In late September, I asked: can big banks catch up to Venmo with P2P payments app Zelle?
Three months later, it would appear the answer is definitely maybe.
Wells Fargo has paid a hefty price for its fake account scandal.
While the bank has fired more than 5,000 employees implicated in the scandal, clawed back $75m in compensation from executives it blamed for the fraud, and agreed to pay $110m to settle a class action lawsuit over its opening of more than a million unauthorized customer accounts, consumers apparently aren’t willing to forgive the company, at least not yet.
Wells Fargo’s ongoing fraud scandal, which involved the creation of 2m fake accounts by bank employees, demonstrates some of the reasons banks are vulnerable to fintech startups.
But there are lessons that all companies can learn from Wells Fargo’s woes. Here are five of them.
Wells Fargo, one of the largest and most prominent banks in the world, has been embroiled in a scandal in which thousands of its employees apparently engage in fraud.
The company, which was founded in 1852, has already paid $185m in fines over charges that it opened more than 2m deposit and credit accounts without the permission of its customers.
And investors have knocked more than $20bn in value off Wells Fargo’s market capitalization.
Amazon Prime is more than just a free shipping service.
The program, which was launched in 2005, now offers members access to everything from streaming video and music content to early access to special deals.
It’s also becoming a marketing and customer acquisition channel for other businesses.