Wells Fargo made a pair of announcements this week aimed at what it says are key customers demands: the desire to plug accounts into fast-growing third-party services like robo-adviser Betterment, and the need for near instantaneous money transfers.
Notably, JPMorgan has made similar moves on both fronts in the past year.
Interim CEO Allen Parker earlier this year outlined priorities for reshaping Wells Fargo, and had said on the bank’s latest earnings call that, as part of the effort, it gathered feedback from employees about improving technologies and streamline operations.
That broader push also included bringing Saul Van Beurden on to fill the new role of head of technology for the bank, and Parker has said Wells Fargo is still looking for ways to use tech to make work easier and more efficient. Van Beurden was named in January and joined Wells Fargo in April— he was previously chief information officer of consumer and community banking at JPMorgan.
Spending on things like risk management, including related tech and data, means the bank now sees 2019 expenses at the high end of its target range for the year, it said on its earnings call in July.
Wells Fargo is under pressure to rein in costs to make progress on a key efficiency measure that remained stubbornly high following a sprawling sales-practices scandal that came to light in 2016. That means it’s balancing new tech investments geared at boosting revenue and efficiency against making improvements on the risk and compliance side.
Here’s what the execs working on the two new innovations at the fourth-largest US bank had to say.
Data-sharing agreement signed with Plaid
Wells Fargo has a new agreement to share customer data with fintech startup Plaid, which offers software…