Richard Dana Fairbank, better known as the founder and owner of the bank holding company, Capital One Financial Corporation stands as one of the most financially predominant and influential entities with high skills of leadership. He founded it in 1994 along with an English businessman, Nigel Morris.
Fairbank’s new techniques for credit models changed the entire aura of the banking industry and uplifted it to advanced heights. Thus, showing the world a new era of entrepreneurship.
Dating back to his childhood, he was born on the 18th of September 1950. After graduating from Stanford in 1972, in economics, he completed his MBA from Stanford Graduate School of Business in 1981.
Before founding Capital One, he worked at different companies. As a partner and consultant in Strategic Planning Associates, he performed quite remarkable. Thereafter, he became the head of the credit card unit in Signate-Banking Corporation in 1994.
Dated back in the 1980s, Fairbank and Morris first developed the idea of implementing modern technologies to modify credit card plans and also wanted to change the whole idea of charging a yearly fee for credit card holders so that it gets replaced with various schemes for a different division of the population.
With the assistance of data management software, they were successful to acquire this. This is when they pitched Oracle Corporation for the job of database management and due to their new strategies, both of them got hired by Signate-Banking Corp in 1990.
After joining Signate, approximately 300 varieties of credit plans were offered to its customers, charging the rate of interests according to the segmented categories. This achievement was only the beginning. Right after this, they launched another tech explosion of transferring money from one credit card to the other at quite cheaper interest rates. Consumers were highly attracted and profits started to check-in at an unexpected level.
In 1994, in 27th July, Signate spread the news of the splitting off of credit card division and later renamed it as Capital One. The mastermind Fairbank was appointed the CEO of the company which is currently the 2nd largest auto finance company in the USA.
Very soon, Capital One became a widespread industrial division with exceeding sales and profits. It was a huge credit card business in partnership with a bank. Within 1995, Capital One became an independent business and in a year after its inception, there was a 25% increase in the net income of the whole company, making it reach to the zenith of 10 credit cards issuers in the US.
During early 2000, after years of remarkable business, Capital One became a robust business model on the basis of strong database manipulating software.
Richard was honored with the award of Washingtonian’s “Business Leader of the Year” and Credit Card Management’s “Entrepreneur of the Year”. Soon he became a billionaire and was listed among the top 10 bank CEOs of the world.