Banking news roundup

March 18, 2022 3:03 PM

Our latest roundup includes stories on efforts by PayPal to help Ukrainians and by Starbucks to help the planet. U.S. Bank made the cut for the second week in a row, and we report on a Utah-based credit union's New Mexico debut.

Scroll through to see what you might have missed this week in banking, payments, credit unions and more.

PayPal expands services in Ukraine

David Paul Morris/Bloomberg

PayPal followed its Russia ban by adding more products in Ukraine that are designed to make it easier for people in the embattled country to move funds. Ukrainian PayPal account holders who receive funds from friends and family in their Ukrainian PayPal Wallet will be able to transfer the funds to their bank account by linking a Mastercard or Visa credit or debit card. PayPal is additionally waiving fees for consumers sending funds to Ukrainian PayPal accounts or receiving funds into Ukrainian PayPal accounts. PayPal's remittance subsidiary Xoom is also waiving fees for payments send to recipients in Ukraine. — John Adams

Cybersecurity jobs are largely empty. That worries some banks.

Computer Data Tech Following Unprecedented Global Cyberattack

Chris Ratcliffe/Bloomberg

Among the many concerns for U.S. banks as Russia continues its invasion of Ukraine: How will the shortage in cybersecurity professionals affect the American financial system in the event of a major cyberattack? Julien Bonnay, head of technology and cybersecurity practice at the consulting firm Capco, said recently that some small banks fear multiclient incident response teams will give low priority to more minor players should a widespread attack impact many banks at once. Over the long term, a solution for training more workers might be to improve job satisfaction — and retention — among cybersecurity faculty at educational institutions, according to a report by the cybersecurity firm Fortinet. — Carter Pape

These banks have suffered security breaches in 2022

Fotolia

Vermont publishes security breach notifications sent to its residents, but it is not the only state that does so. According to reports from 17 other states, these financial institutions have sent security breach notifications this year: Citibank, Bank of America, JPMorgan Chase, Ally, TD Bank, Boeing Employee Credit Union, Avidia Bank in Massachusetts, West Plains Bank and Trust Co. in Missouri, Village Bank in Utah, First Guaranty Bank in Louisiana, Altura Credit Union and UNCLE Credit Union in California, Credit Union West in Arizona, Northern Communities Credit Union in Minnesota, and Meritus Federal Credit Union in Louisiana. — Carter Pape

Retailers say they'll file appeal in debit swipe-fee case

Ciaran Griffin/Getty Images

A lawsuit that a group of North Dakota retailers filed last year against the Federal Reserve claiming that the fees merchants pay on debit transactions are too high was recently dismissed. U.S. District Judge Daniel Traynor cited a six-year statute of limitations when dismissing the case on March 13. Debit swipe fees are capped at 21 cents, plus 0.05% of the transaction, as part of the Durbin amendment passed in 2010. The Federal Reserve said last year the cost of processing debit transactions at banks with over $10 billion of assets has fallen to 3.9 cents per transaction. The North Dakota-based retailers, assisted by the lawyers from the National Retail Federation, plan to appeal the judge’s decision. — Kate Fitzgerald

High marks for U.S. Bank's mobile app

U.S. Bank’s mobile app is top among the 17 leading U.S. banks for banking capabilities and experience, according to the first-quarter edition of the competitive intelligence firm Keynova Group’s semiannual Mobile Banker Scorecard. The report also found that less than half of the banks surveyed make a dedicated phone number available for new customer applicants to contact live help while they apply for a checking account on their phones, which creates a higher risk of abandonment. Only Bank of America and U.S. Bank let checking applicants who are new to the bank finish an application they started in mobile using another channel. — Miriam Cross

Howard Schultz returning as Starbucks CEO, for now

Alex Wroblewski/Bloomberg

Starbucks Chief Executive Kevin Johnson, 61, plans to retire on April 4 and will be replaced by former CEO Howard Schultz on an interim basis. It will be the third stint as the company's CEO for Schultz, who held the job from 1986 to 2000 and from 2008 to 2017. During the second term, Schultz in 2014 reorganized his duties to focus primarily on Starbucks' mobile payment technology. Starbucks was an early success story in mobile payments, achieving a critical mass of users long before other retailers and reaching a quarter of all payments as early as 2016. Schultz also considered a presidential run in 2020. Shultz, 68, this week said he has no intention of becoming permanent chief executive. — John Adams

Starbucks app will underpin its sustainable-cup movement

Victor J. Blue/Bloomberg

Starbucks is using its payments app to drive environmental sustainability. The Seattle-based coffee giant this week announced plans to gradually phase out its iconic disposable cups in favor of personal or reusable store-provided ceramic mugs. Starbucks is testing approaches that include collecting a $1 deposit on its reusable mugs. Upon returning the cup to the store, users scan their Starbucks App to receive a credit to their Starbucks Rewards account and bonus loyalty points. Starbucks aims to support reusable cups at most stores by the end of next year, according to a blog post. — Kate Fitzgerald

Longtime director at Five Star resigning

Five Star Bancorp in Rancho Cordova, California, said Michael Campbell plans to resign from its board. Campbell, a director at the $2.6 billion-asset Five Star since 1999, will not stand for reelection at the company’s May 19 annual meeting, it said in a regulatory filing Thursday. He will serve out the remainder of his term, which expires at the end of 2022. Campbell’s decision was “not the result of any disagreement with the company,” Five Star said in the filing. “The board and the company are deeply grateful for Mr. Campbell’s dedication and contributions to the company during his tenure as director.” Campbell, 73, was CEO of the California Trucking Association from 2005 to 2013. Before that he was a partner at Ernst & Young, where he worked for more than 20 years. — Jim Dobbs

Credit union CFO becomes a bank CFO

gustavofrazao - stock.adobe.com

North Brookfield Savings Bank in Massachusetts named Kaz Borawski chief financial officer and treasurer. Borawski joins the $351 million-asset bank after a stint as CFO of the $242 million-asset Holyoke Credit Union in Massachusetts. — Frank Gargano

America First Credit Union opens shop in New Mexico Utah credit union sets up shop in New Mexico

Anna Jurkovska - stock.adobe.com

America First Credit Union in Riverdale, Utah, has opened its first New Mexico branch, in Albuquerque. “Albuquerque is rapidly growing, and our new site sets us up well for our next chapter of expansion,” Thayne Shaffer, America First's president and CEO, said in a press release. The branch will be managed by Camille Thomas, whose 20 years in the industry include a stint as vice president and branch manager at Kirtland Federal Credit Union in Albuquerque before joining America First. The $16.8 billion-asset America First has 19 branches across Utah, Nevada, Arizona, Idaho and now New Mexico. — Ken McCarthy