Customers Bancorp Enforcement Action, Bank of America’s Overload Crisis, FedNow Payments, LendingPoint’s New CEO, & Welcome to Y'all Street

Banking on Disruption Daily

First up: Pennsylvania-based Customers Bancorp has been hit with an enforcement action by the US Federal Reserve due to significant deficiencies in its risk management and anti-money laundering practices. The bank must submit a plan within 60 days to improve its digital asset strategy and compliance program.

Next: Bank of America faces scrutiny for violating policies meant to prevent excessive workloads following the tragic death of a former employee linked to over 100-hour work weeks. Reports of ongoing excessive working hours raise concerns about the bank's internal culture.

Shifting gears: The U.S. Treasury plans to replace traditional checks with FedNow payments to expedite fund transfers and enhance security. FedNow, an instant payment service developed by the Federal Reserve, aims to provide quicker access to funds for individuals and businesses.

In related news: Bank of America CEO Brian Moynihan warns that American consumers may lose confidence if the Federal Reserve doesn’t cut interest rates soon. He cites underlying financial pressures despite recent consumer spending trends.

In FinTech news: LendingPoint has appointed Shawn Stone as its new CEO. Stone, with over 25 years of experience, steps in following Mark Lorimer’s interim leadership and aims to steer the online loan provider forward.

And finally: North Texas, particularly Dallas, is emerging as a major financial hub, attracting firms like Goldman Sachs and JPMorgan. Lower taxes and housing costs, coupled with a favorable business environment, contribute to its growing significance, now dubbed "Y'all Street".