Wells Fargo names COO Scott Powell as next risk chief

Wells Fargo is shaking up its executive leadership by naming current Chief Operating Officer Scott Powell as the new Chief Risk Officer. This change comes as the bank continues to navigate strict regulatory oversight and a long-standing asset cap. For retailers and merchants who offer Wells Fargo consumer financing, this move is a signal of the bank's continued focus on 'getting the house in order.' Powell is a seasoned veteran who previously led Santander US and has been a central figure in Wells Fargo's turnaround efforts. What does this mean for your business? In the short term, expect no disruptions to existing financing programs. However, the Chief Risk Officer is the person who ultimately decides the bank's 'appetite' for lending. If Powell chooses to tighten internal controls or shift risk profiles to satisfy regulators, it could eventually lead to changes in credit approval rates or the types of consumer loans the bank is willing to back. Merchants should keep an eye on Wells Fargo’s credit standards over the next two quarters as Powell transitions into the role in mid-January. A more conservative risk posture at the top often trickles down to tighter approvals for everyday consumers at the point of sale.

Source: Banking Dive

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