Capital One Bank of Omaha has received a $2.4 billion federal incentive package to expand its network of ATMs in order to increase its reach.
The bank, one of the nation’s largest banks, said it would invest $300 million over five years to expand the network of 24,000 ATMs.
It is the first time the bank has used its federal funds to expand ATMs since it was established in 1935.
The incentives include $1 billion for the first five years and $2 billion over five more years.
Capital One will invest in infrastructure, as well as in the development of new technology and customer service to make the bank more relevant and relevant in the marketplace.
The company’s investment comes at a time when the ATMs are in desperate need of new equipment and a wider array of devices, according to the Associated Press.
“Capital One is a company that is on the forefront of providing our customers with a secure, convenient, and reliable way to pay their bills,” CEO John J. McGreevy said in a statement.
“We are excited to be able to help the Bank of Americas in its efforts to expand our ATMs and serve our customers more efficiently.”
Capital One, which recently closed a $1.5 billion acquisition of Rite Aid, is expected to announce more information about the incentives on Thursday.
In April, the bank announced a $300 billion incentive package for the second quarter of the year, which included an $800 million incentive package announced in March.
Capital is also investing in an $8 billion loan program for Wells Fargo.