Philadelphia City Council voted unanimously to approve legislation to remove Wells Fargo as the bank handling the City’s $2 billion payroll. The legislation would authorize the city treasurer’s office to enter into an agreement with Citizens Bank to handle those services at the start of the next fiscal year in July.
The bill was amended to include Citizens’ community development plan to develop initiatives for low to moderate income families, individuals and minority small businesses. A companion bill would allow for a transition period in which Wells Fargo would continue as the City’s depository until December 31, 2017.
“Though we understand its business decision, Wells Fargo is certainly disappointed that the City of Philadelphia has decided to move payroll processing to another financial institution,” Wells Fargo said in a statement.
Wells and its predecessor banks had the payroll account for decades. The San Francisco-based company, which is the region’s largest bank by deposits, noted its millions of dollars worth of community partnerships in Philadelphia in terms of donations and sponsorships to nonprofits and major events, as well as offering millions in loans and investments in support of affordable housing, community service, and economic development.
The bills formally reported out of council’s finance committee last month.
Wells Fargo will maintain the remaining $1 billion in business with the city outside of payroll, as that work was not scheduled to be up for bid. In addition to Wells, Citizens beat out PNC Bank, TD Bank, Bank of America, Santander Bank and U.S. Bank in a request for proposal.
To read the full story, click here.
For more business news, visit Philadelphia Business Journal.