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Huntington Bancshares (HBAN) Unit Buys Payment Fintech Torana

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In a bid to enhance its digital capabilities, Huntington Bancshares’ (HBAN - Free Report) subsidiary, Huntington National Bank, recently acquired San Francisco-based Digital Payments Torana, Inc., a B2C payment fintech company. The deal value has been kept under wraps.

The move advances Huntington’s enterprise payments strategy to cater to clients of all size, thus proving to be beneficial for the company. Torana’s digital payments solution will now be launched as Huntington ChoicePay, further enhancing HBAN’s digital capabilities.

Torana, being a payment solution provider, enables Huntington and its clients to distribute digital payments to a number of end users. Huntington ChoicePay technology will increase business and commercial clients’ engagement by providing rapid payment solutions to end consumers who actively seek a faster and broader range of payments options. This is expected to increase customer satisfaction, thus leading to higher client retention.

The acquisition will also increase HBAN’s scale in business verticals like healthcare, public sector, insurance and the company’s National Settlements business, while being a leader in the commercial banking segment.

Over the past few years, Huntington has expanded its footprint and capabilities in a number of verticals thorough acquisitions. In March 2022, it inked an agreement to acquire Capstone Partners to expand its capital markets business. In June 2021, it merged with TCF Financial to form one of the top 25 U.S. bank holding companies. Further, in 2018, Huntington acquired Hutchinson, Shockey, Erley & Co., a leading public finance investment bank and broker-dealer. Thus, the acquisition of Torano, along with such buyouts, will help the company enhance its profitability over the long run.

Over the past six months, shares of HBAN have lost 21.8%, narrower than the 24.5% decline of the industry it belongs to.

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Huntington currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Other Banks Enhancing Digital Capabilities

HBAN isn’t the only bank that is strengthening digital offerings on the back of acquisitions. Earlier this month, Truist Financial (TFC - Free Report) acquired the gamified finance mobile app, Long Game. Long Game changes the way people engage with their banks. The finance mobile app uses prize-linked savings and casual gaming to motivate smart financial behavior.

Truist Financial is expected to use Long Game’s innovative technology to inspire and build better lives and communities. Long Game’s modern architecture is aligned with TruistFinancial’s existing technology stack, which will increase client engagement, savings and financial education, particularly among the millennial and Gen Z populations.

Likewise, in May 2022, KeyCorp (KEY - Free Report) acquired Philadelphia, PA-based GradFin. This will strengthen the company’s digital offering capabilities.

The transaction is in sync with KeyCorp’s efforts to undertake strategic partnerships with fintech companies and cater to clients’ ever-changing needs. Last year, KEY acquired a B2B-focused digital platform, XUP Payments, and a data analytics-driven consultancy firm, AQN Strategies LLC.


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