The PNC Financial Services Group (PNC - Free Report) is taking steps to match the growing need for digital modes of banking for customers along with the bank to cope with increasing competition. Moreover, the bank is launching a new high-yield savings account for new customers who reside in areas PNC Financial is expanding into — Kansas City and Dallas.
PNC Financial’s two-fold expansion initiative, i.e., entering new markets with focus on attracting clients toward its digital tools, looks encouraging and is likely to boost its financials, going forward.
Per the bank, majority of customers visit branches one or fewer times a year. However, they still want a branch to be located nearby and be approached by knowledgeable staff, who can cater to their needs. Thus, the bank is planning to open few branches but each retail location will be within a 30-minute drive for majority of the local population in the Dallas-Fort Worth area.
Further, the savings accounts that will be offered to new customers will pay 2.2% interest, which has been found to be among the five highest rates currently being offered per internet searches. Notably, PNC will raise the rate to 2.25% on condition that clients also open an account with “Virtual Wallet”, PNC’s digital money management tool.
Karen Larrimer, head of PNC Retail Banking and chief customer officer said, "This digitally led expansion makes sense for PNC, as more than half of our deposits today come via non-teller channels – the ATM, online and mobile banking."
PNC Financial remains consistently involved in undertaking strategic initiatives to grow, which reflects its strong capital position. Such planned efforts to grow along with cost-saving schemes assure us of its potential. Moreover, these tactful initiatives will continue to drive revenues higher, going forward.
The stock has recorded a gain of 1.4% over the past three months compared with 3.4% growth for the industry.
Currently, PNC Financial carries a Zacks Rank #3 (Hold).
Stocks to Consider
First Financial Bankshares, Inc. (FFIN - Free Report) has witnessed stable estimates for current-year earnings in the past 60 days. Over the past six months, the company’s share price has been up 22.8%. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
First Mid-Illinois Bancshares, Inc.’s (FMBH - Free Report) 2018 earnings estimates have been revised slightly upward in the past 60 days. Additionally, the stock has jumped 8.3%, in six months’ time. It currently carries a Zacks Rank #2.
Farmers & Merchants Bancorp Inc.’s (FMAO - Free Report) estimates for current-year earnings have been stable over the past 60 days. The company’s shares have risen 7.7% in the past six months. It sports a Zacks Rank of 1, at present.
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