Capital One

The company operates a universal retail and commercial banking and consumer finance model. It attracts deposits through fee-free current and high-yield savings accounts delivered through online and mobile channels, using those deposits and wholesale funding to finance credit card receivables, auto loans and other lending portfolios. This balance-sheet model produces net interest income from the spread between lending yields and funding costs. In parallel, it runs large card-issuing and payments operations that generate non-interest income via interchange on card transactions, annual and other card fees, and service charges. A separate shopping and coupon-extension platform routes consumer traffic to merchants and generates affiliate or referral income. Value to customers is created through access to everyday banking, credit, and online shopping discounts, while value to shareholders comes from managing credit risk, funding costs and payments volumes at scale.

Capital One is a large US-based diversified consumer and commercial bank and card issuer. It provides current (chequing) accounts, savings accounts, credit cards, auto loans and other lending products, primarily via digital channels, under a regulated banking structure.

The company earns most of its income from interest on credit card balances, auto loans and other lending, net of interest paid on deposits, plus card fees, interchange and service charges. Its direct customers are consumers and small businesses using its retail banking, credit card, auto finance and shopping-rewards products, predominantly in the United States.