Latest banking news, Jan. 6, 2023

Square's business marketplace connects to LiveChat

David Paul Morris/Bloomberg

The business communication software firm LiveChat has integrated with Square Online, the payment company's e-commerce website and online ordering platform. The partnership is designed to allow Square's merchants to expand digital engagement, such as automated customer service. LiveChat, which has more than 37,000 clients in 150 countries, offers lead generation, help desk and other customer-facing tools. Square Online ties directly to other Square products, such as payment acceptance and merchant credit, to provide a range of merchant products in a single location. — John Adams

First National of Nebraska to acquire capital markets firm

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First National of Nebraska in Omaha, the holding company for the $26.6 billion-asset First National Bank of Omaha, agreed to acquire Northland Capital Holdings. Northland Capital Holdings' subsidiary Northland Securities is a capital markets firm with a full-service securities broker-dealer. "The acquisition by First National of Nebraska will make Northland an even stronger full-service broker-dealer," Randy G. Nitzsche, Northland's president and CEO, said in a press release. "By combining our expertise with the capital and resources that [the bank] offers, we create more opportunities for our customers and theirs." The deal is subject to regulatory approval and is expected to close in the first quarter of 2023. The price was not disclosed. — Miriam Cross

Santander says it will offer new credit card to commercial customers in U.S.

Susana Gonzalez/Bloomberg

Santander Bank said this week it is partnering with a payments company on a credit card that will be available to its business customers soon. The Boston-based lender has teamed up with TSYS, the issuer solutions arm of Global Payments Inc., to launch the card in early 2023. Santander reported a 6% increase in commercial lending activity in the third quarter of 2022. — Orla McCaffrey

BNPL giant Afterpay exits New Mexico

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Afterpay stopped offering its buy now/pay later services in New Mexico on Jan. 1 in the wake of state regulatory changes. The Australian firm, one of the largest BNPL loan providers in the U.S., notified New Mexico customers last month it was suspending services there, the Albuquerque Journal reports. A recent amendment to New Mexico's Small Loan Act and New Mexico Bank Installment Act lowered the cap on small-loan interest rates from 175% to 36%, and limits fees on late payments within 10 days to 5 cents on the dollar for the total installment price, according to the report. Afterpay, which charges late fees of $8 per payment on installment loans, said it hopes to offer service again in New Mexico in the near future, the report said. Afterpay rival Klarna doesn't offer services in New Mexico, the report noted. —Kate Fitzgerald

Danske Bank forfeits $2 billion after pleading guilty to fraud

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An agreement by Danske Bank to pay $2 billion to end a long-running U.S. probe into money laundering through its Estonia branch was approved by a judge, resolving criminal liability for the bank's worst scandal in recent history. The Danish lender pleaded guilty in December to conspiring to commit bank fraud. The bank admitted it provided services to suspicious customers, including in Russia, through its branch in the Baltic nation, despite knowing of the money laundering risks, according to the U.S. Justice Department. The Copenhagen-based bank was formally sentenced Thursday by U.S. District Judge Naomi Reice Buchwald in Manhattan, who approved an agreement between Danske Bank and U.S. prosecutors requiring $2 billion in forfeiture. The agreement called for Danske Bank to receive credit for $672 million paid to Danish criminal authorities and $179 million paid to the U.S. Securities and Exchange Commission, for a total additional payment of about $1.2 billion. Danske Bank was also ordered to serve three years' probation, to make agreed improvements to its compliance programs and to continue to cooperate with the government. — Bob Van Voris, Bloomberg News

Investment bank Bridgepoint hires Stifel veteran Schmidt

Robert Schmidt.

The boutique investment bank Bridgepoint hired Robert Schmidt as a managing director and as its first New York City employee. Schmidt, a former banker in Stifel's Consumer and Retail group and, before that, in Jefferies' M&A group, will head the firm's consumer and retail sector coverage of middle-market companies. The firm has offices in Omaha and Lincoln, Nebraska, as well as Denver and Chicago. —Chana R. Schoenberger

Indiana credit union names information chief

Chris Sibila.

Chris Sibila joined Financial Center First Credit Union in Indianapolis as senior vice president and chief information officer. Sibila was most recently the information chief at CNG Holdings and previously worked at Elements Financial FCU, Citibank and Fifth Third Bank, where he had a 19-year tenure. With 80,000 members in Indianapolis, Kokomo and Muncie, Financial Center and its Muncie-based division, Ball State Financial, have $847 million of assets. — Chana R. Schoenberger

Investment advisor discloses data breach

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Wing Financial Services, an investing advice company based in Bartlesville, Oklahoma, notified 243,403 customers on Dec. 1 of a data breach. The breach occurred on Aug. 7, and the company discovered that the breach included personal data on Nov. 10. According to letters sent to victims, hackers may have gained access to government ID numbers including Social Security numbers and passport numbers; medical information including treatments, biometric information and health insurance policy numbers; and payment card numbers — as well as customers' names, addresses and dates of birth. Wing Financial faces a class action in the case. — Carter Pape