U.S. Bank more than doubled the number of its tech-led partnerships in the third quarter.
“Through the third quarter, new tech-led partnerships year to date were 2.5 times the number of new partnerships we had acquired in the entire year of 2019, and these partnerships are continuing to grow,” said Terry Dolan, vice chair and chief financial officer at U.S. Bank, in today’s Q3 earnings call.
The $591 billion bank expects its multiyear investments in tech-led digital, omni-commerce, e-commerce and integrated software partnerships to drive growth, Dolan said. The bank is currently in the process of tying its APIs into a workflow within the bank’s central tools to automate previously manual services and streamline bank processes.
As the bank continues to enhance its digital offerings, the number of active digital consumers reached 82%, a 2% year-over-year increase, according to the earnings release. The majority of consumers leveraging digital offerings are using mobile banking, with 65% using the bank’s mobile tools in the quarter, a 3% YoY increase.
“Consumer and business customers gain a deeper understanding of our digital capabilities and benefit from our digital-plus-human approach,” Andy Cecere, chief executive at the Minneapolis-based bank, said during the earnings call.
However, as U.S. Bank’s clients continued to adopt digital capabilities and the bank leaned on new partnerships, the bank’s tech and communications spending in Q3 dropped 2.6% YoY to $355 million.
Meanwhile, the bank launched Taluc Register on Sep. 1, an all-in-one payment and analytics point-of-sale platform for business banking customers. The bank is also seeing continued momentum for its real-time payments (RTP) transactions, Cecere noted.
“Year to date through Sept. 30, the total number of [RTP] transactions are 17 times higher than the full year 2020,” Cecere said.
Looking ahead, the bank announced that its acquisition of the $125 billion MUFG Union Bank is expected to close in Q4, which will end up influencing future balance sheet decisions, Dolan said.
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