Banking news roundup, April 21, 2023

Santander, DailyPay partner on early payroll in the U.S.

Santander Bank's North American unit and payroll fintech DailyPay are collaborating to offer an on-demand pay feature for commercial banking clients in the U.S.. Employees at participating clients can choose to have their earnings transferred to an account of their choice, with funds immediately available. The product is a form of earned wage access, a product that enables companies to offer alternative payroll options beyond the traditional two-week cycle. Earned wage access has become popular due to a variety of factors, such as higher inflation, the growth of nontraditional work schedules and an increase in contract work and freelancers.
— John Adams

Bank of America hits 100% recycled-plastic card goal for Earth Day

Bank of America has met its goal of converting all of its credit and debit cards to at least 80% recycled plastic in time for Earth Day on April 22. The Charlotte, North Carolina-based firm last year was the first large U.S. bank to commit to a 100% recycled-plastic card base, anticipating an industry movement away from single-use plastics. BofA estimates its move will reduce more than 235 tons of single-use plastic, based on annual card issuance. Mastercard earlier this month announced that all newly produced Mastercard plastic payment cards must include recycled or "bio-sourced" materials after Jan. 1, 2028. — Kate Fitzgerald

Rapyd expands installment payments via Splitit

U.K. mobile financial services firm Rapyd has partnered with Splitit, a New York-based installment lender, to add the point of sale financing product to Rapyd's network of merchants and online marketplaces. Splitit's model is different from most buy now, pay later lenders. The firm accesses a consumer's unused credit card balance to fund the short-term loss. Splitit also does not market itself as a rival or counter to credit cards, and more often partners with financial institutions. Splitit recently partnered with Checkout.com and Alipay, bringing Splitit's installment lending to dozens of new countries and potentially thousands of additional merchants. Rapyd's financial backers include payments fintech Stripe. — John Adams

Mizuho Nabs Credit Suisse DCM Veterans Bhatia and Karoll Lavino

Mizuho Financial Group's Americas hired Credit Suisse's Nevin Bhatia and Katie Karoll Lavino, according to people with knowledge of the matter. Bhatia will join Mizuho as a managing director in the Japanese lender's debt capital markets group along with Karoll Lavino, according to knowledgeable parties, who asked not to be identified. Bhatia and Karoll Lavino are among numerous executives exiting the Swiss lender, now grappling with retaining talent following its emergency rescue by UBS Group. Mizuho separately hired Credit Suisse's Jeb Slowik, Bloomberg reported in March. —Gillian Tan, Bloomberg News

First U.S. Community Credit Union names new CEO

First U.S. Community Credit Union in Sacramento, California, has tapped Shonna Shearson as its next president and chief executive. The $542 million-asset credit union announced that Shearson, who was most recently senior vice president of operations at the $4.2 billion-asset Valley Strong Credit Union in Bakersfield, California, succeeded Carol Hauck, who announced her plans to retire last year. "Shonna is an experienced Credit Union executive, and we are excited to see how First U.S. will continue to develop under her leadership, while continuing to deliver excellent products and services to our members," Jamie Gomes, board chair for First U.S., said in a press release on Wednesday. — Frank Gargano

Guggenheim Poaches Greenhill Bankers to Beef Up Europe Team

U.S. advisory firm Guggenheim is hiring top dealmakers from Greenhill & Co. to beef up its European presence. Pieter-Jan Bouten and Jonathan Dann are joining Guggenheim as senior managing directors to expand its London-based investment banking business. Bouten was a managing director at Greenhill and previously ran Greenhill's U.K. office and European telecom, media and tech franchise, according to his LinkedIn profile. Dann led European telecom and digital infrastructure. Guggenheim is also hiring Greenhill's Achille Del Pizzo and Charlie Evans. The appointments mark the latest move by a U.S. investment bank to bolster operations in Europe. — Dinesh Nair, Bloomberg News