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Other banks are offering tools to help customers improve their financial knowledge and resilience; Wells Fargo recently offered blended cooking/financial literacy classes in New York with a focus on reaching Latinos. Kraft Heinz is distributing more of its products in value-oriented outlets like dollar and club stores to reach inflation-weary shoppers.

Inflation would rise: Wells Fargo economists Jay Bryson and Michael Pugliese estimated the policy would cause the core consumer price index inflation rate to surge from 2.7% to 4%. So would interest rates: The Federal Reserve would likely hike interest rates to combat inflation, which would weigh on the stagnant housing market, hurting a broad array of housing-related retailers and brands.

The bigger picture: Wells Fargo and JPMorgan Chase are also dealing with Zelle-related CFPB probes regarding how they handle customer disputes over funds sent through Zelle. Bank of America didn鈥檛 say what its inquiry was about, beyond the 鈥減rocessing of electronic payments of funds through the Zelle network.鈥�.

Banks like Chase and Wells Fargo perform merchant acquiring in-house. But they also sponsor nonbanks鈥攍ike Fiserv, Global Payments, and Worldpay鈥攖o provide acquiring services. Acquirers are first and last in line among payment transaction stakeholders.

The results: JPMorgan, Wells Fargo, Citibank, Bank of America, and Goldman Sachs beat Q3 2024 earnings estimates despite all but Goldman Sachs reporting a drop in profits since 2023. How we got here: As they did last quarter, big banks鈥� earnings show the economic environment remains challenging. As a result, analysts had expected mixed earnings, per The Financial Times. And they were right.

Wells Fargo took over the Choice Hotels co-brand from Barclays last year. And Deutsche Bank will take over Lufthansa鈥檚 co-brand card from Barclays in mid-2025. American Airlines is reportedly also leaving Barclays and is in talks with Citi to take over its program, per CNBC. Our take: The GM card will be a bright spot for Barclays鈥� US business as it feels the effects of recent co-brand losses.

Why this matters: Delinquencies also rose for JPMorgan and Wells Fargo this quarter. There were previously signs that delinquencies were starting to fall, but this quarter鈥檚 bank earnings show we鈥檙e not there yet. But executives aren鈥檛 worried:. 鈥淭he US consumer continues to remain healthy and resilient,鈥� Citi CFO Mark A. L. Mason said during the company's earnings call.

Four ex-employees of Wells Fargo & Co. are suing their former company, alleging that the bank cost its health plan and workers millions of dollars by mismanaging prescription drug benefits. The lawsuit largely mirrors one filed by a Johnson & Johnson employee earlier this year.

Bank, and Wells Fargo now have access to the wallet. Pilots of Paze began last summer. Last month, U.S. Bank was the first major bank to roll it out at scale. EWS also brought on Serge Elkiner, a former Visa executive, as Paze鈥檚 general manager. He will focus on growing merchant and consumer adoption. What this means: EWS wanted to make Paze widely available before the holiday season.

JPMorgan Chase, Wells Fargo, Capital One, U.S. Bank, and Truist, among others, have already integrated AI into their chatbots. It鈥檚 still ongoing: Nearly half (48%) of US bank executives in a recent Google Cloud survey cited chatbots as a use case for genAI. That means not all US consumers have been exposed to the tech.

Cash App puts consumers鈥� money in a Wells Fargo account and 鈥渨ill pass through a portion of the interest鈥� it earns on to users.

In 2018, Wells Fargo faced similar restrictions imposed by the Federal Reserve which have yet to be lifted, per Banking Dive. Key takeaways: TD Bank's failures highlight the critical need for financial institutions to prioritize compliance over short-term growth. In a letter to its shareholders, TD said it has the capital to 鈥渄rive the change required.鈥�

The efficiencies generated by Walmart鈥檚 logistics investments enabled the retailer to extend its fulfillment services to merchants who don鈥檛 sell on its marketplace, at prices roughly 15% lower than what Amazon charges for its Fulfillment by Amazon offering, per Wells Fargo鈥攜et another high-margin growth opportunity to keep Walmart鈥檚 flywheel steadily turning.

Wells Fargo took first place in this well-supported category by offering all but one Transfers feature. That included two of the study鈥檚 top five features: electronic direct deposit setup and real-time external transfers. But it鈥檚 falling behind the pack without the ability to make multiple peer-to-peer (P2P) payment requests鈥攕omething the other top banks in this category offer.

Wells Fargo, Goldman Sachs, Morgan Stanley, and PNC beat expectations without adjustments.

Walmart tests a new locking system to combat retail theft: The retailer needs to ensure its solution isn鈥檛 worse than the problem itself.

Expect to see the intense scrutiny of Wells Fargo continue in 2023. JP Morgan got sued: The government of the US Virgin Islands filed a lawsuit on December 27 against JP Morgan for its ties to the late financier Jeffrey Epstein.

Wells Fargo. The bank posted buoyant results but is holding more than $1 billion for credit losses. Wells Fargo reported strong top- and bottom-line growth, with revenue up 17% YoY to $20.73 billion and net income jumping 32% YoY to $4.99 billion. The bank reported a 45% YoY leap in net interest income to $13.34 billion, ahead of expectations.

The preview: Earnings season for issuers begins this week, with JPMorgan, Citi, and Wells Fargo reporting results on Friday. Here are three trends to look out for as issuers reveal what Q3 had in store. Credit losses are climbing: Credit card losses are rising at the fastest pace in almost 30 years excluding the Great Recession, according to Goldman Sachs.

What鈥檚 more, JPMorgan Chase and Wells Fargo actually decreased their credit loss provisions from a quarter ago. Faith in consumers鈥� resilience will justify more advertising to boost acquisitions: We expect payments digital ad spend will rocket 13.6% in 2024. But tightening credit conditions will slow digital ad spend growth by 2025. Issuers are limiting their cards to higher-credit-quality consumers.

Wells Fargo鈥檚 credit card point-of-sale (POS) volume increased 14% YoY. But credit card delinquencies were mixed: JPMorgan and Wells Fargo reported increases, while Citi posted a slight decrease. JPMorgan鈥檚 30+ day delinquency rate for card services was 2.23%, up from 2.14% in Q4 2023 and 1.68% a year ago. Wells Fargo鈥檚 30+ day credit card delinquency rate jumped from 2.80% in Q3 to 2.92%.

But deposits continued their monthslong decline: Average deposits at Wells Fargo and JPMorgan fell 7% and 6%, respectively. Citi鈥檚 deposits were flat, buoyed by a rise in institutional deposits. Whispers of optimism: Rising card borrowing could be a sign of consumer confidence. Inflation is inching downward.

Wells Fargo. Deutsche Bank. How can banks prepare for AI鈥檚 rise? Despite wariness around using third-party AI technologies, banks are investing heavily in the space. Retail banks are forecast to spend $4.9 billion on AI platforms by 2024, growing 21.8% compounded annually from 2019, per GlobalData research. However, it will take time for banks to fully benefit from the tech鈥檚 disruptive impact.

Wells Fargo was able to position stepping away from one of its main businesses as a decision to improve its operations. But Wells Fargo and other big banks must be aware that the OCC means business, and that violations should be rectified immediately to avoid the reputation-destroying fallout of a one-sided breakup.