Partnering for success. Leading regional banks fatten the bottom line with third-party relationships.
This year’s winners for Best US Regional Banks employ aggressive strategies that continually refine existing business models to capture new clients and market share in the banks’ respective footprints while developing innovative banking solutions to succeed in new markets. Significant investment in technology drives new product development and scalability with service offerings while addressing the ever-increasing need for robust security processes across the organization.
The organic growth of digital capabilities is increasingly being augmented through collaboration with the fintech sector, contributing to the ongoing growth of extensive physical branch networks. Many regional banks have recognized tremendous growth opportunities in the retail and commercial payments segment. They are devoting considerable resources to expand in this area, while those seeking to develop further in wealth management are focusing their efforts on high-growth and affluent municipalities. Importantly, all institutions demonstrate their strong corporate citizenship with extensive outreach and financial support in their communities.
Far West | US BANCORP
US Bancorp (USB) wins the award for the Far West region, reflecting the bank’s progress with development of new products and operational efficiencies to boost its comprehensive line of banking, wealth management, and payment services. USB is enhancing data management and core technology platforms to enhance the digital experience while simplifying the bank’s organizational structure to drive efficiencies through a centralized technology effort.
The bank’s California market, where USB serves 3 million clients through 600 branches, has significant opportunities. The 2022 Union Bank acquisition boosted USB’s deposit share from 10th to fourth in the state; and its consumer, commercial, and wealth management products have posted solid gains. New client growth is up 7% (excluding those from Union Bank). Strategic partnerships with such as financial services provider Edward Jones also drive growth. This partnership provides banking products through Edward Jones’ 19,000 financial advisers, who serve 8 million clients.
For commercial clients, new developments in cash management offerings include the acquisition of Salucro Healthcare Solutions, an online billing and payments provider. Consumer clients have new merchant capabilities with the launch of Paze, an online checkout offering that does not require manual card entry.
USB is leading powerful initiatives for its small and midsize business clients within its Far West footprint. The bank launched Business Access Hubs in partnership with California State University to support startups and existing businesses with resources to help them grow. For cardholders, the bank recently introduced a new travel-booking platform. Small Business Administration (SBA) lending has surged as the bank assists thousands of small businesses’ growth strategy with additional working capital, property acquisition, and navigation of new partnerships. During 2024, overall SBA-loan volume increased 25% in California and rose 74% across the bank’s US footprint to rank fifth nationally.
Great Lakes & Southeast | FIFTH THIRD BANK
Meanwhile, Fifth Third Bank is leveraging a well-established franchise to accelerate its development in high-growth segments, particularly in payments and wealth management. Fifth Third has earned the title of Best Bank in the Great Lakes and Southeast regions. Operating in 11 states, with comprehensive retail and commercial banking solutions, the bank has captured a 12% depositmarket share across the Great Lakes region, ranking second among its peers, and a 4% share in the Southeast.
Fifth Third has opened over 70 branches in fast growing areas of the Southeast over the past five years, and the bank is looking to build on this market share as part of its expansion strategy. It has prioritized nine key metropolitan areas across five states. One is Florida, where the bank has positioned itself for growth, particularly in retail banking. In commercial banking, Fifth Third is a leader in the payments segment and has posted consistent annual growth of 7% in payment-processing volume, reaching $17 trillion in 2024. The bank’s Newline application programming interface (API) offering enables companies to launch payment, card, and deposit products directly with Fifth Third.
The bank’s wealth management segment presents significant growth opportunities. Following the November 2022 launch of Fifth Third Wealth Advisors, assets under management surpassed $2 billion—less than six months after having reached the $1 billion milestone. Artificial intelligence is creating efficiencies and improving customer experience, as the frequency of client interactions with the bank’s chatbot has reduced demand on the bank’s call centers. Digital progress has continued, with a 75% adoption rate among checking-account holders. Funds transfers through Zelle rose 30% year over year.
New England & Mid-Atlantic | CITIZENS BANK
In New England and the states of the Mid-Atlantic region, Citizens Bank takes home the award for Best Bank, which it earned through expansion in these high-density growth markets. This strategy has produced a steady five-year growth of 15% in Citizens’ consumer bank client base, and it is focusing on affluent households to capture high-value customers. Its commercial bank is targeting growth sectors, including health care, to attract corporate and middle-market clients.
The New York City metro area is a particular focus for Citizens, given its push to expand its wealth management and private banking capabilities. This has involved a selective recruiting campaign to add proven advisory teams in key markets across the bank’s regional and national footprint to capture more business in the high net worth segment. To bolster this effort, Citizens is expanding its wealth management and private banking infrastructure and operations, recently establishing Citizens Trust Company of Delaware, a subsidiary to offer trust and fiduciary services.
At the same time, its Citizens Access digital bank’s mobile app has undergone several enhancements, including a new streamlined onboarding experience for account access, biometric setup, and the ability for customers to add credit, debit, and gift cards to their digital wallet. Clients can access financial-planning tools and resources with Citizens Savings Tracker and the bank’s AI-driven virtual digital assistant for personalized banking support.
Citizens offers a range of cash management services; and small businesses can benefit from Citizens Cash Flow Essentials, an online and mobile banking platform and payment suite that complements the bank’s existing features with Cash Flow Forecasting. Additional enhancements include a new open banking API allowing customers to access financial data through external apps such as budgeting software or accounting platforms. Citizens recognizes its responsibility to invest in the communities it serves. Local initiatives include a $10 million pledge for workforce development to expand access to educational and career opportunities in communities across the bank’s footprint, as well as financial-education grants and support for 137 local nonprofit organizations.
Plains, Rocky Mountain & Southwest | BMO HARRIS BANK
In the US heartland, BMO Harris Bank is accelerating its technological initiatives to introduce effective banking solutions for the US market across its Personal and Commercial banking, Wealth Management, and Capital Markets business lines. BMO wins as Best Bank in the Plains, Rocky Mountain, and Southwest regions. Progress with the bank’s Digital First agenda utilizing advanced data analytics and AI to enhance its service offerings has resulted in consistent improvements in BMO’s US franchise that spans 34 states. These include solid increases in digital adoption, with active retail users up 6%, active commercial users up 9%, and an overall 4% increase in digital sales during 2024.Through BMO Assist, AI capabilities support millions of client interactions; and to spur innovation, the bank joined IBM’s quantum computing network.
New developments for US retail credit card customers include the BMO PaySmart feature that provides greater flexibility through smaller installment payments. Commercial clients benefit from leading cash management, treasury, and payment capabilities with enhancements to the platform from the bank’s partnership with fintech Fispan on the recent launch of BMO Sync, an API that lets clients integrate banking capabilities into their enterprise resource planning and accounting systems to automate payable workflows and improve cash flow management and data reconciliation while streamlining client onboarding.
These developments contributed to growth in BMO’s US operations, which represent a significant and growing component of BMO Financial Group’s overall profitability. The US Personal and Commercial business accounts for 23% of 2024 net income; while the overall US business, including Capital Markets and Wealth Management, represents 43% of group net income, up from 37% year over year.
BMO undertakes many corporate social responsibility initiatives, with a 90% employee-participation rate in fundraising for thousands of organizations in North America. Through BMO EMpower, the bank has pledged more than 40 billion Canadian dollars (about $28.9 billion) to support communities across the US in advancing home ownership, growing small businesses, and funding community economic development loans, with over CA$16 billion earmarked explicitly for California.
