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From cybersecurity crises to potential mergers that would reshape the payments industry, the banking world is poised for a year of change and regulatory challenges.
A major shake-up in the payments world is underway with Capital One Financial's
"Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies," Capital One CEO Richard Fairbank said in a news release.
If combined, the two companies would have a 19% share of the $1.3 trillion market in revolving consumer loans, according to Brian Foran, an analyst at Autonomous Research. JPMorgan Chase is currently No. 1 with a 16% market share.
The two companies expect the deal to close in late 2024 or early 2025, pending approvals from regulators and both companies' shareholders. Three Discover board members, who will be named later, would join Capital One's board as part of the deal.
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In the world of cybersecurity, a recent data breach at Infosys McCamish impacted more than 57,000
The unauthorized party — a ransomware group known as
Many organizations require vendors to go through mandatory security audits to maintain a chain of trust, said Ray Kelly, a fellow at Synopsys Software Integrity Group, but the case still reflects poorly on
Regulators, however, take a different view of this type of third-party cybersecurity risk. Banks are responsible, according to the Federal Reserve's vice chair for supervision, Michael Barr, who said
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In Washington, D.C., the future of the Basel III endgame proposal remains uncertain after Treasury Secretary Janet Yellen declined to take a position on the contentious regulatory plan that would raise capital standards for the largest banks.
In lively discussions during a House Financial Services Committee hearing in February, lawmakers
Catch up on our recent coverage of these and the other issues that banks are watching in 2024.
