U.S. executives at Bancorp have said the firm’s business customers may want more payment services – a range of offerings that are already the source of a quarter of the bank’s revenue, Bloomberg reported.

The Minneapolis-based US Bank is the company’s fifth commercial bank, according to its Promotional material.

In a Thursday (October 14) presentation For analysts, the company said that of its 1.1 million business customers with revenues of less than $ 25 million, only 28 percent – 308,000 – use payment services.

“With 1.1 million business banking relationships, there is a significant opportunity for us to deepen current relationships and acquire new customers,” one slide said.

Out of all the bank’s active customers, according to the presentation, around 79% of banks with digital platforms, up from 76% a year ago and 72% in 2019.

According to the presentation, approximately 80% of Bancorp’s transactions in the United States in the third quarter were made online, compared to 76% in the comparable quarter in 2020 and 67% in the comparable quarter in 2019.

In a separate slide game accompanying the release of the results, the bank said net income attributable to payment services was $ 409 million in the third quarter of 2021, about 20% of total income and about 7.5% lower in dollars than in the third quarter of last year.

In August, US Bank announced the acquisition of FinTech Bento Technologies, whose main product is Bento for Business.

Read more: US Bank to Buy Bento Technologies Debit Card-Based Biz Expense Management Platform

Bento for Business provides small and medium-sized businesses (SMBs) with debit card payment and expense management tools. Bento customers transfer funds from their bank account to a Bento account. The money is accessible via a Visa debit card.

US Bancorp CFO Terry Dolan said, according to Bloomberg, “If you think of most banking industries, they have banking services, but they don’t really have the payment capabilities that the US bank has. We know that it is possible to broaden this relationship, to deepen it, to strengthen it.



On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.

Source link