GE to Issue Credit Cards. Smart or Stupid Idea?

General Electric

is perhaps one of the most well known conglomerates in America. To maintain revenue and job growth, however, large companies like GE have to sometimes explore unique opportunities and diversify revenue streams. It seems that GE may be doing just that in the near future. GE Capital Retail Bank, a consumer lending unit of General Electric Company, and ShopNBC, a multichannel electronic retailer reaching 80 million cable and satellite homes, announced today the renewal of a multi-year agreement to continue providing the ShopNBC consumer credit card program to their customers. ShopNBC offers customers a unique variety of must-have products, informative guest experts and entertaining content across TV, Internet, social and mobile platforms. GE Capital Retail Bank and ShopNBC initially launched the credit card program in 2006. Since the introduction, a number of enhancements have been implemented providing ShopNBC account holders added benefits, including free shipping promotions, flexible payment options and deferred interest periods for qualifying purchases. “We are pleased with the renewal of our consumer credit card program,” said ShopNBC EVP & CFO Bill McGrath. “GE Capital Retail Bank has a strong understanding of our business, which has helped to shape the program over the last six years. They have been a great partner in helping provide our customers an engaging, shop-with-confidence experience that keeps them coming back again and again.” “Continuing our relationship with ShopNBC supports our commitment to provide solutions that customers value and provides our clients with a competitive advantage,” said Margaret Keane, CEO and president of GE Capital's Retail Finance business. GE's new venture into the credit card business could be a profitable venture for the company. While relatively new companies such as Capital One

have been able to break into the industry, GE will have to build a solid consumer base in order to profit. It already has the brand name, so it may succeed in its latest business attempt.