116 Green Dot, a US-based digital bank and fintech company, has received a proposed consent order from the US Federal Reserve, primarily concerning compliance risk management, including consumer compliance and anti-money laundering regulations. The proposed consent order addresses activities and practices that began before the company’s CEO transition in 2020. It includes proposals for civil money penalties related to these issues, and discussions with the Federal Reserve Board regarding these proposals are ongoing. As part of its GAAP financial results for the quarter ended December 31, 2023, Green Dot has accrued an estimated liability of $20 million related to the proposed consent order. The estimated aggregate range of possible losses could be up to $50 million. Despite facing challenges, Green Dot reported a 4% year-on-year increase in total operating revenues for Q4 and full-year 2023, reaching $1.5 billion. However, adjusted EBITDA fell by 28% to $170.87 million, and non-GAAP net income decreased by 39% to $85.21 million. Jess Unruh, Green Dot’s CFO, attributed the financial performance to several headwinds in 2023, including higher interest rates, client de-conversions, and increased spending on various initiatives like processor conversions. Looking ahead to 2024, Unruh anticipates a return to growth in the second half of the year, driven by new partner launches, expense management initiatives, and other measures undertaken in 2023. You Might Be Interested In Adani’s Revenue Surges with Bangladesh’s Power Purchase Nationwide Plans £3bn Bid for Virgin Money DP World’s $2 Billion Mozambique Port Expansion Gets Green Light “Byju’s is Buying the Phone Numbers of Children & Their Parents and Threatening Them”, says NCPCR Apple Developing AI Chips for Data Centers Lucid secures $1.5 billion in funding to compete with Tesla
