BB&T Corp. will soon be ramping up its digital business platform as it announced it will invest up to $50 million in fintech companies.
The bank announced it will set aside $50 million to invest in and acquire emerging digital technology companies to benefit its clients and lower operating costs. BB&T explained the investments will secure the bank’s competitive advantage in the marketplace.
“This sizable investment in financial technology companies represents an important strategic milestone in our digital business transformation,” BB&T Chairman and CEO Kelly King said. “We're excited about the possibility of new partnerships and innovative approaches to provide the best possible experience for our clients.”
The bank explained its digital transformation began in 2015 with the appointment of W. Bennett Bradley as chief digital officer. Since then, the company’s explained his digital focus has delivered new tools and platforms for retail and commercial clients featuring enhanced payment technologies and its digital banking platform along with an improved security framework to safeguard client accounts and financial assets.
“A significant investment in fintech puts BB&T on an aggressive pace to more quickly navigate our digital road map and further foster a culture of innovation throughout the company,” Bradley said.
“Things are changing rapidly and we, like many financial institutions, have to move faster to meet and exceed our clients' expectations,” he said. “While an investment in fintech is just one component of our digital transformation, it's a powerful way for us to gain greater access to new technologies and talent.”
The company explained to HousingWire that at this point, the fintech investment isn’t related to any specific product or service. While this major step toward automation could mean digital mortgages are in the bank’s future, that is yet to be decided.