Building Long-term Financial Well-being
We are supporting small businesses and nonprofits to close gaps in equity and foster financial well-being in our communities
October 27, 2022
Financial well-being is determined by the extent to which people feel that they have control over their finances, have the capacity to absorb a financial shock and are on track to meet their financial goals.
At Capital One, we recognize financial well-being as the condition wherein a person can fully meet financial obligations, feel secure in their financial future and make choices that allow them to enjoy life.
We seek to build the financial well-being of our communities by supporting initiatives that focus on the financial health fundamentals: budgeting, savings, credit and debt. By partnering with trusted community organizations, we strive to demystify personal finance and help people improve their relationship with money.
“There is something so powerful about seeing someone become the first in their family to purchase a home, start a small business or simply open a bank account,” says Kim Allman, Senior Director of Community, Impact and Investment at Capital One. “Increasing someone's access to financial products and the banking system has the potential to dismantle generations of financial challenges for themselves and their families. Capital One is committed to getting more people into the financial system and improving customer financial health.”
Through our community investments, we are supporting programs that are helping individuals establish and maintain healthy financial habits that can lead to improvement in their credit score, increased savings, debt reduction or access to new financial products. Examples of our efforts include:
In collaboration with community partners across the U.S., Capital One’s Credit Building Program helps to connect individuals to effective products and resources that empower people to build credit.
Capital One’s Credit Building Program serves as a bridge between our partners and product solutions that help build financial resiliency through partnerships with Credit Builders Alliance (CBA) and Justine Petersen (JP).
Investing in our nonprofit partners enables us to better reach traditionally underserved communities with credit building products, such as a secured card. A secured credit card opens up access for people who are establishing, building or rebuilding their credit. Building credit through responsible use can make people better candidates for things like mortgages, car loans and other credit cards.
To ensure as many people as possible have the necessary tools to safely and confidently manage their money digitally, Capital One offers virtual financial well-being workshops through its Ready, Set, Bank program (also available in spanish as Listos Clic Avance) to help older adults across America feel empowered to bank online.
Additionally, Capital One joined forces with ideas2 to support the development of financial education resources. Recognizing the potential for behavioral science to improve the efficacy of educational offerings in driving meaningful action for individuals. Capital One worked in tandem with ideas42 to design a new workshop approach that helps close the gap between people’s goals and their actions. In turn, ideas42 has helped individuals increase college savings, take up useful financial services and avoid late payments and fees.
Capital One also supports Volunteer Income Tax Assistance (VITA) programs across the country connecting low- and moderate-income (LMI) individuals to free tax prep and encouraging tax-time savings.
In addition to helping individuals manage their money, Capital One supports equitable access to credit through joining forces with nonprofit partners like Working Credit NFP and FinEquity that help formerly incarcerated individuals rebuild their financial outlook.
Capital One’s efforts to support financial well-being comes as part of the Capital One Impact Initiative — an initial $200 million, multi-year commitment that strives to advance socioeconomic mobility. Launched in October 2020, the Capital One Impact Initiative seeks to create a world where everyone has an equal opportunity to prosper through advocating for an inclusive society, building thriving communities and creating financial tools that enrich lives.