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Capital One knows how to integrate big bank purchases. But in the era of the Consumer Financial Protection Bureau, it's facing new challenges as it swallows ING Direct and HSBC's credit cards.
October 10
Capital One Financial (COF) is putting its own mark on ING Direct, the online bank it bought earlier this year.
The $302 billion-asset bank holding company based in McLean, Va., on Wednesday unveiled Capital One 360 as the new moniker for ING Direct, which Capital One bought in February for roughly $12 billion in cash and stock.
“Our name is changing to Capital One 360 and our colors are changing to red and blue – but our commitment to you is staying the same,” Jim Kelly, head of direct banking at ING Direct, and Jon Witter, Capital One’s president of retail and direct banking, wrote in a letter to ING Direct’s roughly 7 million customers. “As of February, we’ll have a new name and fresh look on the outside, but it’s the same ING Direct you’ve come to know and love.”
Capital One 360 will continue to offer checking and savings accounts without fees or minimum balances, they added.
With its acquisition of ING Direct, Capital One became the nation’s sixth-largest bank by assets. The deal, which is expected to bolster Capital One’s consumer business, netted the company $40.4 billion in loans, $84.4 billion of deposits and $53.9 billion of others assets, according to the company's latest quarterly filing with the Securities Exchange Commission.
In all, Capital One expects to spend about $630 million to integrate both ING Direct and HSBC’s U.S. credit card business, which Capital One bought in May. Capital One picked up roughly 27 million new active accounts, about $27.8 billion in outstanding credit card receivables and roughly $327 million in other net assets in the HSBC deal.
