Creating jobs provides a short-term boost to Capital One’s consumer reputation.
The country’s fifth-largest bank’s promise to hire 3,600 people by the end of the year brought the bank’s consumer reputation temporarily out of negative territory, but the gains may be fleeting.
The consumer banking sector has generally low reputation scores, with Capital One scoring below the retail banking average. In the wake of purchasing ING Direct USA, the bank announced on September 19th that it had already hired 1,800 people with plans to hire the same amount by year’s end.
Capital One’s Reputation score had already improved from -18 to – 7 during the days leading up to the formal announcement, and then took another nine point jump to +2 immediately following the announcement.
Since then, Capital One’s reputation score has drifted back below zero, down to -4 while the consumer bank sector average has actually increased from 1 to slightly better than 3 in the same time period. Capital One does face continuing opposition to the ING acquisition from consumer and community groups.
Capital One and the consumer banking sector were measured using YouGov BrandIndex’s Reputation score, which asks respondents: "Would you be proud or embarrassed to work for this brand?"
