Fifth Third Debuts Innovation Banking for Startups and Growth Companies
PYMNTS | ·
Fifth Third Bank has introduced a new offering aimed at startups and growth companies. Fifth Third Innovation Banking, announced in a news release Thursday (Oct. 1), combines the bank’s Newline embedded banking platform with the tech and life sciences franchise from Comerica, which merged with Fifth Third earlier this year. “Innovation Banking is designed to fill a gap in […] The post Fifth Third Debuts Innovation Banking for Startups and Growth Companies appeared first on PYMNTS.com .
Fifth Third Bank has introduced a new offering aimed at startups and growth companies.
Fifth Third Innovation Banking, announced in a news release Thursday (Oct. 1), combines the bank’s Newline embedded banking platform with the tech and life sciences franchise from Comerica , which merged with Fifth Third earlier this year.
“Innovation Banking is designed to fill a gap in the market: start-up and growth stage companies today choose between specialized providers built for a single stage or product and traditional banks without the expertise and sustained commitment to the sector,” the release said.
According to the release, the new offering combines “deep venture banking expertise,” modern payments infrastructure and commercial banking capabilities such as payments, wealth and treasury through a “single relationship that grows with the client.” Fifth Third says it foresees a potential $10 billion multi-year deposit growth opportunity from this business.
“Serving the innovation economy takes two things that rarely sit in the same bank: deep expertise in the start-up and venture capital ecosystem and modern payments infrastructure,” said Tim Spence, chairman, CEO and president of Fifth Third Bank.
“The Comerica team has banked innovators for decades, and Newline is part of the bank’s Commercial Payments engine that drives more than $18 trillion in payments a year. Bringing them together is how we build a differentiated business and a durable source of growth for Fifth Third.”
The release added that the business is designed around a “lifecycle model,” with Fifth Third engaging with companies early, starting with things like liquidity and operating solutions before expanding into financing, capital markets, and wealth management as those businesses scale, so customers “can grow without changing banks.”
“Founders increasingly want a banking partner that can support them across their life cycle and provide real value at each stage,” said David Whiting , head of innovation banking at Fifth Third. “We are building a platform to support clients across the journey, not just the moment.”
Fifth Third and Comerica merged in February and completed the technical/brand conversion of the Comerica franchise last month, making Fifth Third the ninth-largest bank in the U.S.
“The merged, super-regional bank now operates in 17 of the 20 fastest-growing large U.S. metropolitan areas, with system and brand conversions expected later this year,” PYMNTS wrote in February.
“The deal, we’d note, heralds the roadmap ahead : Asset size still matters, but competitive advantage increasingly rests on digital channels.”
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