Truist consumer-bank chief is out in leadership shakeup

Truist is making aggressive moves to clean up its balance sheet, and it matters to any retailer currently using them for consumer financing. The bank is offloading $7.7 billion in consumer loans to investment firm Carlyle. This represents a significant shift in how one of the nation’s largest lenders manages its risk. Alongside this sale, Truist is seeing a major leadership shakeup as Dontá Wilson, the head of consumer and small business banking, exits the company. For retailers and operators, this signals a period of transition. When a major bank sells off a large chunk of its loan portfolio, it often indicates a tightening of credit standards or a desire to move away from certain high-risk categories. If you rely on Truist for your customer financing programs, expect potential updates to underwriting criteria or changes in how they approve applicants. The bank is clearly focused on liquidity and capital efficiency right now. This usually means they are becoming more selective about who they lend to. Keep a close eye on your approval rates if Truist is your primary lending partner. It may be a good time to ensure you have secondary financing options in place to capture customers who might no longer meet a tightening primary lender's standards.

Source: Banking Dive

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