Capital One acquired the staff and software from Boston-based travel technology startup Lola in an effort to increase its FinTech footprint in the Boston area.
As the Boston Globe reported on Friday, October 8, the deal will see Lola co-founder Paul English and CEO Mike Volpe join Capital One and help run the bank’s technology operations out of his new Kendall office. Square.
“They want Boston to be another big hub,” Volpe said. “We’re going to be hiring a lot here, a lot of growth.”
According to the Globe, Volpe will help oversee the development of Capital One’s B2B payment offerings, with the Englishman acting as an “entrepreneur in residence,” advising on technical innovation.
“It’s an innovative and ‘advanced technological’ culture, especially for a large bank,” English said. “I am excited to develop greater expertise in FinTech and bring more FinTech jobs to Boston. “
Lola closed her office and corporate contracts, reimbursing clients who owed money. The company struggled during the COVID pandemic, which forced it to lay off employees and pivot to offer expense management tools in addition to travel.
The remaining members of Lola’s 57-person team will now become employees of Capital One. (Volpe said eight more people were not offered work at Capital One or turned down jobs.) These workers will help the bank create payment-related products and services for business customers, reaching around 250 workers. of Capital One already based in Kendall Square.
According to The Globe, the deal with Capital One stems from talks Lola’s founders had with potential investors and financial firms to raise more money. Susan Sobbott, member of the board of directors of Lola, a former executive of American Express, connected Volpe and English to the management of Capital One.
Read more: Lola on going beyond a consumer-type experience in business travel
Volpe spoke to PYMNTS in 2019 about the changing landscape of how businesses manage travel and spend strategies.
“I believe the world is moving to a place where the whole employee reimbursement process goes,” he said. “I think it will happen because with these tools, companies have more of a say in what gets bought in the first place. “