Capitalone Headquarters A History of Growth and Expansion

Capital One's headquarters has a rich history that spans over two decades. The company was founded in 1988 by Richard Fairbank and Nigel Morris, and it has since grown into one of the largest banks in the US.

The headquarters was initially located in Falls Church, Virginia, but it expanded to a new campus in 2014. The new campus is a 1.1 million square foot facility that houses over 6,000 employees.

The campus is designed to be a hub for innovation and collaboration, with open spaces and modern amenities.

Capital One's history began in 1987 when Richard Fairbank and Nigel Morris developed the idea of using information technology and statistical analysis to create customized credit card offers for different segments of customers.

They consulted with Oracle Corporation to compile demographics and other statistics to help identify customer market segments.

Fairbank and Morris started soliciting banks to use their approach, and they convinced Signet Bank to start a credit card division called Signet Financial in 1988.

As part of the deal, they became employees of Signet and had a great success with a mass mailing in 1991 that offered to transfer existing credit card balances for a lower interest rate.

On July 21, 1994, Signet Financial Corp announced the corporate spin-off of Signet Financial, naming it OakStone Financial with Fairbank as CEO and Morris as COO.

The company was renamed Capital One in October 1994 and the spin-off was completed in February 1995.

Capital One was a monoline bank, meaning all its revenue came from credit cards, which is a risky strategy that can lead to losses during bad times.

The company attributed its success to its use of data collection to build demographic profiles, allowing it to target personalized offers of credit directly to consumers.

Capital One has made significant strides in its expansion and growth, particularly in the realm of retail banking. In 2005, it became the first monoline credit card issuer to buy a bank, acquiring Hibernia National Bank for $4.9 billion in cash and stock.

This bold move greatly reduced its dependency on the credit-card business alone. Capital One continued to expand its retail banking presence by acquiring North Fork Bank for $13.2 billion in cash and stock in 2006.

The company's growth continued with the acquisition of Chevy Chase Bank for $520 million in cash and stock in February 2009.

In 1996, Capital One made a strategic shift to adopt more innovative techniques to attract customers, including co-branded, secured, and joint account credit cards.

This move helped the company retain and lend out deposits on secured cards and even issue automobile installment loans. By mid-1996, Capital One received approval from the federal government to set up Capital One FSB, allowing them to expand their business operations.

Capital One expanded its business to the United Kingdom and Canada in 1996, giving them access to a large international market for their credit cards. By 1997, the company held $12.6 billion in credit card receivables and served more than nine million customers.

In July 1998, Capital One acquired auto financing company Summit Acceptance Corporation, marking a significant step in their expansion into auto loans. This acquisition helped Capital One establish itself as a major player in the auto financing industry.

In 2001, Capital One acquired PeopleFirst Finance LLC, which was later combined and re-branded as Capital One Auto Finance Corporation in 2003. They also acquired Onyx Acceptance Corporation in January 2005, further expanding their auto loan offerings.

In 2008, Capital One introduced a new logo, the blue and red "swoosh", as part of a $13 billion marketing campaign. This campaign aimed to rebrand the company and establish a strong presence in the market, but it also led to confusion among consumers with Credit One Bank's similar logo.

Capital One made a significant move into retail banking in 2005 by acquiring Hibernia National Bank for $4.9 billion in cash and stock. This marked a shift away from its dependence on the credit-card business alone.

The acquisition of North Fork Bank in 2006 for $13.2 billion in cash and stock further solidified Capital One's presence in retail banking.

In 2009, Capital One acquired Chevy Chase Bank for $520 million in cash and stock, expanding its retail banking operations.

Capital One acquired the private credit card portfolio of Hudson's Bay Company from Synchrony Financial in 2011 for an undisclosed amount.

The company signed a deal with Kohl's in 2011 to handle Kohl's private label credit card program for a seven-year period, although the contract was later extended in 2014.

Capital One reached a deal with HSBC in 2011 to acquire its U.S. credit card operations for $31.3 billion, which was completed in 2012.

The acquisition included private issued credit cards for companies like Saks Fifth Avenue, Neiman Marcus, and Lord & Taylor.

Capital One dropped its support for the Isis Mobile Wallet payment system in 2013, just a year after announcing its backing.

In 2019, Capital One signed a deal with Walmart to handle Walmart's private label and co-branded credit card programs, previously serviced by Synchrony Financial.