Inside look: U.S. Bank’s SMB fintech strategy

U.S. Bank is looking to fintechs to provide back-office management for its small-business clients. The $669 billion bank listens to feedback from business clients to understand what they are looking for and whether to develop solutions in house or team with a third party, Shruti Patel , chief product officer for business banking, told Bank Automation News . [caption id="attachment_57365455" align="alignright" width="300"] (Courtesy/Bloomberg)[/caption] “If it is a core business function, we prefer to develop it on our own,” Patel said. However, working with a fintech makes the bank faster to market and gives it the ability to experiment, s he said. “Certain products, like money movement” solutions, are usually developed and owned by U.S. Bank, Patel said, but there are “a few fintechs who are doing [customer experience] better than us, and that's where we will partner up.” Banks are increasingly looking to partner with innovative fintechs for a better customer experience, Patel said. Fintechs are also relying more on bank partnerships because that's where the scale and distribution is, she said. “I think it's becoming less of a competition and more of almost a symbiotic relationship, because of that scale and distribution versus the speed to market, disruptive technology and better customer experience,” Patel said. Integrated tech The Minneapolis-based bank prioritizes its digital banking experience in payments and business management solutions for small and medium-sized businesses, Patel said. U.S. Bank has acquired and integrated the following fintechs’ offerings since 2021: Expense and travel management solution provider TravelBank ; Small-business payments provider Bento ; and Point-of-sale data and analytics solutions provider talech . Investment strategy As the bank identifies tech providers to integrate, it also considers investment opportunities, Patel said. U.S. Bank evaluates fintech investment based on the following criteria: Value proposition; Market strength; and Ability to address its client base. Many venture capital firms such as BankTech Ventures also pay attention to fintechs that can add to financial institution offerings, Carey Ransom , managing director of BankTech Ventures, previously told BAN . U.S. Bank doesn’t invest in fintechs unless the businesses have synergies, Patel said. Early-bird registration is now available for the inaugural Bank Automation Summit Europe 2024 in Frankfurt, Germany, on Oct. 7-8! Discover the latest advancements in AI and automation in banking. Register here and apply to speak here .

Inside look: U.S. Bank’s SMB fintech strategy

Bank acquired fintechs like Bento, talech, TravelBank since 2021

UniCredit Bank’s Schulze to speak at Bank Automation Summit Europe 2024

Transactions: Avidia Bank selects Q2, Personetics for digital banking services

Related Posts

Huntington Bank’s 1866 Studio agents help entrepreneurs incorporate businesses

Santander taps Nvidia AI to cut costs, improve performance

Consumer banking exec leaves Truist amid management shakeup

Transactions: Avidia Bank selects Q2, Personetics for digital banking services

EMERGING FINTECH DIRECTORY

FinAi Podcast

SPONSORED

The Next Generation of Cyberthreats: Powered by AI

Build an Antifragile Strategy to Outperform the Market

How AI and Product Experts Turn Fuzzy Requirements Into Focused Dev-ready Roadmaps

Connect

Welcome Back!

Retrieve your password

Continue Reading with FinAi News Premium - Less than $2/Day

Inside look: U.S. Bank’s SMB fintech strategy

Bank acquired fintechs like Bento, talech, TravelBank since 2021

UniCredit Bank’s Schulze to speak at Bank Automation Summit Europe 2024

Transactions: Avidia Bank selects Q2, Personetics for digital banking services

Related Posts

FinAi Podcast

Connect

Welcome Back!

Retrieve your password

Unlock This Article

Continue Reading with FinAi News Premium - Less than $2/Day