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U.S. Bancorp (USB) Rolls Out New Commercial Card Solution

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U.S. Bancorp (USB - Free Report) has rolled out the U.S. Bank Commercial Rewards Card, its first emerging middle market-focused commercial card solution. Powered by TravelBank, which was acquired by U.S. Bancorp in 2021, the new card will provide all-in-one expense and travel management solution.

This will help firms with $10-$150 million in annual revenues to automate expense management, better control spend and rebates for business expenses.

The Commercial Rewards Card will replace the time-consuming, manual processes with a single, intuitive platform to manage travel and expense program comprehensively. This enables companies to better manage cash flow and get core insights into spend. The Commercial Rewards Card also offers dynamic card controls and customizable travel policies to monitor spending limits.

Dan Skaggs, head of middle market bankcard product, U.S. Bank, said, "Emerging middle market businesses have similar needs and opportunities as their larger competitors, but the traditional, complex corporate card and expense solutions weren’t designed for them. That’s why we created a solution tailored for emerging middle market companies that is easy to implement and includes features many large firms benefit from today."

Markedly, USB has been focusing on enhancing its platform on the back of new product offerings and acquisitions. In December 2022, U.S. Bancorp completed the acquisition of MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group, expanding its branch network and having greater access to digital banking tools.

In December 2021, U.S. Bank completed the previously announced deal to acquire PFM Asset Management, which was carried out through U.S. Bancorp Asset Management. The buyout amplifies U.S. Bank’s presence in institutional asset management space nationwide and bolsters its position as a dominant provider of varied investment solutions in the country. These acquisitions, combined with the ongoing investments in innovative product enhancements, services and people, strengthened the company’s balance sheet and fee-based businesses.

In the past three months, shares of USB have declined 10.1% compared with the industry’s fall of 0.8%.

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The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Expansion Moves by Other Companies

Texas Capital Bancshares, Inc. (TCBI - Free Report) has rolled out Texas Capital Initio, a digital onboarding solution designed to improve the commercial banking experience by simplifying and accelerating the process of opening an account.

TCBI’s Initio is an internally-developed, proprietary cloud native software application allowing businesses to open commercial accounts within days, a process that can often take up to multiple weeks.

BOK Financial Corporation’s (BOKF - Free Report) division, Bank of Texas, has entered the San Antonio market. It will offer its full-service, relationship-focused financial services in the region. This marks BOKF’s foray into the markets outside Dallas, Fort Worth and Houston, further expanding its footprint in Texas.

Bank of Texas is currently operating in 39 locations. BOKF’s debut in San Antonio underlines its efforts to expand in the Texas region and benefit from the dynamic and fast-growing market.


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