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Synchrony Financial (SYF) Expands Tie-Up With Sweetwater

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Synchrony Financial (SYF - Free Report) recently extended its strategic collaboration with Sweetwater, a U.S.-based renowned music instruments and audio gear e-commerce provider. For more than a decade, SYF has extended support to Sweetwater to offer cost-effective, easy financing alternatives. Through the latest move, Synchrony Financial aims to revamp the latter’s financing program.

Following the partnership expansion, Synchrony Financial and Sweetwater will bolster enterprise data sharing and bring about digital evolution in payment solutions. Data sharing paves the way for better personalization and credit decisions. Meanwhile, the contactless solution “Direct to Device” and PreQualification abilities of Synchrony Financial will continue to be integrated into Sweetwater’s private label credit card program. These moves, in turn, will not only ease the application and digital purchasing process for music enthusiasts, professional musicians and sound engineers that Sweetwater caters to but also make the application procedure for credit a hassle-free and secured one for customers.

With Direct to Device, a technology that enables the usage of smartphones leading to an enhanced contactless experience, Sweetwater can directly send a credit application via email or text to a customer’s mobile device. PreQualification can be utilized for monitoring credit eligibility by customers without affecting one’s credit score.

Initiatives similar to the latest one reinforce Synchrony Financial’s consistent efforts to deliver affordable financing options in the music industry. Thus, these steady efforts result in stronger customer relationships giving way for higher card acquisitions, bolstered credit lines, increased repeat sales and a greater customer lifetime value.

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

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

An enhanced payment and financing solutions portfolio of Synchrony Financial has made it a preferred choice among those inclined to grow their business prospects and extend a seamless customer experience. The list of SYF’s partners keeps on growing, with 36 partners included and 38 renewals of relationships last year. From the first quarter of 2022, Synchrony Financial remains steadfast in bolstering its portfolio, indicated by the inclusion or renewals of over 15 programs, including Generac Power Systems, Mattress Warehouse, Guitar Center and NAPA Auto Care. A growing portfolio is expected to pave the way for increased purchase volume and loan growth for SYF. This, in turn, might bolster the interest income of the financial services provider.

Shares of Synchrony Financial have lost 29% year to date compared with the industry’s decline of 13.6%. SYF currently carries a Zacks Rank #3 (Hold).

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Stocks to Consider

Some better-ranked stocks in the Finance space are Capital City Bank Group, Inc. (CCBG - Free Report) , Oaktree Specialty Lending Corporation (OCSL - Free Report) and East West Bancorp, Inc. (EWBC - Free Report) . While Capital City Bank currently flaunts a Zacks Rank #1 (Strong Buy), Oaktree Specialty Lending and East West Bancorp carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Capital City Bank outpaced estimates in two of the last four quarters and missed twice, the average surprise being 1.93%. The Zacks Consensus Estimate for CCBG’s 2022 earnings suggests an improvement of 10.1% from the year-ago reported figure, while the same for revenues suggests growth of 1.4%. The consensus mark for Capital City Bank’s 2022 earnings has moved 17.8% north in the past 30 days.

Oaktree Specialty Lending’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 13.63%. The Zacks Consensus Estimate for OCSL’s 2022 earnings suggests an improvement of 12.5% from the year-ago reported figure, while the same for revenues suggests growth of 21.5%. The consensus mark for Oaktree Specialty Lending’s 2022 earnings has moved north by 4.3% in the past 30 days.

The bottom line of East West Bancorp outpaced estimates in three of the last four quarters and missed once, the average surprise being 6.25%. The Zacks Consensus Estimate for EWBC’s 2022 earnings suggests an improvement of 14.9% from the year-ago reported figure, while the same for revenues suggests growth of 16.5%. The consensus mark for East West Bancorp’s 2022 earnings has moved north by 0.3% in the past 30 days.

Capital City Bank stock has gained 0.7% year to date. Meanwhile, shares of Oaktree Specialty Lending and East West Bancorp have lost 9% and 11.9%, respectively, in the same time frame.

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