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U.S. Bancorp to Cut 62 Jobs as it Shutters Lockbox Services

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U.S. Bancorp’s USB banking subsidiary, U.S. Bank, has planned to lay off about 62 employees as it shuts down retail lockbox service and processing. The news was reported by Milwaukee Business Journal.

A notice has been filed with the Wisconsin Department of Workforce Development, and it is disclosed that the terminations will take place around Apr 6.

The company previously had announced plans to close the service in early 2019.

Per the article, the bank has been working with employees since the announcement to make a smooth transition. Also, it stated that it is seeking to invest in digital payment solutions by discontinuing retail lockbox service and processing.

The company has been making efforts to expand in ecommerce payment arena. In November 2019, it acquired Sage Pay, a renowned payments gateway business in the United Kingdom and Ireland.

The move was made to meet the demands of its customers, who are switching toward digital modes of banking to conduct day-to-day activities. Also, the bank keeps looking for ways to restructure operations with software that includes payments capabilities in order to meet the growing competition.

Also, last year, U.S. Bancorp formed a new digital team, headed by Derek White, chief digital officer of U.S. Bancorp to be in sync with the banking sector’s gradual shift toward digitization.

U.S. Bancorp’s investments in innovative product enhancements, services and people have strengthened its balance sheet and fee-based businesses, apart from increasing market share. However, it is witnessing persistent rise in expenses.

Shares of U.S. Bancorp have gained 5.4% over the past year compared with the industry’s growth of 13.2%.

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

Key Picks

Some stocks in the finance space worth considering are Sallie Mae SLM, UMB Financial Corporation (UMBF - Free Report) and State Street Corporation STT. All these stocks flaunt a Zacks Rank #1 at present.

The Zacks Consensus Estimate for Sallie Mae has been raised 29% for the current year in the past 30 days. The company’s share price has gained 27.6% in the past six months.

UMB Financial has witnessed 1.3% upward revision in earnings estimates for current year in the past 30 days. Its share price has risen 5.6% in the past six months.

State Street’s shares have gained 45.3% in six months’ time. Its earnings estimates for current year have moved up 6.6% in the past 30 days.

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