Wells Fargo Creates Tech Payments Group

Wells Fargo has moved to combine corporate banking with a handful of consumer banking operations and the technology-innovations group in a single department to be headed by Avid Modjtabai.

The Payments, Virtual Solutions and Innovation unit will report to COO Tim Sloan, according to a statement released yesterday (Oct. 10). The new business is meant to conjoin the leadership in technology innovation, consumer cards, deposit products and Treasury management.

Head of deposit products Ed Kadletz and head of virtual operations Jim Smith are being moved from community banking to the new group.

“I have not seen and am not aware of another bank that has made the decision to combine payments and virtual solutions and innovation,” Sloan said in a telephone interview. Wells Fargo is “connecting even better than we had been how we’re thinking about mobile and online solutions that are within that payment relationship which is so important to customers.”

The change comes as fintech becomes increasingly central to the success of big banks and most of the country’s top lenders have been pursuing upgraded technology more aggressively as competition ramps up to offer more innovative products for both consumers and businesses. Plus, given that Wells was recently fined $185 million by the CFPB for making fake accounts — high tech banking is probably a welcome change of pace, as subjects go.

In conjunction with the new business group, Perry Pelos has been internally promoted to run wholesale banking, which oversees businesses with commercial clients, including deal making and securities lending. Pelos takes over that role from Sloan, who’s been handling both jobs since his elevation to COO in November.

Franklin Codel will replace Modjtabai as head of consumer lending — though he will remain the head of home lending as well.  He will also oversee dealer services, the business headed by Dawn Martin Harp that lends and provides other services to auto dealers.