Synchrony’s Anita Chalkley On How They Are Helping To Promote Financial Inclusion

Most of us take it for granted that we can open a bank or a credit card. But the truth is, according to the World Bank, close to one-third of adults — 1.7 billion — are still unbanked, and have no access to a transaction account. About half of unbanked people include women in poor households in rural areas or out of the workforce. What can be done and what is being done to promote more financial inclusion? To address this Authority Magazine started a new series about Companies Helping To Promote Financial Inclusion. As part of this series I had the pleasure to interview Anita Chalkley, SVP of Credit Acquisitions at Synchrony.

Anita Chalkley is Senior Vice President of Credit Acquisitions Strategy at leading consumer financial services company Synchrony. As an Australian native who moved to the U.S. at age 28, Anita Chalkley understands the struggles people who are new to the country or new to credit may have accessing financial products. The experience shaped her empathy and passion for helping people responsibly access credit and also gave her a passion for helping Americans achieve their ambitions.

Thank you so much for doing this with us! Before we dig in, our readers would like to ‘get to know you’. Can you tell us a bit about how you grew up?

I grew up in Brisbane, Australia and I’m the youngest of four children. I have fond childhood memories of spending hours outside with my brother after school, getting lost in piles of books after the weekly trip to the local library, weekends filled with playing various team sports and annual family beach vacations. Australian beaches really are amazing!

I started my career with Synchrony more than two decades ago as a part time call-center associate with a bank in Brisbane that was acquired by GE Consumer Finance and became part of Synchrony when we became a standalone public company in 2014. Synchrony recently celebrated our ten-year anniversary as a public Fortune 200 consumer financial services company. Over the years, I progressed through several roles of increasing responsibility in operations before finding my home working in credit risk.

How do you define “Leadership”? Can you explain what you mean or give an example?

I define leadership as the ability to mobilize people towards a common goal. Leadership is not the same as managing people — you don’t need to be in a formerly appointed managerial role to lead people. I believe the best leaders are those who can develop a shared vision, clearly articulate the “why,” and create an environment of curiosity and inclusiveness that delivers results. And most importantly, be ready to constantly grow and improve through feedback.

Can you share the most interesting story that happened to you since you began your career?

My husband and I moved to the United States in 2009 during the middle of the Great Recession, so it was a very challenging time. This move ended up being one of the biggest growth periods personally and professionally as I navigated a new country, new work colleagues and worked on a different credit portfolio. Given the economic downturn, there was a spotlight on U.S. credit, one that involved quickly adjusting credit strategies and responding to the worsening economic situation — the learning curve was steep.

This time in my career gave me better clarity on my strengths and reinforced the importance of drawing on transferable skills and quickly building credibility to effect change during a crisis. As they say — no challenge, no change!

Ok, thank you for all that. Now let’s move to the main focus of our interview. Let’s start with a basic definition so that all of our readers are on the same page. What exactly is Financial Inclusion?

At Synchrony, we define financial inclusion as responsibly providing equitable access to financing, making it easier for people to build credit and achieve their financial goals. As a responsible employer, partner and community member, the company champions expanding access to credit for Americans and building a more inclusive economy. Creating financial inclusiveness and financial mobility are at the very core of what we do.

What does it mean to be “unbanked”?

Given we primarily offer credit through hundreds of thousands of businesses across the country, including companies like PayPal, Lowe’s and small and medium-sized businesses, we see the full spectrum of Americans applying for credit. Synchrony offers a full suite of financial products and so we are able to extend credit to those who are establishing their credit profiles or are “credit invisibles” or “unbanked” — individuals who are unable to obtain credit because they have limited, or no record or trade lines (credit history) with the credit bureaus.

For the benefit of our readers, can you explain some of the typical reasons why a person might be unbanked? Why can’t they just walk into the local bank and open an account? Why can’t they simply open an account online?

There are many reasons why adults may not have a traditional credit score, including entering the financial system as a new, young adult, having had limited access to credit products during their life, or being a newcomer to the United States like I was.

I personally found myself being “credit invisible” when I moved to the United States 15 years ago. In Australia, I had owned a home, held credit cards and had a strong credit history; however, none of that positive credit history moved with me. I soon found that “credit invisibles” face extra challenges and costs in everyday living. For example, needing to put down sizeable deposits to rent an apartment and connect utilities, extra hurdles in securing car insurance and limited options in obtaining credit.

Having experienced it myself, I have a unique understanding of the struggles people who are new to the country or new to credit may have in accessing financial products. It shaped my empathy and passion for helping people responsibly access credit, but also gave me a passion for helping Americans achieve their ambitions.

Can you tell our readers a bit about your work to promote Financial Inclusion? Without saying names, can you share a story about a person who was helped by your initiative?

Synchrony is committed to financial inclusion, which is why we joined the U.S. government’s Office of Comptroller Currency’s Project REACh. Through this program, we have used permissioned bank and deposit account data combined with advanced underwriting techniques to approve people for their first credit card . Between all of the financial institutions participating in Project REACh, the banks have originated more than 100,000 new consumer accounts.

We continue to see very encouraging results from the program — within a year of getting their first Synchrony credit card, more than 50 percent of our Project REACh customers achieved and maintained a prime credit score, demonstrating our belief that given access, many who have historically been locked out of the U.S. financial system are creditworthy.

We also know inclusion starts with meeting people where they’re already shopping, so we have integrated financial inclusion programs with some of our partners, like helping a parent finance their back-to-school shopping at American Eagle or JCPenney, getting a customer back on the road faster through financing new tires at Discount Tire or helping a family pay overtime for an unexpected pet illness at one of our Care Credit partners.

This may be obvious to you, but it will be helpful to spell this out. Can you articulate to our readers a few reasons why it is so important for businesses to promote financial inclusion?

For many Americans, a Synchrony credit card is their first credit card. For nearly 100 years, we understand better than most financial institutions the impact that responsible credit accessibility has — it helps people build their credit so they can access financing for things that matter to them, which then benefits businesses and the U.S. economy at large. From our products to our partnerships, every decision we make comes from the understanding that with access to the right financing, people and American businesses thrive.

As a credit risk professional, I believe that promoting financial inclusion is a huge motivator for myself and my team. We’re constantly exploring new techniques and tools to help more people finance things that matter to them while aiming to protect them from becoming overextended. It’s meaningful, purpose-driven work.

Ok. Here is the main question of our discussion. You are an influential business leader. Can you please share your “5 Steps Businesses Should Take To Promote Financial Inclusion”. Kindly share a story or example for each.

Start with your workforce: Ensure your own workforce has access to financial education and financial wellness resources. Empower employees with the knowledge they need to manage their finances effectively. We provide our employees with free financial counseling and education through our partnership with Fidelity and our own financial education portal. Our 401k student loan match program offers a new retirement savings option that allows our people to pay off student loans and build their savings. We also partner with JUST Capital and PayPal on the Worker Wellness Initiative with the goal of improving the financial health and resilience of American workers.

Diversify Product Offerings: Offer a wide range of flexible credit products, from secured cards to private label credit cards (PLCC), to cater to a broader audience and make financing more accessible to people with varying credit histories, even for those with little to no credit history.

Innovate with Data: Look beyond traditional credit scores by exploring alternative, permissioned data sources to help assess creditworthiness more inclusively. Synchrony’s cutting-edge credit decisioning system — called Synchrony PRISM — uses our large network of proprietary and partner data to provide a better picture of a consumer’s creditworthiness than the credit score alone. For example, many Americans who do not have credit scores are already managing financial commitments, including utilities and rent, and those should be taken into consideration too.

Educate Your Customers: Extend financial education tools and resources to your customers, helping them make informed decisions and improving their financial literacy. We prioritize a wide range of educational activities — from the lessons in our Financial Education Center and Synchrony Bank’s Money Matters blog to free access to your credit score, and a longstanding partnership with the National Foundation of Credit Counseling to provide our customers with financial counseling.

Establish Partnerships with the Public and Nonprofit Sectors: No one company or group can do it alone — it’s going to take the private and public sectors working together to create greater access to credit and help consumers build positive credit history. By participating in programs like the OCC’s Project REACh and Financial Literacy for All, businesses can support cross-industry collaboration to broaden financial inclusion.

How can our readers further follow your work online?

I welcome readers to visit www.synchronyimpact.com to get the latest updates on the work we’re doing at Synchrony.

This was very meaningful, thank you so much. We wish you only continued success on your great work!