Discover Financial to Open Office in China

Credit card issuer Discover Financial Services (NYSE: DFS) said Monday that it would open an office in Shanghai, China this month. The office will be initially staffed by some 45 technology analysts.

Discover said in a press release that the office will operate under a new subsidiary, Discover Information Technology (Shanghai) Ltd. The Shanghai office will support Discover’s data analysis and modeling operations.

“Our new subsidiary supports Discover’s rapid investment in our risk-assessment abilities,” said James Panzarino, Discover’s chief credit risk officer. “Our new Shanghai employees have sophisticated training in mathematics and other quantitative subjects. They join our existing team of some of the best analytical talent anywhere.”

The company said that plans call for the office to double in size by the end of 2009.

The office will bolster Discover’s demand for analytics and payment modeling as the card issuer tries to gain more traction in China’s rapidly growing consumer credit market.

Discover cards are already accepted at a number of locations in China due to an agreement signed in late 2006 with China Unionpay (“Discover Cards Now Accepted in China,” Nov. 10, 2006).