GE Money

GE Money was the consumer-finance brand used by General Electric's financial-services division, GE Capital, across a large international network of banks, lending companies and retail-finance businesses. Rather than representing one single globally standardized bank, the name covered locally incorporated operations whose products, ownership structures and regulatory status differed by market. These businesses generally focused on consumer lending, credit cards, point-of-sale finance, vehicle finance, mortgages, personal loans and related services for retailers, dealers and other commercial partners. The brand developed through GE Capital's acquisition strategy. In several countries, GE entered established local finance or banking businesses and subsequently placed them under the GE Money identity. In the Czech Republic, GE acquired Agrobanka's banking operations in 1997 and renamed the business GE Money Bank in 2000. In France, GE's consumer-finance presence followed its acquisition of Crédit de l'Est and SOVAC in 1995. In Australia and New Zealand, the brand included businesses obtained from Australian Guarantee Corporation and later expanded into retailer finance, cards, vehicle lending, personal loans and mortgages. Other market entries included the acquisition of Keppel Bank Philippines, which became GE Money Bank Philippines, and GE's ownership of Budapest Bank in Hungary. GE Money's operating model combined direct consumer banking with embedded finance distributed through retail and partner networks. Its products included private-label and co-branded cards, installment credit, interest-free retail promotions, auto loans, mortgage lending, personal loans, insurance and leasing. In some countries the brand operated branch networks and ATMs, while in others it functioned mainly as a specialist lender or issuer for retailers and manufacturers. The businesses often used local names alongside GE branding, reflecting different regulatory environments and acquisition histories. The global financial crisis changed the direction of the business. In Australia and New Zealand, GE Money announced in October 2008 that it would withdraw from vehicle finance and reduce or exit most mortgage activity, while retaining selected Wizard-branded lending. Similar portfolio reductions and market exits occurred elsewhere. GE subsequently sold or transferred numerous country operations: the Philippines business went to BDO Unibank in 2009, the Latvian operation to Otkritie in 2011, the Russian bank to Sovcombank in 2013, and the Scandinavian businesses to Santander in 2014. Other transactions involved Santander, Standard Chartered, Shinsei Bank, Garanti Bank and regional financial institutions. In April 2015, General Electric announced a broad plan to sell most of GE Capital and concentrate GE on its industrial businesses. This process dismantled much of the infrastructure behind the GE Money brand. The Czech business completed an initial public offering in 2016 and became Moneta Money Bank. GE's Australian and New Zealand consumer-finance operations were sold in 2015 and subsequently operated as Latitude Financial Services. In Canada, the consumer-finance activities were connected with the 2014 separation of GE's North American consumer-finance division as Synchrony Financial. In other countries, GE Money units were sold, merged, closed or rebranded. As a result, GE Money is best understood today as a largely retired historical brand rather than an active worldwide banking network.

GE Money was the international consumer-finance identity of General Electric's financial-services division, GE Capital. It was applied to a diverse collection of local banks and specialist finance companies rather than to one centrally operated bank. Depending on the market, the businesses offered credit cards, retail financing, personal loans, auto loans, mortgages, leasing, insurance and financing for small and medium-sized enterprises. GE expanded the brand mainly through acquisitions and partnerships. In the Czech Republic, GE acquired Agrobanka's banking operation in 1997 and changed its name from GE Capital Bank to GE Money Bank in 2000. France's business originated from GE's purchase of Crédit de l'Est and SOVAC in 1995. In Australia, GE acquired the Australian Guarantee Corporation business in 2002, adding automotive finance and retail-card operations. Its Australian portfolio included products such as GE CreditLine, store cards and financing arranged through major retail partners. GE also acquired Wizard Home Loans in 2004. In New Zealand, it acquired related AGC and Pacific Retail Finance assets and mortgage assets associated with Superbank. The brand was also used in Asia and Central and Eastern Europe. GE's Japanese consumer-finance operation began offering products under the GE Money name in 2005 before being sold to Shinsei Bank in 2008. GE acquired a majority interest in Keppel Bank Philippines in 2005, renamed it GE Money Bank Philippines and later sold it to BDO Unibank in 2009. In Latvia, GE combined banking and finance operations under GE Money Bank before selling the business to Otkritie in 2011. In Russia, GE Money Bank operated from Moscow until its sale to Sovcombank in 2013. In Hungary, GE owned Budapest Bank, a full-service institution serving consumers and small businesses, until the business was sold to Hungary's MFB in 2014. The global credit crisis exposed the risks of highly leveraged consumer and mortgage finance. GE Money responded with retrenchment in some markets. In October 2008, the Australian and New Zealand operations announced withdrawals from vehicle finance and most new mortgage lending, while the Wizard brand continued to be considered separately. The businesses also reduced staff and partner activity. These decisions reflected both funding pressures and the deterioration of credit markets rather than a single worldwide product policy. GE Capital later began a systematic dismantling of its consumer and commercial-finance empire. In 2009, several European store-card operations were sold to Santander. In 2014, GE separated its North American consumer-finance division as Synchrony Financial, while other country businesses continued to be sold. On April 10, 2015, General Electric announced that it would sell most of GE Capital and return its focus to industrial operations. The transactions that followed removed many of the operating companies carrying the GE Money name. The Australian and New Zealand business became Latitude Financial Services after its sale; the Scandinavian operations went to Santander; French operations were sold to Cerberus; and additional country portfolios were transferred to local or international financial institutions. The Czech operation provides one of the clearest examples of rebranding after the divestment program. It completed an IPO in 2016 and became Moneta Money Bank. In Poland, GE Money Bank's activities were combined with Bank BPH, while the core banking business was later transferred to Alior Bank and GE retained the mortgage-related legal entity. Italy's Interbanca was sold to Banca IFIS in 2016. By the end of the restructuring period, GE Money had ceased to function as a unified international consumer-bank network. Its legacy survived through successor brands, sold portfolios and businesses that were absorbed into other banking groups.

• 2016

  Czech GE Money Bank becomes Moneta Money Bank

  [1]GE Capitalen.wikipedia.org

  The Czech institution completed its IPO and adopted the Moneta Money Bank identity.

• 2015

  GE announces the sale of most GE Capital

  [1]GE Capitalen.wikipedia.org

  General Electric announced a major restructuring designed to sell most GE Capital businesses over the following years.

• 2014

  GE separates its North American consumer-finance division

  [1]GE Capitalen.wikipedia.org

  GE's North American consumer-finance division was spun off as Synchrony Financial, removing a major portion of the GE Money consumer franchise from GE.

• 2008

  Consumer-finance retrenchment begins in Australia and New Zealand

  [1]GE Capitalen.wikipedia.org

  GE Money announced exits from vehicle finance and significant parts of mortgage lending in Australia and New Zealand during the global credit crisis.

• 2005

  GE acquires Keppel Bank Philippines

  [1]GE Capitalen.wikipedia.org

  GE acquired a majority stake in Keppel Bank Philippines and renamed the institution GE Money Bank Philippines.

• 2004

  Wizard Home Loans joins GE Money

  [1]GE Capitalen.wikipedia.org

  GE Capital Finance acquired the Wizard Home Loans business, strengthening its mortgage distribution in Australia.

• 2002

  GE acquires Australian Guarantee Corporation businesses

  [1]GE Capitalen.wikipedia.org

  The acquisition expanded GE's Australian and New Zealand consumer, automotive and retail-finance activities.

• 2000

  Czech operation adopts the GE Money Bank name

  [1]GE Capitalen.wikipedia.org

  The Czech bank changed its name from GE Capital Bank to GE Money Bank.

• 1997

  GE acquires Agrobanka's Czech banking operation

  [1]GE Capitalen.wikipedia.org

  GE acquired the relevant banking operations of Agrobanka in the Czech Republic, initially operating the business as GE Capital Bank.

• 1995

  GE enters French consumer finance through acquisitions

  [1]GE Capitalen.wikipedia.org

  GE acquired Crédit de l'Est and SOVAC in France, creating an important foundation for its later GE Money consumer-finance presence.

A multinational consumer-finance platform combining GE's corporate financial-services capabilities with local banks, retailers, dealers and other distribution partners.

• Credit cards

  GE Money credit cards

  GE Money businesses issued general-purpose, private-label and co-branded cards in multiple countries. Examples included GE MasterCard in Norway, GEM Visa in Australia and New Zealand, and cards distributed through retailers such as Coles and Myer. Product terms varied by market and often included promotional interest-free periods, retailer discounts or partner-specific rewards.

• Consumer finance

  Retail point-of-sale finance

  Retail finance was a central GE Money offering. Consumers could apply for installment credit or a store card at participating merchants, often to fund household goods, electronics, furniture, medical expenses or other purchases. GE supplied underwriting, account management and payment infrastructure while retailers used the financing to support sales and customer retention.

• Vehicle finance

  Auto finance

  GE Money subsidiaries financed cars and, in some markets, boats and dealer inventory. Vehicle lending was distributed through dealers and other partner channels. The Australian and New Zealand operations withdrew from much of this activity in 2008, and vehicle-finance businesses in other markets were later sold or absorbed during the GE Capital restructuring.

• Consumer lending

  Personal loans

  Personal and consolidation loans were offered by GE Money companies in several markets, including Australia, New Zealand, Norway, Ireland and Central and Eastern Europe. These products served household borrowing needs and were distributed through branches, call centers, brokers, dealers and retail partnerships.

• Mortgage finance

  Mortgage and home lending

  Mortgage lending was an important but uneven part of the GE Money portfolio. GE offered residential mortgages in markets including Australia, New Zealand, France, Ireland and Switzerland, sometimes through specialist brands such as Wizard Home Loans. GE reduced or exited much of this activity after the 2008 credit crisis and subsequently sold related portfolios and operating businesses.

• 2015

  Sell most of GE CapitalStrategy

  Background

  General Electric concluded that GE Capital had become too large and complex relative to the group's industrial strategy and announced a broad divestment program.

  Action taken

  GE began selling consumer, commercial, leasing and other GE Capital businesses, including numerous operations using the GE Money name.

  Aftermath

  The program ended GE Money's role as a broadly integrated international consumer-finance network and transferred local businesses to banks, private-equity investors and other financial institutions.

  Source

• 2008

  Withdraw from selected Australian and New Zealand lending marketsStrategy

  Background

  The global credit crisis placed pressure on consumer-finance funding and risk appetite.

  Action taken

  GE Money announced that it would stop offering motor finance in Australia and New Zealand and pull back from most new mortgage lending, while retaining selected Wizard-branded activity.

  Aftermath

  The move reduced the scope of the regional GE Money business and required affected dealers and borrowers to seek alternative financing providers.

  Source

1. 1GE Capitalen.wikipedia.org