BB&T said Tuesday that it will set aside $50 million to invest in or acquire emerging financial technology companies in an effort to lower operating costs and improve the customer experience.
The Winston-Salem, N.C., company said that the investment would help it “secure a competitive advantage” in the marketplace.
"This sizable investment in financial technology companies represents an important strategic milestone in our digital business transformation," Kelly King, the chairman and CEO of the $215 billion-asset BB&T, said in a press release. "We're excited about the possibility of new partnerships and innovative approaches to provide the best possible experience for our clients."
Kelly King, chairman and chief executive officer of BB&T Corp., right, speaks during a Financial Stability Oversight Council (FSOC) meeting with Cyrus Amir-Mokri, assistant secretary of financial institutions with the U.S. Treasury, at the U.S. Treasury in Washington, D.C., U.S., on Monday, Dec. 9, 2013. The FSOC discussed cybersecurity and received a presentation from the Office of Financial Research on financial market developments. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Kelly King; Cyrus Amir-Mokri
Andrew Harrer/Bloomberg
BB&T’s digital transformation began in earnest in 2015, when it named longtime executive Bennett Bradley as its first-ever chief digital officer and promoted him to the executive management team. Later that year it also released a new digital platform — called U by BB&T — that lets customers personalize their banking experience by setting color schemes, profile pictures and which features they want to access after logging in, among other things.
Overall, many banks expect to increase fintech investment in 2018. A study released in December found that 82% of U.S. commercial banks plan to increase fintech investment over the next three years; 86% of bank senior managers surveyed said they intend to boost fintech funding imminently.
Hedge fund manager Scott Bessent had been the betting favorite to take the reins at Treasury. Scott Turner, a former congressman and NFL player, will lead the housing agency.
While the risks, benefits and magnitude of artificial intelligence's impact on financial services remain unclear, agencies should keep an open mind toward the technology and avoid reflexive risk aversion in bank supervision, Federal Reserve Gov. Michelle Bowman said.
The Dallas bank's new CEO, Thomas Shafer, served in top roles at a number of banks that were subsequently acquired before he stepped away from the industry in 2022.
In its latest financial stability report, the Federal Reserve warned high equity valuations and low levels of liquidity could leave the financial system vulnerable to shocks.
The Columbus, Ohio-based regional launched Lift Local Business in October 2020 with a $25 million ceiling. Four years and $133 million later, the program is still going strong.
The bank and payment company are using the technology that underpins digital assets to improve interoperability for international transactions, a major point of friction in trade finance.
