Fifth Third: FinTech Platforms Drive Loan Growth Despite ‘Tepid' Environment

Core Insights - Fifth Third Bancorp's investments in tech-enabled products have yielded positive results, with significant revenue growth and increased commercial deposits [1][2] - The company has experienced a shift from legacy ACH to modern instant payment systems, enhancing its service offerings [3] - Loan growth has been robust, reaching its highest level in over two years despite a challenging market environment [4] Financial Performance - The Newline by Fifth Third embedded finance platform for enterprises achieved a 30% year-over-year revenue growth and added over $1 billion in commercial deposits [2] - Average loan growth across diversified origination platforms was reported at 5% year-over-year, with overall loan growth at its highest in two years [4] Digital Services and Innovations - Fifth Third has partnered with Trust & Will to provide free wills to customers, addressing a significant market need [5] - The bank plans to integrate AI-enabled features into its mobile app, aiming to enhance user experience and reduce costs [6] - The share of new consumer deposit accounts with digital originations increased from 22% to 28% over the past year [7] User Engagement - Average active digital users rose from 3.07 million to 3.17 million, while average active mobile users increased from 2.32 million to 2.43 million from Q2 2024 to Q2 2025 [6] - The percentage of mortgage applications that were digitally assisted slightly decreased from 98% to 97% [7]