Today In Digital First Banking: Wells Fargo To Sell Asset Management Operation; FDIC Says Bank Profits Fell 36.5 Pct In 2020

In today’s top news in digital-first banking, Wells Fargo announced that it has made a deal to sell its asset management business for $2.1 billion, while a Federal Deposit Insurance Corporation (FDIC) report discovered that bank profits fell 36.5 percent in 2020. Plus, Alkami Technology is reportedly planning an initial public offering (IPO).

Wells Fargo To Sell Asset Management Business For $2.1 Billion

California-based Wells Fargo announced it has struck a deal to sell its asset management business for $2.1 billion to GTCR and Reverence Capital Partners. Four closed-end funds that are a part of the arrangement are the Utilities and High Income Fund, Multi-Sector Income Fund, Income Opportunities Fund, and Wells Fargo Global Dividend Opportunity Fund.

FDIC: Bank Profits Dropped 36.5 Pct In 2020

An FDIC report found that U.S. bank profits dropped 36.5 percent last year in contrast to 2019 because of a large volume of money set aside to cover possible losses caused by the pandemic. But financial institutions (FIs) are gradually bouncing back, exhibiting signs of recovery in the fourth quarter. Fourth-quarter profits were up 9.1 percent, reaching $59.9 billion.

Digital Banking Software Provider Alkami Taps Goldman Sachs For IPO Prep, Report Says

Alkami Technology, a banking software firm, reportedly has an IPO in the works. Alkami has also tapped Goldman Sachs to head the preparations for the public offering. Plano, Texas-based Alkami provides cloud-based platforms that banks can use to provide digital operations for clients. Its backers include Fidelity Management and Research Company, D1 Capital Partners and General Atlantic.

Lloyds Bank Brands Can Use Mastercard’s Open Banking Connect

Lloyds Bank credit card holders can now harness Mastercard’s Open Banking Connect to move money, effect withdrawals and conduct payments. “Offering innovative, convenient and secure ways for people to pay is what we all strive for at Mastercard, and our Open Banking solutions bring together the best both card and account-to-account payment rails,” Kelly Devine, divisional president for U.K. and Ireland at Mastercard, said in an announcement.

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