Wells Fargo CEO on new Texas campus: 'The coasts are not what this country is all about'

Core Viewpoint - The opening of Wells Fargo's new campus in Irving, Texas, signifies a strategic expansion into a business-friendly environment, reflecting a broader trend of major banks increasing their presence in Texas due to favorable conditions for growth and talent acquisition [1][4]. Group 1: Expansion and Location Strategy - Wells Fargo's new facility in Texas will accommodate nearly 5,000 employees, highlighting the bank's commitment to expanding its footprint outside traditional coastal markets [3]. - The decision to establish a significant presence in Texas is driven by the state's business-friendly policies, accessible local government, and a strong talent pool [4][5]. - The bank aims to diversify its locations to better understand and serve the broader U.S. market, moving beyond the coastal economies [7]. Group 2: Efficiency and Technology - Wells Fargo has set a medium-term target for return on tangible common equity (ROTCE) at 17-18%, more than double the figure from Q4 2020, indicating a focus on improving efficiency [8][17]. - The bank is leveraging technology, particularly AI, to enhance productivity, with developers experiencing a 30-35% increase in output [9]. - The transition to AI is expected to change job roles within the company, necessitating retraining and adaptation for employees [12][14]. Group 3: Competitive Positioning - The lifting of the asset cap has allowed Wells Fargo to compete more effectively, with aspirations to regain lost business and expand further [15][16]. - The bank's strategy includes maintaining high aspirations for ROTCE while investing in future growth, aiming for best-in-class returns [17][18].