KeyBank is using robotic process automation to boost efficiency without hiring more people.
The $189 billion bank has about 300 processes automated through (RPA), Michael Reynolds, business technology executive for service digitization, said last month at Bank Automation Summit 2024 in Nashville, Tenn.
“Translate that into people. … That’s about the work of 500 people that RPA does daily,” he said.
In fact, during the first quarter this year, the bank’s headcount fell 8% year over year to 16,752, according to the bank’s earnings supplement.
BY THE NUMBERS: In its Q1 earnings statement released today, KeyBank reported:
- Noninterest income of $647 million, up 6.4% YoY;
- Equipment expense of $20 million, down 9.1% YoY;
- An efficiency ratio of 74%, compared with 88% in Q4 2023;
- Revenue of $1.5 billion, down 10.6% YoY; and
- Noninterest expense of $1.1 billion, down 2.8% YoY.
FUTURE LOOK: The bank is gearing up for a merger and acquisition wave and is seeing traction in related business activities, Chief Executive Chris Gorman said during the bank’s earnings call today.
The bank is strongly positioned for M&A financing and hedging activities for middle market businesses, Gorman said.
“I am encouraged by the strong broad-based results we saw in our capital markets business across M&A,” he said. “We are at record backlogs in our M&A business.”
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