Banking news roundup

June 2, 2023 2:50 PM

Old National relocates Louisville office following mass shooting in April, American Express brings back $1 million in grants for historic eateries, Adyen speeds payouts for gig workers and more in this week's banking news roundup.

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Capital One buys concierge app offering Dolomite skiing, sperm whale swimming

Capital One Financial has agreed to buy the digital concierge service Velocity Black as it pushes deeper into premium credit cards and other luxury markets dominated by American Express and JPMorgan Chase. The deal would give Capital One a global platform focused on luxury travel, entertainment, shopping and dining, according to a statement Thursday. Terms weren't disclosed, though Velocity Black says on its website it's backed by $28 million in venture capital. Capital One, which has been trying to lure more premium consumers, debuted its $395-a-year Venture X card in 2021. The company has been building out platforms for travel bookings and dining reservations and developing a network of airport lounges around the U.S.

Ski safaris in the Italian Dolomites and swimming with sperm whales in Dominica are among the experiences Velocity Black offers its customers on its app. The company also arranges free travel upgrades and preferred rates. —Jenny Surane, Bloomberg News

Dale McKim is executive vice president, chief financial officer and treasurer of Chemung Financial Corp. in Elmira, New York, and its bank subsidiary, Chemung Canal Trust Co.

Chemung Financial hires new CFO

Chemung Financial Corp. in Elmira, New York, has appointed Dale McKim (pictured above) to serve as executive vice president, chief financial officer and treasurer of the company and its bank subsidiary, Chemung Canal Trust Co.

McKim will join Chemung July 1. McKim will replace Karl Krebs, who has served as the $2.65 billion-asset Chemung's CFO since October 2013. Krebs, who held a similar position at the Warsaw, New York-based Five Star Bank, announced his intent to retire in March.

McKim joins Chemung from the Buffalo-based Evans Bancorp, where he served as chief risk officer the past six years. Before joining the $2.1 billion-asset Evans in June 2017, McKim was a partner at KPMG in Buffalo. —John Reosti

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Old National relocates Louisville office following mass shooting in April

Old National Bank is moving its operations in downtown Louisville, Kentucky, following a mass shooting in April that left six employees dead, including the gunman. Commercial banking, wealth and treasury management groups will begin relocation immediately from 333 E. Main St. to 400 West Market St., which was previously occupied by Stock Yards Bank & Trust, according to a statement from the Evansville, Indiana, bank released this week. The banking center is tentatively scheduled to open later this month.

The relocation decision was made "out of respect for the Old National team members lost and impacted" by the mass shooting, Old National CEO Jim Ryan said in the statement. "We mourn the losses and continue to support and care for the victims of the tragic event on April 10." —Jordan Stutts

American Express brings back $1 million in grants for historic eateries

In the third iteration of a program to help preserve long-standing small restaurants across the U.S., American Express has announced $1 million in grants for 25 eateries in collaboration with the National Trust for Historic Preservation. Each restaurant, chosen from a field that applied earlier this year, will receive $40,000 to offset the effects of inflation and staffing challenges, along with one year of complimentary use of Amex's ResyOS restaurant management software. Grantees include the Far East Cafe in San Francisco, founded more than 100 years ago, which nearly closed and is the last remaining banquet-style Chinese restaurant in Chinatown. Amex has committed $17 million in funding through 2024 toward supporting underrepresented and economically vulnerable small businesses. —Kate Fitzgerald

Adyen speeds payouts for gig workers

The payments technology firm Adyen has added a feature that enables its customers to move money faster. Called Payout Services, it uses Adyen's application programming interface connections to card schemes and real-time payment networks to transfer funds between accounts without relying on third parties to manage portions of payment processing. Adyen is positioning the product for gig-economy workers, marketplace sellers and small businesses, referencing research from Boston Consulting Group that found 75% of small-business platform users have expressed a need for same-day payment settlement. Adyen's move is part of a trend among payments companies and banks to broaden small-business services to gain more business from existing clients in a slowing economy. —John Adams

Stripe expands business credit strategy

Stripe has added a charge card program for Stripe Issuing, the payments company's commercial card product. The charge cards enable Stripe's fintech and technology industry clients to create and distribute virtual or physical charge cards. Stripe's clients' customers can then use the cards to finance purchases on credit rather than existing funds in their accounts. "Whether a small business is just starting out or looking to expand, access to capital can make all the difference. Our new charge card allows fintechs and [software-as-a-service] platforms to provide access to a reliable source of credit for the many small businesses they work with," said Denise Ho, head of product for banking as a service at Stripe, in a release. Stripe faces competition from Block and PayPal, which offer credit products for businesses in addition to payment processing. —John Adams

Revolut hits 30 million customers

The London-based neobank Revolut announced Thursday it had surpassed 30 million retail customers worldwide, up from 25 million in November. They include 6.8 million customers in the United Kingdom and 2.8 million in Romania. As of October 2022, Revolut had about 500,000 U.S. users.

For comparison, TD Bank says it has more than 27 million customers, and Green Dot Bank says it "has served" more than 33 million customers. Last year, the largest neobank by number of U.S. consumers with checking or spending accounts was Chime at 14.6 million, according to Forbes. —Carter Pape