Huntington Bancshares is planning to accelerate its automation efforts using savings gained from shuttering 63 branches in 2022.
WHY IT MATTERS: Huntington outlined during its August 2022 Investor Day some core tech initiatives, including automating and enhancing the customer experience.
“To further accelerate the execution of these strategies and support increased efficiency, we will be taking a series of actions during 2023 to align our organizational structure with a focus on our critical priorities,” Chief Executive Steve Steinour said today during the bank’s Q4 earnings call.
THE BIGGER PICTURE: In 2022, Huntington closed 63 branches to save money that can eventually be reinvested into its digital efforts, Brant Standridge, senior executive vice president and president of consumer banking business at Huntington, previously said at Investor Day.
The saved capital will go toward:
- Automation and streamlining account activation;
- Improving shopping and purchasing experiences;
- Enhancing customer experience; and
- Connecting clients with advisors when needed.
BY THE NUMBERS: Huntington posted for Q4:
- Total revenue increased 19% YoY to 1.9 billion;
- Mobile active users grew 5% YoY to 2.5 million;
- Monthly digital users climbed 13% YoY to 3.6 million; and
- Digital logins jumped 44% YoY to 203.6 million.
FUTURE LOOK: The bank has already closed 32 branches this month as part of its ongoing branch optimization plan, Chief Credit Officer Rich Pohle said during the earnings call. “We are taking action consistent with our prior statement and the commitment around driving toward these medium-term financial goals.”
As optimization continues this year, the bank is planning how expenses saved will be reinvested in 2024, he added.
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