Capital One To Focus On Digital, Close 37 Locations

Capital One is going to increase its focus on digitization and close 37 branches around the U.S., according to a report by Yahoo Finance.

The company has made its intentions known by filing applications with the Office of the Comptroller of the Currency.

“Our customers are increasingly engaging with us digitally,” said Capital One spokesman Derek Conrad. “We continue to see steady growth in mobile banking, online banking, enhanced ATMs, remote deposit capture, etc., however, we know that many customers still value some physical presence to provide assurance, advice, and the ability to facilitate and support some transactions. We do too. Our goal is to deliver a compelling and optimal customer experience across all channels, not just one.”

Conrad also said the bank is working to make sure all of its customers have access to online banking.

The banking industry has seen a trend toward more digitization, with many banks investing in digital experiences for customers and making sure that online operating efficiency is at an acceptable point.

Banks like Bank of America, JPMorgan, Zions Bancorp and Huntington Bancshares have all been spending on technology upgrades.

Capital One has seen its bottom line flourish with its new focus, and its five-year revenues saw a compound annual growth rate (CAGR) of 6.4 percent. Net income CAGR was 8.2 percent throughout the same time period.

Capital One is also trying to grow its credit card business, and last year, it partnered with Walmart to be the only issuer of a co-branded and private-label card program.

The company has also teamed up with Amazon to allow shoppers with eCommerce points to redeem cash back and miles through Amazon. Capital One cardholders can use as many or as little rewards as they want for Amazon purchases, and they can enroll by adding an eligible Capital One card to their Amazon account.