GE Finance and 28 Degrees

GE Finance & 28 Degrees: A Partnership in Australian Credit

GE Finance, a historical powerhouse in consumer finance, played a significant role in the Australian credit card market, notably through its association with 28 Degrees. While GE Capital exited the Australian and New Zealand consumer lending market in 2015, selling its assets to Latitude Financial Services, the legacy of its involvement with 28 Degrees remains noteworthy.

28 Degrees, known for its low-fee international spending proposition, was initially a product offered by GE Money (a division of GE Finance) in Australia. It stood out from traditional credit cards by waiving foreign transaction fees, a significant advantage for travelers and online shoppers purchasing from overseas merchants. This unique selling point quickly garnered popularity, establishing 28 Degrees as a disruptive force in the Australian credit landscape.

The appeal of 28 Degrees stemmed from its transparent fee structure and focus on providing value to customers who frequently transacted in foreign currencies. This was a departure from the often opaque and fee-laden practices of other major credit card issuers at the time. GE Finance, through 28 Degrees, captured a specific segment of the market that was underserved by traditional offerings.

Under GE Money’s ownership, 28 Degrees benefited from the financial strength and established infrastructure of a large multinational corporation. GE Finance provided the necessary resources for marketing, technology, and customer service, enabling 28 Degrees to scale its operations and reach a wider audience. However, the global financial crisis and GE’s subsequent strategic shift towards its industrial core led to the divestiture of its consumer finance arms.

After the sale to Latitude Financial Services, 28 Degrees continued to operate, retaining its core value proposition of no foreign transaction fees. While ownership has changed, the fundamental principles upon which the card was built remain. The success of 28 Degrees under GE Finance underscored the importance of understanding customer needs and offering innovative financial products that address specific pain points.

The story of GE Finance and 28 Degrees serves as a case study in identifying and capitalizing on niche markets within the broader consumer finance industry. It also highlights the dynamic nature of the financial services sector, where corporate strategies can shift and lead to changes in ownership and operational focus. While GE’s direct involvement has ceased, the legacy of 28 Degrees as a pioneer in transparent and customer-centric credit card offerings endures in the Australian market.