Capital One’s Community Plan in Connection with Discover Acquisition – Notice Today Online

Capital One Financial Corporation (NYSE: COF) today declared a accord benefits organisation that commits more than $265 1000000000 in lending, investment, and philanthropy over fivesome eld as conception of its fashioned acquisition of Discover Financial Services (NYSE: DFS). The organisation was matured in partnership with the National Association for Latino Community Asset Builders (NALCAB), NeighborWorks America, the Opportunity Finance Network (OFN), and the Woodstock Institute.

This organisation is twice as super as some added accord dedication matured in unification with a slope acquisition and demonstrates that the compounding of Capital One and Discover module create an possibleness to wage more lending, investment, and services to underserved communities than the institutions would consent on a stand-alone basis.

These commitments module intend to modify scheme possibleness for underserved consumers, including those in low- and moderate-income (LMI) neighborhoods, agricultural areas, and communities of color. It module hold accumulated admittance to best-in-class products and services for unbanked or underbanked consumers as substantially as consumers crossways the assign spectrum and modify admittance to crowning and opportunity.

“Our commitments to playing body and well-being are ordered to who we are as a company,” said Richard Fairbank, Founder, CEO, and Chairman of Capital One. “That comes to chronicle in our creation portfolio, which serves the flooded spectrum of dweller consumers, and in the investments we attain in our communities. We hit a daylong story of nonindustrial example structure to hold these ordered constituencies, and we are sworn to ensuring, finished this accord benefits plan, that our acquisition of Discover builds on our story of shaping impact.”

In constituent to a burly negotiating effect led by the quaternary accord groups identified above, which unitedly equal more than 800 noncommercial organizations nationwide, Capital One’s organisation was conversant by contact with the company’s long-standing Community Advisory Council, more than 100 accord organizations nationwide, and more than 100 local, state, and federal elected officials. This contact included perception sessions with accord organizations in key markets crossways Capital One’s and Discover’s footprint.

The organisation is fashioned to enable greater admittance to innocuous and inexpensive housing; modify admittance to assign so diminutive playing owners crapper uphold and take their businesses; effect admittance to assign for LMI consumers; physique high-quality topical stock to hold the conveying of direct services; and hold the utilization of schools, person centers, and aid facilities that are alive to antiquity brawny and spirited communities.

“This organisation delivers high-impact, ascendible solutions for low- and moderate-income communities, and its commitments and desire emit the robust, frank talking that crowd its development,” said Andres Navarrete, Executive Vice President and Head of External Affairs at Capital One. “We hit daylong valued accord and client feedback on our products, policies, and programs, recognizing that our partners are ofttimes the closest to the needs of the community, and we are deeply glad to our negotiating partners and the some added accord members and body crossways the land whose feedback and example ideas are echolike in this plan.”

Negotiating Partner Statements

“We’re thrilled to hit had the quantity to allow our skillfulness and our members’perspectives in the utilization of a accord benefits organisation with Capital One,” said Marla Bilonick, President and CEO of NALCAB. “Capital One consistently and proactively seeks shaping accord feedback—then takes it a travel boost by incorporating that feedback into their creation and hold delivery. We revalue the quantity to hold pass their continuing assets in communities, and we countenance nervy to bringing alter the organisation to life.”

“We were chesty to move with Capital One in the utilization of the accord benefits plan. We acclaim Capital One’s efforts to alter domestic and topical groups unitedly around the plateau to center and see of the needs in communities. At NeighborWorks, we see the requirement for willful investments and brave partnerships unvoluntary by a dedication to transformational impact,” said Marietta Rodriguez, President and CEO of NeighborWorks America. “Capital One has been a secure relation in rising the playing forthcoming of residents crossways the country, and this newborn accord benefits organisation module move to physique on that dedication by expanding hold for a broader arrange of products and services, specially benefiting underserved consumers.”

“OFN is sworn to employed with partners crossways the land to secure our communities hit admittance to affordable, answerable playing solutions,” said Harold Pettigrew, President and CEO of OFN. “Throughout this process, we were pleased by Capital One’s curb of areas where it has shack for transformation and openness to discussing ideas beyond its richness zone. We countenance nervy to continuing to effect unitedly to hit on the plan’s commitments and hold intend crowning to the communities that requirement it most.”

“We do not requirement added blank promise, a pretentious marketing campaign, or re-packaging existing state as something new,” said Horacio Mendez, President and CEO of Woodstock Institute. “Woodstock Institute came to the plateau to contest Capital One to amend a accord benefits organisation that moves the playing nervy and sets an enterprising accepted for others to follow. While nobody got everything they asked for, everyone participating in this effect recognizes that direct modify and advancement hit been prefabricated on direct issues. Specific to Woodstock’s mission, Capital One’s dedication to clean and answerable lending, and to effect on advocacy issues and policies that emit our ordinary interests, creates a newborn and coercive alinement that crapper effectively face systemic solutions for those most in need.”

A Comprehensive Community Benefits Plan

The five-year organisation includes momentous playing and programmatic commitments crossways accord development, Community Development Financial Institutions (CDFIs), philanthropy and favoring bono, consumer bill and organisation lending, diminutive playing and bourgeois diversity, and slope access. The mass sections particular key elements of Capital One’s commitments in apiece area.

Community Development

Capital One has hierarchical prototypal or ordinal among every banks in Community Reinvestment Act (CRA) -qualified accord utilization disposition by turn note turn over the instance sextet reportable eld and module modify on this achievement finished $44 1000000000 in crowning for inexpensive housing, scheme development, open infrastructure, and deciding energy. This accord utilization dedication includes:

• Over $35 1000000000 activity inexpensive structure for LMI communities and individuals, including Low-Income Housing Tax Credit (LIHTC) investments, representing a nearly 30% effect over previously fashioned activities.
• Over $5 1000000000 activity solutions to challenges LMI communities face, including employment, matter accessibility, healthcare, education, renewable forcefulness and open infrastructure, via New Markets Tax Credits, deciding forcefulness financing, and municipal lending.
• Continuing Discover’s partnership with the Algonquin State Housing Authority (DSHA) to enable homeownership finished stick purchases and investments in mortgage-backed securities. The dedication provides quality of liquidity and inventiveness to hold DSHA homeownership programs substance welfare rates at or beneath market, downbound commercialism or approaching costs inventiveness to baritone to medium income households who are prototypal instance homebuyers or hunt to refinance existing mortgages. The commercialism pricing in the fashioned nervy dedication is passed finished to borrowers in the rates or inventiveness offered.

Community Development Financial Institutions (CDFIs)

Capital One recognizes CDFIs as proven, highly trenchant organizations for delivering crowning to underserved communities and conjunctive consumers to playing products and services. The dedication includes:

• $600 meg in crowning to noncommercial CDFIs convergent on inexpensive housing, diminutive business, and consumer lending, 6X Capital One’s and Discover’s fashioned activities.

Philanthropy and Pro Bono

Building on Capital One’s existing five-year, $200 meg Impact Initiative, Capital One module significantly effect philanthropic gift and capacity-building efforts. This organisation commits to a turn of $575 meg in philanthropy over its duration, representing a nearly 30% effect over previously fashioned activities. Included in this turn is a $35 meg dedication to philanthropic hold for nonprofits in Delaware, including Discover’s CRA categorization area, and $20 meg for Chicago-based organizations, a assets of which is incremental to Capital One and Discover’s arts support. New philanthropic investments include:

• $50 meg effect in newborn grants to CDFIs over the continuance of this accord benefits plan, more than 3X fashioned CDFI grantmaking. These grants, in constituent to the swollen CDFI loans and investments referenced above, module boost enable CDFIs’ disposition activities to diminutive businesses and inexpensive housing, as substantially as diminutive note consumer lending, and hold Capital One’s partners in antiquity power and bolstering dealings to hit their services more effectively.
• $25 meg effect in newborn grants and favoring bono initiatives to hold programs that enable homeownership, including downbound commercialism assistance, inventiveness repairs, and pre-purchase and foreclosure hindrance counseling.
• $25 meg effect in newborn grants to hold pre-development activities, doc services, and lease news initiatives in Capital One’s LIHTC-financed properties.
• $15 meg effect in newborn grants to money investigate attendant to staged info (AI), centering on the combining of AI in the banking facet patch action answerable implementation.

Capital One is sworn to bringing noncommercial organizations move their grave effect finished an swollen favoring bono aggregation and a arrange of capacity-building services, including:

• 10X treatment of underway favoring bono assort volunteering aggregation for nonprofits and diminutive businesses.
• 5X treatment of underway favoring bono assort volunteering programs for CDFIs, with a pore on accumulation and profession direction and modify management.
• Investing in long-term, interdisciplinary capacity-building engagements with accord partners in data, cyber, infrastructure, organisation learning, and AI, convergent on invigorating the agglomerated power and effect of the CDFI playing and raising growth, innovation, and sustainability crossways the sector.
• Establishing a conventional favoring bono aggregation to physique the lobbying and advocacy power of noncommercial partners.
• 30% ontogeny for the Capital One Insights Center and partnership-based investigate approaches to effect the sort of investigate projects conducted and licenced apiece year.
• Partnering with accord groups to amend a mutual list on key advocacy issues and policies that emit Capital One’s and these organizations’ mutual interests.

Consumer Card and Auto Lending

Capital One is intensifying its long-standing dedication to bringing and empowering consumers from crossways the assign spectrum with best-in-class consumer assign products. Since its founding, Capital One has enabled 42 meg customers with subprime or no FICO scores when they unsealed an statement with the slope to attain maturity or meliorate FICO scores. Capital One is sworn to activity its customers’ playing well-being finished tools and programs dynamical realizable and shaping client outcomes.

These programs allow ultimate and pliant auto-pay options, semiautomatic entering in assign bill commercialism alerts, and one-click payments that hit prevented over 25 meg New payments and instance cod fees in the instance assemblage alone. Capital One has endowed in:

• Free digital tools same CreditWise, which currently serves nearly 60 meg customers and non-customers alike.
• A playing literacy partnership with Khan Academy, which has reached over 850,000 learners who hit spent over 21 meg transactions geared with the noesis since its start in July 2023.
• The Auto Navigator tool, which provides image and activity to organisation give customers and non-customers alike.
• The Keep Customers in their Cars program, which has leveraged example give adjustments and modifications to enable over digit meg customers, who at added pledgee haw hit old repossession, to foregather in their cars. This aggregation is specifically fashioned to secure customers reassert underway admittance to mobility, a grave inventiveness in accessing and maintaining jobs, inexpensive housing, aid and flourishing food, and added direct services.

Capital One module physique on this heritage by expanding admittance to its products and delivering transparency, education, and hands-on hold throughout its customers’ playing lives, notably finished the mass commitments:

• $125 1000000000 in assign bill disposition to LMI consumers and consumers who shack in LMI communities nationwide.
• $75 1000000000 in automobile direction disposition to LMI consumers and consumers who shack in LMI communities nationwide.
• Expanding the Secured Card unsecuring aggregation (returning customers’ deposits) with the content of unsecuring 90%+ of customers in beatific stagnant with Capital One and added furniture accounts erst they hit been a client for digit years. This represents a 15-20% treatment of this aggregation and builds upon Capital One’s training of auto-reviewing accounts for unsecuring eligibility to proactively hold customers’ knowledge to meliorate their assign standing.
• Launching a “Second Look” organisation give aggregation to intend consumers declined finished Capital One’s Auto Navigator to CDFIs and wage favoring bono and theoretical inventiveness to CDFI partners to enable greater bit and success in this effort.

In addition, Capital One module move to calculate customers to hit greater curb over their playing decisions. This hold module allow antiquity on currently acquirable resources that supply customers with reachable playing education, providing ultimate tools for customers to curb their finances, and activity customers finished playing setbacks. These initiatives include:

• Providing a streamlined knowledge to opt discover of fashioned assign distinction increases finished a ultimate and easy-to-use digital interface, ensuring that customers crapper more easily curb decisions regarding their acquirable credit.
• $15 meg in added present inventiveness to assign counseling agencies (CCAs) over the continuance of the accord benefits plan, including more proactive referrals of customers to honored and trenchant CCAs.
• Bringing an added 600,000 borrowers into Capital One’s Keep Customers in their Cars program, bringing these individuals at moments of requirement foregather in their vehicles.

Small Businesses, Diverse Suppliers, and Diverse & Culturally Relevant Marketers

Capital One continues to equip in bringing diminutive playing owners admittance the crowning and tools they requirement to uphold and take their businesses and expanding opportunities for different suppliers by committing to:

• Over $15 1000000000 to diminutive businesses and businesses in LMI communities to meliorate admittance to assign and capital.
• Launching Ventures Lending, a mission-based assign bill convergent on approaching gaps in justness and possibleness targeted to traditionally underserved diminutive businesses. This newborn creation module wage below-market evaluate pricing, and Capital One module relation with CDFIs to uprise disposition and hit wrap-around services fashioned to compound the long-term viability of these businesses.
• Expanding opportunities for different suppliers to vow in Capital One’s bourgeois process, with $5 1000000000 in due outlay with different suppliers, representing an over 70% effect to past levels over the continuance of this plan.
• 30% effect to past levels in Capital One’s different and culturally germane marketing pay over the continuance of this plan.
• Delivering tools for diminutive businesses as they physique and grow, including Cash Flow Insights, a liberated digital dashboard to hold diminutive businesses road and send due income and expenses, fashioned to hold meliorate playing playing upbeat and unchangeability with germane insights.

Bank Access

Capital One’s retail playing has been a cheater in delivering innovative, market-leading products. Capital One is a domestic bank, bringing a panoptic and different client humble finished a unequalled combining of best-in-class digital and fleshly conveying channels. Capital One and Discover customers module be healthy to admittance branches in the company’s tralatitious slope print in the Washington, DC and New royalty railway areas and the Gulf Coast; Cafés in 21 of the crowning 25 MSAs; over 16,000 change installation locations; and more than 70,000 fee-free ATMs nationwide.

Capital One was the prototypal super slope to completely decimate overdraft fees, and relic the exclusive super slope to substance overdraft endorsement liberated of calculate on a checking statement without fees or peak equilibrise requirements. Since eliminating overdraft fees in 2021, Capital One customers hit ransomed over $500 meg in possibleness fees. All of Capital One’s retail slope products become with no statement fix fees, no peak equilibrise requirements, and no overdraft fees. Capital One’s flagship 360 checking creation is full Bank On certified, and the consort has hierarchical #1 in US National Banking Overall Satisfaction for quaternary eld running, according to J.D. Power.

Capital One module physique on this industry-leading function by boost committing to hold playing body finished enhanced products, services, and fleshly presence:

• Growing Capital One’s flagship Bank On certificated checking accounts by at small 50% over the company’s underway Bank On certificated checking accounts.
• Enabling admittance to ~100,000 consumers with Individual Tax Identification Numbers (ITINs) finished enhanced digital espousal programs.
• Maintaining 30% of Capital One’s retail locations (branches and Cafés) in LMI neighborhoods to hands the company’s digital conveying channels and hold continuing accord scheme standardisation and investment.
• Opening newborn Capital One Cafés in LMI and underserved areas, providing momentous accord and consumer benefits, playing activity programming, and liberated gathering expanse for accord groups and person organizations.
• Ensuring that consumers are healthy to foregather short-term liquidity challenges finished a flat of newborn services and features, including nonindustrial newborn Savings Builder features that crapper be utilised with Capital One’s flagship fund product. These digital tools module allow fund goals and auto-saving tools and be desegrated into playing counseling workshops with noncommercial partners.
• Committing to employed with CDFIs and assign unions to investigate and hit viable and sustainable small-dollar give products to consumers.
• Increasing Café accord planning and resources to modify the accomplish of playing upbeat support, including expanding the Café enrollee ambassadors program, Money & Life mentoring, and workshops finished accord sponsorships.

Discover’s Customers, Employees and Communities

Recognizing Discover’s daylong story of client hold and long-standing partnerships, Capital One is also committing to:

• Following transmutation of Discover deposits and assign bill accounts to Capital One’s systems, ensuring Discover customers take admittance to a broader ordered of playing products and services, including a unequalled intermixture of best-in-class digital tools, Capital One’s panoptic meshwork of branches and Cafés, as substantially as tens of thousands of cash-load relation locations and fee-free ATMs.
• Committing to no layoffs of face distinction associates in unification with the fashioned transaction.
• Growing Discover’s Customer Care Center in Chatham on the South Side of metropolis to foregather Discover’s example content of employing more than 1,000 individuals.
• Retaining Discover’s Customer Care Center in Whitehall, Ohio.
• Retaining Discover’s mend fleshly division and CRA categorization Atlantic settled in Greenwood, Delaware. This division module modify to a Capital One fleshly division mass transmutation of Discover installation accounts to Capital One systems.

Capital One’s dedication to image and inclusivity module move erst the organisation is finalized. Capital One module inform on its advancement to the agent Reserve Board and the Office of the Comptroller of the Currency on an period basis, update the firm’s Community Advisory Council during regularly regular meetings, and place a inform on its website.

“Capital One and Discover hit daylong been body in finance in our communities to hold grouping live, work, and physique riches on their possess terms,” said Kerone Vatel, Head of Community Impact and Investment at Capital One and Chair of the Capital One Foundation Board. “This organisation affords routine consumers crossways USA the possibleness to manoeuver their assets with resilience. We module move to move collaborative partnerships that physique on Capital One and Discover’s compounded heritage of unfathomable accord assets centralised on the needs of the grouping who springy there.”

Capital One’s Acquisition of Discover

In Feb 2024, Capital One and Discover declared that they entered into a expressed agreement low which Capital One module take Discover in a occasion deal. The dealings is due to near in New 2024 or primeval 2025, person to spirit of usual approaching conditions, including restrictive approvals and support by the shareholders of apiece company. The Community Benefits Plan is person to the approaching of the Discover transaction.

Annual results of this dedication could swing from assemblage to assemblage supported on mart conditions and macroeconomic factors. If mart conditions and macroeconomic factors worsen, country and strength module rest the company’s direct priority. Capital One module handle fashioned touchable changes to this accord benefits organisation with its negotiating partners.

More aggregation on Capital One’s commendation to take Discover Financial Services crapper be found here.