Trystan Casey
General Electric Capital Corporation (GECC) is the financial services division of General Electric. Incorporated in 1943 in New York, GECC was initially focused on financing the distribution and sale of GE Company products. Over the years, it has expanded its operations to include various financial services and products, including credit services, mortgages, and loans. GE Capital Retail Bank, a subsidiary of GECC, provided banking and credit services to consumers in the United States and internationally until 2014, when it was renamed Synchrony Bank. GE Capital continues to operate across six continents, offering financial solutions to businesses in various sectors.
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What You'll Learn
GE Capital's history and structure
GE Capital was the financial services division of General Electric. It was incorporated as a Restricted License Bank in Hong Kong, with a focus on mortgages and personal loans. GE Capital Bank was founded in 1988 and was based in Draper, Utah.
The company had a significant presence in the Czech Republic, where it was founded in 1997 after the acquisition of Agrobanka bank. It also had operations in Austria, Denmark, France, Germany, Finland, the UK, Mexico, Australia, New Zealand, and India.
GE Capital's structure included various units, such as Sponsor Finance, Real Estate, Commercial Lending & Leasing, and Transportation Finance, among others. The company provided credit services to businesses and merchants in the United States and internationally, serving a wide range of industries.
In 2013, GE Capital was designated as a "systemically important financial institution" by the Financial Stability Oversight Council, making it subject to oversight by the Federal Reserve. The company had over 35,000 employees worldwide and operated in more than 40 countries, with total assets of US$499 billion in 2014.
Following the Great Recession of the late 2000s, General Electric, under the leadership of CEO Jeff Immelt, began selling off various divisions and assets, including GE Capital. In 2015, Jeffrey R. Immelt announced that GE would sell most of GE Capital over the next two years. The company's various units were sold between 2013 and 2021, with only one division remaining, GE Energy Financial Services, which was transferred to GE Vernova when General Electric was broken up.
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GE Capital's services and products
GE Capital, the financial services division of General Electric, provides a range of financial products and services to businesses and consumers. The company operates through several segments, including commercial lending and leasing, consumer, real estate, industrial finance, energy financial services, and aviation services.
GE Capital offers commercial loans and leases to businesses, as well as equipment financing, debt financing, structured equity, and fleet management services. The company also provides various financial programs and personal loans to its customers. In the past, GE Capital provided retail consumer financing solutions, such as private label credit cards, dual cards, flex loans, and gift cards, through a network of dealers, retailers, and service providers.
With a focus on technological innovation, GE Capital utilizes a tech stack that includes Thomson Reuters ONESOURCE, Vue.js, and Oracle Value Chain, among others. This commitment to technology allows the company to enhance its operations and foster long-term partnerships with businesses that can offer complementary solutions or services.
In addition to its financial offerings, GE Capital has expertise in the aviation, energy, infrastructure, transportation, marine, and healthcare industries. The company develops strategic partnerships and joint ventures in these sectors to capitalize on market-specific opportunities. For example, GE Capital has invested in or acquired companies like Enigma, a database software provider, and Bootes and Star Platforms.
GE Capital has had a global presence, with operations in the United States, Norway, Sweden, Latvia, Australia, and New Zealand. However, between 2013 and 2021, the company sold off many of its divisions, including the spin-off of its North American consumer finance division as Synchrony Financial.
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GE Capital's financial performance
GE Capital was the financial services division of General Electric. It was subject to oversight by the Federal Reserve after being designated a "systemically important financial institution" in 2013.
GE Capital provided a range of financial services, including banking, credit, lending, leasing, and wealth management. It served customers in the United States and internationally, operating in over 40 countries with more than 35,000 employees worldwide as of 2014.
The company's financial performance can be observed through its various acquisitions, sales, and expansions. For instance, in 2006, GE Capital had over 118 branches in India, mostly in the southern states. In 2008, however, GE Money, a subsidiary of GE Capital, announced it would cease offering motor finance in Australia and New Zealand, impacting its aligned dealerships.
In 2013, GE Capital was rated AA+ with a stable outlook by S&P. By 2014, the company had total assets of US$499 billion. That same year, GE Capital's Mexican equipment lending and leasing operations were sold to Linzor Capital Partners, and its Japanese capital finance, fleet service, and vendor finance businesses were sold to Sumitomo Mitsui Financial Group.
Between 2013 and 2021, GE Capital's various units were sold, including the notable spin-off of the North American consumer finance division as Synchrony Financial. The company's Australian and New Zealand business was also sold in 2015 to a consortium led by Deutsche Bank, KKR, and Värde Partners. By the time General Electric was broken up, only one division of GE Capital remained: GE Energy Financial Services, which was transferred to GE Vernova.
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GE Capital's competitors
GE Capital, the financial services division of General Electric, is a holding company that operates as a financial firm offering investment advisory services. The company was founded in 1932 and is headquartered in Norwalk, Connecticut. Before June 2, 2014, GE Capital Bank was made up of retail and commercial banks. The company served various industries, including automotive, consumer electronics, healthcare, and luxury goods.
- CIT
- DLL Group
- Greystone
- Q10 Capital
- Piper Sandler
- Goldman Sachs
- JPMorgan Chase
In addition, GE Capital has previously competed with companies that it has since acquired, such as Prism Vision Group, ExpressYard, Commtest, and FMC Tech. GE Capital has also sold some of its operations, including its Hong Kong business to Standard Chartered and its Lithuanian onshore wind farm to Encavis AG.
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GE Capital's technology
GE Capital, the financial services division of General Electric, has had a notable presence in the technology sector through its IT solutions business, GE Capital IT Solutions (GECITS). GECITS provided a range of personalized IT services to its customers. In Australia, GECITS expanded its reach by acquiring the Ferntree Computer Corporation, a national computer company based in Melbourne. However, in late 2004, GECITS was acquired by Platinum Equity and subsequently absorbed into the IT solutions company CompuCom. This acquisition led to a shift in the business model, as CompuCom adopted a "one size fits all" approach, resulting in the loss or replacement of some personalized services previously offered by GECITS.
GE Capital has demonstrated its commitment to technology and innovation by establishing a dedicated Technology Center in New Orleans, Louisiana. The company considered over 100 cities before narrowing down their options to five and ultimately selecting New Orleans for this significant expansion. The decision was applauded by Governor Jindal, who highlighted the positive impact on the state's software development and information sectors. The Technology Center is expected to bring career opportunities in technology and contribute to the resurgence of the New Orleans economy.
Martha Poulter, GE Capital's Vice President and Chief Information Officer, expressed confidence in their choice of location, citing Louisiana's commitment to fostering growth in the technology industry. The center aims to attract talented information technology professionals with skills crucial to GE Capital's future success. This investment in technology aligns with GE Capital's recognition of the importance of innovation in driving economic growth and creating career opportunities in the technology sector.
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Frequently asked questions
General Electric Capital Corporation (GECC) is the financial services division of General Electric. It was incorporated in 1943 in the State of New York under the provisions of the New York Banking Law relating to investment companies.
GECC has a history of selling assets and has operations in industrial sectors. It is subject to oversight by the Federal Reserve.
As of June 2, 2014, GE Capital Retail Bank, a subsidiary of GECC, changed its name to Synchrony Bank.
GE Capital was founded in 1988 and is based in Draper, Utah. It was formerly known as GE Money Bank. The company has changed its name multiple times and has had several spin-offs, including Synchrony Financial.
GE Capital provides credit and financial services to consumers and businesses in the United States and internationally. This includes retail sales finance, such as credit card programs, loans, and financial services. GE Capital also offers credit and insurance products, such as private-label credit cards, consumer loans, and auto loans.
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