Capital One Financial Corporation this month promised over $265 billion in lending, investment, and philanthropy over five years as part of its proposed acquisition of Discover Financial Services. Developed with NALCAB, NeighborWorks America, OFN, and the Woodstock Institute, this plan is the largest of its kind linked to a bank acquisition, aiming to significantly increase support for underserved communities.
Business Wire reported:
These commitments will aim to expand economic opportunity for underserved consumers, including those in low- and moderate-income (LMI) neighborhoods, rural areas, and communities of color. It will support increased access to best-in-class products and services for unbanked or underbanked consumers as well as consumers across the credit spectrum and expand access to capital and opportunity.
In addition to a robust negotiating process led by the four community groups identified above, which collectively represent more than 800 nonprofit organizations nationwide, Capital One’s plan was informed by engagement with the company’s long-standing Community Advisory Council, more than 100 community organizations nationwide, and more than 100 local, state, and federal elected officials. This engagement included listening sessions with community organizations in key markets across Capital One’s and Discover’s footprint.
The plan is designed to enable greater access to safe and affordable housing; expand access to credit so small business owners can sustain and grow their businesses; increase access to credit for LMI consumers; build high-quality local infrastructure to facilitate the delivery of essential services; and support the development of schools, civic centers, and healthcare facilities that are vital to building strong and vibrant communities.
“This plan delivers high-impact, scalable solutions for low- and moderate-income communities, and its commitments and ambition reflect the robust, candid dialogue that drove its development,” said Andres Navarrete, Executive Vice President and Head of External Affairs at Capital One. “We have long valued community and customer feedback on our products, policies, and programs, recognizing that our partners are often the closest to the needs of the community, and we are deeply grateful to our negotiating partners and the many other community members and leaders across the country whose feedback and innovative ideas are reflected in this plan.”
