Latest banking news

June 3, 2022 2:35 PM

Our roundup begins with items on two partnerships: Visa's small-business collaboration with Fundbox and Spirit Airlines' deal with a buy now/pay later outfit. Plus, an update on an activist investor group's bid to oust Republic First CEO Vernon Hill.

Scroll through to see what you might have missed this week in banking, payments, credit unions and more.

Visa partnership focused on small-business credit

David Paul Morris/Bloomberg

Visa is collaborating with Fundbox, a working capital platform, to offer a mix of financial services for small businesses that include digital payments, cash management and installment payments for supply purchases. The two firms have launched the Fundbox Visa Debit Card, which includes tools to manage cash outflows through Fundbox Flex Pay, a spend management product that supports payments for expenses such as travel and supplies. Visa and Fundbox also plan to launch a BNPL product for small businesses that want to finance procurement and a link to Visa Direct to power instant fund disbursements. — John Adams

Spirit Airlines puts BNPL on the runway

Luke Sharrett/Bloomberg

The fintech buy now/pay later lender Uplift has partnered with Spirit Airlines to temporarily waive interest for buy now/pay later loans for travel, a sector that has become popular for installment lending as airlines recover. Spirit, which is the target of a hostile takeover bid by JetBlue, won't charge interest for BNPL loans used to pay for tickets booked by June 15. The campaign covers tickets as low as $49 for flights to about 90 cities. While Uplift specializes in installment lending for travel, other BNPL fintechs such as Affirm have also increased their lending for airfare and other travel expenses. Affirm has partnered with American Airlines, while Booking.com has launched its own BNPL service and Klarna recently acquired Insporock, an online travel planner. — John Adams

Activist group nominates former Texas Capital CFO for Republic First board

Vernon Hill

Simon Dawson/Bloomberg

Driver Management, one of two activist investor groups seeking to oust Vernon Hill as CEO at First Republic Bancorp in Philadelphia, has nominated a candidate for the open seat on the $5.7 billion-asset company’s board. On Thursday, Driver, led by managing member Abbott Cooper, tapped Peter Barthalow, former chief financial officer at the $31.1 billion-asset Texas Capital Bancshares in Dallas, to fill the seat left vacant after Theodore Flocco’s death May 10. The second investor group, led by New Jersey insurance executive George Norcross and former TD Bank President and CEO Gregory Braca, nominated Braca last week. Both nominations came after a federal judge appointed Philadelphia attorney Alfred Putnam as Republic First’s custodian, directing him to convene a special shareholder meeting by July 10 to elect Flocco’s successor. — John Reosti

Chipotle embraces crypto payments

David Paul Morris/Bloomberg

The quick-serve dining chain Chipotle has started accepting bitcoin and other cryptocurrencies through a link to Flexa, a digital payments company that uses application programming interfaces, the cloud and other technology to enable retailers to accept electronic transactions. Consumers initiate cryptocurrency payments by opening a Flexa-enabled app and tapping "Chipotle." Transactions are processed in less than a second, and crypto payments are available across Chipotle's 3,000 locations in the U.S. Chipotle has embraced payments innovation in the past, including an all-digital store model that does not have a dining room or an ordering line, but instead relies on mobile orders and payments. — John Adams

Republic Bank in Kentucky hatches tech incubator

Adobe Stock

Republic Bank & Trust in Louisville, Kentucky, is launching a bank technology incubator program with a $5 million investment. Participation will be limited to companies or products with which it has an existing or planned strategic relationship. “We’re going to be very thoughtful and selective to ensure the BankTech Incubator portfolio allows us to better serve the needs of our clients, as well as the Bank,” Andrew Trager-Kusman, chief strategy officer at the $6.3 billion-asset Republic Bank, said in a press release. “We’re confident this initiative will allow us to deepen our existing strategic relationships while we continue to develop new relationships in undiscovered areas.” —Miriam Cross

Primis Bank in Virginia closes deal for mortgage company

Primis Bank, a subsidiary of Primis Financial in McLean, Virginia, said it closed its acquisition of SeaTrust Mortgage on May 31. SeaTrust launched in February 2020 as a subsidiary of Community First Bank, the banking arm of Community First Bancorp in Seneca, South Carolina. SeaTrust will rebrand as Primis Mortgage, Primis said. The business will be led by former SeaTrust President John Owens as CEO and by Margaret Kronmueller, who was chief operating officer at SeaTrust and will retain that title at Primis Mortgage. The sale price was not disclosed. — Allissa Kline

Alerus Financial in North Dakota hires banking chief

Alerus Financial Corporation headquarters in Grand Forks, North Dakota

Alerus Financial in Grand Forks, North Dakota, said it hired Jim Collins as its chief banking and revenue officer. Collins was previously the Minnesota regional chief executive officer and president of corporate banking for Old National Bank. Before that he held various executive and leadership roles for Anchor Bank over 13 years, including senior vice president of commercial banking. At the $3.3 billion-asset Alerus he will lead all revenue-related activities across the company’s footprint, which spans its home state as well as Minnesota, Michigan and Arizona. — Jim Dobbs

Nusenda Credit Union recruits head of learning and diversity

Nusenda Credit Union in Albuquerque, New Mexico, hired Erica Barreiro as its new chief learning and diversity officer. Barreiro joins the $3.9 billion-asset credit union from Central New Mexico Community College, where she oversaw the development of learning and talent through securing national and local partnerships. “Her track record of innovation and leadership in learning and workplace culture will help advance our commitment to an inclusive and exceptional workplace,” Joe Christian, Nusenda's president and chief executive, said in a press release. — Frank Gargano

Idaho Central Credit Union’s chief administrative officer calling it a career

Shelli Bardsley, chief administrative officer of Idaho Central Credit Union in Chubbuck, Idaho, stepped down June 1 after 40 years with the organization. Bardsley joined the $8.7 billion-asset credit union in 1982 as secretary to then-CEO Chris Hyer. “Her compassion for team members, her vast knowledge of the industry [and] her attention to detail … are admirable qualities that will be greatly missed,” Kent Oram, Idaho Central's CEO, said in a press release. — Frank Gargano