Atom Bank, a digital "challenger bank" in the U.K., has agreed to a deal with the rapper and producer Will.i.am to act as a consultant, with an option to acquire a multimillion-dollar stake in the startup.
The alliance is an example of how consumer-facing fintech ventures are trying to court millennials, a generation that grew up with the Internet and came of age during the financial crisis and the rise of the smartphone.
According to a published report, the deal gives Will.i.am an option to acquire up to 3.55 million shares in Atom Bank at a price of 1.15 pounds (about $1.43) per share during a three-year period. Atom in 2015 became the first app-only bank to be granted a U.K. banking license. BBVA’s investment arm also owns a 29.5% stake in Atom.
Will.i.am will advise the bank on branding and send out social media posts, according to the report. He's currently a judge on the British talent show "The Voice UK." In 2014, 3D Systems, a maker of 3-D printers, hired him as its chief creative officer.
The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.