What key insights led to the founding of Capital One in 1994?
Replied byNigel Morris
Co-founder & Managing Partner at QED Investors
Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: Alexandria, Virginia, United States
Started: 2007
We noticed that insurance companies used risk-based pricing, charging higher premiums to reckless drivers. Credit cards in 1986 charged everyone a flat nineteen percent interest rate regardless of risk. We realized we could democratize access and improve economics by testing consumer behavior and pricing cards based on individual risk.
0
From the Full Interview
This answer is part of a full interview with Nigel Morris, Co-founder & Managing Partner at QED Investors.
Share this Answer
Found this insight valuable? Share it with your network to help others learn from Nigel Morris's experience.
Cite This Answer
Use this answer in your research, article, or academic work
Related Answers
What was your worst historical investment experience, and what risk management lesson did it impart?
By Sir Paul Marshall
Finance
Not Publicly Disclosed/mo
What prompted you to start Palisades Goldcorp, and how did the company build its initial capital base?
By Collin Kettell
Finance
Not Publicly Disclosed/mo
What broke in the United Kingdom government bond market that prompted the Bank of England to halt long-term gilt sales?
By Jason Cozens
Finance
Approx. USD 350,000/mo
What are your thoughts on recent warnings from artificial intelligence researchers regarding systemic economic disruption and existential risks?
By Jason Cozens
Finance
Approx. USD 350,000/mo
Can you explain the historic cautionary tale of the Continental currency and why the American founding fathers embedded gold protections into the Constitution?
By Jason Cozens
Finance
Approx. USD 350,000/mo
Six states have already passed legal tender legislation, and fourteen more are considering it. What is the economic significance of this coalition?
By Jason Cozens
Finance
Approx. USD 350,000/mo
How does Glint assist users with calculating and reporting capital gains taxes when spending transactional gold?
By Jason Cozens
Finance
Approx. USD 350,000/mo