SEATTLE—Is Amazon looking to acquire Capital One? A report in Banking Technology indicates that is a possibility.
Capital One is among the top 1- bank holding companies in the U.S. ranked by assets and deposits. The bank has more than 800 domestic branches, including about 10 Capital One Café locations and more than 2,000 ATMs. It also conducts business in Canada and the U.K.
In 2015, 62% of the company's revenues were from credit cards, 28% was from consumer banking, and 10% was from commercial banking, noted Banking Technology.
“Capital One is also one of the largest users of Amazon's AWS cloud in the financial services space. Capital One would bring Amazon a huge credit card portfolio, which seems to be a natural fit for its business. Capital One is also a fully-fledged bank. Amazon is already a merchant, payment processor and a credit card issuer. With the acquisition of Capital One, Amazon would also become the acquirer—i.e. the merchant's bank. It could offer this service to all of the merchants participating in its ecosystem,” stated Banking Technology.