Wells & Millennials Now

Note from the Publisher:  We had to comment on Wells again today because it’s SUCH a major banking story and BECAUSE we believe that scandals such as what we just saw with Wells Fargo will ultimately drive millennials further away from legacy banks and more toward new robos and banking apps that compete with them instead.  Not that startups are always lily white and don’t have bad actors involved there either, but the perception of distrust toward “the man” (or in this case, “the bank”) is high with millennials, who watched the most recent economic meltdown affect both their career opportunities and thier parents’ nest eggs.  SO, we are sad for Mr. Stumpf personally (we sincerely mean that), but he really did have to go.  NOW, how is Wells going to clean up its image – and attract young new customers to its doors (or apps)?  Let’s watch this show unfold, and they’re going to have to get it right, and  quickly……………

“Given the sum total of recent events, it is not terribly surprising that John Stumpf has announced his resignation as chairman and CEO of Well Fargo bank.  There are some situations that are immune to spin — and in the wake of the very public disclosure of a scandal that saw Wells’ employees ginning up millions of phony accounts for actual customers whose personal data they abused — it seems John Stumpf found himself in one of them.

But given the scandal and the tidal wave of trouble that has come with it, the news that John Stumpf will be stepping down from both his roles at the nation’s third-largest U.S. bank by assets — effective immediately — is no surprise. Stumpf’s role will be filled for the time being by President and Chief Operating Officer Timothy J. Sloan, who was widely seen as his heir apparent.”

Read Full Article at Pymnts