Capital One is the fifth largest credit card company in the United States. USA Today estimates Capital One has $336.91 billion; or a little over 10%, of the $3 trillion American credit card market.Read more
This demonstrates that Capital One’s business is growing but becoming less lucrative.
The company needs to do more to control expense and increase the more profitable aspects of its business. An obvious solution might be to find better ways to market credit cards; perhaps Samuel L. Jackson and Jennifer Garner’s salaries might be better spent elsewhere.
One obvious strategy would be increased investment in social media and more modern marketing. A potential solution might be sentiment based-social media marketing driven or directed by artificial intelligence.Read more
Another opportunity for Capital One investors is all the hysteria about banking being doomed.
The truth is that retail banking is doomed but banking has a long future ahead of it and Capital One will be a big part of it. Capital One’s future is bright because of the extensive business it does on line. It might be in a better position to cash in on the growth of online banking and app-based payments.Read more
Another lesson we can infer here is the big growth in online banking is going to established players like Capital One, and not to upstarts such as Bank of Internet (NASDAQ: BOFI). That makes Capital One a good growth stock in financial services and fintech, but is it a good investment?Read more
My take is that Capital One’s cash and revenue will grow for the foreseeable future because it is well placed to take advantage of the trends in modern banking. In particular, it is in a good position to offer such next-generation solutions as payment apps and online loans.Read more