Scroll through to see what you might have missed this week in banking, payments, credit unions and more.
Latest banking news
March 3, 2023 3:35 PM
Dean Fikar/dfikar - stock.adobe.com
Texas bank names fourth chairman in 77-year history
Jefferson Bank in San Antonio, Texas, has set into motion the succession plan for its chairman and president roles. After 17 years, Steve Lewis has stepped down from his position as chairman of the board but will continue as a director. Paul McSween III, who has served as Jefferson Bank president for 13 years, will become only the fourth chairman in the $2.9 billion-asset Jefferson Bank's 77-year history. Danny Butler, who has been the bank's CEO for 13 years, will assume the title of president and CEO. "This plan was put in place by our board five years ago," Lewis said in a press release announcing the changes last week. "I am very confident in the industry expertise and leadership qualities Paul brings to the chairman role, and I am excited to have Danny expand his responsibilities." — Jim Dobbs
Rob Hyrons/Rob hyrons - stock.adobe.com
Stork on the way? Fintech offers investment accounts
UNest rolled out its latest account option, allowing parents to set up investing and saving accounts for their babies before they're born, the fintech said in a press release Tuesday. The Los Angeles-based fintech went live with the product this week following a pilot program in the fourth quarter. UNest, founded in 2020, said in its release that since the pilot program, 15% of new accounts on its platform belong to expectant parents.
The account doesn't require a child to have a Social Security number, and it can be used to invest in traditional exchange-traded funds and socially conscious portfolios, as well as to save and accept one-time or recurring gifts from family and friends. The fintech charges a monthly fee of $5 and requires recurring deposits of at least $5 per month.
"Expectant parents are often overwhelmed with physical gifts or worries about how they will take care of their child as the child gets older," founder and CEO Ksenia Yudina said in a prepared statement. "We are proud to extend our offering to these parents who understand the importance of a sound financial foundation for their children even at these earliest stages." — Catherine Leffert
The account doesn't require a child to have a Social Security number, and it can be used to invest in traditional exchange-traded funds and socially conscious portfolios, as well as to save and accept one-time or recurring gifts from family and friends. The fintech charges a monthly fee of $5 and requires recurring deposits of at least $5 per month.
"Expectant parents are often overwhelmed with physical gifts or worries about how they will take care of their child as the child gets older," founder and CEO Ksenia Yudina said in a prepared statement. "We are proud to extend our offering to these parents who understand the importance of a sound financial foundation for their children even at these earliest stages." — Catherine Leffert
U.S. Bancorp invests in tokenization-software firm
U.S. Bancorp has joined a fundraising round for Ownera, a fintech that's building a network for institutions to trade and invest in digital assets. The Minneapolis-based bank's investment will be used to ramp up the deployment of FinP2P — Ownera's open-source, decentralized protocol that connects asset-tokenization venues across blockchains and ledgers — and to provide instant transaction settlement and transfer of ownership.
"This investment will allow us to play an important role in shaping the future of capital markets, one where issuers and institutional investors have more real-time visibility into assets and can more efficiently transfer ownership and settle transactions," Jim Kelligrew, vice chair and head of corporate and commercial banking at U.S. Bank, said in a prepared statement.
London-based Ownera announced in September that J.P. Morgan had joined its $20 million Series A round. — Catherine Leffert
"This investment will allow us to play an important role in shaping the future of capital markets, one where issuers and institutional investors have more real-time visibility into assets and can more efficiently transfer ownership and settle transactions," Jim Kelligrew, vice chair and head of corporate and commercial banking at U.S. Bank, said in a prepared statement.
London-based Ownera announced in September that J.P. Morgan had joined its $20 million Series A round. — Catherine Leffert
Flagstar launches its 4th mortgage-tech accelerator
Flagstar Bank, the bank subsidiary of New York Community Bancorp in Hicksville, New York, started welcoming applications for its fourth annual mortgage-tech accelerator earlier this week. Applicants may be exploring technological solutions to any aspect of the mortgage business, including origination, processing, servicing, compliance and underwriting. Those accepted will gain access to senior executive mentors from Flagstar, a customized curriculum, informal sessions with Fannie Mae and the law firm Orrick, the ability to test their products in a controlled environment and more.
"They helped us see how our product should be deployed in a bank environment and technologically what was involved in getting it right," Jeremy Foster, chairman of Calque, said in a press release. Calque helps homeowners use the equity in their current home to buy and move into their next home before they sell, and was a participant in the2022 accelerator .
— Miriam Cross
"They helped us see how our product should be deployed in a bank environment and technologically what was involved in getting it right," Jeremy Foster, chairman of Calque, said in a press release. Calque helps homeowners use the equity in their current home to buy and move into their next home before they sell, and was a participant in the
— Miriam Cross
Chana R. Schoenberger
Truist hires BofA exec for financial institutions group
Truist Financial has hired investment banker Jerry Wiant from Bank of America to lead its financial institutions practice, according to people familiar with the matter, as the lender seeks to bulk up in corporate and investment banking.
Wiant, who was most recently Bank of America's head of banks and specialty finance, will help Truist build out an advisory franchise catering to financial firms, said the people, who asked to not be identified because the matter isn't public.
Representatives for Truist and Bank of America declined to comment.
Truist, a bigregional bank formed in 2019 through the merger of BB&T and SunTrust, has been hiring aggressively in the past year to build a Wall Street advisory business under Royal Bank of Canada alum Michael Carter. Last year, it hired some telecom investment bankers from Wells Fargo and a private-equity banker from Credit Suisse Group.
Wiant joined Bank of America about two years ago from Credit Suisse. He also previously worked at Lazard and Royal Bank of Canada, where he built up and co-headed the U.S. financial institutions group.
A bank mergers-and-acquisitions specialist, he has worked on deals including PNC Financial Services Group's $11.5 billion purchase of Banco Bilbao Vizcaya Argentaria's U.S. business in 2021 and RBC's $5.4 billion deal in 2015 for City National. — Katherine Doherty, Amanda Gordon and Max Reyes, Bloomberg News
Wiant, who was most recently Bank of America's head of banks and specialty finance, will help Truist build out an advisory franchise catering to financial firms, said the people, who asked to not be identified because the matter isn't public.
Representatives for Truist and Bank of America declined to comment.
Truist, a big
Wiant joined Bank of America about two years ago from Credit Suisse. He also previously worked at Lazard and Royal Bank of Canada, where he built up and co-headed the U.S. financial institutions group.
A bank mergers-and-acquisitions specialist, he has worked on deals including PNC Financial Services Group's $11.5 billion purchase of Banco Bilbao Vizcaya Argentaria's U.S. business in 2021 and RBC's $5.4 billion deal in 2015 for City National. — Katherine Doherty, Amanda Gordon and Max Reyes, Bloomberg News
Two Georgia credit unions will merge
Georgia's Own Credit Union in Atlanta has agreed to acquire Health Center Credit Union in Augusta. The deal between the $4.7 billion-asset Georgia's Own and $72 million-asset Health Center — which is set to take effect on July 1 pending regulatory approval and a vote of Health Center members — would give the combined institution more than $4.8 billion of assets, 37 branch locations across the state and roughly 250,000 members. "We are thrilled to welcome the employees and members of Health Center, while continuing to expand our reach in key markets across the state," David Preter, president and CEO of Georgia's Own, said in a press release on Friday. — Frank Gargano
David Paul Morris/Bloomberg
Citi, Walmart collaborate on supplier loan platform
Walmart has partnered with Citigroup for a digital platform to connect the retailer's 10,000 suppliers with lenders from across the spectrum, according to a press release. The Bridge built by Citi initiative provides a streamlined process for qualified suppliers to connect with more than 70 U.S. lenders for loans of up to $10 million. The types of loans offered center on working capital, commercial mortgages and pre-shipment financing, with Citi prepared to expand types of financing based on demand. Nearly a third of the participating lenders are minority depository institutions; 15 are Black-owned, and four are owned by women, the release said. — Kate Fitzgerald
