When GE Money Canada decided this past summer to offer a credit card for small and medium-sized businesses in partnership with MasterCard, it was taking its brand somewhere new: directly to the consumer.

Before that, few Canadians were aware of the company — and even then, it wasn’t known as GE Money. The name was adopted on a global basis in 2004, says Stephen Motta, president and CEO of the Canadian arm, based in Mississauga, Ont.

The consumer-lending unit of U.S. giant General Electric Co. had previously been working quietly in the Canadian market, happily subverting its brand for the sake of private-label credit card and consumer loan partners. But the change from its former moniker, GE Consumer Finance, to the catchier brand name is timely, signifying a shift in global strategy.

The Canadian arm, which has operated in this country since 1986, is taking its cue from its U.S. parent and branching out. It has been seeking innovative ways to pump up its market share with a stronger presence in retail credit programs, unique loyalty cards and the creation of new consumer financing categories. Perhaps the most significant decision was its summer move into another market altogether: mortgages.

The dramatic growth of the mortgage-broker business in Canada has been well documented. Slightly more than 25% of Canadian homebuyers use the services of a mortgage broker, up more than 10 percentage points from five years ago. And many see more growth to come. It’s no wonder GE Money, which has a well-established mortgage practice in the U.S., is interested in securing some of the market, pitching itself head-on against alternative lenders such as ING Direct.

Launched initially as a pilot program in Ontario, the company’s subprime, or what it calls its “non-prime,” mortgage business promises quick turnaround through an automated underwriting engine that mortgage brokers can access online. It is intended to serve the many Canadians who cannot secure mortgages with banks, says Motta. Customers may be self-employed, new immigrants or have had financial difficulties in the past that affect their credit rating, he says: “These customers wouldn’t necessarily qualify for traditional bank loans.”

The promise of speed in what can historically be a long and drawn-out process is what makes the company’s offering so unique, says Motta. Approvals are usually granted almost instantly, or within a maximum of two hours, and funds are delivered in as little as five days.

Motta won’t say how many brokers GE Money has worked with or even reached through its marketing initiatives, nor will he reveal how much business it has conducted. But he does say both small independents and superbrokers are included in the GE Money network.

Business is clearly going even better than first anticipated, with newspaper reports suggesting that many of the mortgage deals in the Ontario pilot were higher than expected. In fact, Motta says, the test run was so positive that the company decided to accelerate its national rollout plans. The program will hit the Alberta and British Columbia markets in the first quarter of 2006, with other areas to follow.

Mortgages are a world away from what has been the division’s core business in the Canadian market for the past several years. It offers a full range of card services, including marketing, risk management, customer service, collections and payment processing, for its retail credit cards, which include Wal-Mart, Sam’s Club, U.S.-based Linens-N-Things and Canadian jewellery chain Ben Moss Jewellers. GE Money also handles the marketing and distribution of MasterCard-branded, loyalty programs — such as the one it announced in October with Doubleday Canada, in which book-club cardholders can earn points toward future book club purchases. Motta expects further developments in loyalty cards as consumers become even more sophisticated about what they have in their wallets. “The cards need to carry a strong value proposition,” he says.

In addition, GE Money began offering its aforementioned co-branded business MasterCard in September. It is the first time the company has promoted its brand front and centre with a partner, says Motta. The no-fee card allows small and medium-sized enterprises to earn cash rewards of up to $1,500 a year for purchases.

The company’s second line of business, consumer loans, goes back to the parent’s roots, when its consumer division provided financing options for GE home appliances. It has evolved significantly since then. GE Money now handles lending programs for a variety of manufacturers and dealers in a wide swath of industries, ranging from the unexpected to the predictable, such as partner Lennox Heating & Air Conditioning.

@page_break@In 2005, for example, GE Money reached out into what it calls the “powersports” category, offering financing programs for big-ticket recreational products in the marine and motorcycle categories.

Launched at the Toronto Boat Show, the powersports program was met with enthusiasm by manufacturers, dealers and enthusiasts alike, says Motta. So far, GE Money has inked deals with more than 600 dealers, including those selling Kawasaki, Ducati and Triumph motorcycles, and Princecraft boats. As with its private-label card business, consumers wouldn’t necessarily know they’re dealing with GE Money in the promotional financing deals, he says.

Motta expects the consumer loans arm of the business to expand as more dealers and manufacturers come aboard. IE