rolled out the Optima card with a 15 percent rate.įairbank and Morris envisioned a credit card industry revolution, beginning with Signet's $1 billion credit card operation. Travel and entertainment card marketer American Express Co. The Discover Card, a Sears, Roebuck and Co. In the mid-1980s nonbanking entities offered some new spins to consumer credit. Interest rates hovered between 18 and 20 percent. Yet, the credit card products themselves remained unremarkable. They intended to revolutionize Signet's credit card business, which dated back to the early 1950s and operated in traditional banking fashion.Ĭitibank had stepped outside the box, when it turned to a direct mail campaign to push its credit cards, a move that was quickly copied by other major commercial banks. The pair pitched the idea to more than 20 national retail banks before Signet signed on and gave Fairbank and Morris the green light to develop the plan. Fairbank and Morris's plan would allow companies to fine-tune card product and pricing strategies for individual customers through a decision-making structure blending together marketing, credit, risk, operations, and technology functions. He called on Morris, a fellow consultant at Strategic Planning Associates (later named Mercer Management Consulting), to help construct a more integrated and scientific approach to marketing bank cards. In the mid-1980s, Fairbank recognized what he perceived as a missed opportunity by the credit card industry. Morris began building the foundation for Capital One in 1988 under the auspices of Richmond, Virginia-based Signet Bank. boundaries but into a variety of consumer financial products and services.
During its short history, the company has expanded not only beyond U.S. But it was Capital One's creative use of information technology that helped it rapidly grow to one of the largest providers of MasterCard and Visa in the world. Capital One Financial Corporation, a holding company, is perhaps best known for its inventive advertising of its credit card products.
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