Citizens saw increasing digital engagement during the second quarter as the bank boosted its technology investments.

The Providence, R.I.-based bank spent $163 million on equipment and software in Q2, an 8% year-over-year increase, according to today’s earnings presentation.

Active mobile users jumped by 1.93 million, a 21% YoY increase. Customers continue to favor digital check deposits, which now make up 31% of total deposits, according to the presentation.

“Zelle transactions are up over 30% and we are seeing great success with the customer uptake of automated client service through virtual chat sessions,”  John Woods, chief financial officer at Citizens, said during the earnings call, noting that virtual chat sessions grew nearly 300% YoY.

The $227.7 billion bank also released a new mobile application for Citizens Access deposit customers and highlighted its June launch of Citizens Paid Early which allows customers to receive direct deposits up to two days quicker, Woods said. The bank reported a net income of $364 million in Q2, according to its earnings report.

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US Bank

U.S. Bank’s technology and communications spend in Q2 grew 0.3% sequentially to $350 million while decreasing 3.3% YoY, according to the bank’s earnings report.

Still, bank leadership touted its digital efforts during today’s earnings call. “Our multiyear investments in digital payments and technology are paying off in the form of strong top-line growth and enhanced efficiency,” Chief Executive Andy Cecere said.

Similar to Citizens, the $591 billion U.S. Bank posted increased digital engagement in Q2: 82% of all active customers were using digital services As of May 31, with 64% using mobile tools and 41% using online services, according to the earnings presentation.

The digitization trend continued in transactions, with 82% of total transactions being digital, up from 80% in Q2 2021.

“We are well-positioned as we head into the second half of the year,” Cecere said. “Credit quality remains strong, and we continue to prudently manage operating expenses even as we invest in our digital initiatives, our payments capabilities and in our technology modernization.”

The Minneapolis-based bank is seeing strong momentum in tech-led revenue growth, including digital, omni-commerce and e-commerce, as well as investments in integrated software providers, according to the presentation.

“In Q2, tech-led merchant revenue, which accounted for 27% of the total merchant acquiring revenue, was 13% higher than a year ago and 43% higher than the comparable 2019 period,” Cecere said. “A key to that trajectory is the strong growth we have seen in new tech-led partnerships.”

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