Digital activity and technology investments remain high at U.S. Bank despite a dip in year-over-year technology spending.

Digital transactions account for 80% of total bank transactions and digital loans make up two-thirds of all loan sales, according to the $587 billion bank’s first-quarter earnings presentation today. Combined digital engagement rose 3% YoY to 81%.

The bank’s technology push is far from finished, said Andy Cecere, chief executive at the Minneapolis-based bank.

“We are pleased with the progress we have seen so far but believe there is further opportunity to increase customer engagement through digital adoption,” Cecere said during the call. “We are continually adding and enhancing digital features and functionality and applying a digital-plus human approach.”

U.S. Bank touted several recent technology projects during the call, including:

• Co-browsing technology for video banking, which allows customers to share their screen with a digital banker;
• Talech Point of Sale, a digital platform that automates banking and payments for small business customers;
• ExtendPay, a buy now, pay later solution available to bank cardholders;
• Request for Payment technology that sends bills directly to consumers, which are then paid back to businesses via real-time payment rails; and
• Cloud services via Microsoft Azure.

Tech investments at the bank have led to concrete business results, and the expectation is for these trends to continue, said Chief Financial Officer Terry Dolan.

“Three years ago, our tech-led revenue represented about 15% of our overall merchant acquiring revenue,” Dolan said. “Today, it represents 30%. And we would expect that to continue to accelerate because of investments that we’re making.”

While technology was a major focus of the earnings call, actual Q1 technology spend fell 3% YoY to $349 million. Reasons for the decline were not disclosed.

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