Banking news roundup

March 25, 2022 3:38 PM

Canada is progressing with open banking, a JPMorgan Chase unit is rolling the dice on gambling payments and a Rhode Island credit union is rebranding nearly a century after its founding.

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

J.P. Morgan Payments lands cashless gaming client

JPMorgan Chase signage is displayed at a bank branch in New York.

Banks have traditionally been reluctant to provide financial services for gambling operations, though there are signs of loosening. Sightline Payments this week hired J.P. Morgan Payments as the primary merchant acquirer and payment processor for its Play+ ecosystem, which supports gaming payments for more than 80 operators in over 40 states covering sports betting, lottery, racing and online and traditional casinos. Gamblers use Play+ accounts to fund purchases on and off casino floors without needing to access cash. Among other financial institutions, MVB Bank in West Virginia recently has found traction by providing financial services to third parties in online gaming and related fields. — John Adams

Canada names an open banking lead

Canada is one step further along on the road to open banking with the appointment of Abraham Tachjian, a digital-banking consultant, as the country’s open banking lead. Tachjian, currently a director in the financial services practice at PwC Canada, will be tasked with creating an open banking system together with industry, regulators and consumer representatives, including an accreditation framework. “Canadians deserve a secure open banking system that is regulated, efficient, and protects their personal information,” Randy Boissonnault, minister of tourism and associate minister of finance, said in a press release. The U.S., meanwhile, is arguably behind much of the world in developing an open banking framework. — Miriam Cross

Arizona launches Apple's digital driver's license

Arizona this week became the first state to support its official driver's license and ID in Apple's wallet app. The digital ID is accepted at Phoenix Sky Harbor International Airport's security checkpoints. Eleven other U.S. states and the territory of Puerto Rico also plan to support this option, according to Apple. No banks or credit unions have announced that they would accept an ID presented in Apple's Wallet app, but experts say the system could be transformative to know-your-customer vetting, since it would combine the ID with an Apple device's built-in biometric authentication. — Daniel Wolfe

Acting CEO of National Cooperative Bank gets job outright

National Cooperative Bank in Arlington, Virginia, said its acting chief executive and president, Casey Fannon, now has the CEO position outright. Fannon became the interim leader of the $3.2 billion-asset bank after longtime CEO Chuck Snyder died in November. Fannon also holds positions on the boards of the community development financial institution Capital Impact Partners and the National Grocers Association. “In his 25 years at the bank, Casey has demonstrated the expertise, commitment and passion to lead NCB into the future,” Debra Huddleston, the chair of National Cooperative’s board, said in a press release. — Frank Gargano

Pawtucket Credit Union will become Coastal1

Pawtucket Credit Union in Pawtucket, Rhode Island, will change its name to Coastal1 Credit Union on May 18. The new name was selected to reflect the $2.8 billion-asset credit union’s growth beyond its hometown to serve members across the state, it said. Founded in 1928 with one branch, the credit union now has a network of 17 branches across Rhode Island and a loan production office in Foxboro, Massachusetts. “Our name is changing, but not our commitment to our members and the communities we serve,” Brian Azar, the president and chief executive, said in a press release. — Frank Gargano

Walmart claims BJ's Wholesale Club stole its checkout tech

Walmart and Sam's Club have sued BJ's Wholesale Club over a line-busting self-checkout system that allows consumers to pay for items while walking through a store. Walmart claims it worked for years on Scan & Go, and holds multiple patents on the underlying technology, which made its debut 10 years ago. Walmart contends BJ's ExpressPay, which launched in 2021, is similar to Scan & Go, with the main differences being in-app color schemes and a different name. Walmart did not comment on the suit, and BJ's Wholesale Club did not return requests for comment by deadline. — John Adams

Google lets Spotify break its app store payment monopoly

Bloomberg News

Google and Apple have both come under fire for limiting app developers to using the mobile platforms' built-in payment systems — with Google even promising to tighten its enforcement — culminating in lawsuits from the likes of Epic Games, which attempted to accept third-party payments in its Fortnite game before getting blocked by both tech companies. Spotify appears to have changed Google's tune: It plans to add its own billing option alongside Google's in the music app's Android version. Google called Spotify its "first partner" for user-choice billing in Spotify's March 23 announcement. — Daniel Wolfe

SchoolsFirst Federal Credit Union splits leadership roles

arhon/tashatuvango - stock.adobe.com

SchoolsFirst Federal Credit Union in Tustin, California, is splitting its president and chief executive roles in two. The $27 billion-asset credit union appointed Jose Lara, who was most recently executive vice president and chief operating officer, as its next president. Bill Cheney, who has been at the helm of SchoolsFirst since 2014, will retain his position as CEO. The credit union said the move will help it meet the needs of staff and members alike. — Frank Gargano