The Bankwatch

Tracking the consumer evolution of financial services

Capital One and ING Direct seen as a good match

Jim at Netbanker has a positive take on the acquisition of ING Direct (USA) by Capital One.  He sees them as complimentary and expects powerful and sound online marketing from the combined unit.

Is ING Direct to Capital One what PayPal was to eBay?

Will ING Direct’s online chops boost growth at Capital One like PayPal did for eBay when it introduced epayments into the online marketplace? Wall Street gave it a modest thumbs up, sending Capital One shares up more than 2% on a day when financials were flat. That’s a $0.5 billion positive swing in market cap. Not a bad start to the relationship.

But from a remote delivery perspective, they look very complimentary. ING offers primarily savings and mortgages acquired online. Capital One is huge in credit cards, auto loans and traditional branch-based banking services.

This surprise announcement puts the Ally Bank rumour to rest.  For more assessment here is the Wall St Journal who note that GE were also interested but only in the deposits, and not the mortgages.

Written by Colin Henderson

June 17, 2011 at 08:10

Posted in Uncategorized

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