California Bankers Association taps insider as next CEO, Spotify cuts off subscribers who use Apple's high-cost payments, Relay Payments backs auto-racing team and more in this week's banking news roundup.
Banking news roundup
July 7, 2023 3:07 PM
California Bankers Association taps insider as next CEO
The California Bankers Association on Thursday said Kevin Gould had been selected to serve as president and CEO of the Sacramento-based organization, effective immediately. Gould joined the CBA in 2004. In his previous role as executive vice president and director of state government relations, he oversaw management and operation of CBA's state and federal government relations department and served as one of the association's registered lobbyists. "It has been, and will continue to be, a distinct honor and privilege to serve this great association of California bankers who are deeply committed to the success of their customers, communities and the economy," Gould said in a press release. — Jim Dobbs
Bloomberg
Spotify cuts off subscribers who use Apple's high-cost payments
The music streaming service Spotify is forcing its users to pick any payment option other than through Apple's App Store, Variety reports. The service had stopped accepting new subscriptions via that method in 2016, but allowed existing subscribers to keep paying through Apple — at a $3 premium to offset the cost Apple charges for processing payments through its platform (typically 30% of the transaction). Apple's policies require that developers use its own payment method for any digital sales or subscriptions made through its App Store; companies that flaunt this by adding alternative payment methods, such as Epic Games , had been promptly kicked out of Apple's ecosystem. Apple recently began allowing developers to redirect users to a website to complete the payment process. — Daniel Wolfe
Mark Kauzlarich/Bloomberg
Bank of America reshuffles APAC global markets leadership, names Su head
Bank of America named Asia-Pacific President Jin Su as the region's head of global markets and appointed heads for fixed-income, currencies and commodities trading and sales, according to an internal memo. Su will continue to lead the region as president and chair of the Asia Pacific executive committee, Jim DeMare, the bank's president of global markets, said in the memo that was confirmed by a spokesman in Hong Kong. Patrick Law was appointed head of the region's fixed income, currencies and commodities trading, and Neelkanth (Piddi) Parekh was named head of sales for the division, according to the memo. – Cathy Chan, Bloomberg News
Gabby Jones/Bloomberg
Affirm stock falls on negative analyst report
Buy now/pay later fintech giant Affirm's stock fell 5.5% on July 6 after Piper Sandler analyst Kevin Barker cut the stock's rating to underweight after holding it neutral for more than two years, prompting a sell-off, MarketWatch reports. Barker pegged Affirm's stock value at $11, 29% below Wednesday's closing price of $15.42, citing high interest rates and competition pressuring Affirm's revenue. "In addition, we expect tighter underwriting standards, increased pricing and the re-introduction of student-debt payments to cause an incremental slowdown in revenue growth over the next year," Barker said in a note to clients. Affirm reported an operating loss of $310 million during the quarter ended May 31, when the company laid off 19% of its staff and shuttered its cryptocurrency operations. — Kate Fitzgerald
Relay Payments backs auto-racing team
Atlanta-based Relay Payments, whose technology streamlines payments for truck and fleet operators, will sponsor NASCAR driver Willam Byron and the No. 24 Hendrick Motorsports team racing July 9 at Atlanta Motor Speedway. Relay will be an associate sponsor at all remaining 2023 races with its logo appearing on the cars, team equipment and uniforms of Bryon and crew members. Relay Payments, founded in 2019, enables fuel purchases at more than 1,500 truck stops through its mobile payments network that bypasses the use of payment cards. — Kate Fitzgerald
Missouri requires 'no fee option' for earned wage access
Missouri Governor Michael Parson has signed a law that requires companies that offer earned wage access to have a license. The law also codifies consumer protections, and bans late fees, debt collection and a no-fee option for EWA users–provisions similar to Nevada, which passed an EWA law earlier this month. EWA enables workers to access a portion of their salary before their scheduled payday. The product has become more popular over the past several years, first during the pandemic and then during the inflation spikes in 2022. Fintechs that have traditionally offered EWA though banks are starting to enter the market. Similar to buy now/pay later lending, EWA, which is largely unregulated on the federal level, has drawn critics who are concerned the product may create liquidity challenges for consumers. Kansas, New York, California and Texas are among the other states that may regulate EWA. — John Adams
Simmons Bank shuffles leadership positions
Simmons Bank in Pine Bluff, Arkansas, shuffled its leadership roster this week, moving Chad Rawls into a new position as chief commercial banking officer and appointing Chris White as chief community banking officer. Rawls previously held the chief credit officer position at Simmons but has taken the new role in a "restructuring" that positions the bank to "capitalize on the opportunity to grow and diversify" its commercial and corporate banking businesses, Simmons CFO Jay Brogdon said in a statement. Josh Herron will serve as interim chief credit officer, with 22-year banking veteran Steve Wade as his deputy, the statement said. White, who has worked at Simmons for 19 years, took the chief community banking officer position after previously serving as president of Simmons' Arkansas Community Division. — Jordan Stutts
