- Adjusted expenses for Truist in Q2 rose by 3.8% due to investments in talent, technology and insurance-related incentive compensation, according to Bill Rogers, CEO of Truist, speaking during the company’s Q2 earnings call Tuesday.
- Company expenses increased for several reasons including travel, compensation packages and investments. “We have planned products, processes and technology enhancements underway to reduce these losses and enhance the overall client experience, including the launch of innovative authentication approaches later this quarter,” said Rogers, according to a Seeking Alpha transcript.
- The bank’s adoption of technology includes a reality lab featuring virtual and augmented reality technology and the acquisition of Long Game which gamifies mobile banking and positive financial behaviors. Additionally, the bank’s expansion of LightStream includes a new cloud-based deposit product and the rollout of Truist Assist, an automation project to help mobile customers via bot, round out the technology investments.
Truist opened its Innovation and Technology Center in June. The center handles nearly six million client interactions, 87% of which are digital, every day.
The bank has an on-site “reality lab” that features virtual and augmented reality technology as well as spaces for real-time responses to clients.
“We're shifting millions of hours of integration-related activity to improving our client experience through investments in digital and technology, simplification of our processes and operations and, of course, by continuing to activate our purpose each and every day,” said Rogers.
The talent crisis and labor shortages within the technology industry affect businesses’ bottom line. The bank reported a $64 million increase in personnel expenses due to Q1 compensation increases, seasonally higher insurance-related incentive compensation and “ongoing investments in talent across our lines of business and technology teams,” according to Daryl Bible, Truist CFO.
While these investments in technology have costs, the bank said it’s also the way they plan to save money.
Bible cited moving more applications to cloud generates savings for the company. As Truist examines front and back operations, the company sees digitization and AI projects as important parts of the way it operates, according to Bible.
“It gives us comfort that our expenses will be contained over the next year or two,” said Bible.