U.S. Bank, the fifth largest retail bank in the U.S., saw a 104% increase in Zelle transactions in the past four months and a 50% increase in customer enrollment for Zelle over that period, according to a presentation by Cecere at Goldman Sachs U.S. Financial Services Conference yesterday.
Aside from Zelle, Cecere reiterated the bank’s strategy to expand and enhance its digital payments, naming Automated Clearing House’s (ACH) same-day payment implementation as an example for “tremendous potential for new profit models, customer dynamics and interactions.”
A lot has changed in the last two years for banks, Cecere said, and that to keep up with this constantly evolving digital landscape, the banks that focus on “technology, innovation and successful interaction with customers are the ones that are going to be the winners.”
U.S. Bank, which trades on the New York Stock Exchange under the symbol USB, has a market capitalization of $91 billion. It has about $460 billion in assets.
As for Zelle, the last few months comprised a successful quarter for the bank-backed P2P payment app, not just for the Minneapolis-based U.S. Bank, but across the board.
Zelle appeared on the mobile payment scene as banks’ answer to social payment Venmo in June. It was created by Early Warning, a company owned by seven major U.S. banks. Since its first appearance, the app’s popularity has grown significantly, particularly in the last quarter (Q3) when it saw more than 60 million real-time P2P transactions totaling $17.5 billion.
To learn more about the latest developments in P2P payments and mobile banking, join us on March 5-6, 2018 at the Parc 55 in San Francisco for Bank Innovation 2018. Click here to register.3 - Readers Like This Post