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 Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.