U.S. Bank’s investment in digitalization has enabled it to reach beyond its branch network as it plans to expand to seven new markets.  

The $668 billion bank is expanding to Arizona, Florida, Georgia, North Carolina, New York, Texas and Tennessee, according to its presentation at the BancAnalyst Association of Boston Conference on Thursday. In these markets, the bank aims to serve high-income households and support economic growth. 

However, expanding the bank’s reach doesn’t necessarily mean adding to its physical footprint, Chief Financial Officer John Stern said during the presentation, noting that the bank already has 2,300 branches nationwide.

“I don’t think we ever planned to open a thousand more branches in every state,” Gunjan Kedia, vice chair of wealth, corporate, commercial and institutional banking, said. “But we wanted to highlight the fact that so many of our products are truly national.” 

Digital products 

Beyond its market expansion, the Minneapolis-based bank is also increasing its digital offerings through new product launches, according to the presentation. The bank is investing in the following areas of innovation: 

• A next-generation broker-dealer platform; 
• Foreign exchange modernization; and 
• Data strategies and APIs. 

In the third quarter, U.S. Bank increased its tech spend by 20% year over year to $511 million and is investing in its digital banking capabilities, according to its earnings supplement. Major banks increased their tech spend in the third quarter in line with U.S. Bank to drive efficiency in their operations.

U.S. Bank’s stock was up 3.7% to $35.62 at 3:50 p.m. ET today. U.S. Bank has a market capitalization of $55.48 billion.