Capital One 2000 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2000 Capital One annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 70

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70

ADDED A RECORD 10 MILLION CUSTOMERS. A REMARKABLE PACE OF INNOVATION—OVER
45,000 TESTS. MORE THAN $900 MILLION IN MARKETING INVESTMENT. TWICE AS MANY SOLICIT-
ATIONS AS OUR NEAREST COMPETITOR. FRONTRUNNER ON THE INTERNET. STRONG GROWTH IN NEW
LINES OF BUSINESS. STRATEGIC ALLIANCES WITH MARKET LEADERS IN OTHER INDUSTRIES.
RANKED AMONG THE BEST IN CREDIT QUALITY. FIRST MAJOR TELEVISION ADVERTISING CAMPAIGN.
Our achievements last year began over a decade ago with a dream of using technology to transform the way
financial services were marketed to consumers: We believed we could benefit consumers by customizing
products to meet individual needs on a mass scale, replacing "one-size-fits-all" offers with unique solutions for
every person. We also believed we could create an environment where incredibly talented people could take
risks, innovate and spread their wings. Some thought this dream wouldn’t fly. But today it is clear that the
dream has taken flight. Earnings growth and return on equity in 2000 topped 20% for the sixth consecutive
year, a record equaled by only a handful of the country’s 10,000 public companies. It has been especially grat-
ifying to sustain this peak financial performance while fulfilling our mission to democratize credit, making it
accessible to many more customers. We said after our initial public offering that we would serve customers
across the financial spectrum, offering the lowest price in each market segment without compromising profit-
ability, and we kept our word.
The long-term success and the achievements of the year just ended have been driven by our proprietary
information-based strategy (IBS). IBS follows a rigorous scientific testing protocol to find successful products.
Major marketing investments are held in reserve until promising ideas can be proven. IBS also supports supe-
rior risk analysis, which we use to mass customize our products, structuring every account to the customer’s
preferences and risk profile.
Before IBS, the credit card industry managed risk by charging all customers the same high interest rates
and refusing credit to those who did not fit narrow credit parameters. IBS transformed the industry. Annual
interest rates for most cardholders fell by one-third, and the door was opened wide, giving millions of con-
sumers their first access to credit.
soaring.
To Our Shareholders And Friends
Our year in a word: