Capital One Bank
In todays financial world, the name Capital One Bank is synonymous with power and bank-ability. After being setup in 1995, in less than a decade, Capital One established itself as a fortune 500 company that is One of the foremost financial service providers in the U.S., Canada and the U.K. Heres some more information on the big brand.
About Capital One:
Rich Fairbank, Capital One Bank Chairman and CEO, and Nigel Morris, former Vice Chairman had initially started Capital One as a new credit card division of Signet Bank in 1988. This was done after the two of them had set up the Information-Based Strategy (IBS) to transform the way banking was carried out. They had realized earlier that traditional banking methods and financial services offered did not incorporate the needs of the individual customer. When they saw what technology could do to guide business and credit decisions in the financial industry, they came up with IBS, an almost ideal solution to their concern.
The Information-Based Strategy (IBS) combined all the facets like marketing, credit, risk, operations, and IT into a flexible decision-making structure. The purpose of IBS was to enable the Bank to offer financial solutions or services that suited of were tailored to an individuals needs.
Rich Fairbank then had to pitch the IBS idea to more than 20 national retail banks before Virginia-based Signet Bank agreed to have them launch its Bank Card division. Several years and tests later the company finally introduced the first balance transfer card. Signet eventually declared its credit card division as Capital One Financial in 1994.
Headquartered at 1680 Capital One Drive in McLean, Virginia, Capital One is a bank holding company. Its principal subsidiaries, Capital One Bank and Capital One Bank, F.S.B., offer consumer-lending products and are undoubtedly among the top providers of MasterCard and Visa credit cards in the world.
The companys next steps included acquiring New Orleans-based banking firm Hibernia in 2005 for a whopping $5.3 billion. Statistics indicate 2005 revenues for Capital One at $12.0 billion with a net income of $1.8 billion, and 2006 (as of June) figures as $47.2 billion in deposits and $108.4 billion in managed loans outstanding.
Services offered by the Company:
Capital One is like the Master of all in the financial services sector. Over the years it has diversified substantially and now offers almost every product or service that a financial company can offer credit cards, auto loans, home loans, personal loans, small business services, student loans, healthcare finance, Commercial services, direct banking etc.
Rich Fairbank, the Chairman and CEO said Whether through targeted financial services or community involvement, Capital One's goal is to give people opportunities to reach their potential. Ever creative and ever expanding, Capital One is part of every household in the form of at least One product or service.
A little more about the products and services offered by Capital One.
* Credit cards: Capital One Bank offers at least 14 different types of credit cards to a variety of customers, extending from those with excellent credit standing, to those with limited credit history, to small businesses. Customers with low credit rating can begin with One of the credit cards offered to them, and build or re-build their credit standing.
* Auto loans and Insurance: It offers competitive rates for new and used auto or motorcycle loans and it even offers re-financing options for ongoing loans. Customers can pay off their existing loans for One with a lower interest rate, which would be more convenient for them. Additionally, Capital One has tied up with some very reputed Insurance companies, who offer Capital One customers various types of Insurance (like auto insurance, accidental death insurance etc.) at affordable prices.
* Direct Banking: This is a relatively new service being offered, where Capital One is offering great rates on High Yield Money Market, Certificates of Deposit, and Business Money Market accounts nationwide.
* Home Loans: Capital One offers great rates and services for its home loan customers, like availability of home equity loans, debt consolidation, new home purchase loans and refinancing of mortgages. Customers can take all their home-related requirements to the same bank and avail the best prices and services.
* Personal Loans: Capital One offers No Hassle personal loans with very affordable and flexible plans for payoff. As the term suggests, the customer will face no hassles in applying or repaying of personal loans taken for any purpose.
* Healthcare finance: Capital One has several healthcare finance options that are affordable and involve financing for various types of health requirements. These healthcare programs include dental (for crowns, implants etc.), vision (LASIK, Intacts etc.), Cosmetic (liposuction, hair restoration etc.), Orthodontics (endorsed by the American Association of Orthodontists) and fertility (surgery, PCOS treatment etc.). Customers can avail low rates for required medical treatments.
* Small Business: Capital One offers small business loans at generous terms and options, business line of credit with competitive rates and business credit cards with free employee cards. Small businessmen can bank with Capital One for their personal as well as their business finance needs.
Commercial: Capital One offers debt solutions (equipment leasing, real estate etc.), depository services, treasury management (Information management, funds management etc.), the Capital One South coast Inc. services (wholly owned subsidiary dealing with investment banking, equity research etc.), International banking (through a worldwide network in international trade), and other products like insurance, investments and Institutional Client services. Customers can use Capital One services for credit as well as for managing their investments.
Capital One is also strongly committed to Corporate Governance. It fully complies with Governance laws (which includes the Sarbanes-Oxley Act of 2002) and even also incorporates many best practices in its Governance program.
Apart from the above, Capital One also believes in valuing human differences and diversity in its employees and suppliers, contributing to the economy through provision of development loans as well as enhancing the lives of children and families through various programs like Literacy celebration and donating generously towards supporting low-income families.
Some recent news on Capital One:
September 26, 2006 - Capital One and JA Worldwide Unveil Mobile Financial Literacy Program for Middle School Students.
September 25, 2006 -Capital One was ranked among 100 best companies for working moms.
August 20, 2006 - Capital One and North Fork Stockholders approve acquisition and announce information regarding election deadline.
March 12, 2006 - Capital One announced an agreement to acquire New York based North Fork bank for 14.6 million U.S. dollars.
Attitude of the Company towards its employees:
An article from a 2003 edition of the Human Resource Management International Digest said that Capital One, as a company actually lays emphasis on its employees enjoying their workplace and having fun. This was proven right, when Capital opened a new canal-side building at its European headquarters site in Nottingham, UK, and provided kayak racks for any of its employees who wished to travel to work by boat. Capital One believes that employees who enjoy going to work, and have the right work-life balance, will continue with the firm, be more creative, and thereby improve the bottom line.
The company even organizes surveys of all its employees at least twice a year to get what it considers valuable feedback. The company says that the feedback really helps the management of the company in defining or re-defining its management tools and perspective.
Capital One provides its employees with a lot of benefits that begin from the very first day of their employment with the company. These benefits include medical insurance, health and fitness centers, flexible spending accounts, associate saving plans [401 (k) plan], stock purchase plan, life and accidental death and dismemberment (AD&D) coverage, educational assistance program, flexible work arrangements, adoption reimbursement, family assistance and referral bonus.
Since its establishment, Capital One has brilliantly built, maintained and continues to build its already enormous financial empire. However, it has not forgotten the value of its employees and the society in the bargain. Its tireless efforts towards keeping its consumers and investors happy have paid off richly and the company enjoys a strong position in todays financial industry.
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