U.S. Fed Scans Capital One-ING Online Banking Deal

by Mercator Advisory Group 0

Hands holding credit card and using laptop

The U.S. Federal Reserve has quizzed Capital One Financial Corp to know whether the proposed purchase of ING Groep NV’s U.S. online banking business would create a “too big to fail” institution, the Wall Street Journal said. Capital One told the newspaper it will remain a “traditional bank” and hold just 1.5 percent of total U.S. deposits.

This article reinforces the point that online banking is an important capability for institutions looking to acquire, deepen, and grow relationships with prospects and customers. Mercator Advisory Group research has found that well over half of customers find the ability to access accounts online as being an important characteristic when selecting a bank for checking or savings accounts.

In June, Capital One had agreed to buy U.S. online banking business ING Direct from ING Groep in a stock and cash deal valued at $9 billion.

ING had to sell the business, one of the jewels of its retail banking franchise, as part of a deal with the European Commission following its October 2008 Dutch government bailout.

Read full article: http://www.reuters.com/article/2011/09/12/capitalone-ing-idUSL3E7KC07720110912

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