Mark D'Arcy has resigned as Wells Fargo's chief operational risk officer to pursue opportunities outside the bank. Mark Weintraub is taking over the job.
Popular but dubious recommendations for leaders include focusing only on your strengths, being authentic at all times and worrying about how you pose, argues Marc Effron of The Talent Strategy Group. "Be a critical consumer and realize that management advice that sounds too easy to be true, very likely is," he writes.
Reporting regulations' fast evolution means banks can no longer rely on a tactical approach to compliance from legacy technology and must look to cloud and open platforms, says Guillaume Spay, solution lead for capital markets and treasury at Finastra. "Legacy technology is generally quite old, and the only way to avoid losing market share is to be more agile," Spay says.
A report from the Federal Reserve Bank of Minneapolis shows that between 1971 and today, lower-income Americans have grown poorer, while those in the top 10% of wealth distribution are nearly three times as wealthy. Economists attribute this in part to the fact that the housing market has not fully recovered from its prerecession peak, while the stock market is about 50% higher than before the recession.
Student-loan servicer Heartland Campus Solutions ECSI has to respond to a subpoena from the Consumer Financial Protection Bureau, a federal appeals court ruled. Heartland had argued the bureau's request did not comply with federal law.
Financial-technology firms are offering credit cards to customers with poor credit history, with LendUp Global and Fair Square Financial mailing out about 35 million credit card offers during the first half of 2018, according to Competiscan. Subprime lending at seven big banks increased 3% year over year during the first half of 2018, compared with 13% a year earlier, according to Autonomous Research.
Wells Fargo might begin refinancing federal student loans, says John Rasmussen, head of personal lending. Student lending is a fast-growing market and lets the bank establish a relationship with students.
Citigroup has appointed Anand Selva as head of US consumer banking and David Chubak as head of retail banking and consumer lending, both new positions, as the bank streamlines its customer approach. Jud Linville, head of global cards and consumer services, is leaving Citi.