BB&T said Tuesday that it will set aside $50 million to invest in or acquire emerging financial technology companies in an effort to lower operating costs and improve the customer experience.
The Winston-Salem, N.C., company said that the investment would help it “secure a competitive advantage” in the marketplace.
"This sizable investment in financial technology companies represents an important strategic milestone in our digital business transformation," Kelly King, the chairman and CEO of the $215 billion-asset BB&T, said in a press release. "We're excited about the possibility of new partnerships and innovative approaches to provide the best possible experience for our clients."
Kelly King, chairman and chief executive officer of BB&T Corp., right, speaks during a Financial Stability Oversight Council (FSOC) meeting with Cyrus Amir-Mokri, assistant secretary of financial institutions with the U.S. Treasury, at the U.S. Treasury in Washington, D.C., U.S., on Monday, Dec. 9, 2013. The FSOC discussed cybersecurity and received a presentation from the Office of Financial Research on financial market developments. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Kelly King; Cyrus Amir-Mokri
Andrew Harrer/Bloomberg
BB&T’s digital transformation began in earnest in 2015, when it named longtime executive Bennett Bradley as its first-ever chief digital officer and promoted him to the executive management team. Later that year it also released a new digital platform — called U by BB&T — that lets customers personalize their banking experience by setting color schemes, profile pictures and which features they want to access after logging in, among other things.
Overall, many banks expect to increase fintech investment in 2018. A study released in December found that 82% of U.S. commercial banks plan to increase fintech investment over the next three years; 86% of bank senior managers surveyed said they intend to boost fintech funding imminently.
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The Billings, Montana-based bank finds itself in the crosshairs of a high-profile activist investor. On Thursday, it stuck to its organic growth plan and said it isn't interested in using its excess capital to restructure its securities book.
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The U.K. bank's "Scam Intelligence" tool uses Google's Gemini to analyze images and texts for red flags, aiming to reduce losses from authorized push payment fraud.
A commonly used standard for property and casualty insurance will offer a carve-out for generative AI liability starting in January. Startups like Testudo, Vouch and Armilla AI stand by to scoop up that business.
Until August, Bell was the executive director for loan guaranty service at the Department of Veterans Affairs, where he was credited with growing the program.
