Dive Brief:
- Green Dot’s new chief human resources officer, Michael Meston is focusing on building “employee engagement” and retention as the company navigates a series of senior leadership changes, a technology transformation and increased attention on its banking-as-a-service business, he told Banking Dive in an interview last week.
- Hiring with an eye toward BaaS is a priority because Green Dot sees that business as a contributor to the company’s strategic growth plans, Meston said. “We need the talent that understands banking-as-a-service, people that have experience in that domain ... that can also help shape and evolve the vision … and how we're going to deliver it,” he said.
- The CHRO role at Green Dot, which Meston took up in February, is his first foray into banking. He was previously vice president of human resources at Bruker Nano, a subsidiary of a global scientific instruments company. Meston also held senior HR roles at Dexcom and Western Digital after more than two decades in various senior roles at Intel, according to his LinkedIn profile.
Dive Insight:
Meston takes the HR lead as Green Dot weathers key technology leadership changes under CEO George Gresham, who was appointed to the role in October 2022.
Over the past six months, three new tech-oriented leaders have taken the reins at the bank, all with responsibilities that touch BaaS, including Renata Caine, general manager of BaaS, appointed this month; Melissa Douros, chief product officer, who was hired in March; and Dave Harden, the company’s chief technology officer, who took up the job in November.
Green Dot received a proposed consent order from the Federal Reserve, the company disclosed in February. The company set aside $20 million in the fourth quarter of 2023 to cover the order, which Green Dot said stemmed from compliance and risk management issues predating current management. However, the bank said the cost associated with the enforcement action could total up to $50 million.
BaaS has faced considerable headwinds in recent months as regulators clamp down on risk and compliance practices, customer relationship management and partner oversight. Piermont Bank and Sutton Bank each entered into consent orders with the Federal Deposit Insurance Corp. in February. Additionally, the Kansas City Fed this month handed Mode Eleven Bancorp a cease-and-desist order over the BaaS activities of its subsidiary, Summit National Bank.
Despite these challenges, Green Dot sees opportunity to expand its BaaS partnerships, including tie-ups with HR software provider Dayforce and PLS Financial Services.
“BaaS is an increasing focus for us. We see it presenting significant growth opportunities at a lower acquisition cost,” said Alison Lubert, Green Dot’s head of corporate communications, noting that hiring for Bank Secrecy Act and anti-money laundering expertise is a priority given the heightened regulatory scrutiny.
Leaning into remote work
Meston said the focus on remote work — which took hold during the COVID-19 pandemic — will be crucial for recruiting top talent.
“[With] that ability to attract talent or to recruit anywhere across the U.S. … your talent pools aren't limited by physical location or somebody's willingness to move,” he said, noting that team members still connect in-person where needed. “You come together for working sessions, our technology teams come together regularly to work on problems that are better solved with in-person working sessions.”
Green Dot moved its corporate headquarters from Pasadena, California, to Austin, Texas, in August 2021 as part of a broader remote work push. The company opened a customer service-focused office in Columbus, Ohio, the following year, and operates a wholly owned software subsidiary based in Shanghai.
