Wells Fargo confirmed that the Office of the Comptroller of the Currency (OCC) terminated its 2021 consent order related to loss mitigation practices in the company’s Home Lending business. This is the eleventh consent order closed by Wells Fargo’s regulators since 2019. Charlie Scharf, Wells Fargo’s CEO, said: “We are pleased that the OCC has again validated our work and terminated this consent order in just three and a half years. This timeframe is much improved from other historical orders, including two 2011 Federal Reserve orders which were terminated earlier this year. This is our fifth closed consent order since the beginning of 2025. We remain confident that we will complete the work required in our remaining consent orders.”
Fifth Third, Huntington and Valley National are using AI to better target deposit products to existing and other bank customers
Fifth Third Bancorp, Huntington Bancshares Inc. and Valley National Bancorp are among regional US lenders that use artificial-intelligence tools to scrape customer data, helping them personalize deposit offerings as competition for customers’ money intensifies. Increasingly digital-savvy consumers are hunting for better online alternatives and higher interest rates, and banks, which use deposits as their main source of funding for loans, have had to adapt to win and retain customers who can easily make a switch. “We have seen positive trends, especially in bringing new customers to the bank,” Valley National Chief Data and Analytics Officer Sanjay Sidhwani said in an interview. “Use AI models and see what customers might be in the market for.” Valley National has used machine learning for about the past nine months to predict whether a customer would be a good target for a product, according to Sidhwani. The firm uses AI software to tailor online messaging for customers, and its data-analytics system flags customers who are deemed well-suited for certain accounts, he said. Fifth Third’s offering personalizes product and service recommendations using more than 100 AI machine-learning models, and has increased customer engagement by 40%, according to Shawn Niehaus, executive vice president and head of consumer banking at comoany. Huntington Chief Financial Officer Zachary Wasserman said that the bank uses AI to understand consumer behavior and figure out when to reach out to them with products that would be beneficial. Personetics Technologies Inc. helps banks win deposit business with its AI prediction models. One top 10 US bank snagged 20,000 new savings accounts from its existing customers, according to Personetics, which declined to name the bank. The software can also help banks target customers who have accounts at other institutions, thanks to open-banking practices, which let third-party providers access data from customers who have given their consent. “They basically offer a more effective product to get their customers to move money from the other banks to their bank,” Personetics Chief Executive Officer Udi Ziv said. Royal Bank of Canada’s partnership with Personetics helped create NOMI Find & Save, a tool that identifies existing customers with surplus money in their checking account. It helps them set up a deposit account and then sets aside money automatically, with the customers’ permission. Users on average move about $495 a month into savings products, according to 2024 company data. Curinos is one third-party firm offering AI products that help banks tailor deposits. It uses data such as spending habits and whether accounts were opened online or in person, and pools survey responses. One of its clients, a firm with a market capitalization of $100 billion that it declined to name, used the tool and produced more than $1 billion in additional deposits from its existing customers, according to the company. Curinos currently works with six financial institutions with assets of at least $25 billion. Fifth Third’s offering personalizes product and service recommendations using more than 100 AI machine-learning models, and has increased customer engagement by 40%, according to Shawn Niehaus, executive vice president and head of consumer banking at the Cincinnati-based company.
TD Bank appoints new Head of Retail Distribution, and Head of U.S. Consumer Products, Auto Finance and Wealth, to jointly oversee the U.S. Consumer Bank
TD Bank, America’s Most Convenient Bank®, announced Allison Robinson as Head of Retail Distribution, and Andrew Stuart as Head of U.S. Consumer Products, Auto Finance and Wealth, to jointly oversee the U.S. Consumer Bank, effective immediately. In her new role, Robinson will be responsible for TD’s more than 1,100 store locations and retail operations. Prior to this appointment, she served as TD’s Head of Consumer Solutions, Service and Operations at the bank. She joined TD in late 2024 from Truist where she was the Head of Branch and Premier Banking, overseeing more than 13,000 colleagues, approximately 2,000 stores and driving the bank’s mass affluent segment strategy. Robinson brings more than 20 years of retail experience and a deep understanding of retail distribution strategy, including branch operations, market planning and front-line talent management, alongside an ability to drive change, manage risk and lead teams through complex operating environments. Andrew Stuart, currently of Head of Consumer Deposit & Payment Products, will take on an expanded role as the Head of U.S. Consumer Products, TD Auto Finance and Wealth. In addition to overseeing the Bank’s more than $130B in consumer deposits across more than eight million customers, he will ensure TD’s evolution across credit cards and unsecured lending, residential lending, TD Auto Finance and U.S. Wealth. A proven transformational leader known for his ability to lead high-performing teams, Stuart has distinguished himself with diverse leadership roles across sales, marketing, finance, operations, and general management. Stuart joined TD in 2014 and served as President and CEO for TD Auto Finance for nine years, where is he executed the indirect auto financing strategy and grew the portfolio from $16 billion to $30 billion.
Santander to offer bill credits to Verizon customers for opening a new account and maintaining minimum balance
Spanish banking giant Santander is pushing to expand its U.S. operations through a partnership that taps into Verizon’s vast customer base. The two companies have struck a deal that will let some of Verizon’s millions of customers earn bill credits if they open a high-yield savings account with Santander’s new digital bank platform and meet certain balance thresholds. Santander wants to use the U.S. to build its own technology platform for consumer banking, including digital-only banking and consumer finance. The lender will also consider other partnerships as it aims to become a full-service digital bank in the U.S., Ana Botin, Santander’s executive chair.
Affirm plans to share all BNPL data with Experian for future scoring models to incorporate the data
Affirm Holdings will provide data on its pay-over-time loans to credit-reporting company Experian Plc, as the financial technology firm aims to abate industrywide concerns over a lack of transparency from short-term loan products. Experian will start receiving data — including buy now, pay later loans split into four payments and longer-term, monthly-installment loans — from Affirm starting April 1. Although the new loan reporting won’t initially be factored into consumers’ traditional credit scores, future scoring models could include the data, the two firms said in a statement Wednesday. The new data-sharing agreement will support lender decision-making via credit reports. “The buy now, pay later industry must evolve from simply providing flexible payment options to helping consumers build their credit histories and better manage their finances,” Affirm President Libor Michalek said. Affirm has faced past calls to share its data with third parties so they can more accurately assess household loan eligibility. Such data is used by entities from US regional lenders to multinational businesses and global central banks. This partnership follows in the steps of Apple Inc., which said it would share information with Experian, but then later abandoned its buy now, pay later product. “This is the right thing to do for consumers, the industry and the economy at large,” Scott Brown, Experian’s group president of financial services for North America, said. “Our role as the first credit-reporting agency to establish this partnership with Affirm underscores our shared commitment to improve consumer financial health and foster more informed lending decisions.” As more pay-over-time providers report account information to Experian, lenders who request the firm’s credit reports will be able to see consumers’ payment history. Affirm said it also will work closely with other credit-reporting companies to provide data.
Citi continues to hunt for partners for its pay-over-time tool Flex Pay, in part to bolster customer awareness of the offering
After lining up Apple Pay as a partner, Citi continues to hunt for partners for its pay-over-time tool Flex Pay, in part to bolster customer awareness of the offering. That’s according to Jeff Chwast, Citi’s head of card digital strategy and on-card lending. Citi’s latest Flex Pay partnership, with Apple Pay, was rolled out last month. Once a U.S. Citi customer has added their credit card to Apple’s mobile wallet, users making a purchase through Apple Pay can select that credit card and opt to pay later with Flex Pay. Flex Pay is also available through Citi’s mobile app and website, and at the point-of-sale at certain merchants. The tool allows the bank’s credit card customers to select one purchase of $75 or more at a time, and choose to pay for that purchase with fixed payments for a monthly fee instead of an annual percentage rate, Chwast said. Flex Pay is built into the bank’s U.S. branded cards portfolio, which serves about 35 million accounts. The offering is available to accounts in good standing, which is the vast majority, Chwast said, without being more specific. Chwast declined to share figures illustrating how big the business is for Citi. Flex Pay sales have seen double-digit growth each year since launch, including a 25% jump from 2023 to 2024, a spokesperson said. “We don’t need partnerships for customers to access it. They can access Flex Pay through the Citi app, on any merchant with the card itself. However, it is more convenient for customers and we do see a meaningful portion of our volume coming from our partnerships [he declined to provide figures]. We do see that as a big contributor to growth. The partners that we have are critical to our Flex Pay business. For customers, partnerships offer convenience, because it’s at the point of sale, and value, if we have specific offers available. But it also creates awareness Compared to the non-card offerings, like traditional BNPL, you can get access to Flex Pay with no application or credit inquiry, you get rewards as you do with your card. It’s already built in, not a separate bill, and it’s the protections and service of a bank that you trust.”
Report: DOJ finds Capital One-Discover deal would harm subprime competition
The Department of Justice has reportedly found that Capital One’s planned acquisition of Discover would be anticompetitive. “DOJ staff has determined that Capital One’s proposed $35.3 billion acquisition of Discover Financial would harm competition in the subprime sector, sources familiar with the matter said,” The Capitol Forum said. The department’s finding will be included in a draft report on the proposed combination that it is preparing to give to the Federal Reserve and the Office of the Comptroller of the Currency. It was reported in October that New York Attorney General Letitia James was investigating the proposed acquisition and asked a court for permission to issue subpoenas to Capital One, saying the bank had declined to voluntarily waive federal confidentiality protections. While the U.S. Justice Department was already reviewing the proposed deal, James said in a court filing that the deal would have “significant impact” on consumers in New York because the two companies would have a dominant 30% market share among subprime consumers.
Judge bars Citi from returning climate grants to the EPA but doesn’t require Citigroup to continue disbursing funds to recipients
A federal judge barred Citi bank, which is stuck in the middle of a legal battle between climate nonprofit groups and the Environmental Protection Agency, from transferring $14 billion in grants for greenhouse gas reduction projects back to the federal government. U.S. District Judge Tanya Chutkan ruled that the Trump administration couldn’t yet shut down a Biden-era program to finance climate-focused investments, but she stopped short of requiring Citigroup’s banking arm to continue disbursing funds to grant recipients. The decision came after three nonprofits that had received funding sued Citi, the EPA and its administrator, Lee Zeldin, earlier this month, alleging that their efforts to freeze and terminate the Greenhouse Gas Reduction Fund were illegal. The plaintiffs — the Climate United Fund, the Coalition for Green Capital and Power Forward Communities — had also asked the court to issue a temporary restraining order requiring Citi to disburse grant money they claim was owed and barring the bank from transferring funds out of the plaintiffs’ accounts. In her decision, Chutkan granted the temporary restraining order, writing that the grant recipients have “carried their burden of showing that they will suffer imminent, irreparable harm” unless the bank is barred from sending the grant money back to the government. The court has not yet decided on the legality of Citi’s and the EPA’s actions. The involved parties agreed in a Wednesday court filing to a hearing in early April to discuss the plaintiffs’ motions for preliminary injunctions and to file those motions by Friday. “Today’s decision is a strong step in the right direction,” Climate United CEO Beth Bafford said in a statement. “In the coming weeks, we will continue working towards a long-term solution that will allow us to invest in projects that deliver energy savings, create jobs, and boost American manufacturing in communities across the country.” Climate United alleges that Citi’s actions are in violation of account control agreements between the organization and the bank. Citi, which had been designated as the bank to hold the grant recipients’ funds, froze the accounts associated with the funding in February to comply with a request by the FBI. Later, the EPA and the Department of Treasury ordered the bank to stop disbursing payments. The bank said in its opposition to the plaintiffs’ motion last week that it was upholding contractual obligations to the government, including fiduciary duty of loyalty, which it said superseded agreements between the bank and grant recipients.
SXSW 2025: Web3 loyalty programs enable cross brand blockchain-based interoperability; unifying airline miles, retail points, and rewards into shared ecosystems
During the SXSW 2025 panel, speakers said Web3 can raise customer engagement on loyalty programs, but it depends on how it is deployed. The approach must be holistic, addressing the whole consumer instead of a transactional relationship, they said. Chris Outram, head of blockchain at Publicis Media, recounted the example of a well-known brand that launched an NFT project at great cost. But it wasn’t effective because the company was bundling existing benefits into a new form instead of changing the entire rewards program. Consumers want brands to know them better, said Nicole Wojtalewicz, vice president of marketing and customer engagement at First National Bank of Omaha (FNBO). It’s no longer enough to offer freebies. Blockchain-based interoperability means breaking down walls between brand ecosystems. Outram described a future where airline miles, retail points and coffee shop rewards exist in a shared network, eliminating the inefficiency of multiple isolated programs. “If we can unify these systems, consumers will see real value, and engagement will increase,” Outram said. Vlad Avesalon, CEO of Vennity, said ownership is key in this new paradigm. Blockchain technology allows consumers to own their loyalty rewards rather than merely participate in a brand-controlled system. This shift, he argued, transforms loyalty from a transactional relationship into a genuine asset. Avesalon proposed a model where consumers themselves distribute rewards within a decentralized community, shifting the power dynamics of traditional loyalty programs.
Trump taps Bowman as Federal Reserve’s top regulator
President Donald Trump announced that he has selected Fed Gov. Michelle “Miki” Bowman to serve as the central bank’s next vice chair for supervision. “Miki has been serving honorably on the Fed’s Board of Governors since 2018, and has great expertise dealing with Inflation, Regulation, and Banking,” Trump said in the post. “Our Economy has been mismanaged for the past four years, and it is time for a change. Miki has the ‘know-how’ to get it done. I am confident we will achieve Economic heights never before seen in our Nation’s History. Congratulations Miki!” If confirmed by the Senate, Bowman would be responsible for overseeing the Fed’s supervisory practices and bringing regulatory items before the full board of governors for approval. She would also be tasked with collaborating with the leaders of the Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency on joint initiatives, and she would join those agency heads in testifying before Congress at least twice a year. Based on comments from Fed Chair Jerome Powell, the agency’s top priorities will include finalizing the so-called Basel III endgame capital reforms, adjusting the supplemental leverage ratio, reforming its annual stress test and revisiting its supervisory approach to crypto, including its emphasis on money-laundering controls and its treatment of so-called reputation risk. Bowman would also enter the office with her own priorities, which she has outlined comprehensively through speeches and other engagements. She has billed this approach as centering on “pragmatism as a guiding principle” and focusing squarely on safety and soundness issues. “Some of the regulations put in place immediately after that financial crisis resulted in pushing foundational banking activities out of the banking system into less regulated corners of the financial system. We need to ask whether this is appropriate.” Another top staple of Bowman’s policy agenda is a greater emphasis on regulatory tailoring — ensuring that the onerous requirements intended for the nation’s largest banks are not foisted upon smaller institutions. Bowman has also suggested rethinking the way regulatory tiers are defined and maintained, arguing that they should not be so rigidly tied to asset size. She noted that many banks retain simple, community banking business models but are elevated into higher oversight categories simply because their assets grow organically. She has also emphasized the need to improve the Fed’s application review processes for mergers and acquisitions as well as new charters.