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.
The Wyoming-based digital asset bank filed paperwork to challenge last month's district court ruling, which affirmed the Federal Reserve's view about its discretion over master account applications.
The former head of the Consumer Financial Protection Bureau resigned Friday after the troubled rollout of the Free Application for Federal Student Aid led some House Republicans to call for his resignation.
The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
In the inaugural iteration of American Banker's news quiz, test your knowledge on top articles covering the legal battles of the Consumer Financial Protection Bureau, new technology testing at JPMorgan Chase, earnings season and more.