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 Wyoming-based digital asset bank filed paperwork to challenge last month's district court ruling, which affirmed the Federal Reserve's view about its discretion over master account applications.
The former head of the Consumer Financial Protection Bureau resigned Friday after the troubled rollout of the Free Application for Federal Student Aid led some House Republicans to call for his resignation.
The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
In the inaugural iteration of American Banker's news quiz, test your knowledge on top articles covering the legal battles of the Consumer Financial Protection Bureau, new technology testing at JPMorgan Chase, earnings season and more.