City National Bank is set to open a new branch in Whittier, California, in early 2025. This expansion fulfills a settlement obligation with the Department of Justice (DOJ) stemming from a 2023 case regarding alleged lending discrimination. As part of the settlement, City National Bank agreed to pay $31 million, marking the largest redlining settlement in DOJ history. The new branch aims to enhance the bank's outreach and service to the local community, particularly in underserved areas, as part of its commitment to fair lending practices.
In a related development, Fiserv has announced an expansion of its technology alliance with PayPal, enhancing connections to PayPal's Fastlane and Venmo platforms. This collaboration aims to bolster PayPal's payments technology strategy, allowing for improved transaction processing and customer experience. The partnership reflects the growing trend of financial institutions leveraging technology to streamline services and meet evolving consumer demands.
Additionally, the banking sector is witnessing significant corporate movements. Banc of California's Monica Sparks has stepped down, with Jeffrey Krumpoch appointed as the interim chief accounting officer. Meanwhile, Scotiabank has completed an initial $800 million investment in KeyCorp, acquiring a 4.9% stake in the company, with plans to increase its total investment to $2.8 billion. In further corporate shifts, Michael Gapen has left Bank of America to join Morgan Stanley as chief U.S. economist, while Societe Generale is in discussions to hire Enrico Chiapparoli from Barclays. Notably, JPMorgan has hired Yang Ruo to lead its China Technology, Media, and Telecommunications (TMT) team, signaling its commitment to strengthening its presence in the rapidly evolving tech landscape.
In a significant move in Southeast Asia, CSC Holdings, chaired by Raymond Or Ching-fai, has announced plans to acquire a 26.8% stake in Citystate Savings Bank (CS Bank) for 736 million pesos (approximately US$13 million). This acquisition is subject to regulatory approvals and is expected to be finalized by the end of 2024. CS Bank, established in 1997, operates 34 branches across the Philippines and focuses on savings deposits and mortgage loans. The purchase price reflects 2.4 times the bank's net asset value, highlighting the growth potential in the region's financial market, where nearly half of the Philippine population lacks a bank account and the median age is around 25 years. The share purchase agreement was signed on August 30, 2024, with key shareholders including AMB. Alc Holdings & Management and Top Ventures & Management. These developments highlight the dynamic nature of the banking industry, characterized by strategic expansions, significant investments, and leadership changes that are shaping the future of financial services.