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, chief creative officer of 3d Systems Corp., speaks during the DreamForce Conference in San Francisco, California, U.S., on Wednesday, Oct. 5, 2016. Salesforce.com Inc. isn't wasting any time putting its new acquisitions to use in a bid to strengthen its business software against larger rivals such as Microsoft Corp. New products unveiled Tuesday will blend the company's services with Quip, the document company Salesforce purchased in August for about $600 million. Photographer: David Paul Morris/Bloomberg
David Paul Morris/Bloomberg
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 Swedish financial technology firm issued its first stablecoin and signed a gift card distribution deal with BlackRock. Also, EMVCo is examining AI's impact on processing and more in the American Banker global payments and fintech roundup.
U.S. commercial banks and savings banks have reduced employment by nearly 81,000 since the first quarter of 2023, including a net loss of 7,463 positions during the third quarter of this year, according to a new report from KRBA Financial Intelligence. Big banks, which have been embracing artificial intelligence, were big contributors to the decline.
The activist investor HoldCo Asset Management alleges that Comerica and Fifth Third used a "flawed" process to arrive at a $10.9 billion merger agreement. On Tuesday, a Delaware judge said she will hold a hearing to determine if the banks omitted material information in their public disclosures.
Bank of Marin Bancorp in Novato has sold a big chunk of low-yielding securities, replacing them with investments that should produce significantly more income.
The Supreme Court won't consider Todd Harper and Tanya Otsuka's case alongside a similar one involving the Federal Trade Commission when it hears oral arguments in early December.
