Banking Giant Capital One Enters B2B Software Industry With Launch of New Business

Capital One, a major player in America's banking industry with $434 billion in assets and more than 100 million customers, is launching Capitol One Software, "a business that develops and sells software products to companies scaling up their use of data and cloud computing," reports Forbes. From the report: The new venture, which has been created by Capital One's CEO and founder, Rich Fairbank, is based at the company's headquarters in McLean, Virginia, and has its own dedicated personnel as well as access to software developers in Capital One's 12,000-strong technology team. Its first product, Capital One Slingshot, helps companies speed up their adoption of Snowflake, a popular cloud data platform, and manage costs associated with it. [...] Ravi Raghu, the head of Capital One Software, says executives at Capital One see its creation as a natural evolution of the overall company's digital journey. "We've been talking of Capital One as a technology company for a while now. The best proof of that is [to become] a technology company that's actually selling software. That innovation just runs in our DNA." Still, making Capital One Software a success will be no slam dunk. The markets the new business is targeting are big but they are also full of formidable competitors whose sole focus is on software and there are significant costs associated with things such as building teams that consult with customers to help them get the most out of the products they buy. Capital One may also need to reassure investors, who have seen its share price fall by almost 12% this year to $127.86 at close of trading on May 31, that its move into the software business will not distract executives from its core finance ones, especially as the economy shows signs it may be tilting towards recession.

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