Fifth Third prioritizes digitization in Q4

Fifth Third Bank saw higher technology-related expenses during the fourth quarter as it continued to invest in “platform modernization,” including the launch of its new cloud-based mobile app, Chief Financial Officer Jamie Leonard said during today’s earnings call. WHY IT MATTERS: Fifth Third increased technology and communications spend 8% year over year to $111 million during Q4, according to its earnings presentation. The $207 billion bank did not break out the specific areas of technology investment during the presentation. THE BIG PICTURE: The bank prioritized the digitization of its manual processes throughout 2022 and expects to maintain its full-scale digital transformation efforts, Leonard said during the call. [caption id="attachment_219178" align="alignright" width="300"] Luke Sharrett/Bloomberg Mercury [/caption] “Expense growth was driven by our acquisition of Dividend Finance during the year, combined with continued investments in Provide, compensation associated with our minimum wage hike, as well as higher technology and communications expense, reflecting our focus on platform modernization initiatives,” he said. BY THE NUMBERS: Fifth Third reported for Q4: Noninterest expenses rose 2% YoY to $1.2 billion; Noninterest income fell 6% YoY to $735 million; and Equipment expenses climbed 3% YoY to $37 million. NOTEWORTHY: In 2022, the bank relaunched and migrated its mobile app to the cloud to provide better customer experiences and more streamlined customer connections. “During the year we also made meaningful progress on our technology modernization initiatives and enhanced our peer-leading, digitally enabled treasury management, managed services, and our momentum banking product offerings,” Fifth Third Chief Executive Tim Spence said during the call. FUTURE LOOK: The Cincinnati-based bank expects more investment in technology moving forward, as it aims to reach a 10% growth in its technology expenses heading into 2023, Spence said during the earnings call. “We'll make significant progress on our tech modernization journey and begin to realize savings and improve the client experience by leveraging these investments to drive automation into our most labor-intensive processes,” he added. Fifth Third Chief Information Officer Jude Schramm will join the panel discussion on “Solving data expandability issues through cloud” at the Bank Automation Summit U.S. 2023 in Charlotte, N.C., on Thursday, March 2, at 9:15 a.m. EST. [stock_market_widget type="inline" template="generic" assets="FITB" markup="Shares of {name} ({symbol}) are trading at {price} ({change_pct}) as of {last_update}" api="yf"]. Bank Automation Summit US 2023, taking place March 2-3 in Charlotte, is a crucial event on automation and automation technology in banking. <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home" href="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1673636584390.1673642239848.712&__hssc=41615677.3.1673642239848&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link Learn more">Learn more and <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register" href="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1673636584390.1673642239848.712&__hssc=41615677.3.1673642239848&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link register for Bank Automation Summit US 2023">register for Bank Automation Summit US 2023 .

Fifth Third prioritizes digitization in Q4

The bank expects a 10% growth in tech expenses in 2023

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Fifth Third prioritizes digitization in Q4

The bank expects a 10% growth in tech expenses in 2023

Listen: Direct deposits and the CFPB’s new open banking rule

Capital One cuts more than 1,100 tech jobs

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