Coming off the launch of a revamped mobile app and the hiring of the bank’s first chief digital officer, U.S. Bank executives, during the first-quarter earnings call today, outlined a strategy to extend relationships with customers outside the Minneapolis-based bank’s physical footprint.

“Digital engagement with our customers is growing,” Andy Cecere, chairman, president and CEO of U.S. Bank, said on the call.

Of the bank’s total active consumer banking customers, 71% are digitally active, as of 1Q19, meaning they interact with the bank through online and/or mobile platforms. That’s up from 70% a year ago and 66% in 2017.

Growth in mobile users, which has climbed from 40% in 2017 to 43% in 2018 and 48% in 2019, has outpaced that of online users. Accounting for a 53% share of total active customers in 2017, online customers inched up to 54% in 2018 but dipped to 52% this year. Digital transactions accounted for 67% of all transactions at U.S. Bank, as of the first quarter. This is up from 65% a year ago and 63% in 2017.

Cecere said loan sales trends are “particularly encouraging” and that about 75% of mortgage applications are now done digitally. Overall, 32% of loan sales are now digital, up from 25% in 2018 and 21% in 2017.

The payoff from the bank’s digital strategy will be “increasingly visible” in terms of customer acquisition and retention, Cecere said, adding that the bank already has customers outside its branch network and that increased digital capabilities will allow the bank to create a “more full banking experience.”

Terry Dolan, vice chairman and CFO of U.S. Bank, said the reality is that two-thirds of transactions now happen on mobile devices, opening a big door for those able to pivot toward changing consumer behavior and needs.

As another sign of the migration to digital, U.S. Bank expects to see a 10% to 15% net decline in its physical branch count over the next few years. Front and center of the bank’s digital push is its new mobile app, which Cecere said is “just phase one,” as more capabilities are coming.

Cecere said there’s an “experiential aspect” with digital banking that is lacking from its physical counterpart and that millennials and younger, digital-native generations will present new opportunities.

Also see: BofA Opening More Financial Centers to Support Digital Strategy

Citing the bank’s efforts with digitalization, real-time payments, artificial intelligence, blockchain, and other technologies, Cecere said Derek White, the bank’s newly-hired chief digital officer, will be responsible for the company’s enterprise-wide digital strategy.

White was most recently the global head of client solutions with BBVA in Spain. In that role, he led a nearly 10,000-person team charged with conceptualizing, designing, creating and launching digital and innovative products and services that spanned across the bank.

Asked what metrics U.S. Bank will use to measure the success of its digital banking efforts under White, Cecere said they’ll be looking at indicators like customer activity and engagement via digital platforms, customer satisfaction, and sales activity.