Well Positioned to Deliver Sustainable Growth slide image

Well Positioned to Deliver Sustainable Growth

Constantly Innovating To Make Better Decisions and Enhance the Customer Experience (Illustrative Example) Synchrony Vintage Performance Outperforming the Industry INDUSTRY DATA¹ Bankcard's quarterly vintage performance for all risk tiers has tu deteriorated, with 2021 and 2020 originations above prior years Vintage Delinquency of Bankcard -Q3 2018 -Q3 2019 Q3 2020 Q3 2021 Synchrony develops a new proprietary acquisition model that outperforms a previous third-party solution, separating risk better. Synchrony has three options to deploy the new model: 1 Increase approval rate 75bps and hold losses flat 2 Hold approval flat and reduce losses by 40bps 3 Some combination of driving approval rate and loss benefit The decision is not a singular event; at any point we can move between the options above to optimize the outcome. synchrony % Dual Card Accounts 90+ DPD 2% % Accounts 90+ DPD Synchrony PRISM 6% 4% Q3 2017 12% 10% 8% 6% 4% 2% 0% 0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 Months on Book 3Q 2018 3Q 2019 3Q 2020 30 2021 Deployment of tools determined by economic trends 0% 2 4 7 8 10 11 12 13 15 16 17 18 19 21 22 24 29 30 31 32 33 34 35 36 37 43 46 47 48 49 50 51 52 53 11
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