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."
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.
Amid healthy first-quarter loan growth and improving credit quality, Discover Financial Services slashed its profits by $800 million to offset remediation costs from a 16-year period when it overcharged certain merchants.
Federal Reserve Governor Michelle Bowman said she believes there is a feasible path forward for the revised capital reform proposal, emphasizing the importance of making broad changes informed by industry feedback to achieve broad consensus among Federal Reserve board members.
From the early uncertainty and illness associated with Covid-19, to subsequent wars, supply chain issues, rising prices, inflation and layoffs, there has been a lot to deal with. And workers are in the doldrums right now.
The Office of the Attorney General in New York says the bank violated the state's Exempt Income Protection Act, illegally transferring customers' money to debt collectors.