Discover Financial Services continues to invest in technology and advanced analytics within customer service, originations, risk and compliance, fraud detection and application processes. 

During the third quarter of 2023, the financial institution spent $149 million on information processing, an increase of 20% year over year, according to the its earnings presentation. Information processing was up due to investment in technology.

“We’re a digital institution,” Chief Financial Officer John Greene said today during Discover’s Q3 earnings call. “So, the first piece is, we’re going to continue to invest in tech and advanced analytics to kind of help the customer experience and then also help us to generate positive returns.”  

The payments company is looking to use generative AI capabilities to improve customer experience and product offerings while keeping regulation on top of its mind. 

Discover is investing in technology to:  

• Improve the closure rate of leads; 
• Create advanced analytics programs related to collections and originations; 
• Move on-prem computer servers to hybrid and cloud environments; 
• Monitor data that flows through the core system to reduce manual data input; and 
• Improve digital banking capabilities and fraud detection. 

“All of that is part of the reason or the reasons why we’re seeing … information processing and tech spend overall increase this year,” Greene said.

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