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Financial Analysis of Capital One

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Organization: Capital One- Financial Company

Capital One is a financial and banking corporation, which is among one of the America's top 20s digital bank. It is well-known for credit cards, debit cards, home loans, banking and saving products. (Identities, 2017) It is around 21-year-old firm, which has had an epidemic success for the past 6 years. It is an innovative technology used organization. The best thing about Capital one is the work and life balance. To choose this organization, the main purpose is the organization's belief and service. They believe in fundamental logic, which is much interesting.

-They particularly focus on the everyone's opinions and assume positive intent. The culture and environment of the company are really different than most of the other places and banks.

-One more interesting fact that I know through some source is Capital one is same as Yahoo; in the terms of technology and belief.

-Capital One understand the value of clients, not transactions. As per their research they found that 71% of customers consider their banking relationship to be merely transactional.

-They aimed when Capital one diversified to reduce the risk from a monoline business.

-Capital one has three major subsidiaries, on which they work:

1) Credit cards

2) Saving banks

3) Auto financing

-All these three subsidiaries are diversified the Capital One's main product credit cards to bank's original business.

Relationship:  My cousin brother is working for the Capital One IT department from 2010. In future, I want to become a customer of Capital one 360 bank, because they provide great services for customers. After researching some resources and as per my cousin's knowledge about technologies and business strategy that Capital one used, which makes me more interesting to choose this organization as an operating model.

Operating Model:

An Operating model is necessary for delivering goods and services to customers by business level integration and standardization.

-Capital one uses a Coordination model by low standardization and high integration. A reason behind to choose this model is, uncontrolled business heads execute their processes an efficient manner, yet  providing the best services to the customers.

-Capital one has unique operations, often demanding capabilities.

-Capital one is a largest financial services companies, is composed of major three business units:

  1. Credit cards group
  2. Saving bank group
  3. Auto financing group

-After researching some stuff; I understand that in the past around the 1990s to early 2000s, they used diversification model, but now entering in auto finance they use coordination model.

- A Credit card is the oldest major subsidiary and original business of bank (Capital One). From the history of Capital one still, now credit card is the top-notch earning subsidiaries. (Perez, 2015)

-Saving bank is the second major subsidiary of Capital one. The leading products that they offer retail and commercial banking such deposits and loans. To achieve the successful business model, Capital one faces sterling competition with United states top 20 banks like PNC bank, Wells Fargo bank etcetera. (Perez, 2015)

-Auto financing is third and major subsidiary that focuses on delivering exhaustive, innovative solutions to meet the financial needs of the target customers. It mainly focuses on types of loan that determine the area of the bank. (Perez, 2015)

-By integrating, but not standardizing, it is enhancing customer service. It attracts new customers and sells more products to customers, hence it leads towards the profitable growth of Capital one.

Stages of enterprise architecture maturity:

A capability maturity model defines total four stages of architecture maturity.

  1. Business silos
  2. Standardized technology
  3. Optimized core
  4. Business Modularity
  • Capital one is presently used standardized technology. The reason behind to work at this stage is the management of technology standards.
  • Standardization reduce risk, costs of the shared services improve reliability, security and development time. (Ross, 2006)
  • Capital one usually increases access to shared data by data warehouse, hence transaction data is still embedded in individual application.
  • That is the significant achievement for cost savings and reliability through standardized technology.
  • Nowadays most of the companies move into the standardized technology stage by virtue of CIO that provides shared infrastructure services. (Ross, 2006)
  • Capital one design and update their standards according to financial management and funding shared services, which is the key management capability of standardized technology.
  • The business and IT leaders of Capital one are defines the application of standardized technology, that focus on quick wins.

References

Identities, W. (2017, 2 6). In wikipedia. Retrieved 02 07, 2017, from wikipedia: https://en.wikipedia.org/wiki/Capital_One

Perez, S. (2015, March 5). Retrieved from marketrealist: http://marketrealist.com/2015/03/capital-ones-three-main-subsidiaries/

Ross, J. W. (2006). Enterprise Architecture. Harvard Business.

https://en.wikipedia.org/wiki/Capital_One

http://marketrealist.com

https://www.capitalone.com

  File Ross Weill Chapter 2.pdf

      File Ross Weill Chapter 4.pdf


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