Capital One buying its way to innovation

U.S. Based bank Capital One purchased game-changing online bank ING direct US for $9 bn.

http://www.bloomberg.com/news/2011-06-16/capital-one-to-buy-ing-s-u-s-online-bank-for-9-billion-in-cash-shares.html

$9 bn. For 7 million customers. You do the math!
What Capital one gets is a well-running online banking business model. ING is built around an online consumer model. With only seven outlets in the US – all built as coffeshops – there is little in terms of traditional banking outlets. But probably more important is the culture Capital One is buying. ING Direct has always been a game-changer, a challenger, an innovator. That’s what’s worth paying a premium for.

But can you really buy culture? Knowing that between 50 – 7 % of m&a’s fail, what can be expected from this one? Keep your eyes on the likely fallout as cultures crash and the innovation engine that was worth paying $9 bn. for walks out the door and takes the innovation capacity with them…… Will this be another banking m&a down the drain?

Check out the picture series of ING Direct’s banking cafes.
http://www.google.no/search?um=1&hl=en&client=safari&biw=981&bih=662&tbm=isch&sa=1&q=ingdirect+cafe&aq=f&aqi=&aql=&oq=

http://thefinancialbrand.com/15550/ing-direct-cafe-us-canada-photos/

Capital One buying its way to innovation

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