Musings From Capital One’s Products and Services Media Day
Discover how Capital One’s data, products and services come together to help consumers navigate a post-pandemic world
At Capital One, we aim to use our technology and talent to create products and services that make banking easier and more accessible for people and businesses. From improving financial well-being through the phases of life’s milestones to helping advance socioeconomic mobility and helping people and communities thrive, our ultimate goal is to enrich lives.
That’s why, recently, we conducted original research to understand the state of American consumers post-pandemic, and held a Media Day to shine a light on how our data, products and services connect in order to support consumers on their unique paths to financial well-being. Read on for musings from the event.
Tackling Financial Anxiety Post-Pandemic
According to the APA’s Stress in America March 2022 report, stress about money is on the rise, with 65% of Americans reporting that money was a significant source of stress in February 2022, up from 57% in February 2021. Adults between the ages 18 to 43 were more likely than those ages 44+ to report money as a significant source of stress.
Close to two-thirds of adults (63%) said that life has been forever changed by the pandemic. COVID-19 has spurred a reckoning with our personal values, our jobs, and the meaning of our relationships. In addition, the survey revealed widespread feelings of grief and sense of loss, continued hardships for vulnerable populations, concerns for children’s development among parents, and entrenched, unhealthy coping habits.
Mobility and commuting to work is also a constraint for these consumers, who need improved transparency in auto-financing to help relieve some tension. According to the Capital One 2022 Car Buying Outlook, nearly three-in-four (70%) respondents said their vehicle gives them a sense of financial stability, and 67% said it opened up income opportunities that they would not have had without a car.
Additionally, people in the “Sandwich Generation” are being torn between building generational wealth, taking care of a parent’s finances and raising children, which has taken a toll on them.
More than half of Americans in their 40s (54%) have a living parent age 65 or older and are either raising a child younger than 18 or have an adult child they helped financially in the past year, according to Pew Research Center. Research also found that 37% of Gen Z say maintaining financial security is more difficult because of the pandemic, which is putting an even larger strain on their parents. This can result in stress and uncertainty at a time when roughly 1 in 6 students in the U.S. don’t reach the baseline level of proficiency in financial literacy.
Despite increasing anxiety and consistently grim headlines, “radical optimism” is trending amongst brands and consumers, born from the long-term pandemic exhaustion.
75% of people around the world think 2022 will be a better year than 2021. These optimists are bravely choosing to embrace positive thoughts in the face of uncertainty.
While small businesses faced an uphill battle at the start of the pandemic, many have adapted and are feeling motivated to grow their business, bravely embracing positive thoughts in the face of rising inflation among other challenges.
At Capital One, we believe financial well-being is fundamental to helping people and communities thrive, which is core to our mission to change banking for good. We define financial well-being as the ability to spend wisely, build savings for the short- and long-term, manage credit and debt, and handle unexpected expenses life may throw your way while planning for the future.
We recognize that financial goals may look different during various stages of life but luckily we offer plenty of resources, tools and products to help customers of all ages learn about money management and improve their financial lives — making familial generational wealth achievable.
Financial Well-being At All Stages of Life
While teenagers may not have the most important decisions to make in life, they do have some of the most important things to learn, especially in regards to money.
To help teens dive deeper on the principles of financial well-being, Capital One helped create virtual financial well-being workshops alongside the Virginia Council for Economic Education. In addition, Capital One’s MONEY teen checking account is a fee-free bank account designed for tweens and teens that gives them the ability to learn how to manage their own money — including how to create a budget, how to spend wisely, and how to set savings goals — while providing parents access and oversight into their kid’s accounts with real-time text and email alerts so they can offer help and guidance when needed.
We also understand that building good money habits during young adulthood can unlock financial security and freedom in the long-term. And, we’re committed to creating pathways and opportunities for success for the student community.
We work closely with young adults who haven’t progressed educationally beyond high school to ensure they gain the skills, experiences, and support needed to access professional careers and higher education. And, we offer a college readiness program called First-Gen Focus for first-generation college students to provide financial education and skill-building workshops for smooth transitions into college and the workforce.
Beyond education, one of the most important steps young adults can take for their financial future is building credit. When used responsibly, a credit card can help build and maintain positive credit relatively quickly.
With Capital One’s Student Card Suite, students can now choose from three Capital One student cards that offer cash back on purchases and with no annual fee: SavorOne Student, Quicksilver Student and Journey Student.
To track credit, we offer a free credit monitoring tool that helps people develop a clear understanding of their credit and the knowledge necessary to proactively improve their score. Credit is a biggie because it will come into play down the road.
For adults, many of the most enjoyable things in life require financial planning—from paying off student loans, to getting married, to starting a business or retiring. Hence the phrase #adulting.
We designed Capital One’s Money & Life Program to help consumers reflect on their relationship with money and adopt new habits, perspectives, and behaviors to help them reach their goals. The Money & Life Program currently offers three experiences: 1:1 mentoring, workshops, and self-guided digital exercises.
And, long after you figure out personal finance, we help by showing you how to use the latest and most advanced technology for maintaining your financial well-being through virtual workshops such as Ready, Set, Bank — a program to ensure that older adults across the country feel empowered to bank online.