Wells Fargo clients are migrating to lower-cost channels, resulting in reduced call volume and teller transactions for the bank.  

“We’ve been focusing on controlling expenses and lowering the cost to serve our customers, which includes driving digital adoption, simplifying our product portfolio and using technology to automate our environment,” Chief Financial Officer Mike Santomassimo said during the bank’s fourth-quarter earnings call today.

In Q4, active digital usership at the $1.9 trillion bank ticked up 4% year over year to 34.8 million and active mobile usership grew 6% YoY to 29.9 million, according to the bank’s earnings supplement. 

BY THE NUMBERS: Wells Fargo reported in Q4: 

• The bank has reduced headcount every quarter since Q3 2020, and again in Q4, headcount fell 5% YoY to 225,869; 
• Deposits decreased 3% YoY to $1.4 trillion;  
• The retail branch footprint is down to 4,311 from 4,598 in Q4 2022; and 
• Net interest income was down 5% YoY to $12.8 billion.  

NOTEWORTHY: During the quarter noninterest expenses fell 2% YoY to $15.8 million, according to the bank’s earnings supplement. Technology, telecommunications and equipment expenses, down 19% YoY to $1.1 billion, contributed to the drop.  

“Our expenses were down from a year ago benefiting from lower operating losses, as well as the impact of efficiency initiatives,” Santomassimo said during the call. 

Operating losses in Q4 fell 90% YoY to $355 million, according to the earnings supplement.  

FORWARD LOOK: In 2024, Wells Fargo expects expenses to fall YoY to $52.6 billion, down from $55.6 billion in 2023, according to the bank’s earnings presentation.  

To lower costs, the bank plans to close more branches, lean into increasing digital infrastructure and focus on operational efficiencies, according to the presentation.  

Wells Fargo executives Steve Hagerman, chief information officer of consumer technology, and Ken Meyer, chief information officer for enterprise functions technology, will speak at Bank Automation Summit U.S. 2024 on March 18-19 in Nashville, Tenn.  

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Get ready for the Bank Automation Summit U.S. 2024 in Nashville on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.