Running Head: CAPITAL ONE BANK

Real Life Case Study Proje t: Ca!ital One Ban" Na#e Institution $ate

CAPITAL ONE BANK Capital One Bank Introduction

Te &nology &as led to a o#!lete s&ift of !aradig# in t&e fun tioning of t&e 'an"s as (ell as deli)ery of t&e 'an"ing ser)i es* Traditionally+ all t&e 'an"ing transa tions re,uired !&ysi al )isit to t&e 'an"* Presently+ #ost of t&e 'an"ing transa tions an 'e done fro# any !la e (it&out ne essary &a)ing to )isit t&e 'an"* Te &nology &as eased to 'e an ena'ler 'ut a dri)er* -ro(t& of o##uni ation te &nology+ #o'iles and t&e internet &as in reased t&e di#ension of t&e 'an"ing industry* T&e a)aila'le infor#ation te &nology is 'eing le)eraged 'ased on usto#er a ,uisitions to dri)e !ro ess effi ien y and auto#ation in deli)ery of ser)i es to t&e usto#ers* .any of t&e IT initiati)es in #ost 'an"s started in early /001s (it& e#!&asis on ado!tion of t&e ore 'an"ing solutions+ 'ran & auto#ation and entrali2ation of t&e o!erations* .ost 'an"s &a)e transfor#ed to te &nology3dri)en !ro esses t&at &a)e seen t&e #o)e#ent fro# #anual to auto#ated syste#s* T&e use of AT.s+ online 'ill !ay#ents and #o'ile 'an"ing &as o')iated t&e need for t&e )isiting of t&e 'ran &es 'y t&e usto#ers* Su & &anges &a)e 'een !rodu ti)e ena'ling 'an"s i#!ro)e t&eir o!erational effi ien y and in rease t&e o#!etiti)eness* Ban"ing industry is #o)ing to(ards 'usiness intelligen e and de ision #a"ing so as to o!ti#i2e t&e IT infrastru ture* As a result+ t&is !a!er !resents a real life ase study !roje t on Infor#ation Te &nology in Ca!ital One Ban" 4Cull 5 6onat&an+ %1/78*

Section 1.0: Organizational Profile of Capital one Bank T&e Ca!ital One Ban" is 'ased in 9*S and it s!e iali2es in &o#e loans+ redit ards+ 'an"ing and sa)ings and auto loans* T&e 'an" is a #e#'er of t&e :ortune ;11+ and it &el!ed in !ioneering #ass #ar"eting of t&e redit ards in early /001s* It is t&e si<t&3largest de!osit

CAPITAL ONE BANK grou! in 9nited States* Its

7 or!orate offi es are in =irginia+ Tyson>s Corner and

unin or!orated :airfa< County* T &e 'an" (as founded in /0?? 'y Nigel .orris and Ri &ard :air'an" as a s!in3off for t&e Ri &#ond Ban" (&i & is 'ased in =irginia* T&e 'an" (as t&e first to 'e fined 'y Consu#er :inan ial Prote tion Bureau 'e ause of defrauding t&e usto#ers* T&e 'an" entered t&e retail 'an"ing after a ,uiring Ne( Orleans 'an" in %11;* T&e 'an" jettisoned its !latfor# for t&e #ortgage during t&e su'!ri#e finan ial risis in %11@* T&is resulted in in)estor !ressures* By No)e#'er+ %11?+ t&e 'an" (as 'enefiting fro# 'ail3out fro# E#ergen y E ono#i Sta'ili2ation A t of 9SA7*;B 'illion* T&e 'an" o#!leted its

re!ur &ases in s&ares+ in %110 4I##aneni 5 Ron+ %11@8* T&e offi e of Co#!troller of urren y fined t&e Ca!ital One Ban" for #isleading usto#ers* T&e usto#ers (ere for ed to !ay e<tra for redit #onitoring or !ay#ent

!rote tion after ta"ing t&e ard* As a result+ t&e o#!any !aid A%/1 #illion for t&e !ay#ent of legal a tion ta"en to refund t&eir usto#ers* T&e 'an" is a !arent o#!any of t&e Ca!ital One Auto :inan e in Plano+ Te<as* T&e 'an" 'e a#e t&e largest auto lender after 'uying Peo!le:irst* T&e o#!any &ad !re)iously dealt (it& auto loans t&roug& t&e auto dealers&i!s and dire t #ail for t&e refinan ing of e<isting auto loans (&ere t&e s&o!!ers (ere a'le to a!!ly for loans online* T&is ensures fast transa tions and i##ediate feed'a " fro# t&e 'an"* To t&e dealers&i!+ t&e 'uyer a!!ears as t&oug& &e is !aying as&+ and t&e &e "s are used in !ur &asing used or ne( )e&i les+ as (ell as refinan ing t&e e<isting auto loans*

Services Offered T&e 'an" 'egan as a onsu#er lending+ &en e its !rofita'ility (as un!redi ta'le* $es!ite of #ost #ono lines going out of 'usiness or 'eing a ,uired &ea!ly during t&e &ard

CAPITAL ONE BANK

ti#es+ a!ital one sur)i)ed t&roug& it all* Instead+ t&e 'an" e<!erien ed tre#endous gro(t& due to t&e effe ti)eness of its infor#ation3'ased strategy* T&is !ioneered t&e use of data fro# usto#ers in tailoring t&e !rodu ts to t&e su'!ri#e onsu#ers* T&e o#!any !ossessed one of t&e largest data'ases for t&e onsu#er data* T&e 'an" uses ArdentDs $ataStage E<tra tion and Transfor#ation Tool 4ETT8 in 'uilding t&e data (are&ouses for all its o!erational de!art#ents* Su & a data (are&ousing initiati)e for#s a ore o#!onent in i#!ro)ing t&e #anage#ent of #eta3data+ as (ell as deli)ery of riti al de ision infor#ation su!!ort* T&is strategy is le)eraged t&roug& ell !&ones 4$a#ar 5 Lynn+ %1/18* T&e 'an" s!onsors s!orts tea#s li"e t&e annual ollege 'all in :lorida and :oot'all League C&a#!ions&i!s in Notting&a# :orest* T&e o#!any s!onsored urling e)ents

'et(een %11? and %110 a ross Canada+ and ea & year+ t&e o#!any s!onsors #as ot &allenge* T&e 'an" is a#ong t&e to! ten finan ial ser)i es !ro)iders+ &en e t&e sta'ility and strengt& of #eeting t&e needs of t&e usto#ers* T&e o#!any is o##itted to (it& a dedi ated tea# of s!e ialists (&o en&an e t&e design of 'an"ing solutions t&at #eet t&e s!e ifi needs of t&e o#!any* T&e o#!any &as a o#!re&ensi)e suite of lending+ s!e ialty finan e+ treasury #anage#ent solutions and in)est#ent* T&e 'an" ensures t&at its usto#ers are a'le to e<!and t&eir 'usiness as (ell as !rote t t&e#* T&is #ay &el! t&e# a &ie)e t&e strategi o'je ti)es of t&e 'usiness* E)idently+ t&e #anage#ent in a!ital one 'elie)e t&at t&e 'an" s&ould 'roaden t&e a!!eal for its 'rand t&roug& so ial #edia and (e'site* T&is (ill &el! t&e# (in t&e young onsu#ers* T&e a ,uisition of t&e IN- dire t &as ena'led t&e o#!any i#!ro)e its

transa tions in order to deli)er attra ti)e deal of e ono#i s as (ell as o#!el a long3ter# strategi )alue* T&e o#'ination of IN- and Ca!ital One reates a )alua'le and uni,ue 'an"ing fran &ise to in lude t&e ad)antaged assets+ as (ell as t&e greater lo al 'an"ing+ in t&e attra ti)e #ar"ets* T&is sustains and en&an es t&e "ey sour es of s&are&older )alue on long

CAPITAL ONE BANK

ter# 'asis* T&is in ludes t&e returns+ gro(t& and generation of a!ital 4Castelli+ %11C8* T&is inno)ati)e !latfor# is aligned in3line (it& t&e )ision of Ca!ital One Ban"* T&e 'an" is o##itted to en&an ing and sustains t&e usto#er relations&i!s t&at are entral to su ess of t&e t(o 'an"s* T&e 'an" is t&ere to #a"e a dra#ati deal t&at (ill a elerate t&e !arti i!ation in Ee' %*13'ased o#!etiti)e arena 4.anand&ar+ %11%8* Key C allenges !acing Capital One Bank T&e 'iggest &allenge fa ing Ca!ital One Ban" is t&e &anges in de#and and su!!ly related (it& asset* T&e &anges in de#and and asset o ur due to &anges in #onetary !oli y* T&e de#and for safe finan ial assets &as e<!anded+ and as a onse,uen e+ fe( !eo!le e<!erien e i#!a ts of t&e e ono#i re ession* Profita'ility in #ost 'an"s de!ends on onsolidation+ C&anges in !rodu tion

#anage#ent of t&e 'an" dri)en 'y in reased

te &nology+ regulation and dissol)ing 'orders* T&is a t as t&e #ajor sour e of t&e o#!etiti)e ad)antage in 'an"s 49soro+ %1/%8* T&e Ca!ital One Ban" fa es !ressure fro# t&e &anging trends in te &nology+ !oliti s and regulatory* E&ile #ost of t&ese &anges a!!ear urgent+ t&ey are not strategi * :or instan e+ t&e i#!le#entation of #o'ile 'an"ing as a regular deli)ery &annel affe ted t&e de)elo!#ent* T&is is 'e ause t&e o#!any is o#!elled to "ee! in !a e (it& t&e &anging trends* T&e 'an" #ust also de)elo! t&e strategy 'ased on t&e so ial #edia+ and t&is alls for !ara#eter resolution* Ot&er &allenges in)ol)e t&e !ro'le#s e<!erien ed in o#ing u! (it& ne( le)els of gro(t& and sustaina'le !rofita'ility due to lo( interest rates* T&e re'uilding of t&e asset ,uality+ as (ell as strengt&ening of t&e a!ital ade,ua y+ is ,uite !ro'le#ati * T&e enri &#ent of t&e 'usiness )alue t&roug& !ro#otion of usto#er of usto#er relations&i! as (ell as restoration of t&e usto#er onfiden e es!e ially after re ession greatly affe ts t&e !rofita'ility in t&e 'an" 4A)gerou+ %1178* $ue to t&ese &allenges+ Ca!ital One Ban" fa es

CAPITAL ONE BANK one o)erriding &allenge of staying dis i!lined as attenti)e a#idst all

B &allenges*

Section ".0: #ypes of I# Syste$s %sed in Capital One Bank Co$puterization of Operations Infor#ation te &nology is &anging t&e fa e of t&e 'an"ing !ro esses in Ca!ital One Ban" t&roug& o#!utation* T&e IT is used in net 'an"ing+ #o'ile 'an"ing+ s&o!!ing+ ti "eting 'oo"ing+ !ay#ent of 'ills+ transfer of funds and auto#ated teller #a &ines 4AT.s8* Te &nologi al inno)ations &a)e en&an ed o!ening u! of ne( deli)ery &annels (it&in t&e 'an"ing industry* Ta"ing t&e &el! of IT in dealing (it& t&e ne( &allenges &a)e ena'led 'an"s ta"e on ne( e ono#i !oses* IT+ t&erefore+ in reases t&e usto#er )alue t&roug& usto#er relations&i! #anage#ent 4CR.8 a!!li ations* T&e Ca!ital One Ban"ing is urrently in t&e #idst of IT re)olution* T&e o#'ined o#!etiti)e and regulatory reason &as in reased t&e i#!ortan e of t&e auto#ation (it&in t&e 'an"ing se tor* T&is &as seen t&e in rease in !rodu ti)ity+ &en e t&e gain in o#!etiti)e edge* Ca!ital One Ban" is urrently o!ening u! for t&e latest te &nology as (ell as t&e #odifi ation of te &nology to suit t&e 'an"ing en)iron#ent* Belo( are so#e of t&e IT ser)i es used 'y Ca!ital One Ban"* &'C e(ues )&lectronic Pay$ent Services* T&e e3 &e,ue are a ne( te &nology t&at &as 'een i#!le#ented to re!la e t&e on)entional !a!er &e,ue* T&is &as already 'een a#ended to in lude t&e e3 &e,ue

instru#ents and trun ated &e,ue* E3 &e,ues a t as a #ode of ele troni !ay#ents* T&is te &nology (as de)elo!ed 'y t&e onsortiu# of t&e Sili on =alley #er &ant 'an"ers and resear &ers* .any finan ial 'odies &a)e sin e t&en in luded it in t&eir syste#s* T&e (or"ing of e3 &e,ues is si#ilar to !a!er &e,ues and a t as legal !ay#ent syste#s* T&e syste# uses F.L do u#ents to aut&enti ate !arties for t&e transa tion* T&e e3 &e,ues are defines 'y t&e

CAPITAL ONE BANK

:inan ial Ser)i es .ar"u! language 4:S.L8 t&at allo(s for in lusion or eli#ination of t&e do u#ents 'lo "s* T&e signatures are a o#!anied 'y ertifi ates issued 'y t&e 'an" to tie t&e signer to t&e 'an" a ount* E3 &e,ues #a"e an use different a ounts to !rote t t&e standard &e,uing a ount fro# fraud 46oia+ %11@8* T&e e<isting ANSI F0*CB standards &andle t&e settle#ent t&roug& :S.L re!resentation+ rat&er t&an &e,ue i#age and t&e ANSI F0*7@ as& letter t&at is ontained in t&e F0*CB en a!sulation* T&e related 'enefit of e3 &e,ues is t&at onsu#ers an use t&e e3 &e,ues in #a"ing !ay#ents for online !ur &ases* Online #er &ants an re ei)e t&e

!ay#ents instantly+ and instan es of t&e &e,ue to 'oun e are #ini#al sin e t&e 'an"s of t&e usto#ers are in)ol)ed in t&e transa tions* :urt&er#ore+ 'an"s #ay do !a!erless transa tions unless t&e #er &ant fails in a e!ting t&e e3 &e,ue* +eal #i$e ,ross Settle$ent )+#,S* T&e RT-S is a resear & analysis syste# t&roug& (&i & 'an"s re ei)e ele troni instru tions to t&e transa tions on transfer of funds fro# a ounts in t&eir 'an" to a ounts in ot&er 'an"s* T&e RBA o!erates and #aintains RT-S to en&an e effi ien y in t&e transfer of funds (it&in 'an"s to en&an e t&e finan ial o!erations* T&e transfer of funds ta"es !la e in real ti#e 'asis ena'ling instantaneous deli)ery of #oney to t&e 'enefi iary* T&e 'an" of t&e 'enefi iary #ust redit t&e a ount (it&in t(o &ours* T&e RT-S syste# runs on t&e redit3 !us& 'asis (&ere t&e final irre)o a'le settle#ent o urs only (&en t&e funds are a)aila'le in t&e settle#ent a ount of t&e o##er ial 'an"* T&is syste# allo(s #anage#ent of li,uidity 'y t&e 'an"s to ontri'ute to t&e reali2ation of t&e sta'ility of t&e finan ial syste# of t&e 'an"* T&e real ti#e instru tions are !erfor#ed 'y si#ultaneous redit and de'it

transa tions* After su essful e<e ution of instru tions fro# t&e a ount of t&e sender+ t&e

CAPITAL ONE BANK

!ay#ent is #ade in t&e a ount of t&e re ei)er+ and t&is is irre)o a'le and final* So#e related 'enefits of RT-S are t&e related effi ien y and s!eed sin e t&e transa tions are !erfor#ed on real ti#e 'asis* T&is ena'les t&e 'an" #anage t&eir li,uidity and settle t&eir a ounts and eli#inates t&e ris"s in)ol)ed (it& t&e !ay#ent e<!osure* RT-S is an effe ti)e tool t&at ensures irre)o a'ility and finality of !ay#ents+ and &en e 'oosts t&e onfiden e of t&e general !u'li and in)estors 4A'el+ %1/%8* &lectronic !unds #ransfer )&!#* E:T syste# in)ol)es #a"ing of as& !ay#ents 'y any !erson to anot&er !erson and at ti#es #ay in)ol)e gi)ing t&e aut&ori2ation on transfer of funds dire tly fro# a !erson>s a ount to t&e a ount of t&e 'enefi iary* T&is re,uires furnis&ing of o#!lete details on t&e na#e+ a ount nu#'er+ a ount ty!e+ na#e of t&e 'an"+ 'ran & or ity of t&e re ei)er to t&e 'an" (&ile #a"ing t&e re,uest for transfer* T&is ensures t&at a urate and faster !ro essing of t&e #oney* E:T &a!!ens after digital instru tions are sent to t&e 'an" aut&ori2ing for t&e #o)e#ent of funds 'et(een t(o a ounts* T&e usto#er signs in an aut&ori2ation for# t&at allo(s t&e 'an" to dedu t t&e a#ount of !ay#ents for ertain dates* T&e usto#er t&ereafter !ro)ides a )oided &e " of )erifying t&e infor#ation a'out t&e a ount* T&e &arges are t&en dedu ted auto#ati ally fro# t&e 'a " a ount and de!osited on t&e 'an" a ount of t&e re ei)er* E:T !ro)ides a si#!le (ay of #a"ing !ay#ents* A one3ti#e aut&ori2ation en&an es de'iting of t&e said a#ount fro# t&e a ount of t&e usto#er 4Costantino 5 Bre''ia+ %11B8* &lectronic Clearance Service )&CS* ECS refers to a retail !ay#ent syste# used in #a"ing 'ul" !ay#ents of a si#ilar nature !arti ularly (&en t&e !ay#ents are re!etiti)e in nature and of s#aller a#ounts* T&is fa ility is #ostly used 'y go)ern#ent de!art#ents and o#!anies (&en dealing (it& large !ay#ents instead of using t&e indi)idual funds transfer* T&e ECS !ay#ents are initiated 'y

CAPITAL ONE BANK

t&e user (it& intentions of #a"ing 'ul" !ay#ents to se)eral 'enefi iaries* T&e !erson initiates t&e transa tions after registration after (&i & t&ey o'tain onsent and a ount !arti ulars of t&e 'enefi iaries* T&e 'enefi iaries an re,uest t&e !aying institution use t&e ECS #e &anis# to effe t t&eir !ay#ent 4Ra)i+ %11?8* T&e ECS users (&o intend to effe t t&e !ay#ent #ust su'#it t&e data in a !arti ular for#at to t&e learing &ouse t&at in turn de'its t&e a ount of ECS user t&roug& t&e s!onsor 'an" on t&e a!!ointed day and redits t&e a ount of t&e re i!ient for affording on(ard redit to a ounts of ulti#ate 'enefi iaries* T&e 'enefi iary furnis&es t&e #andate gi)ing t&e onsent t&at a)ails t&e ECS fa ility* T&e user #ust o##uni ate all t&e details to t&e 'an"* T&is ser)i e is !referred sin e it is trou'le3free and eli#inates t&e need of going to t&e olle tion enters* Also+ t&e ECS users an easily #onitor t&e de'its 4Castelli+ %11C8* -uto$atic #eller .ac ine )-#.* Auto#ati Teller .a &ine is a#ong t&e #ost !o!ular de)i es used in t&e 'an"ing se tor+ in 9nited States* An AT. ena'les t&e usto#ers (it&dra( t&eir as& any ti#e of t&e day* T&e de)i e allo(s t&e usto#er (&o &as t&e AT. ard !erfor# t&e routine 'an"ing transa tion (it&out any intera tion (it& t&e &u#an teller* :urt&er#ore+ t&e AT.s an 'e used in !aying t&e 'ills for utility+ transferring of funds 'et(een a ounts+ de!ositing as& and &e,ues into a ounts and #a"ing 'alan e en,uiry a#ong ot&ers* An AT. re,uires data ter#inal onsisting of t(o in!ut de)i es and four out!ut de)i es+ and a &ost !ro essor* T&e &ost !ro essor en&an es t&e onne tion of t&e AT. and o##uni ation (it& t&e user* Internet Ser)i e Pro)ider 4ISP8 !ro)ides t&e gate(ay to inter#ediate net(or"s and t&e o#!uter in t&e 'an"* Leased AT.s &a)e C3(ire !oint3to3!oint dedi ated tele!&one line t&at &el!s in onne tion (it& t&e &ost !ro ess* T&e )arious o#!onents of an AT. in lude t&e ard reader t&at reads t&e infor#ation after t&e #agneti stri!e is s(i!ed t&roug& and t&e

CAPITAL ONE BANK /1 "ey!ad t&at allo(s t&e user fill in t&e details after t&e ard is re ogni2ed 4-reenstein 5 S&ane+ %11C8* Point of Sale #er$inal )POS* T&e !oint of sale ter#inal refers to use of a o#!uter ter#inal lin"ed online to o#!uteri2ed files ontaining t&e usto#er infor#ation in t&e 'an"* T&is also ontains !lasti transa tion ard t&at is oded #agneti ally and en&an es t&e identifi ation of t&e usto#ers* $uring t&e transa tions+ t&e a ount of t&e usto#er is de'ited (&ile t&at of t&e retailer is redited 'y t&e o#!uter for t&e a#ount !ur &ased* 9!on !ay#ent+ t&e POS &e "s for t&e )alidity of t&e ard+ onne ts (it& t&e 'an" t&at issued t&e ard* E&en t&e funds are a)aila'le in t&e a ount of ard&older+ t&en t&e POS !rints t&e re ei!t and transfers t&e a#ount to t&e a ount of t&e trader 4Bati23La2o+ %1//8* &lectronic /ata Interc ange )&/I* T&e E$I refers to t&e ele troni e< &ange of t&e 'usiness do u#ents su & as in)oi es+ !ur &ase orders+ s&i!!ing noti es and re ei)ing ad)i e a#ong ot&ers* T&e !ro essing is usually done in a standard and uni)ersal (ay t&at is a e!ta'le 'et(een t&e in)ol)ed trading !artners* T&e Ca!ital One Ban" &as ,ui "ly res!onded to t&e te &nologi al &anges (it&in t&e 'an"ing industry+ and t&e ontinuan e of su & trends is redefining t&e 'an"ing o!erations t&roug& usto#i2ation using t&e le)eraging te &nology* T&e te &nology is en&an ing

effi ien y in t&e 'an"ing se tor (&ere t&e usto#ers are a'le to #a"e transa tions (&ene)er t&ey (is& fro# (&ere)er t&ey are+ and t&is is redu ing t&e need for o!ening u! of !&ysi al 'ran &es* E$I redu es t&e nu#'er of ste!s 'y !ro)iding a fi<ed stru ture for t&e trans#itted data (it& t&e !re!ared data only trans#itted to t&e user after integration of t&e a!!li ation syste# infor#ation* E$I is used only (&en t&ere are t(o !artners in)ol)ed after (&i & a ontra tual agree#ent 'e o#es ne essary 4Ra)i+ %11?8*

CAPITAL ONE BANK // Section 0.0: Organization of I# Currently+ it is 'e o#ing i#!erati)e for t&e 'an"s to as ertain and assess t&e ad)antages of i#!le#entation of Infor#ation te &nology* Te &nology is ad)antageous 'ut re,uires !re autions and safety nets* In reased use of te &nology &as aused t&e se urity on erns* As a result+ t&e IT fun tion in 'an"s #ust 'e organi2ed learly to a)oid any #is&a!s on t&is a ount* Ban"s #ust !ro!erly #anage t&eir IT fun tion for t&eir net(or"s and internal se urity* Passing of Infor#ation Te &nology A t in %111 a ted as a 'oon to t&e 'an"ing se tor in 9nited States (&ere 'an"s are e<!e ted to a'ide 'y t&eir o)enants 4Rodri"+ %11@8* T&e Ca!ital One Ban" &as #ade efforts to o)er t&e online transa tions 'ased on t&e onsu#er la(s of t&e ountry* T&e &oi e of t&e #ost a!!ro!riate &annel+ t&e justifi ation of in)est#ent in IT+ e3go)ernan e+ se urity on erns and te &nologi al o'soles en e+ as (ell as outsour ing of t&e IT o!erations+ !ose #ajor &allenges and issues regarding use of IT in t&e 'an"ing o!erations* T&e in reased use of #o'ile 'an"ing ad e3!ay#ents is t&e "ey areas t&at re,uire &ange #anage#ent a!!roa &* T&e fo us is #o)ing to(ards !ro esses and syste#s re,uired in t&e #aturity !&ase of t&e needs ur)e of te &nology* Ca!ital One Ban" needs to fo us #ore on !rofita'ility and ost #anage#ent+ e<e uti)e infor#ation re!orts+ 'usiness intelligen e+ and data analyti s and (are&ousing* I#!ro)e#ent of t&e internal effi ien y and effe ti)eness (it& real3ti#e and data (are&ouse a ess to all t&e usto#er infor#ation (ill en&an e de ision #a"ing in 'an"s and fa ilitate t&e a'ility of deli)ery of a!!ro!riate ser)i es and !rodu ts to t&eir usto#ers 4I##aneni+ %11@8* Ca!ital One Ban" #ust see 'eyond a!!li ations in)ol)ed in !ro)iding solutions to t&e urrent !ro'le#s* T&e 'an" need to esta'lis& a )ision related to o#!re&ensi)e infrastru ture t&at o#!rise of all &e internal and e<ternal net(or"s to #o)e t&e infor#ation for t&e data

CAPITAL ONE BANK /% stores to users* T&e i#!ortan e of IT3'usiness unit !artners&i! #ay not 'e o)ere#!&asi2ed* T&e !ro esses and !eo!le are as )ital for su ess as soft(are and &ard(are o#!onents in t&e 'an"ing industry* Ca!ital One Ban" &as #ade &uge te &nologi al ad)an es in infor#ation storage* Ne)ert&eless+ t&e full !o(er of using t&at infor#ation to en&an e #ore !rodu ti)ity and i#!ro)e #ar"ets is still unreali2ed* T&e ontinued e#!&asis on !eri!&eral 'usiness and te &nologi al !ro esses and related effe ts &as #ade t&e Ca!ital One 'an" seriously negle t t&eir enter!rise and !ersonal (ide3intelligen e* Infrastru tural effe ti)eness is #easured 'ased on t&e )alue it 'rings to a usto#er* Su & )alue is di#inis&ed 'y non3net(or"ed indi)iduals and 'usiness units* Ca!ital One Ban" #ust+ t&erefore+ !ro)ide training and a ess to t&e #e#'er 'an"s in)ol)e (it& dire t or indire t ser)i e to usto#ers* T&is an only 'e reali2ed t&roug& t&e use of lear standards and e<!e tations to ena'le t&e organi2ation of infor#ation te &nology 'ring t&e indi)iduals in line (it& t&e organi2ational o'je ti)es* T&e e ono#i role of t&e !ay#ent syste# onne ts inti#ately to t&e e ono#i role of #oney* T&e esta'lis&#ent of Core Ban"ing Solution 4CBS8 allo(s for 'an"ing at any ti#e* T&e 'an" &as also in reased t&e efforts t&roug& t&e use of Ele troni Ser)i e Clearing 4ESC8+ NE:T and Real Ti#e -ross Settle#ent 4RT-S8* T&is for#s t&e leading inter onne ti)ity t&at en&an es easy intra and inter3'an" transfer of funds* T&e in reased use of #o'ile 'an"ing and de'it ards is en&an ing easier !ay#ents using different fa tors lin"ed to t&e 'an"* T&is fa ilitates easy online transa tions* Currently+ t&e te &nologi al de)elo!#ent relates to o#!uteri2ation of all t&e 'ran &es in Ca!ital One Ban" in ado!ting t&e ore 'an"ing solutions 4CBS8* A )ery ru ial de)elo!#ent is t&e in reased !er entage of 'ran &es (it&in t&e !u'li se tor t&at &a)e i#!le#ented CBS 4A'el+ %1/%8*

CAPITAL ONE BANK /7 &nergy .anage$ent Ca!ital One Ban" is ons ious of ar'on foot !rint generated and is (or"ing to(ards energy #anage#ent as (ell as use of t&e greener te &nology* T&is is a &ie)ed t&roug& ado!ting t&e ser)er )irtuali2ation te &nologies t&at are #eant to sa)e on !o(er+ floor s!a e and ooling o#!onents* T&e use of data en&an e#ents as (ell as t&e 'est !ra ti es for t&e o!ti#u# usage of s!a e en&an es energy #anage#ent* T&e 'an" &as also ado!ted t&e 'lade te &nology to en&an e o#!uting !o(er (it&in a s#aller foot!rint* T&is &as also seen t&e 'an" u!grading t&e older ser)ers and net(or"ing e,ui!#ents t&at used to onsu#e a lot of !o(er* T&e dyna#i !o(er a!!ing of t&e ser)ers using ne( !o(er sa)ing te &nology and solar !o(ered AT.s is a (ort&(&ile effort geared to(ards energy #anage#ent 4Cull 5 6onat&an+ %1/78* I# Outsourcing in Capital One Bank .ost 'an"s in 9nited States is at rossroads* A ording to Ca!ital One Ban"+ !rofits are not "ee!ing in !a e (it& t&e osts of e,uity* As a result+ t&e 'an" is see"ing for t&e #ost a!!ro!riate (ays of reengineering t&e 'an"ing #odel to en&an e !rofita'ility* T&e IT outsour ing &as #or!&ed as an e< e!tion to t&e rule of 'an"s and ot&er 'usinesses (orld(ide* T&e a eleration of infor#ation te &nology &as o#!elled t&e 'an" sour e IT* Ho(e)er+ t&e in reased use of IT &as not orres!onding res!onded to t&e gro(t&* T&e in reased de#and &as in reased t&e o#!le<ity related (it& IT* T&e sele tion and

#anage#ent of IT outsour ing de!ends on usto#er ser)i e+ osts+ ,uality relations&i! #anage#ent+ inno)ation and s!eed* Ho(e)er+ un lear understanding of t&ese dri)er results in dissatisfa tion due to #is#at &ed !ro)ider3 usto#er !airings 4-reenstein 5 S&ane+ %11C8* T&e e<!ansion of IT outsour ing o#!els t&e #anage#ent ta"e a &olisti )ie( on all t&e outsour ing de isions* $ue to t&e ra!id &anges in ser)i e offerings+ Ca!ital One Ban"

CAPITAL ONE BANK /C #ust not rely on outsour ing+ and instead+ o!erations and syste#s #ust 'e o#e !ro ure#ent3 entri for dire t re!orts and line3of3'usiness general #anagers* T&e 'usiness !ro ess

outsour ing 4BPO8 #ay (or" in o#'ination (it& t&e outsour ing (&ere ne( entrants join t&e traditional !layers* T&e BPO solutions are 'e o#ing onsidera'ly fle<i'le+ gro(ing around t&e #onolit&i fra#e syste#s* On t&e ot&er &and+ t&e Soft(are as a Ser)i e 4SaaS8 &as a!tured t&e attention of finan e and o!erations 'y !re)enting t&e i#!le#entation delays* T&is also ena'les e#!loyees !erfor# t&eir o!erations fro# t&e fa ilities fro# t&e fa ilities of t&e 'an"* T&is alls for de ision #a"ers to onsider t&e 'rea"3e)en !oint for (&i & t&e fi<ed osts !ro)ide e< ellent s&are&older )alue* T&e o!erational outsour ing en&an es t&e a &ie)e#ent of s ale and e ono#i effi ien ies t&roug& outsour ing of t&e o##oditi2ed as!e ts of 'usiness !ro ess* T&e syste# outsour ing #ust 'e o!ti#i2ed 'ased on !ro ure#ent (&ile la'or ar'itrage en&an es syste#s and o!erations de isions* $ue to disa!!oint#ents fro# #ost outsour ers+ Ca!ital One Ban" is relu tant to undo t&e de isions sin e t&ey re,uire a lear understanding of all t&e organi2ational needs 4A)gerou+ %1178*

Section 1.0: !uture #rends of capital One Bank T&e infrastru ture of t&e 'an" is not i##uta'le (&ere ne( te &nologies surfa e on a daily 'asis and e)olution of ne( #edia (ill o#!el t&e #anage#ent re onsider t&e

infrastru tural o'je ti)es* T&e definition of t&e funda#ental infrastru tural goals (ill en&an e t&e fo us of t&e 'an" is ada!ting (it&out a y distra tion 'y te &nologies (&i & do not ontri'ute to t&e usto#er )alue* IT fun tion an !lay a "ey !art in ena'ling organi2ations ada!t and t&ri)e in t&e ne( status ,uo* Ca!ital One Ban" (ill 'e a'le to align its tea#s 'ased on t&e organi2ational needs (&ere t&e #anage#ent !ro)ides strong o!erational and strategi

CAPITAL ONE BANK /; su!!ort* T&e IT fun tion #ust onsider t&e #ost a!!ro!riate role+ (&ere t&e senior

#anage#ent #ay re,uire transfor#ation and inno)ation t&roug& t&e IT* T&e e#!&asis ould 'e #ade on #ore 'asi ser)i es to ensure t&at osts are #anagea'le for en&an ed daily o!erational needs* T&e IT ty!i ally fits in utility+ !rote tors and !erfor#er 4.anand&ar+ %11%8* IT as a utility ena'les t&e 'usiness is onstantly running+ as a !rote tor+ IT en&an es #anage#ent of t&e 'an"* As a !erfor#er+ IT en&an es deli)ery of tangi'le 'usiness )alue (&en t&e fun tion trans end to t&e daily o!erations in 'ringing t&e real &ange*Te &nology is ena'ling t&e 'an" to !erfor# its ser)i es+ and t&is is dri)ing t&e transfor#ation (it&in t&e industry* Internet and #o'ile 'an"ing are going to 'e indoor in t&e near future* $es!ite t&e o#!le<ity and so!&isti ation of t&e IT syste#s+ t&e Ca!ital One Ban" onsiders t&e# as energy gu22lers* T&erefore+ t&e future related to t&e 'an"ing se tor is anti i!ated to #a"e ra!id straig&ts 4Rodri"+ %11@8* C+. #ec nologies in .anage$ent Custo#ers nor#ally e<!e t t&e 'an" to offer o#!re&ensi)e finan ial ser)i es* T&ey are attra ted 'y t&e effe ti)eness of t&e 'an" in deli)ering attra ti)e ser)i es and !rodu ts to ena'le t&e# 'e leared t&roug& a!!ro!riate &annels* T&e 'e&a)ior of t&e onsu#er is riti al in &anging &o( t&e IT fun tions* T&e 'an"ing se tor+ t&erefore+ ai#s at #o)ing a CR.3'ase #odel t&at (ill ena'le t&e 'an" #o)e to(ards de)elo!#ent of 'etter ser)i es and !rodu ts to t&e users* T&e #anage#ent of "no(ledge treats !eo!le>s 'e&a)ior as an essential and e,ual o#!onent for effe ti)e infor#ation3s&aring* T&is ena'les t&e "no(ledge a ,uired fro# !re)ious situations 'eing used in #a"ing t&e !resent de isions* T&e #anage#ent #ust+ t&erefore+ !lay a riti al role in esta'lis&ing a "no(ledge ulture 'y odifying t&e rele)ant e<!erien es and !a "aging t&e# in su & a (ay so as to #a<i#i2e t&eir rele)an e in a

CAPITAL ONE BANK /B situation t&at en&an es )alue reation* Codifi ation of "no(ledge re,uires furt&er s&aring (it& all t&e a!!ro!riate indi)iduals* T&is ena'les t&e 'an" to grou! its !rodu ts and ser)i es to(ards ser)i e of a !arti ular #ar"et seg#ent 4Ra)i+ %11?8* :or Ca!ital One Ban"+ infor#ation te &nology is riti al (&en #a"ing de isions t&roug& reating a #eans of olle ting t&e infor#ation and odifying t&e e<!erien es fro# si#ilar de isions in finan ial #anage#ent+ relations&i! de)elo!#ent and usto#er ser)i e* Kno(ledge of usto#er needs re,uires regular u!dating a ross all t&e 'ran &es* Te &nology allo(s t&e 'an" to do t&e u!dates* T&e )alua'le "no(ledge is nor#ally refle ted t&roug& !erfor#an e of t&e finan ial !ortfolio and ease in #a"ing transa tions*

Conclusion T&e infor#ation Te &nology in Ca!ital One Ban" &as dri)en t&e transfor#ation in t&e ser)i e deli)ery* Internet and #o'ile 'an"ing are gaining full t&rottle in Ca!ital One Ban"* T&is gi)es an assuran e for greater effi ien y in t&e 'an"ing Industry*

Referen es

CAPITAL ONE BANK /@ A'el+ 9* 4%1/%8* Leveraging Developing Economies with the Use of Information Technology Trends and Tools. Hers&ey+ PA: I-I -lo'al 4@1/ E* C&o olate A)enue+ Hers&ey+ Pennsyl)ania+ /@177+ 9SA8* A)gerou+ C* 4%1178* Information Systems and the Economics of Innovation . C&elten&a#+ 9K: Ed(ard Elgar Pu'* Bati23La2o+ B* 4%1//8* Technological Innovation in Retail Finance: International !erspectives . Ne( Gor": Routledge* Castelli+ A* 4%11C8* I"T !ractitioner S#ills and Training: $an#ing and Financial Services. Lu<e#'ourg: Offi e for Offi ial Pu'li ations of t&e Euro!ean Co##unities* Costantino+ .*+ 5 Bre''ia+ C* 4%11B8* "omp%tational Finance and Its &pplications II. Sout&a#!ton: EIT* Cull+ R*+ 5 6onat&an+ .* 4%1/78* $an#ing the 'orld: Empirical Fo%ndations of Financial Incl%sion. Ca#'ridge+ .A: .IT* $a#ar+ E*+ 5 Lynn+ H* 4%1/18* Credit 9nion .e#'ers&i! and 9se of Internet Ban"ing Te &nology* The $.E. (o%rnal of Economic &nalysis ) !olicy *+,*-* -reenstein+ S*+ 5 S&ane+ .* 4%11C8* Diamonds &re Forever. "omp%ters &re /ot: Economic and Strategic 0anagement in "omp%ting 0ar#ets. London: I#!erial College* I##aneni+ A* 4%11@8* Ca!ital One Ban"s on Si< Sig#a for Strategy E<e ution and Culture Transfor#ation* 1lo2al $%siness and 3rgani4ational E5cellence 67,7-+ C73;C* I##aneni+ A*+ 5 Ron+ A* 4%11@8* Ca!ital One Ban"s on Si< Sig#a for Strategy E<e ution and Culture Transfor#ation * 1lo2al $%siness and 3rgani4ational E5cellence 67,7-+ C73;C* istorical

CAPITAL ONE BANK /? 6oia+ L* 4%11@8* Strategies for Information Technology and Intellect%al "apital: "hallenges and 3pport%nities. Hers&ey: Infor#ation S ien e Referen e* .anand&ar+ R* 4%11%8* T&e E)aluation of Ban" Bran & Perfor#an e 9sing $ata En)elo!#ent Analysis A :ra#e(or"* The (o%rnal of Research *8,*-+ /3/@* Ra)i+ =* 4%11?8* &dvances in $an#ing Technology and 0anagement: Impacts of I"T and "R0. Hers&ey+ PA: Infor#ation S ien e Referen e* Rodri"+ $* 4%11@8* 3ne Economics. 0any Recipes: 1lo2ali4ation. Instit%tions. and Economic 1rowth. Prin eton: Prin eton 9P* 9soro+ A* 4%1/%8* Leveraging Developing Economies with the Use of Information Technology: Trends and Tools . Hers&ey+ PA : Infor#ation S ien e Referen e* igh Technology 0anagement