Comenity parent company ADS changes name to Bread Financial

[MB2714]

Now this is interesting https://www.businesswire.com/news/home/20220321005864/en/Alliance-Data-is-now-Bread-FinancialTM

[TattnallTrio]

I wonder what logic they have behind that? And who would take a name like Bread Financial seriously? I think Alliance Data was a sophisticated name. 

No wonder lots of retailers are going elsewhere...

Meijer to Citi

Wayfair to Citi

Williams Sonoma to CapOne

BJ's Wholesale to CapOne 

I think Sephora will probably take off next...

[FinStar]

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@MB2714 wrote:
Now this is interesting https://www.businesswire.com/news/home/20220321005864/en/Alliance-Data-is-now-Bread-FinancialTM

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Interesting concept "Rebrand reflects company’s transformation to a tech-forward provider of payment, lending and saving solutions"

I suppose Comenity will be seen as Toast? 😁  Hold the butter/jelly... those condiments are now going to other lenders!

[uncredited]

It's extremely forward thinking.  As the economy collapses and we wait in the bread lines, we can flash our Bread cards to get access to sprouted grain loaves.  It'll be like the Centurion Lounges for the new age!  Now, that's what I call organic spend!

Seriously, though, this is interesting, because just yesterday I was checking out on a cart and saw some new BNPL automatically plugged into the card called Bread.  It was weird and confusing and the website looked like it came from the turn of the millennium and I thought "What the heck is this?" I may have used a different word. Apparently it's Alliance. And apparently they're getting rid of most of their credit cards and going full speed into BNPL just as BNPL becomes poison? They know something we don't. At least their FAQ admits after all the "won't affect  your credit" statements it finally has a point saying payment info may report and affect your credit.  First one I've seen that says that.

They  tried to sell it to me on a $23 purchase for payments of $1.91/mo for 12 months.  Why do I feel less than confident that would be a positive on my report?

[unsungivy]

Bread BNPL loans have been around for a bit, because I know my best friends husband has about 40 of them as of last October 🙄

[ChargedUp]

I wonder if or how this change in vision will affect Comenity's underwriting. Fintech's seem to pride themselves on using alternative methods of underwriting compared to typical decisions based solely on CRA's (i.e. - using Plaid, etc...) and their prediliction for blue envelopes. Will the SCT stick around?

On another note, I found a master list of Comenity cards on the new Bread website. (This may have existed before, but it's the first I've seen of it.) Also, this is the third  lender that I know of offering an AAA Rewards credit card. (BoA and USB being the others.)

https://www.breadfinancial.com/en/card-search.html?q=*

[FinStar]

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@ChargedUp wrote:

I wonder if or how this change in vision will affect Comenity's underwriting. Fintech's seem to pride themselves on using alternative methods of underwriting compared to typical decisions based solely on CRA's (i.e. - using Plaid, etc...) and their prediliction for blue envelopes. Will the SCT stick around?

On another note, I found a master list of Comenity cards on the new Bread website. (This may have existed before, but it's the first I've seen of it.) Also, this is the third  lender that I know of offering an AAA Rewards credit card. (BoA and USB being the others.)

https://www.breadfinancial.com/en/card-search.html?q=*

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Well, if it does, it may require some platform and analytics overhaul, since according to the article, "and as we transform, we will continue investing in data and analytics, innovative technology, and digital capabilities that meet the needs of our partners and consumers.”  But, by the same token, "Bread Financial’s two bank subsidiaries — Comenity Bank and Comenity Capital Bank — will retain their current names."  So, the public's perception of CB and CCB (mainly here on the forums or other credit card blgs) may not change much optics-wise, since it's mainly the parent holding company rebranding itself. But, only time will tell.

[Anonymalous]

That's just really weird. Because while bread is a synonym for money, it's also a slang term that feels rather dated. On top of that, it not only brings to mind the bread lines @uncredited mentioned (Mod cut - not here, please @Anonymalous -- please be mindful of the myFICO Forums TOS and User Guidelines). It feels like they skimmed a thesaurus, and weren't aware of of the context and implications of the word they chose.