Focused on 'governance and controls,' Wells Fargo taps new CISO

Dive Brief:

Wells Fargo tapped Gary Owen to serve as its chief information security officer, the financial services firm announced Tuesday. Once he assumes the role on May 31, Owen will report to Saul Van Beurden, Wells Fargo's new head of technology.
Responsible for the company's risk and information security strategy, Owen will lead everything from identity and access management to cyber defense and monitoring. He most recently served as CISO of WarnerMedia, previously known as Time Warner. Owen also has experience with information sharing efforts, coordinating with industry peers and U.S. agencies to better protect critical infrastructure.
Adding another direct report to Van Beurden, Wells Fargo also appointed Steve Hagerman head of consumer lending technology. Hagerman will focus on the company's emerging technology platforms starting in early August.

Dive Insight:

Scandals and big fines have plagued Wells Fargo since improper customer account practices came to light in 2016. In February 2018, the U.S. Federal Reserve Board restricted the company's growth until it showed improvement to its "governance and controls."

On top of replacing four board members, the Federal Reserve required Wells Fargo to improve the board's ability to effectively oversee the company. In December, the oversight body still did not sign off on Wells Fargo's changes.

For Wells Fargo, 2019 has been marked by change. Van Beurden joined in January to revamp the company's technology strategy. Then in March, the board elected the firm's general counsel, C. Allen Parker, to serve as interim CEO and president after Timothy Sloan, CEO and president of Wells Fargo, announced his decision to retire at the end of June.

On top of conducting an external search for a new CEO, Wells Fargo is also looking for a new general counsel.

All told, Wells Fargo has a new batch of leaders focused on risk. The company spends $9 billion on technology annually, and has to balance innovation efforts with security. Initiatives that closely follow compliance will appease regulators and take Wells Fargo out of the spotlight.