Capital One leans into tech transformation

Capital One continued to modernize its technology infrastructure in the second quarter. The $468 billion bank is making technology-driven improvements to underwriting, modeling and marketing, and machine learning, Chief Executive Richard Fairbank said during Thursday’s earnings call. “Our investments to transform our technology and to drive resilient growth put us in a strong position to deliver compelling long-term shareholder value and thrive in a broad range of possible economic scenarios.” [caption id="attachment_57363639" align="alignright" width="300"]<img class="wp-image-57363639 size-medium" src="https://finainews.com/wp-content/uploads/2022/07/348901099-300x200.jpg" alt="A branded flag flies outside Capital One Financial Corp. headquarters in McLean, Virginia, U.S., on Wednesday, Nov. 6, 2019. Capital One's July 29 disclosure of a data breach exposed the company to regulatory fines and lawsuits, which could cost more than $200 million according to Bloomberg Intelligence." width="300" height="200" /> Photographer: Andrew Harrer/Bloomberg [/caption] Technology modernization has contributed to growth in the quarter, Fairbank said. Average deposits grew 12% year over year to $286 billion in Q2, according to the bank’s earnings release. The increase is “powered by modern technology and leading digital capabilities. Our digital-first national banking strategy continues to deliver strong results,” Fairbank said. “Our modern technology capabilities are generating an expanding set of opportunities across our business.” BY THE NUMBERS: In Q2, the bank reported: Communications and data processing increased 1% YoY to $344 million; Total noninterest expense, which includes communication and data processing, occupancy and equipment, professional services, benefits and marketing, increased 7% YoY to $4.8 billion; and Total revenue increased 1% YoY to $9 billion. NOTEWORTHY: Capital One plans to expand its card business and marketing channels as growth opportunities surface, Fairbank said. Those areas “are significantly enhanced by our technology transformation that enabled us to leverage more data, access more channels, leverage machine learning models and provide customized solutions that continue to generate very good performance, and we're leaning in to capitalize on that,” he said. FLASHBACK: In June, Capital One acquired luxury concierge service Velocity Black to add perks for its customers, according to a Capital One release. [stock_market_widget type="inline" template="generic" assets="COF" markup="{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}" display_currency_symbol="true" api="yf"] Editor’s note: This story was updated Friday, July 21.

Capital One leans into tech transformation

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Capital One leans into tech transformation

Noninterest expenses increased 7% YoY in Q2

Truist focuses on tech as EPS falls short

European Fintech Funding: Solaris raises $42M, hits unicorn status

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