights on who that customer is. Let's move on to the second pillar of Synchrony PRISM. This pillar is really what Carol was talking a lot about earlier in terms of the technology that helps deliver this data and these solutions at the point in which we need them. Those show up in a number of different ways. First and foremost is it has to be dynamic, has to be available when the customer wants to transact. That could be at a point of application or a point of authorization. There's an expectation that that happens very quickly, and so how do we bring that data to that point in time? Those technology solutions help deliver that. There's also triggers. Triggers are basically data that we use to help indicate to us when a customer has changed, or some lifestyle change, which will then leads to us being able to take new actions, such as a credit line increase. Finally, there are event-based triggers. Those where Mike talked a little bit about in his pitch about upgrading to a dual card. That is an event. That's something in which we determine that we're going to promote a customer from their private label relationship into a dual card relationship based on changes that they have in their profile. All of these are key system solutions that we need to get the data to the point where we make a decision. I'll spend a minute on fraud really in the next section. That final pillar is how do we take this critical customer data and turn it into actual results. We do that, quite frankly, by actually distilling it down to key information that we need. Thousands of attributes into a handful of scores or a handful of behavioral attributes that then sort of indicate the actions that we need to take as a credit team. First and foremost, I'll talk a little bit about proprietary scores. Proprietary scores are nothing new, but as a former modeler myself, I think that you understand that data in equals results out. Our proprietary scores are now leveraging all of that data I talked about a little earlier to develop specific proprietary scores for each underwriting act. We've also developed a testing platform which is advanced and allows us to propagate it with scores and information much quicker and learn and make decisions on the fly that actually will take lots of new scores and data that we could feed into the process, test and learn, and then propagate those into production much quicker than we have in the past. All of this is distilling that information into key points that we need to make decisions. Nothing is more important in that particular scenario than our fraud analytic solutions. Fraud analytic solutions are really like looking for that needle in a haystack. Those really small number of times where we need to take specific action on an account because we think there may be fraud. The flip side of that is we do not want to slow down good customers. You need specific machine learning and advanced solutions that allow you to really pinpoint where you need to take action on a fraud while actually letting most of the portfolio continue to transact as they will. Our fraud analytic solutions under Prism have really matured working with both internal and external people to help build these types of advanced solutions. Those are the critical pillars of Prism. What I want to take you through now is some actual cases where we've used Prism to improve our results. First one is in acquisitions, simple applications. Instant applications are nothing new. Synchrony's been doing this for decades. We've got pretty quick systems. We provide those systems with scoring, and we make a decision very quickly. Under Prism, we're feeding 100x or more the amount of data into the process, which allows us now to differentiate customers coming through, let's say, the mobile channel versus those that come in through the store channel. That differentiation, the ability to mix and match data with the customers, with the client, with the channel, really takes this to another level. We've seen big results from this so far. 15% increase in approval rates at similar risk levels. I believe we're only scratching the surface. As we add more data, as we get more experience with this process, we expect that we're going to continue to see increased results over time. The second example is a little different for a credit person to be talking about authentication, but I think it's important. Prism is really taking all the data around our customers and trying to understand them better. Before, authentication was based upon the channel the customer talked to us through. We've now, under the concept of Prism, brought that into all of one single area where that data can be shared. Imagine, if you will, a customer calling us for a first time from a new mobile phone. We can authenticate that, and then we can then take that and propagate that number across all of their accounts, all of their information, such that the next time they call us on that phone, we know exactly who they are, and we know exactly what all their relationships are with us. Authentication is a full triple threat in terms of the results that it gives us. Creates a better customer experience, which enables customers to make sales easier. They make more sales. We've proven that. Those sales that they make are safer because we know who to let through the system and who to actually authenticate in a much more stepped-up fashion. That improves our fraud solutions. Finally, because we're sharing this information across the whole enterprise, we don't have to purchase the same data twice. It lowers cost as well. It's a great solution, and it's something that comes out of Prism that quite frankly, was a little unexpected when we first started developing this program. The third example is based on customer management. It's similar to the authentication case in which we can now share data across all customer accounts. As you share that data across accounts, you learn things about, hey, how is this customer performing? Where are they in the credit spectrum? Are they improving? This particular example is a simple one. We've been doing credit line increase programs for years. Now as we compare those programs under PRISM to where they were before, we're seeing much better results as we're able to target exactly who is going to use those programs, who's going to use that increase, which helps to increase sales. At the same time, it allows us to be much more targeted in who we give increases to, so it improves the credit risk and fraud risk as well. Those are just a few of the examples of which Synchrony PRISM is bringing results today to Synchrony and to our clients and to our partners. However, we're not done. Synchrony PRISM is a journey. We will continue to gather data. We will continue to improve our tools in that process, and we continually will see results throughout the whole spectrum of a customer relationship, from the application, authentication, customer management, and even into collections. Let me take a step back for a moment, talk a little bit about how Synchrony PRISM and the underwriting process links back to what Mike Bopp talked about a little earlier in terms of product. We underwrite here at Synchrony across the whole spectrum. We don't just underwrite for super prime consumers. We underwrite across the whole spectrum, and we have products for customers across the whole spectrum. What Synchrony PRISM allows us to do is really focus in on those particular areas where we can offer a bigger customer choice to customers based upon where they are in that credit system. In fact, we can even suggest products that might be right for them at this particular point in time. Synchrony PRISM evolves. We can then track that customer and then offer them new products or upgraded products in the future. Synchrony PRISM actually works very much hand in glove with Mike and his product organization in terms of how we actually underwrite credit. That's Synchrony PRISM. That's the underwriting process here at Synchrony. We aim to create a stable underwriting process over time for our clients and customers. We underwrite to attractive returns that then generate loss rates that we target in the future for our programs. We continually improve our underwriting process through Synchrony PRISM to continue to deliver better results for our clients, our customers, and our company. Thank you for your time. I will turn it back over to Kathryn, our master of ceremonies. Would agree. Any opportunity we find to enhance the predictive power of our underwriting leads to better outcomes for everyone. Speaking of better outcomes for everyone, earlier today, we heard Brian talk about Synchrony's commitment to our people, our culture, and our ESG opportunity. As we go into our 15-minute break, let's take a deeper dive into what that means for Synchrony stakeholders. [Presentation] [Break] Welcome back, everyone. We hope you've taken the opportunity to get away from your screens for just a few minutes to refresh and recharge. If not, grab some popcorn. This next section will feature presentations from our platform CEOs. If you've never had the pleasure of chatting with any of these fine gentlemen before, believe me, you're in for a real treat. They're as knowledgeable as they are passionate about each of the platforms they lead. Alberto Casellas will kick things off by talking about our Health and Wellness platform, followed by Curtis Howse, our Home and Auto CEO, then Tom Quindlen, the CEO of both our Diversified and Value and Lifestyle platforms. Last but certainly not least, Bart Schaller will talk about our Digital platform. Without further ado, let's go over to you, Alberto. Thank you, Kathryn. I'm Alberto Casellas, and I lead the Health and Wellness Platform for Synchrony. Our team wakes up every day thinking of ways to provide a comprehensive healthcare financing and payment solution through a network of providers and partners for those seeking health and wellness for themselves, their families, and their pets. Let me tell you a little bit about our platform. We have scale and expertise in healthcare and pet care. $10 billion of purchase volume with average active accounts of 6 million. These 6 million customers on average every month transact with over 250,000 providers in our network. Let me tell you a little bit about how we have grown our network over the years. It first started with dental. We saw a need in the market that consumers needed a way to finance for out-of-pocket expenses in that particular industry. Expenses that insurance typically did not cover for each of the procedures around dental. We started with that. We worked with dentists to provide the CareCredit card, as well as being part of the CareCredit network. We took that same formula and moved it to veterinarians and offered it to the veterinarians because they had the same need. How can we provide patient financing, pet financing for the procedures that were not covered with insurance? We have expanded that to over 45 specialties in our industry, like cosmetics, vision, and audiology, and being able to provide the flexibility of payments for consumers seeking the care that they need and providing it when they need it. Over the last two years, we have expanded the markets that we're in. For example, health systems and hospitals. Over the last two years, we've been able to sign over a dozen hospital systems to begin accepting the CareCredit network and being able to accept our card at point of care. We also have recently launched, as you have heard over the last two weeks, my Walgreens card. It's a great way to utilize the expertise that exists in retailing Synchrony with the domain expertise that we have in healthcare. We're excited to grow that partnership. Earlier this year, we bought Allegro, a strategic acquisition for us to expand our offerings in product as well as in our audiology market. We have over 30 years of experience. We have financed over $100 billion since our inception, and we just have deep domain expertise in healthcare, in pet care, in pet insurance, and we're happy to be able to do this for many of our customers across the board over the last 34 + years. Now, not only we have expanded these markets, but we also have expanded our suite of products. First of all, our marquee product, the CareCredit card. It's a way to finance large-ticket items in the healthcare industry. Over 250,000 providers accept this. We can finance in six, 12, 24 months. We also have equal payment plans, as well as being able to purchase regular purchases within the 250,000 providers that are part of our network. We also launched the myWalgreens Credit Card, which is a great way to bring forth the loyalty of the Walgreens customers into financial services that they're exploring and embarking in that business. We also bought Allegro Credit this year to expand our capabilities in installment loans. In pet insurance, we bought Pets Best about 2. 5 Years ago to expand the way that we provide products to our pet parents. On the left-hand side of the page is just a sample, illustrative way to show our partners. Over 250,000 of them are providers across the healthcare, pet, and wellness space. Now, our network really powers the growth for many of our providers. We have 75% of the veterinarians out there in the U.S. are part of our network. 80% of the dentist office in the U.S. do business with us. Close to 90% of the ophthalmologists connect with CareCredit. We have these specialties that continue to grow every year in terms of creating our network and providing the patient financing needed for consumers to get the care that they need when they need it. Over 11 million open accounts. What that means is this business used to be a one and done. Really we have transformed the business to be able to say that 60% of our volume are really repeat sales, which 80% of those sales are really coming from providers where the consumer did not open the account. Really what that means is we're bringing consumers to many of our providers and bringing them to be able to get the care that they need. An example of this is an individual that needs LASIK. He'll research what he needs to do, and being able to go to a LASIK provider and get a procedure. He will open an account and be able to provide the financing for taking care of that surgery. He has a daughter, and the daughter needs some orthodontia or perhaps some dental work. He now has a CareCredit card to be able to pay for that expense. A few months later, one of their pets needs some help with a veterinarian. Again, he will look to our provider locator in being able to have veterinarians that can accept CareCredit. It really gives the consumer peace of mind in being able to have capacity to pay and ability to pay for the care that they're seeking and the care that they need. We continue to increase our robust national provider network. One of the things that shows up day in and day out is the fact that every month we have about 1.5 million consumers hitting our provider locator. It's a way that continues to show the value that we bring to our consumers by having this robust network of offering places where they can get the care that they're seeking. We also have heard from our cardholders, that 98% of them, we meet the demands of them, and we also exceed the way that we use our card in our network, a way that we apply, use our card, transact, or pay. They're extremely satisfied with us. For us, we have a deep domain expertise in healthcare and in pet. We got a well-regarded brand in CareCredit. We have a great brand in Allegro Credit and Pets Best in pet insurance. We have built a brand over a long period of time, and we've been able to have a very strong relationship with over 100 professional organizations and associations in this space that help us think and act on how to best bring forth patient financing into our industry. Just to show a couple of different ways that we've been able to innovate in our space. The last year and a half has been quite unique. For veterinarians, they definitely have been extremely busy over the last 18 months. One thing that we did is we noticed that the waiting room in the veterinarian offices really became the parking spot and the parking lots. We created this little curbside packet pal, and it's a way for veterinarians to get the opportunity to explain CareCredit. It's an easy way for consumers to learn about CareCredit in a fun way at the comfort of their own car, quite frankly, and being able to apply, being able to service their account, and being able to also pay for service during that particular visit. It's a great way to bring forth the digital capabilities and technologies that we have brought forth and invested in over the last several years, innovating and pivoting in a quick way for veterinarians to have something to offer in these very difficult times during the pandemic. It's a great way to show this and really has been great to be able to roll this out to many veterinarians across the U.S. We continue to deliver tangible value to our partners. Three out of four are likely to recommend CareCredit to their patients. We give them access to many of our patients. They say that 73% helps them to move patients forward for the procedure that they need. We accelerate their cash flow and back end. We take care of the burden of collecting debt, pay that to the provider in two days, and hold that responsibility to us to collect on that out-of-pocket expense. The majority of them really have said that they increased the practice revenue since they accepted CareCredit. You may ask, where do you see us? Where can you find us? Really, we meet customers in multiple ways. We can meet them at discovery when they're online, seeking what it is about CareCredit, where is it accepted, how can they apply, and the type of programs that we have and products to offer. We also are at the provider's office at pre-care, point of care, and post-care. We use Pay My Provider. It's a tool and a capability that we have built over the years that have come really handy to be able to pay for bills at the comfort of their own device, at the comfort of their own home. Now, what's important to note here is that 47% of our customers have told us that if CareCredit did not exist, they would have either delayed or they would have completely postponed the care that they've been ascribed to do. It's great to be able to bring this offer of help to many consumers across the board and bring this help and offer to our providers, and it's really shown in the high NPS scores that we were able to achieve over the last several years. You may be asking also about our growth, and we think we have great opportunity in this space and in our platform at Health and Wellness. Let me tell you a little bit about our out-of-pocket expense, over $400 billion of health out-of-pocket expenditures. Over the last several years, high-deductible healthcare plans have become more common. What that means is the out-of-pocket and the responsibility of that particular consumer to pay for healthcare needs is greater. With that, we think we're greatly positioned to be able to be in an environment, in an ecosystem that we can provide offers of help, products, and capabilities to help consumers help with bringing flexibility of payments to pay for that out of pocket. We have three pillars for growth here. In our core business, the pillar number one, we continue to have opportunities to continue to expand in our network, in the specialties that we currently have, and continue to have more providers join us every month in dental and veterinarians and many of the specialties that we are. We continue to invest in capabilities and technology to be able to have an easier way to deal with our consumers as well as with our providers. We think we can continue to enhance these opportunities and grow this part of our business. Secondly, expanding our business. It's important for us to know that over the last couple of years, we've been able to sign over 12 health systems and hospitals. It's an area that we didn't do before that. The CareCredit acceptance of our product in these complex organizations at point of care and post-care is one that we're excited about. One way that we're doing this is also through strategic technology partnerships. An example of this is Epic, and how we're showing up on MyChart, which is used by many of the health systems in our country to be able to integrate into the consumer journey of being able to pay for that bill. We're excited with the integration that we're doing transactionally with Epic and looking forward to interact with those hospital systems that are able to have Epic in their system. Another great opportunity to expand has been the recent launch of myWalgreens card. We have here John Standley, President of Walgreens, that is going to tell us a little bit about our relationship, how they find us, and how they see this as a great opportunity to grow their business. Thank you for having me today. I'm John Standley, President of Walgreens. I want to take a minute to talk about Walgreens' collaboration with Synchrony. Through the process of expanding Walgreens' financial services offering, we selected Synchrony as our partner based on their innovative operating model, expertise in health and wellness space, and advanced technology capabilities. We launched the myWalgreens Credit Card with Synchrony on August 16th and have been pleased with the early results, as well as the path we took in developing a frictionless customer experience. The collaboration between Walgreens and Synchrony teams has been outstanding. The Synchrony team has a client-first approach to partnership, which was demonstrated throughout all aspects of the program development, strategy, and execution. Walgreens and Synchrony have a shared commitment to address outcomes, and we have extremely high expectations for the program. Thank you, John. We look forward to growing our partnership together with Walgreens. The third pillar of growth for Health and Wellness is vet to pet. We've had a strong presence in the veterinarian market. We have over 75% of veterinarians who are with us. We have a long-standing relationship with many of them. If we looked at the journey of a pet parent, we thought there were opportunities for us to expand our influence and be able to show up in payments with payment solutions and different ways of financing. Given it's a $100 billion addressable market, we think there is an opportunity for us to expand into adjacent pet products, adjacent services, as well as retail. Now, one move that we made 2.5 Years ago on this is the acquisition of Pets Best. Really, it was a strategic acquisition to accelerate the entry into this growing pet insurance market. When we first look at pet insurance, it's a form of payment. It was right in our wheelhouse in terms of competing with CareCredit in terms of how people pay for care on their pet. It's not ubiquitous out there. We saw this opportunity as a growth opportunity for us. We also saw it as an opportunity for us to bring additional product in terms of helping pet parents get the care that they need for their pets. We've been able to grow Pets Best to over 400,000 pets in force, more than double than where they were 2.5 years ago. It's a way for us to continue to bring forth to our pet parents and their journey of raising pets at their home, a flexibility of payments and different options on how they can take care of their pets when they need it. We thought one way to be able to do all this and share with you how important CareCredit is to our consumers is to have the voice of our consumer really tell the story of how they found us, what they think about CareCredit, and how they're able to use CareCredit to get the care that they need when they need it. I originally got CareCredit five years ago for my wedding day. I wanted to have LASIK. I didn't want to wear my glasses, and I wanted to be able to see everybody. I'm an interior designer, and making homes and offices beautiful is really important to me. Being able to use my CareCredit card to make me feel beautiful is also important to me. With five dogs, they go to the doctor more than we do, and CareCredit comes in the clutch in those situations. When I had to get some bridges put in, two of them on both sides. It is very expensive. If I didn't get it fixed then, my teeth would just continue to get worse, and it would cause problems later in life. Walking into the vet was like a godsend when I saw that they accepted CareCredit there, and I just knew that we were going to be okay. After looking at the app, I realized that you can use it for a whole world of medical procedures. My mother had misplaced her hearing aids, and that's not something you can really put off. I realized that CareCredit could probably help with that. The vet was like, "Hey, you guys can pay with CareCredit." I was like, "I've never heard of this. What is this?" If it weren't for CareCredit, we don't know who would've been able to keep Pal. To just be able to take a decision that you know you need and handle it's a super helpful option. We love CareCredit because it's so flexible. We can use it for stuff that we plan on using it for, but it also comes in handy when we have emergencies or last-minute things that we need it for. It was wonderful to be able to have both eyes done a week apart and to put it on the card. I would absolutely refer friends to CareCredit. It's kind of a no-brainer to me. I referred my friends because sometimes unexpected things happen. CareCredit's there for you. I've referred everyone with pets to CareCredit. Three of my friends now have CareCredit that have pets. I believe CareCredit can help empower you into doing something that you really want to do for yourself. It really has helped a lot of people in a lot of ways. You ought to get one if you don't have one. Thank you, CareCredit. Thank you, CareCredit. Thank you, CareCredit. Thank you, CareCredit. Thank you to CareCredit. Thank you to the half a dozen customers or so, plus the 6 million customers that interact with us every single month. We have built a great franchise here at Health and Wellness within Synchrony. We're a leader in healthcare and pet care financing. We got great brands that we have built with CareCredit, with Pets Best, with Allegro Credit. We have broad distribution across the board, significant scale and expertise that really bring forth great offers of help across our industry. We still believe there is considerable opportunity for us to grow this business and expand, not only on the core side of this business, as well as some of the expansion that I spoke to in terms of the markets, but also adjacencies and being strategic around those. Thank you for listening, and let me turn it over to our next presenter, Curtis Howse. Thanks, Alberto. Today it is my pleasure to provide you with an overview of our home and auto platform. We have one key deliverable for our platform, that is to work with partners to offer flexible financing options to customers, which in turn will help our partners grow and enhance customer loyalty. This next slide speaks to the breadth and depth of our home and auto franchise. We're an established leader with $40 billion in credit sales, 18 million active accounts, and 120,000 partner locations. At $26 billion in receivables, we are the largest Synchrony platform. While we produce $40 billion of credit sales, this only represents 2% of the total $2 trillion home and auto market, excluding mortgages and auto loans. Our efforts to increase share in this space will take place by adding new partners and merchants, increasing penetration with existing partners, and accelerating growth through platform adjacencies. With our recent reorganization, we're better positioned to leverage products and capabilities to make our share increase objectives a reality. When looking at the value the home and auto platform brings to our partners and customers, we see a number of benefits. In terms of value for partners, the first thing we see is expertise. Home is where Synchrony started financing appliances during the Great Depression. We also have 35 years of deep domain experience in the auto and fuel space. Next, there's data and analytics. We leverage these tools to drive loyalty and incremental repeat sales. In fact, 60% of our platform sales come from repeat purchases. This in turn drives cross-shop via Synchrony's marketplace and our home and auto networks. There's dealer and merchant onboarding. We onboard merchants and set them up to process applications within 30 minutes. We have also invested in waterfall solutions, underwriting tools, and shopping cart integrations to drive increased sales. All of these efforts bring big box capabilities to our smallest partners. When thinking about the value we bring to customers, it starts with flexibility and choice. We offer multiple financing products from deferred interest to installment. This provides options for customers and has driven $20 billion in promotional financing in the past year. There's purchasing power and utility. Our home and auto networks offer broad utility, drive top-of-wallet behavior, and give our customers access to thousands of participating locations. And last, perhaps most important. There's the customer experience. We are very focused on investments to enhance the customer experience, including Direct-to-Device and our pre-fill capabilities. When thinking about Synchrony's Marketplace, this truly demonstrates how we can bring customers to our partners. This site is used by our customers to service their accounts and learn more about our partners. This site is also used by our partners to highlight special offers and create new customer traffic. In 2020 alone, we had over 180 million visits to the Marketplace, generated over 1 million referrals to our Home and Auto partners, and originated 240,000 new applications for our Home and Auto customers. The scale and reach of the Synchrony Marketplace is a key growth driver for our partners and our platform. Our growth strategy consists of three pillars that I will cover over the next few pages. First, there's core growth, which is focused on driving deeper integration with current partners through better analytics, improved customer experiences, and enhanced products and capabilities. Second, there's network growth, a differentiator in the marketplace giving access to a broad set of industry partners. The key objective here are to drive sales, utilization, and cross-shop behavior. We're accelerating growth in this pillar by increasing partner engagement into the network, broadening acceptance, and enhancing awareness of the benefits the network has to offer. Finally, there is adjacent market growth. This opportunity is all about leveraging the aforementioned capabilities while testing, learning, and leaning into areas such as smart home, untapped home improvement categories, auto insurance, and rideshare. When thinking about our home business, there's some additional details I'd like to share with you. We have a robust, well-diversified platform with over 60,000 merchants. In fact, our average relationship tenure is 30+ years with our top 20 partners. We also support a wide range of partners and segments, including home improvement, furniture, bedding, appliances, and electronics. Our results have been strong. This includes 60% repeat sales and $35 billion in credit sales, which is an increase of 3% over the prior year. Although the pandemic has brought about many challenges, it has also created many opportunities. While customers quarantined at home or left cities for suburban neighborhoods, there was an increased desire to renovate homes or upgrade furniture and décor. Today's consumers view these purchases more as investments in their homes as opposed to expenses. In 2020 alone, the home industry represented more than a $600 billion market opportunity. Synchrony only serves a fraction of that today, which is why we're so excited about our future in this space. When thinking about the types of partners and programs we support within our home business, they span a number of areas. This includes partner-based associations, OEMs, independent dealers, and contractor programs in addition to our home network. The largest segment that we support from a partnership perspective is with our partner-based programs. As you can see from this page, we have a long-standing set of customers that we work with in the furniture, decor, appliance, and electronic sector. This includes some of the biggest players in the industry, such as Ashley, Rooms To Go, P.C. Richard & Son, and La-Z-Boy. We also have large buying groups and associations such as Nationwide Marketing and the Home Furnishings Association. In addition to OEMs, which allow support of thousands of individual merchants through one channel and one approach. In home improvement, we are a key provider in both the do it yourself and do it for me spaces. In DIY, which makes up two-thirds of all home improvement projects, we have one of our largest partners in Lowe's. For the do it for me space, we have Lowe's Pro, large OEMs, and independent contractors. These include Andersen Windows, Mohawk, and Generac. This page provides an overview of the dealer and contractor part of our home business. We have a large network of over 50,000 independent dealers and contractors. We added 8,000 new partners in this segment in 2020 alone. Our cross-functional support teams focus on this fragmented space with an emphasis on onboarding and customer experience. As previously mentioned, we're able to onboard new dealers in as little as 30 minutes. As we know, there's been a strong shift to digital in the do it for me space as partners adopt Synchrony's digital solutions such as Direct-to-Device and custom dealer applications. This has resulted in a 40% increase in all digital apps, including a 60% in all mobile applications specifically. The early read on our Direct to Device solution has been positive, with a 500 basis point approval rate lift, which matters most to our partners. Our next page provides an illustrative example of how Direct to Device works. The dealer sends a secure email link to the customer's device or generates a QR code to scan. Customers then complete the application process privately, efficiently, and securely. There are a number of benefits associated with this technology. It is contactless, paperless, completed on the customer's device, and minimizes friction. It also creates a simpler and faster application process where convenience is key. Finally, it prioritizes customer privacy and security. This is a great example of where technology can help both our customers and partners. To- date, we're seeing an incremental $200 per transaction for those merchants using Direct-to-Device, which is a key benefit for our partners. I would now like to give you an overview of the home network. Today, we have over 5 million accounts in the network that have utility at over 400,000 locations. Currently, the average sale generated outside of the originating merchant is over $1,800. The home network has only been in place for two years. As we go into year three, our focus is going to be on adding more partners to the network, increasing our distribution, and refining our value proposition. With housing starts up 29% in June versus last year, we see continued growth in home spend and cross-shop needs. All of these factors provide a strong use case for our home network card. Like home, auto is an area where a big portion of the customer's discretionary dollars are spent. Synchrony plays across all aspects of this fragmented space from oil and gas to servicing, parts, repairs, and tires. We have long-standing partnerships with our largest programs in this space that average nearly 14 years. Partners include major service providers across the industry, including BP, P66, Citgo, Discount Tire, Pep Boys, and NAPA. Our customers see the value in our cards in this space, with 80% of our sales being made by repeat customers. While the overall market is over $1 trillion, Synchrony's $5 billion in credit sales represents nearly 1% of this space, leaving us with plenty of opportunity to grow and expand. Our diverse network of automotive retailers, unique offerings, and deep industry knowledge are key differentiators in this space and will drive growth for our business. Now I would like to review details of the Synchrony Car Care network. The Synchrony Car Care network has been in the market for nearly five years, has over 1 million locations, and consists of more than 40 partnerships where our 5 million accounts can use their Car Care card. We have a strong value proposition and a large number of acceptance points that drive top-of-wallet behavior. With the length of car ownership increasing, and therefore servicing needs, we do see a tailwind to growth for the Car Care network over time. This page provides a vignette on the Synchrony Car Care network. Cardholders are able to use their card for all their auto spend, making it both top of mind and wallet. In fact, 26% of sales for our accounts are generated outside of the account's originating store. We see evidence of a strong network effect as network shoppers spend 82% more at the originating retailer versus those customers that didn't take advantage of the network. This year, we expect that to grow more as we continue to drive awareness, add distribution points, and add new digital capabilities. This page concludes our Home and Auto presentation. We have positioned our Home and Auto platforms very well to capitalize on positive market tailwinds. This includes only having a fraction of the market despite a large business today, which means we have plenty of room to grow. Partners valuing our deep expertise. Customers valuing our experiences. This helps us to win both sides of the equation. We continue to expand through our networks with significant opportunity in home and Car Care, and through the addition of new clients and adjacencies, including smart home, untapped home improvement categories, auto insurance, and rideshare. Overall, given our deep expertise, best-in-class capabilities, broad array of partners and products, and significant opportunities, we remain very excited about the long-term growth prospects of our home and auto platform. Now it is my pleasure to introduce Tom Quindlen. Thank you, Curtis. Good morning, everybody. It's great to be with you. My name's Tom Quindlen. I'm going to talk to you this morning about Diversified and Value, one of our platforms, one of our five sales platforms, the Lifestyle platform. We're going to kick it off here with Diversified and Value. This is a platform that helps a lot of our larger retail partners who are focused on delivering everyday value to their customers. We engage with these partners in-store, in-club, and digitally. We'll walk you through that. It's a very sizable platform. We got a lot of scale here. It's $38 billion in purchase volume, almost $16 billion in assets, an active account base of 18 million cardholders. A lot of opportunities for us to engage with our partners' customers and a lot of opportunity to grow. Here are our partners. We're very proud of the 18-year average relationship here. You can see Sam's Club 27 and TJX at 10. These are great partners for us. They got over $100 billion in sales across these five partners. We engage at 5,000 locations in digital property. A lot of opportunity for our teams to engage with these partners and their customers. We do that. We engage 55 million transactions per month, and about 25% of the sales are digital. You heard this morning, Carol and Henry and Mike talk about our deep expertise in so many areas. We bring that to bear with all of these partners, and whether it's credit underwriting, our data analytics, our marketing prowess, our sales teams going out engaging in-club or in-store. All this adds to the deep customer loyalty engagement for these partners. If you look at a cardholder for one of our partners, they will spend two X what a non-cardholder spends. Real value for our partners. We put contracts together that quite candidly align our interests. We're both focused on the same thing, profitable growth. For the customers, the value comes in the form of rewards and savings. Almost $1 billion given back to the consumer here through val props and rewards programs and savings that we generate. You can see almost 60% of our customers have at least two Synchrony products. Some real loyalty here. The market is big. It's roughly $750 billion. I mentioned the $100 billion of plus of sales that our partners have in this space. One of the metrics we look at is penetration. We have about 18% of their sales on our cards. That's a big opportunity for growth in this marketplace. We also have a world sales component here, so they have the ability to spend in the world. Together, we think that this is a very, very sizable opportunity in this very large market. When we talk about our partner-centric strategy, you've heard that before. There's really four tenets: partner alignment, value props, in-store experience, and digital. When we drive all that together for our partners, we think that for every 1% more of that pen getting that 18 - 19, 20, 21, that's another $1.5 billion in credit sales for every 1%. Partner alignment, crucial. We have dedicated teams, many times co-located, integrated with the partner. This is an example where in Belk's case, they're saying, "We want to drive sales in our beauty department." Our team with theirs collaborates and puts together this offer to earn extra rewards and brings the customer into Belk either physically in store or digitally. Strong val props. The Sam's val prop that we launched this year is a great example. 5% back for Plus members. It drives more Plus members, which is really strategic for Sam's, and it gives great value to that member. 5% off on gas, 3% off on dining, 1% everywhere else. A really great example. We do this with all of our partners. The val props are different, but they do create value and give rewards back to consumers. This is an example in Fleet Farm where in- store we have the digital in-store application. You can come on with your device and apply for credit and start spending in the store right away. The digital experience. Here with JCPenney, our digital shopping integration. The Synchrony Plug-in installed in the JCPenney app gives you the power to go in, check your available balance, pay your bill, or if you're new to credit, apply seamlessly, get the card in store through your device, and begin shopping. That 1% gain, important metric for us. $100+ billion of sales across these five partners. We've got 18% pen for every 1% we can get. That's $1.5 billion in credit sales, that's a great opportunity for us. Another example here, just to drive some of these points home, of the integration of that partner-centric model. This is TJX. Over the last 18 months, we digitized their rewards process, basically. Now if you use the card in store or in the world, you're going to get rewards faster and you're going to determine how you interact with TJX. Is it through their app? Is it through email or is it through their website? Whatever your choice, you're going to get those rewards faster and be able to go back in store and redeem. We really appreciate the relationship we have with TJX. While it's only 10 years, it's been a fantastic relationship for both of us. As Ernie Herrman here, their CEO, alludes, this digital rewards process or enhancements that we drove was really important, not only to TJX but to their customer. Having us as one of their trusted partners has been just a great partnership for both of us. Lastly, another example of this integration of our partner-centric model, Sam's Club. If you know Sam's Club, you know that Scan and Go is strategically important to them. Four or five years ago, as they really started off on this journey, we were right there with them. It started with simply driving people to Scan and Go through campaigns. Now it's a completely integrated opportunity where you can apply for credit, get your rewards, check your rewards. You can actually pay and check out without going through the register with our card completely embedded in Scan and Go. It's a great example of the alignment of that partner-centric alignment that I talked about. Just to wrap up D&V for you this morning. A market leader in scaled retail. We think there's real opportunity to enhance that 18% pen I talked about. We're delivering everyday value and loyal customers, which drives greater spend at our partners, which is what it's all about, helping their sales grow. We think we have top-of-wallet products and customer experiences to fuel that growth and enhance our partners' business model. Thanks for listening on D&V. Let me take a pause now and switch over and give you a little background on our lifestyle platform. Here we've got a diverse set of merchants with really iconic brands, and they've got tremendous passion for their brands and their products and customers. Where we come in is offering a seamless financing product, building relationship with the OEM and their dealer network, as you'll see. Here's some of the metrics around the platform, almost $5 billion in purchase volume and slightly over $5 billion in receivables. We like the correlation there. For just about every dollar volume we can put on the books, we get assets of similar size. Here you've got almost 2.6, roughly 2.6 million average active accounts for us to build and engage with. When you look at the partners here, it's a broad spectrum. Starting with our specialty retail partners like American Eagle, Dick's Sporting Goods, where we offer private label credit cards and co-brand products to name a few. Then across some of our verticals here, music, luxury, outdoor. We're really interacting here with the consumer that's coming in frequently and making multiple purchases throughout the year. Then we have the larger purchases for more special occasion, and the consumer shopping 2x or 3x before they decide on that purchase. Of course, we'll have the right financing product for them when they do. There's also a huge dealer network here with these OEMs, 20,000+, we think it's a really, really big opportunity for us. When we think about winning in this space, there's a couple things we focus on. You've got to be fast with this dealer network. You got to get them up and running quickly, we have a 30-minute onboarding. We onboard 2,000 dealers annually. You got to get them up and running quickly, 30 minutes start to finish. Beyond that, as important, we provide a lot of service and training to the dealer network. Michael Bopp talked earlier about data analytics. That's very important in this space as well. Personalization is important here. We found that in a survey of our customers, 40% of the sales would not have been obtained if they hadn't had credit available to them. We know that our product works here. We also know that channel's important, being able to engage in every channel. If you look at our American Eagle experience in their app or online, it's a great example of that. Similar to the D&V platform, our consumers here have 2+ Synchrony accounts, so very familiar with us and very loyal. This is a big market as well, but this one is highly fragmented, and that's a difference than what you saw in the D&V marketplace. Here, no single retailer holds more than roughly 4% in this space. We think that creates a ton of opportunity. There's also a nuance in some of the verticals like music and luxury, where up to 75% of the sales are financed. We believe that our products have a real opportunity to win here. It's our products, it's our capabilities, our service to these consumers and our partners' needs. We believe we're zeroed in on the right things to win in this large, highly fragmented marketplace. The way we think about growing is sort of threefold. Let's win in our existing base. If we get one application, one incremental application per dealer per month, we think that translates into roughly $150 million in sales volume. There's also some large national partners with programs, some with de novo opportunities that we think we can win. That's a big play for us. Then this dealer network I talked about, we bring on 2,000 dealers annually. There's over 20,000 existing partner dealerships out there that we interface with, and that's a great game for us. We think we got the right tools to win. To just touch on that a little bit more. To win with these dealers, there's really four things we look at that we deliver. Speed. You've got to be fast. You got to get these guys up and running quickly, as I talked about. You got to be flexible. Your terms have to be simple, easy to understand. You got to have the right product for the right financial situation, and then you've got to meet them in every channel. Crucial that all four of these help you win in that dealer ecosystem I talked about. Let me see if I can bring this to life for you up here on the big screen. To win in this space, speed, flexibility, multi-channel, multi-product, that's what we bring to that dealer network ecosystem, and that's why we think we're going to win there. Let me wrap this for you here this morning. We have deep expertise in this space, and we've really partnered with several iconic brands. We think that this network that we've enabled and partnered with, these OEMs and their long-reaching dealer networks, I think we've been very successful there, and we feel that continues to be a big opportunity for our growth. Lastly, we have cutting-edge customer experiences, frictionless customer experiences in all the right channels with all the right products. We think all of that together really enables us to have game here and build this business. I really appreciate your listening today to both the Diversified Value and the Lifestyle platform discussions. I look forward to taking your questions. We're excited about both of these platforms as real growth levers for the company. Now it's my privilege to introduce to you the leader of our fifth sales platform you're going to hear from today. That's Bart Schaller, and he runs our Digital platform. Over to you, Bart. Thanks, Q. I'm happy to be here and talk more about our Digital platform, our partners, and how we're thinking about growth. This is what we do every day, but more importantly, it's what we aspire to continue to evolve and improve upon every day. More integration, more seamlessly integrated into our partners' environment to deliver for their customers payment solutions and offers with leading values and rewards, and increasingly personalized offers and communications, all seamlessly inside of that partner's experience and extending the value of that customer for our partner. As we look at our platform, 17 million active accounts, $36 billion in purchase volume, some great scale to grow from. A couple of statistics on the left that are unique to digital. I guess I should say the digital platform is new to Synchrony, but Synchrony is certainly not new to digital. That's proven with this group of core partners who average a 16-year tenure with Synchrony. From that and those business partners' models, the way they engage with their customer weekly, daily, maybe even more often, we see that same engagement with 52 purchases per active customer per year. That's different and unique for the digital platform. As we look at who makes up our platform, we have PayPal and Venmo delivering payment solutions and enabling customers to shop online, but increasingly offline. We have marketplace models with Amazon and eBay delivering huge scale and utility to their customers. Our digital-first brands and merchants. We have an array of products, and we take those through multiple channels depending on the partner. No two partners have the same integration or configuration with Synchrony. Each one of those meets the partner and their customer and their expectations, where they are in that journey, then we evolve and collaborate and grow from there. As we shift and look at growth, on the left-hand side, huge scale with our existing partners, a $650 billion opportunity, big growing e-com space, and then those in-person sales that retail, travel, entertainment, dining experiences, driving value back for our partner. We can grow with our partners, and we can also grow and increase share. We do that through those integrated customer experiences, driving that personalized messaging and offers, leveraging the data that Mike talked about, and consistently evolving that customer experience to stay relevant. Part of staying relevant is continuing to look at our product suite and expanding our product offerings with each of these brands and partners and ensuring that our offers remain relevant in real time. Then finally, winning with new partners. Two great examples, Venmo and Verizon, of programs we launched in some interesting times last year, both performing very well. The great thing about the new digital partners, almost universally, they come with huge databases. Consumers that they already know an immense amount about. Where they're logging in, what they're looking at, what they're shopping for, more importantly, what they're buying, where they're shipping to, and using all of that data married in real time with the Synchrony insights and data is very powerful, as Mike and Henry have already talked about today. I didn't just want to talk to you or tell you that we're going to engage better with these customers, or that we're going to grow with a partner over time. I thought I'd spend a few moments and demonstrate how we're actually doing that today. Here's our customer journey, engage, apply, use, and service. Not always linear or in this order, but in each one of these cases, I want you to notice the personalization, the engagement seamlessly with the customer, and all inside of the partner's brand. First we'll start with Verizon. This is a personalized video as part of an early months-on-books email. It's personalized and it's specific to the Verizon key channel of a smartphone. We're going to talk to the customer about how to activate their card and get started, how to provision it into the mobile wallet so that they can begin shopping online and offline immediately. We're going to wrap it up with the value proposition that ties back into the Verizon brand. Signing up for Verizon's auto-pay earns the customer an additional $10 a month per line off of their cell bill. Beyond the Verizon Visa spend value of 4,321. An HSN example. Several of my peers have talked about different instances of our digital apply platform. I want to take it a step further, another layer deeper in terms of integration inside of a customer shopping experience. We have Jen logged into HSN shopping for a purse. She finds the one she likes, and she places it in her electronic shopping bag. Now while she's doing that, we're using HSN's known shopping data and the real-time API connectivity that Carol highlighted, and we are transacting back and forth with HSN behind the scenes. We're interacting with Henry's PRISM platform, and we're delivering a seamless pre-approved offer with a great value to accept it today. A few more clicks from Jen, and she's right back into her shopping experience with a new card and a great value. Let's look at Venmo. Again, Carol highlighted how we worked with the Venmo team to seamlessly integrate and layer in credit to their already impressive Venmo app experience. For the consumer, it's personalized and intuitive from the first moment. They get to select the card they want, and we're going to personalize that. Not just with your name and account number and an expiration date. On the front of that card is the unique QR code that accesses your Venmo account. It's easier to split bills, pay friends, and be paid. That's really important. We've taken the ultimate offline tool, the piece of plastic, and we have linked it back to the Venmo application digital experience that the consumer values. We look at rewards. The rewards fluctuate and optimize every month. This month you're traveling, more rewards. Next month, you're at home working on the house. The rewards optimize and fluctuate to meet your spending and deliver cash back at different rates each month. That cash back is deposited back into your Venmo account so you can pay family and friends, you can pay your bills. You can pay your Venmo Visa bill. Venmo has even enabled the conversion now to cryptocurrencies. Finally, even in servicing, using intuitive integration and technology to deliver service. Here we have two very well-known voice assistants from two of our partners. Our innovation station created voice skill sets for managing those credit accounts, balance inquiries, due dates, making payments, and those are available not only to these Synchrony platform clients. We do integrate and iterate, personalize, and drive more engagement, and do it as seamlessly as possible, and importantly, within our clients, our partners' branded experiences. It's a constant evolution and collaboration. It all starts with the Synchrony scalable platforms with unique and configured integrations. I wanted to spend a minute too. I talked about wanting to grow with a partner, evolve with a partner over time. No better example than Amazon. We started back in 2007 with a fairly straightforward, simple promotional full cart offer. As Amazon continued to grow and change their business model, we grew and changed with them. Changing not only the integrated experiences across the consumer journey on the top, but also evolving the product and the value proposition along the bottom, the value we provide to that customer. Complementing the Prime launch, shifting from a promotional offer to an equal pay offer. The great thing about the Amazon business model, based on product ratings, many if not all of our efforts are guided by real consumer feedback and those star ratings. We don't just say and believe we can grow with partners. We're actually doing it, we have been doing it, and we will continue to. If we step back and look just broadly at the digital commerce journey. Go back 10 years, $170 billion in e-commerce sales, and roughly only a third of us with a smartphone. We look at where we are today with close to $1 trillion in e-commerce sales and a growing number of connected devices that certainly 10 years ago we couldn't have imagined. What does that mean 10 years forward? Certainly significant growth, but maybe more importantly, continued evolution, collaboration, new technologies, new customer experiences, and customer expectations to be met. We're going to continue to grow both with our partners and with new partners, and certainly with those new technologies to lead the market. I'm going to conclude with three themes you've heard throughout the day. First, we have to be integrated, seamlessly part of our partners' platforms, improving the placement of payments and offers to be in the right place at the right time to be relevant. Use the incredible insights and data from our partners, marry that with the Synchrony insights, and power better decisions. Relevant, personalized offers and communications. Finally, this evolution is constant. The journey in digital is never ending. The collaboration with world-class partners is a privilege. They make us better. We expand our capabilities. We help them grow their business, and in turn, we grow the Synchrony business. Thanks. That's digital. Now I'm going to turn it back over to Kathryn. Thanks Bart. Hopefully thus far today, you've picked up on a couple of key themes. Synchrony has spent decades building out and diversifying our business. We've amassed a tremendous amount of powerful data and insights and have heavily invested in our technology and digital capabilities to power our dynamic financial ecosystem, all with the end goal of providing our partners and customers with greater optionality in how they connect and engage each and every day. And as you just heard from each of our platform CEOs, each of our industry verticals are well-positioned to leverage these proprietary resources to win and expand new partnerships, expand the value propositions we offer, and enhance the commerce experiences we power, all leading to sustainable growth over the long- term. Now, the moment you've all been waiting for, it's time to hand over the reins to Mr. Brian Wenzel, our Chief Financial Officer. Brian will bring together today's discussion by highlighting how Synchrony's core differentiators, our business model, data analytics, product suite, digital capabilities, and platform opportunities translate to sustainable, strong financial performance and value creation for our stakeholders over the long- term. Now, to the ultimate closer himself, Mr. Wenzel. Thanks, Kathryn, good morning, everyone. Today, we've provided you a lot of information on our sales platform and business strategy. What I'm going to do over the next few minutes is try to help you map that information to the financial attributes of our company. Before I dive into detail, what I'd like to do is cover four core financial elements of our business model. The first is around sustained growth. What we've shown you today is diversification across our platforms and inside of our platforms. When you have such a diverse set, what really fuels that and what's required is a multi-vast array of products that we have to service the customers and provide financing to them in their customer journey to help them enable the sale and help our partners pull through that sale and convert those sales for them. What fuels all this is a compelling value proposition, and most of that value proposition is paid by the partners out of their portion of the RSA. When you combined that diversification of multi-product strategy and a compelling value prop, what you end up with is a highly engaged customer. When you have a highly engaged customer, what it allows us to do is get favorable terms, which gives us a higher interest and fee yield. You combine that with the underwriting. Now, Henry outlined his underwriting principles and the way in which we go to market. That's really the foundation of that is our 80+ years operating in this market in the retail origination and execution. When you couple that with the data elements that we have for the vast majority of the transactions that we have and data share from our partners. You fuel that with the advanced tools and unique attributes that Henry talked about earlier, and you deliver that through the technology that Carol talked about, having action-driven items that we can really execute at the time which a sale is happening or accounts being requested. That gives us a very strong risk-adjusted margin. What's also unique about our business is RSAs. Our RSAs are very simple when all they're trying to do is line the interest of our partners with Synchrony, and they're aligned around growth and profitability. When we have conversations about where to spend money on growth, we have conversations on if we want to adjust cardholder terms as a value proposition. If we're making underwriting refinements, our interests are aligned to service the customer the best way to drive growth and drive profitability. Finally, the core element, too, is in operation and efficiency. We come from an environment where we don't need a lot of marketing dollars to generate new accounts. Our marketing goes to early month on book activities, life cycle activities, and then things like such as upgrades that Mike talked about where we drive increased lifetime value of accounts. You couple that with a heritage from several decades ago of operating on low balance accounts. That discipline in driving digitization across all our activities yields us a highly effective, highly efficient business model. The foundation of that, which Mike talked about, is having the number one set of cardholders across our financial institution peers. That's powered by this model with 65+ million active accounts, almost 450,000 locations which we operate, and 55% of our applications coming digitally. You look at the engagement of our customers, we generate over 25 million new accounts per year. Our average length is 10 years. When you look at the bank, 40% of our customers have more than one product with us. They're engaging on the credit side without us trying. Really a strong foundation to our business. What that has yielded, what Brian talked about, was really a significant amount of growth over the last 10 years. Right. If you go back to 2010, our business was $45 billion in assets and over $82 billion at the end of 2020. When you look at it, what's more attractive is the fact that we've been able to convert volume to receivables to net NII. Now you may say, "You weren't an independent company all those times. What's happened more recently? When you look at this, since the IPO through the pre-pandemic period, we've been able to grow purchase volume and receivables around 7% per year and convert that 7% into NII. When you look at the performance relative to our peers on volume and receivables, we outperform them. It goes back to the diversification, the multi-product strategy, and compelling value propositions we put our partners. Now, what fuels this growth? What fuels this growth is the 25+ million new accounts we generate per year. The way in which we have this value proposition constructed, the way in which we have the multi-product strategy, allows us to originate new accounts at a fraction of our competitors' cost, $18 per account. When you look at that relative to our peers, they're either 2x or 4x that amount. It really goes back to driving that engagement, having that highly engaged customer, providing the right product when they need it in their journey, engaging with them as they move through the journey, and we provide different products to them. This product, when you look at the margin that we generate, generates $350 lifetime value per account, 15x-20 x on average the cost to acquire. You might say, "Well, that's a great model. Why wouldn't you originate a lot more new accounts?" What we try to do is optimize this equation. I could originate a whole bunch of new accounts, and what that's going to do is drive up our cost to acquire and drive down our lifetime value. We are, again, trying to find the optimal level of an effective and efficient cost to acquire with a very attractive lifetime value. As we think about that lifetime value, that brings us to margins. As I talked to you earlier, having an engaged customer, a compelling value proposition gives us favorable terms. That leads us to an interest and fee yield on average about 800 basis points higher than our peers. When you couple that with the underwriting we do, we generate risk-adjusted yield of 560 basis points more than peers and 600 basis points in comparison to our broader peer set. That provides us superior risk-adjusted returns, which we can use to flow the business. When you think about losses, one of the things you have to think about is the sustainability of losses over time. Here, and what Henry talked about earlier, is the consistency in our underwriting model. In this chart, when you look at the pre-GFC period, the great financial crisis, and you look at it through 2021, we've performed in line or better than our peers through going through several cycles. We underwrite at a customer and channel level, and we optimize the loss rate really by aggregating a portfolio approach. Using the rich data set and the PRISM tools, we're able to achieve this on a consistent basis over an extended period of time. What you may ask is, how did you do during the pandemic? This shot gives you how we've transformed the portfolio. We've taken our prime exposure from 72%- 80%. Effectively, 20% of our book is now subprime. In the GFC, that was 39%. Pre-pandemic, it was 26%. We've done this by refining our underwriting criteria at the beginning of the pandemic, providing forbearance accounts to those who need it, closely monitoring those who have forbearance and other forms of support, and really beginning to unwind that now as we get comfortable with where the consumer is in the pandemic. A very effective way in which we've managed through this period of time. Turning to the RSAs. RSAs are a way in which we, again, align the interests of parties. Roughly 25% of our RSAs are volume-oriented payments, essentially payment on volume. 75%. You think about interest and fee yield, you think about other income, you think about provision for losses and expenses. The alignment here leads to long-lasting relationships that align our partners' interests. We move this forward for a second, the fundamental RSA constructs, they vary by partner. They're designed to achieve an overall ROA in line when you think about the risk-dependent factors. How much risk is the retailer willing to take? How much risk are we willing to take? You adjust the ROA for that. When you think about what varies inside of that equation, it's really two things, the growth of the assets, and the second is the operating performance of the business. Let me go to two hypothetical examples on the right-hand side of the page. The first one has a hurdle rate targeted at 1.5%. Given the low hurdle rate, the sharing is lower, so they only share 50% of the upside economics above the return above a 1.5%. That yields 69% of the program return to Synchrony. In another illustrative example, if we retain the first 2% or that first take, and that illustrative return is at 4%, we may give up 75% of the economics above the 2% hurdle. In that case, we only get 63% of the program economics. Now scenarios. One scenario is where you have an increase in the operating performance of the portfolio with no asset growth, and one where you have a decrease in the operating performance, again, with no asset growth. If you take that first illustrative example of the 1.5% hurdle rate, and you say this partner program return went from 4%- 4.5%, Synchrony's share in the overall program return goes from 69% to 67%. Effectively, 50% of that incremental 50 basis points goes to the partner. In a downside case where you have 150 basis points reduction in the operating performance of the business, again, the retail partner shares 50% of that. In a downside case of 150 basis points lower off the 4%, so effectively a 2.5% illustrative return, we get 80% of the program economics. Here it's illustrating the downside protection and the greater upside sharing with the partner. If you look at the second example where we retain the first 2% and have a 75% share, and you do that same thing, no growth + 50 basis points. Here we get 58% of the program return down from 63%. When the profitability goes down 150 basis points, we get 85% of the economics. Again, an illustrative example of how we're protected on the downside, and we share potentially more on the upside. This aligns our interests and protects our company when times are more challenging. As we turn to our next core element, our operation efficiency. One of the core differentiators for us is our efficient marketing spend. I talked earlier about our retail partners really funding a lot of the value proposition and engagement with their customers through the RSA. We don't need as much marketing dollars to originate new accounts, which is back to the cost per account that I referred to earlier. When you think about that, we can deploy our marketing dollars again towards differentiating types of marketing activities, early month on book, life cycle, upgrades. What this allows us to do is fundamentally invest in strategic aspects of our business. Our digital assets that help us really drive home a Venmo program. We've spent over $5 billion in technology spend since our IPO. Incredible investment in our business. You couple that with core productivity initiatives, things around eBill, things around driving our virtual assistant, Sydney. When you think about engaging customers digitally with 55% of our applications coming in a digital way, we're driving core productivity initiatives across the portfolio. You have a heritage where our business used to operate at a much lower average balance per account. We've built this business to operate highly efficiently and gives us a 21-point advantage when it comes to efficiency ratio versus our peers. Turning to the balance sheet, the thing that we focus on is our loss absorption capacity. That's really our ability to sustain losses in any environment. The way you think about loss absorption capacity is our Tier 1 capital plus our reserve for credit losses. We've grown that from 20%- 28% from our IPO. We built a very strong balance sheet. At the same time, we've improved the credit quality of our portfolio. As you go back to the GFC, we dramatically improved the credit quality. Here we're operating with a very strong balance sheet with regard to our loss absorption and the credit quality underneath it. Now what funds this balance sheet, and another side of the strength of this balance sheet, is our funding model. Our funding model has at its core retail deposits, which we have grown from 72% of our funding stack in 2016 to 81% today. We maintain access and reliability into the secured market and unsecured market. We have a diverse set of funding sources for the business so we can fund growth during any period. This funding profile provides a very attractive cost of funds of 1.4% as of the end of the Q2. From a capital perspective, we're on a journey. As we exited our former parent, we came out with excess capital. That strong capital position was designed to ensure our separation. In 2016, we began the reduction of our capital. We returned over $11.5 billion of capital through share repurchases and dividend over that period. We reduced our CET1 from 18% by 390 basis points to 14.1%. Now during the pandemic, we thought it was prudent to limit and reduce our share purchases and eliminate those for a period of time. That's allowed the CET1 to build back up to 17.8% to really weather whatever events we thought may come out of the pandemic. We've resumed share repurchases in the H1 of this year with just under $600 million of repurchases and $2.5 billion remaining on our authorized repurchase plan as we exited the Q2. As we look at the funding model, one core element is our digital bank. Our digital bank we've grown from $37 billion in 2016 to $50 billion in 2021. That's a 6% on average CAGR growth of that. What's critical to that is engaging with the customers, engaging them in a frictionless environment, providing them value and ease in which the way they can open an account and service that account. That's driven 94% customer retention, very strong and consistent over that period. When you look at that cardholder, they've been with us over five years. 40% of them have another product with us, a credit product that we haven't even marketed out to them. They have $60,000 on average balance with them, a very engaged customer. One of the other things that we do is really engage broadly across a multigenerational set. How do we reach different people about savings and financial planning? At the bottom, we really illustrate some of the things we do, whether it's our Save Like a Hero campaign, our America Saves initiative, our partnership with Millie around financial planning and content for women. We really try to gauge people around the importance of savings and the importance of financial planning. As we move from the digital bank, we talk about our capital allocation strategy. The first is being able to fund our organic growth and the opportunities we outlined today. We have a $5 trillion opportunity that Brian talked about earlier. When you go by each of the sales platforms, they outline the growth potential in each of the businesses. We want to be able to fund that growth at attractive risk-adjusted returns. Our next priority is dividends. We want to have a consistent, reliable dividend through the cycle and through all cycles. When we started our dividend back in 2016, we returned over $2.5 billion as a core element of our capital allocation strategy. The remaining capital generation, which exceeds 100 basis points per annum on an operating basis, says what do we want to do? Do we want to do share repurchases or will we do inorganic opportunities to expand our capabilities, provide further diversification, or enhance our capabilities or products? Here we give you four examples of the acquisitions that we have done in order to do that. Let's turn to what this equation really means. As you think about the long-term financial framework of our company, we're designing this to deliver double-digit EPS growth in a normalized environment. Let's spend a little bit of time going through these pieces. The first is growth. When we went public, we gave it a target of 5%+ growth. What I outlined today was a history of around 7% CAGR growth pre-pandemic. When you look at the migration in our portfolio to high-growth partners and our recent reorganization, we think we can accelerate that growth and deliver 7%-10% in a normalized environment. The next is the risk-adjusted margin. We believe the risk-adjusted margin is going to be attractive for our shareholders. When we went public, we thought our net interest margin would be at 14%-15%. We're now saying it's going to be approximately 16% in that normalized environment. The underwriting capabilities that Henry outlined based on our history, the data, and the tools that we have should deliver a loss on net charge-off rate between 5.5% and 6%. That provides a very strong risk-adjusted margin and one that will be resilient through multiple cycles. Again, we talked today a little bit about the RSAs, and I gave you some examples. Again, very unique to us. This allows us to have a sharing with our partners, alignment around growth, alignment around profitability, and that should operate in that 4%-4.5% of ALR. We talked a little bit about our operating efficiency. In a normalized environment, we believe that comes back to 32%-33%. Over the last 18 months, we've taken initiatives in order to ensure that we can deliver on that cost and that operating efficiency. What underpins this, we spent some time today on the balance sheet, and really given the resilient margins that we have in the business. Considering the buffers that we have in the Retailer Share Arrangements, we believe that we can operate this business effectively and efficiently and safely at 11% target CET1. That's a highly efficient machine where we can continue to have capital generation, where we can look at share repurchases as well as inorganic opportunities, as well as fund our growth and maintain our dividend. When you put this equation together, a 7%-10% growth, our attractive risk-adjusted margin, the RSA buffer, and the capital levers that we talked about, you should come out with a return profile of 2.5%+ ROA or a 28%+ ROTCE. When you think about the whole model, you're thinking about a high growth, high margin, resilient business that generates a very attractive return to shareholders, both on an ROA basis and a return on tangible common equity. Now, before I turn over to Brian for some final comments, I wanted to leave you with two things. The first is a quick update on our Q3. We continue to see mid-teens purchase volume growth and strength with the consumer. We still see an elevated payment rate, although certain cohorts have begun to moderate. As you think about the net interest margin of the business, we see modest improvements sequentially on the margin, driven by a better ALR%, yield improvement, and a better write-off environment. When you think about net charge-offs, we really have strength in our credit performance and delinquencies, which sequentially will give us an improvement in write-offs. When you think about a higher net interest margin, when you think about a lower loss environment, you think about those two items together, what's going to happen is you're going to pay slightly higher RSA. The benefits that we see in the net interest margin and the net charge-offs will be partially offset by the RSA payments. Let me leave you with some closing thoughts. A key part of our business model is our diversification of multi-product strategy. It delivers sustained growth for us. We demonstrated that a track record over the last 10 years, over the pre-pandemic period, and we've outlined numerous ways in which we think we can attack the market to really drive and increase our growth percent as we move forward. The second is the attractiveness of the risk-adjusted yields we have in our portfolio. By having that diversification, multi-product strategy, compelling value props, highly engaged people, we can deliver attractive risk-adjusted yields powered by the underwriting capabilities built on a long history in the retail environment, delivered by data and advanced tools. We also have something very unique to Synchrony, it's the RSAs. It aligns the interest with our partners to drive growth, but to drive growth at a profitable rate of return and attractive risk-adjusted return with our partners. Finally, the key takeaway for the business. You should think about our business as a high growth, high margin, resilient business that produces 2.5% ROA, 28%+ ROTCE, and is designed to deliver double-digit earnings growth in a normal environment. Now I'm going to turn over to Brian, who's going to provide some closing remarks, and then we'll go to Q&A. What we hope you take away from our conversation today is that our business is diversified and deep, giving us tremendous addressable market opportunity. The combination of our integrated product suite and digital capabilities really enables us to engage and serve more partners and more customers, empowering them with greater choice. As a result, Synchrony is well positioned to continue to generate sustainable growth, attractive returns, and significant capital over the long term. With that, let me welcome back our executive team and turn the program back over to Kathryn to kick off the Q&A portion of today's session. Thank you, Brian. Thanks again to our executive leadership team and to all who have joined us today. Let's now kick over to our Q&A session. We've received a couple of questions regarding buy now, pay later. I've done my best to consolidate them into a few questions. First, Brian and Brian, can you talk about your integrated product strategy and how buy now, pay later fits into it? Kathryn, I had a feeling the first question might come across as buy now, pay later. One of the things that we tried to do today between Michael Bopp and I was really lay out an integrated product strategy and why we think that is a real competitive advantage for us. We're out there every day talking to hundreds of partners. I can tell you that the one thing that they all agree on is that they don't agree. They all have different ways in which they want to use these products. They all have different customers that they're serving. It varies by industry segment. It varies by the types of products that they're offering. It varies by customer type. I think that's why when we take a step back, we say it is so important for us to have this integrated and very comprehensive product strategy for our company. We think that's a competitive advantage. I can also tell you that one of the things that we're talking to our partners a lot about now is really the economic equation. That probably doesn't get enough attention. When we talk about buy now, pay later installment, there's clearly a consumer demand for that product. Our partners want to offer that product. They're also really being thoughtful about the economics of that. They're looking at a buy now, pay later product that may cost them 700, 800 basis points of margin, and they're comparing that to some of the products that they have in market today, where they're earning a substantial amount through the RSA. In some cases, we're going to have partners that want to dive both feet in with a Pay in Full or a long-term installment product, and we offer that today, obviously. We're going to have some that are a little more cautious and want to test and learn and see how that kind of impacts their bottom line. At the end of the day, as Mike showed you, having that integrated product strategy is a real advantage for us. We think it's best in class. There's no one else out there competitively that can offer all those products. We're really excited about it. We're excited about SetPay. We're seeing really good traction there. We're going to launch Pay in Full in October. We're excited about that as well. I'm going to kick it over to Mike just to talk a little bit more about how we think about that integrated strategy. Thanks, Brian. Brian did speak a little bit about the population of customers. We talk about average order values. Typically, average order values on pay-in-full type products are going to be lower. We even look at certain types of things that customers are purchasing, jeans, shoes, things along those lines. While it's a relatively narrow part of the market, we are hearing from customers and partners. What we really think our differentiator is, we don't stop at that particular pay-in-full product. We have the experience, we have the data, we have the analytics to be able to identify which customers that we might start with a pay-in-full type product would benefit from a higher utility product. We might see, for example, partner value out of strategy doesn't begin and end with that pay-in-full product. We see it as a good acquisition strategy to drive long-term customer value. Great, Mike. Thanks. Kathryn, why don't we take our next question? Sure. When your buy now, pay later pay in full is launched, will it be Synchrony branded or white label? How do you think you enter to the first-mover advantage? Yeah. I would say a couple of things. One, I think this is also a competitive advantage of ours in that we're going to offer it in a few different ways, and it's really going to be partner-based. Our entire business actually works that way. If we have a partner, and we've actually had some discussions with some of our partners where we know they want to brand it with their brand. We're happy to do that. It can be their brand, coupled with SetPay. It could just be their brand, or we could offer it as Synchrony SetPay. We're going to be very flexible. We're going to flex to what our partners want. I think that's going to be a real differentiator for us. As we know, like I said, all of our partners want different things from us at different times. We've been in the business a long time. That's part of the value we bring is being able to flex and adapt to what they want. Thanks, Brian. Can you talk a bit more about how the impact of buy now, pay later has shown through our business, either in terms of customer acquisition, our revolve rates, and margin? Yeah. Brian, why don't you take that? Yeah. Kathryn, we've done a lot of analysis really on looking at customers who take out a buy now, pay later product and then what the overlap is into our portfolio. When we looked at cohorts that carry our Synchrony dual card or our co-branded card that also have buy now, pay later product, it's less than 2% of penetration. It really hasn't impacted our portfolio that much in the take-up rate. When you further dive in and look at the performance of those accounts at Synchrony, they actually revolve at a much higher rate than our overall portfolio. We've not seen any meaningful shift, either in monthly spend behavior patterns, payment behavior patterns, or any other attributes. When we look at our applications and really what we're taking in through the door, we've not seen any really distinct or discern change coming from buy now, pay later. As we look at it, and it's going to continue to grow, but we have not seen any marketable impact on our business. Thanks, Brian. With regard to buy now, pay later, as well as the broader portfolio, can you help us understand how we balance the trade-offs between incremental volume, either through new partners or existing partners, and the returns on that volume and where we flex to higher or lower economics based on the opportunity set? Well, I can tell you, that is one of the most important things that we have to do as a company, as a leadership team. I can tell you that's where we have our healthiest debates as a leadership team. Our goal is to do both, is to drive significant growth at attractive risk-adjusted returns. It's easier said than done. Obviously, competition intensity increases. It ebbs and flows. Right now, I think we're in a pretty manageable time period. I think there's good discipline for the most part out there. That's what we're here to do every day is really to make that trade-off between growth and doing it at attractive risk-adjusted returns. One of the things I will tell you, and we pride ourselves on this. Business that we've walked away from, typically, we walk away because we don't price deals for today's environment. We're going to be best ever credit losses again this quarter in the Q3. You don't price a deal based on that. You don't price a deal based on sub 3% loss rate. You look out over time, you stress it, you say, "How's that program going to react in a tougher environment, in a stress scenario?" That's how you make good business decisions. Again, at the end of the day, we're trying to drive really attractive growth, but not growth at all costs. Attractive growth at really good risk-adjusted returns. I don't know, Brian, if you'd add anything to that. Yeah. The only thing I'd add, Brian, two elements to it. One, I talked about the relative cost to acquire an account, and the way I think about it and the way the leadership team thinks about it is when you have a SetPay product, it's just a different cost to acquire. When you think about, as Mike talked about that migration into different products, where they are in their sales journey, it's really important to look at it in that framework. I think finally, when you think about customers that have the RSA, we have a broader economic arrangement where we can leverage and move people along that product journey because we're aligned around growth and profitability. Great. Kathryn, why don't we take the next one? Sure. How about we shift gears a little bit, and we'll go over to John Pancari at Evercore. He asks, "Dan Schulman indicated that PayPal plans to do much more with Synchrony. Can you elaborate on the target products areas of growth with PayPal? Is it primarily greater volume on the Venmo card, or is the opportunity in newer products? Yeah. Well, I hope all of the above. We have a great relationship with Dan and the PayPal team. I hope you noted that one of the things he said in that video was that he pushes us really hard. He does push us really hard. That team is really creative. They are growing like crazy. They come up with a lot of great ideas on how we can partner. I think we've done a really good job over the years really expanding our relationship. It started with the co-brand card, then we took over their credit program a few years ago. We're seeing really good growth there. We saw an opportunity to jointly launch the Venmo card, which I'll ask Bart to talk about in a second. We're always in there, embedded with their team, talking about ways that we can expand our partnership. I can also tell you whenever Dan brings an idea and his team to us, we take a really hard look at it. We try really hard to make it work, and oftentimes we can. It's a very collaborative relationship. We love the push that we get from them, and hopefully down the road we'll have some more announcements to make on how we're expanding our partnership. I'll ask Bart, maybe just talk a little bit, Bart, about the Venmo card and that experience because that's something I know Dan talked about, but we're really proud of that product as well. Sure, Brian. If we think about the Venmo product and the extension to the broader PayPal relationship, Carol highlighted the technical integration, the seamless customer experience that the Venmo team and the Synchrony team created in the application. I highlighted and talked about the customer experience that we extend outside of that application so that the customer can use all sales and those rewards to drive that value back into the Venmo-branded experience. I guess as we think about it, we started that program late last year. It was a pilot. We had a scaled rollout. We got to about full scale in February. It's still a very new program. Applications and accounts are strong. Early spend patterns are great. As we think about it going forward, I think that activation and that engagement rate will only continue to grow because a big part of the Venmo experience is sharing experiences with friends and family. Travel and entertainment, dining, splitting bills, sharing expenses. As we go into the post-pandemic period, I think we'll see that engagement continue to grow as people pick up that kind of activity. The only thing I would add, Bart, I could tell you the number of positive notes that I get on the Venmo card from customers who just love the experience. They love the value prop in terms of they don't have to think about it. They're just always put into the highest reward categories. It's just people are over the moon excited about it. I wake up in the morning, I get a lot of good notes on Venmo. It's a terrific product. I think we and the PayPal team think it's absolutely best in class out there. Kathryn, why don't we take the next one? Sure thing. Maybe let's switch gears on the note of technology. Sanjay Sakhrani from KBW asks about how widely used the new technology is across our partners. Obviously, there are the Venmos of the world, but then there are folks who are not quite as sophisticated as Venmo. If not 100%, how aware are those partners of its capabilities and when we might achieve full penetration? I'll ask Carol to talk about this, but one point I want to make is what differentiates us here in terms of our technology spend is all of our spend is really geared towards integrating with our partners. That's such a big part of what we do, and that's a big differentiator for us. Carol, why don't you talk a little bit about how we think about that? Sure. Thanks, Brian. Our platform, as I talked about earlier, is really designed to scale across the spectrum of partners we have. Meaning from a small dentist office all the way up to a digitally native company. In that, the flexibility we build in there meets our partners where they are, and that's really the differentiator for us in the partner space. You combine that with working with our commercial teams who know our partners so deeply. We connect with them in a way so we can bring the right solution to them to meet whatever objective they have, and that we can then continue to evolve the platform to meet their needs. Great. Thanks, Carol. Kathryn, why don't we take the next one? Sure thing. We've been receiving two questions regarding our Q3 2021 trends. Brian, maybe it would be helpful if you could share some thoughts on what we're seeing in the business and the implications. Sure. Let me try to provide some additional color for folks. I'm going to start with two underlying premises. One, we do have 21 days left in the quarter, and we've learned nothing over the past 18 months, things can change fairly rapidly. We have, I think, fairly good line of sight. Number two, I think Brian and I would say as we exited the Q2, we had a very strong Q2, and that's really continued into the Q3. As you think about it, and I'll start really just volume quickly. I said mid-teens. If you think about that relative to 2019, again, that's a mid-teens positive V. We're happy with the volume. There is still an elevation in the payment rate. If you think about some of the underlying financial trends, though, and I want to do this on a sequential basis, Q2-Q3. If you think about our net interest margin, we were 13.78% in the Q2. I would think about something approximately 15% for the Q3. When you think about net charge-offs, we are 3.57% for the Q2. I guided to a full- year less than 3.5%. If you think about the Q3, it will be less or sub 2.5%. If you stop and just process that for a second, that says we're going to have a positive impact to margin of 125 basis points and a positive impact to net charge-off of 107 basis points. When you look at that 230 basis points of profitability improvement, roughly half of that will go back and increase the RSA payments to our providers. Again, as I talked about earlier, that's as it's designed. As the profitability in the business increases, we will share more with our partners. With that, I'll turn it back to Kathryn, to you for another question. Sure thing. Ryan Nash at Goldman Sachs says, "On your financial targets, first from a growth perspective, could we operate above our desired 7%- 10% over a period of two, rolling out of three major partners, and three, the addition of buy now, pay later at what point those financial targets? Yeah, maybe I'll start with that. The way Brian and I and the team thought about the 7%-10% is we felt like that was achievable based on everything that we were seeing, the product set, the new programs. We would certainly like to do better than that. There's no question. Hopefully, you're going to see us do better than that in some periods and over time. It really comes back to the point that I made earlier, which it's actually really easy to grow a lending business but like crazy that we're always looking at balancing really good growth rates with attractive risk-adjusted returns. That is so important. That's how you stay in business for 90 years. That's how you stay in business for another 90 years. I can't emphasize that point enough. Obviously, that 7%-10% target we put out there is coupled with a 5.5%-6% loss rate. We're trying to achieve both of those and the margins. We think that's a great, attractive financial framework. It's never going to be growth at all costs for us. I don't know if you'd add? Yeah, no, you hit on it 100%, Brian. The 7%-10% is an average over a period of time. Most certainly, we can operate in any given period of time, we're going to do it at the right risk-adjusted return. We'll try to grow the portfolio where it makes sense and where it's opportune for us and really try to provide that lift in their sales. Kathryn, I'll turn it back to you for the next question. Absolutely. Still on the topic of financial targets because everyone would love a crystal ball. Folks are trying to understand the timeframe to which we could get back to that 16% NIM, the RSA sub 4.5%. Maybe you could give some thoughts there, or lack thereof, as it were. Yeah. Listen, we're in a dynamic period of time. I think, again, if you go back and think about what we talked about today about our Q3, our net interest margin of approximately 15%, we're back on that journey. We talked about, in prior earnings calls, the levers on which we can do to get back there. As that migrates, all the metrics will really migrate together when you think about the charge-off rate that will reduce down to the mean. The net interest margin will again go from where we are today more up to the mean. It's going to be a little bit over time, and we have a system designed to really execute inside that framework. The one thing I would add is, Brian said dynamic times. Absolutely. We are at historically low. The consumer's balance sheet is in great shape. The payment rates that we're seeing and have seen over the past year, that's actually a really good thing in terms of credit. It's obviously created a little bit of an impact on margins. To see the stimulus come off and you get back to a more normal environment. Drivers come back into what we would call a more normal range. Kathryn, why don't you take the next one? Sure thing. Thanks, Brian. Along the same vein, but switching gears to the balance sheet. Demonstrated the ability once we started returning capital back to shareholders. We reduced our CET1 by 390 basis points before the pandemic came in. We stopped our share repurchase plan. We again commenced it this year, returned just under $600 million. We're going to continue to return that back to shareholders and reduce the CET1. Again, we are in times in which we want to be prudent. We want to make sure we understand the impact of the pandemic, the Delta variant. We want to make sure we understand as forbearance wanes at other financial institutions. We have the capacity and the ability to reduce it when we want to do it. That's really important. I think the other thing that has to happen is we have to fully develop the capital stack and issue some more preferred shares in order to get down to that 11%. We see a path to the 11%. I can't provide an exact cadence to it. Stephens is wondering with regard to the use of capital and our treasure trove as it were, are there any inorganic opportunities we're thinking about today we'd want to add and at what size recently? Yeah, maybe I'll start on that. Look, we have doing acquisition very successful. We talked a little bit about Pets Best. I think that buy a small business, leverage the scale that we have in the vet space business in less than two years. Those are the types of acquisitions that we love where we can buy something valuation and leverage our scale to grow it. We've been successful in doing that. We'll continue to do that going forward, both in terms of capabilities where we feel like there's something that we could buy and get to market faster. We're also very disciplined around valuation, and the one thing the pandemic hasn't provided us in the last year and a half is valuations coming back down to reasonable levels. We stay disciplined there. We would look at small acquisitions as well as large acquisitions. Our screen and our pipeline has a combination of both. We're willing to do bigger deals, but they have to be at the right price. They have to be accretive. They have to make strategic sense. We'll maintain that discipline. In terms of the use of the capital, it's definitely in the playbook. I don't know. Would you add anything to that? No, you hit it, Brian. We're going to be disciplined and we're going to evaluate things of multiple metrics and how impactful can it be to our business. We're going to make value of share purchases or that inorganic growth. Kathryn? Thanks, Brian. Yeah. Speaking about internally developed competitive strengths, PRISM, and use of capital internally, of course. How should we think about loan growth potential and how PRISM has opened that up or created more opportunities and competitive differentiation? Yeah. Incremental losses, right? With the same loss profile. That's powerful because our big partners certainly share in those losses. Henry, why don't you add some of your thoughts? Sure. Thanks, Brian. I love the question because it enables me to talk a little bit about how we've organized here, bringing those solutions to the points in which we make decisions. Prism is an ongoing. It doesn't end. What I showed you a little earlier was some of the results that we've achieved so far through higher approval rates, better customer experience to analytics, and then deliver that through technology to where we need to use it. The future of Prism's bright, and I think Brian will continue to find opportunities where we can underwrite within that same box, but continue to drive higher sales. Product launches, including Venmo and Verizon. He wonders if these innovations are something that we can share with other programs. Everything we build, Carol can talk about this in a little more detail. Everything we build, we try to build it in a way that it is scalable across the entire enterprise. Customize to the individual partner, do it easily. That, again, easier said than done. That's why Carol is so good at what she does. I'll kick it over to her to maybe expand on that a little bit. Thanks, Brian. I think the only thing to add to that, the differentiation for us is because we had the opportunity to really differentiate us because we do not need to build new modern technology into legacy back-end technology, and that is differentiated. That allows us to give the speed new and cutting- edge for partners that are leading in cutting edge to- Enable partners in their co-brand. Do we think that partners like to come back? I'll say this again. Every partner thinks about this differently. We have a big nurse who are interested in it. Part of what we like, I'll ask Mike Bopp to talk about this, the real benefit of having this integrated product strategy. You can start someone out with a secured card, upgrade them to a private label presentation. It's available to everyone. We certainly have our commercial teams out there discussing it with our partners every day. Mike, why don't you add some of your thoughts? Sure. Yeah. The only thing I'd add is that this capability is always on, meaning we're constantly scouring is a huge growth lever for us and really a differentiator. Well, actually, I'm going to piggyback on Mike's comment there just based on some questions I'm seeing. When you talk about greater utility coming from the upgrade and our existing customer base, that potential opportunity in terms of size and how long we think it ends that upgrade curve. Well, it's a strategy we've been employing for years. Said we're very targeted in terms of who qualifies and the line size and things that we give to those customers that do qualify. It comes back to that balance of growth versus attractive risk-adjusted return, like focused on at all levels in the company. It's how we think about product strategies as well as upgrade strategies, partner strategies as well. I don't know, Brian, if you'd add anything to that. Yeah. Also we built this business over the course of 15 years, where it started out at zero back in the mid-2000s and is now a meaningful percent at 25%. It's really going to be along where our partners want it and where we see opportunities to really grow the portfolio at the right level. It's one of the many products we have in the toolkit, and we'll continue to deploy it where it makes sense. I can tell you for the partners that want it, that are really excited about it, what they love about it is the fact that their customers can use those cards out of store, earn rewards that they have to redeem back in store. It actually drives a lot of business, a lot of repeat traffic back into the stores, back into the other channels for the partner that has the co-brand or dual card. That's one of the things that they get really excited about. Thanks, Brian. Mihir Bhatia at Bank of America actually has a question that dovetails really nicely into the topic of co-brand, but beyond co-brand. Effectively, he's asking: how can we better leverage our tech enhanced utility? Is there an opportunity on the marketing side to expand our data lake and develop deeper insights on our consumers? Well, one of the things we talked about today that we haven't talked a lot about in the past is our marketplace and our provider locator and CareCredit. These are real competitive advantages for us as well. This is how we bring traffic to our partners and our providers. We showed you how many hits, how many lookups we get. It's a great way to go into a partner and say, "Hey, look, we're bringing you all of these incremental customers, incremental sales." Similarly with networks, another great way for us to create a network and drive traffic to our partners and our providers. Maybe I'll just ask Mike to make a couple other comments on that strategy. Yeah. Thanks, Brian. I spoke, we know we have to be way up funnel in the customer's journey when they're even considering purchasing a product. We have to be in our partners' apps when they're considering purchase. That's all about making sure we're meeting the customer where they are. The marketplace strategy is a little different, right? That's about organically attracting new customers to our products and to our partners. As Brian said, it's something that we probably affected it. We're looking very forward to digging deeper, more into that, investing in more of the technologies. Maybe I'll ask Alberto just to comment a little bit, because the first place we really saw that was card can go and find out where they can use it. If you want to add anything. Sure. Thanks, Brian. The provider appeared on 50,000 locations there. When considering in terms of the repeat sales where the account was not open. Really our providers really love the fact that we're able to patients to them by our provider locator and the number of hits that we get every $1.5 million hits we have with our consumers and bringing forth to those providers the opportunity to serve more consumers and more patients. I just want to tie that together real quick. When we go into a new partner, an existing through the pretty powerful part of that ecosystem that we talked about earlier. Kathryn, why don't we do the next one? Sure. Thanks, Brian. Again, to just pick up on that sweeping more 75% data capture on transactions, he's curious kind of about the. Yeah, look, I think it's a huge opportunity. It was a surprise, pleasantly, that data and we combine it with ours. Elaborate a little bit, Brian. Yeah. Over the last three years, sort of, itself, and also convincing the partner of the value of it. To tie it to one of the things we just spoke about, the product upgrade, right? When we're thinking about a private label customer or a future SetPay customer, that data is unique and proprietary to us and our partner, right? There's no other competitor out there that understands the spending patterns, the kind of information that we look at to be able to figure out which customers are going to be the best ones to drive value for Synchrony and our partners. It's a really great application. There are several others, like I talked about, up and down the P&L. The biggest one probably from a growth perspective, is around the idea that that data that we capture from, again, three-quarters of our active accounts, tens of millions of accounts, allow us to figure out the right set of customers to upgrade. If you go back five years, we used to talk a lot about SKU level data. That was the panacea. We have that. What we've complemented that with are things like customer and visit the store, how long are they online, digital traffic, annual, monthly, weekly spend levels. That's really powerful because now we know that customer so much better up front. We can give them the right line. We can give them the right product. I think, only more to come here, but it's a big growth opportunity for us in the future. Kathryn, why don't we do the next one? Sure thing. Betsy Graseck at Morgan Stanley is really curious, I think, going to the point of growth opportunity, but more in terms of our partnership pipeline. She's curious to get a sense of what that's looking like, especially compared to history. Are we seeing transitions that are coming up? She'd appreciate it. Thanks, Betsy. Look, we have a great pipeline across all five of the platforms. I would say right now it's a combination of startup programs with new partners. There's a couple, maybe a small handful of opportunities with existing programs that we're in discussions with, but it's a healthy pipeline. I think the good news is that in a really good environment like we're in today, we're still seeing pretty good discipline across the competitive set in terms of returns and growth potential. We're pretty bullish on the pipeline, I would say, across the board. Great. Thanks, Brian. Jefferies is wondering if the competitive landscape has changed at all with any of the new entrants we've seen. Yeah, I'll start and ask Alberto to comment. CareCredit is one of the businesses we are most excited about going forward. It's taken us 30+ years to build this business. We have such scale and opportunity, Alberto, why don't you add some of your thoughts? We spoke briefly here about the robust network that we have, but I would say the investments that we've made in digital and technology, having customizable QR codes, being able to have pre-qual, being able to have a Pay My Provider as well as our provider base, and being able to have a very strong position in this area. The fact that we have built this business over 30 years, provider- by- provider, consumer- by- consumer, and being able to have relationships with over 100 professional organizations in this space. I'm positive about it. Alberto showed you the NPS scores. They're off the charts. Great feedback from the providers that we support as well as customers. It's a great platform with tons of growth opportunity going forward. Kathryn, you want to take the next one? I think folks are really trying to get a better read on Q3, and how the environment has been shifting. Noting that consumer stimulus has started to wind down, wondering whether we've seen. I think when you think about payment behavior, and we've tried to cut this all sorts of way, this reversion to the mean as we looked at it. There are not fundamental shifts that we see, whether it's in payment behavior patterns or the way in which they pay us, how, which last 18 months, when we saw stimulus start to fade and other things. We can see certain trends on how they work through. There are certain cohorts that we see now are beginning to trend back down, right? We do see some of that, but again, the overall portfolio level, it is remaining elevated. Underwriting now to a loss rate around 5.5%. We wouldn't expect a lot of improvement from here as we move forward. Well, every time we say losses can't get better from here, they get better from here. We never would've predicted a sub 2.5% loss rate in the Q3, but that's where we're going to be. A wider view out, and we think about growth of the business, and the relative opportunities we see across each of our platforms. It seems like folks are eager to hear where we see those opportunities and they're angling for some order of magnitude here by platform. Earlier in the year, it brings us forth a suite of products that we're excited around in installment and leasing, as well as a stronger position in the audiology market that I think we can replicate in other areas of our Health & Wellness platform. The market expansion in terms of going after areas that we never have done before, like for example, health systems. Being able to have contracts with over 13 hospital systems. We're piloting where CareCredit get accepted there and trips that we're doing right now to be able to get more traction in this more complex organization. Epic, and what mentioned by Carol in terms of being integrated there with MyChart is an example we'll be able to grow our business. Then, vet- to- pet. I think we have strong connectivity with the veterinarians. We started our journey with including pet insurance a couple of years ago into our basket of products. We've seen that business, how it has grown over the time. We think we continue to have quite a bit of runway left in being able to provide pet finance. I always say to Alberto. Because there are some- It's rewards embedded in Scan & Go at Sam's Club. Those are examples where the team is focused to continue to drive growth there. For lifestyle, I would say, again, big market. Helping them to develop capabilities to help them increase sales, and also leveraging our data and analytics capabilities to say yes more often. We think this is going to be critical. Also will help us attract new partners in our core space. uncertain. You've heard his business. We're headed down a similar path over time. Again, early stages, but our focus in home and auto from a network perspective is really on two things. One is increasing the that will go into the network, two, increasing a robust suite of product offerings to meet the broad needs of partner base. Great. Thanks, Curtis. Bart, finish us up with digital. Sure thing, Brian. Like several legs, certainly grow with the partners we have, increasing a couple of programs that are still very new, with huge opportunity to continue to penetrate those customers. As I highlighted for 15 or more years, continue to grow, both with the partners to expand our product set, continue to evolve that customer experience, and work with that partner to create that truly in-brand experience and extend the relationship that we have along the credit journey. Thanks, Bart. Kathryn, why don't you take the next one? Sure thing. About before, our platform leaders sure are passionate. They've used up just about all of our airtime. We have one last question I'm going to sneak in because, this is likely sequential increase in NIM. Sure. Thanks, Kathryn. Glad this is the last question. Hopefully you enjoyed today. There's margin. I talked to you about there's a couple of fundamental levers. The first is the excess liquidity or liquidity we have in the portfolio, or the percentage of ALRs or% of our average earning assets. That has increased. We've worked hard over the last couple of quarters to reduce excess liquidity. You'll see an increase in the ALR percent. When you think about interest in fee yield, we have seen an increase in late fees and some of the interest yield off the portfolio. You'll see an interest and fee yield increase. There's the benefit through the margin. Obviously the biggest driver for us is that reduced excess liquidity that we've talked about for the last several quarters. With that, I'll turn it back to you. Turn it back to our other Brian. Great for joining us today. I hope you got for the advantages of our and how we're positioning Synchrony for the future. Tell you against the strategy that and the incredible growth opportunities that we have ahead of for us. Kathryn and the team will be available to answer any additional questions. Have a great afternoon.