DAY AND WE'LL SEE WHAT HAPPENS.
MARIA: LET'S TALK ABOUT
TECHNOLOGY.
YOU'VE BECOME THE LEADER IN
TERMS OF DIGITIZATION.
THE iPHONE OBVIOUSLY
REVOLUTIONIZED SO MANY
INDUSTRIES.
TELL US WHAT YOUR CUSTOMER CAN
DO AT B OF A WITH ALL OF THE
MONEY YOU PUT INTO TECHNOLOGY
AND DIGITIZING YOUR BUSINESS.
>> ON THE CONSUMER SIDE, ALL OF
THIS GOES ON ON ON THE
INSTITUTIONAL SIDE SO ON THE
CONSUMER SIDE THEY HAVE A BRANCH
IN THEIR POCKEST.
POCKET.
ANYTHING YOU CAN DO AT A BRANCH
OR OVER THE PHONE YOU CAN DO ON
YOUR APP.
THERE'S 36 MILLION DIGITAL
USERS, 26 MILLION MOBILE USERS
WHO ARE NOT DIGITAL USERS, THEY
DON'T USE A COMPUTER, GROWING AT
10, 15% A YEAR.
SALES ARE UP AT THE 20% LEVEL,
25% OF ALL SALES ARE DIGITAL.
OUR DIGITAL MORTGAGE PRODUCT IS
GROWING.
DIGITAL AUTO PRODUCT IS GROWING.
YOU CAN DO EVERYTHING.
WE HAVE 5 MILLION ERICA USERS
THAT STARTED A YEAR OR SO AGO.
PEOPLE CAN TALK AND ASK
QUESTIONS AND IT LEARNS ABOUT
YOU.
IT WILL BASIC SAY
IT WILL BASICALAY
IT WILL BASICALLY SAY -- I WAS
ASKING FOR A CHECK AND THEY SAID
YOU GOT THIS BACK OR SOMETHING
LIKE THAT.
THESE ARE INTERESTING THINGS
THAT CHANGE THE NATURE WHEN YOU
PAY YOUR BILLS, YOU SAY I NEED
TO PAY X AND IT SAYS YOU WANT TO
PAY X, YES, HERE'S THE AMOUNT.
THINK ABOUT HOW EASY IT IS,
VERSUS WRITING OUT CHECKS OR
GOING INTO BILL PAYMENT.
THE TECHNOLOGY ENABLES CONSUMERS
TO DO MORE FASTER, EASIER, HALF
THE CHECKS WE HAVE ARE DEPOSITED
AT IF ATM.
A LITTLE OVER 25% OF DEPOSITS IS
PEOPLE TAKING PICTURES OVER THE
PHONE.
IF YOU DRIVE TO THE ATM OR TAKE
A PICTURE, IT'S THE SAME
ACTIVITY.
THINK ABOUT THE ENVIRONMENTALLY
MORE FRIENDLY SO YOU DON'T DRIVE
TO THE ATM OR TIME SAVINGS.
SO CAN YOU DO EVERYTHING.
IT'S GETTING INTERESTING.
CORPORATE TREASURERS WANT MOBILE
CAPABILITIES TO FISH
CAPABILITIES TO IISH
CAPABILITIES TO INIH
CAPABILITIES TO INITIATE WITH A
$5 MILLION WIRE WITH A MOBILE
DEVICE SITTING IN A MEETING.
TO ME, IT WAS ALWAYS REALLY,
THEY WANT, ABSOLUTELY THEY WANT
TO DO IT.
THAT'S THE WAY THEY'RE USED TO
OPERATING.
MARIA: DOES THAT MEAN YOU HAD
TO RAMP UP IN TERMS OF CYBER AND
PROTECTING THE DATA.
>> WHEN I BECAME CEO A DECADE
AGO, ALMOST NOW, THIS IS MY
TENTH YEAR --
MARIA: CONGRATULATIONS.
>> SURVIVAL.
IT WAS A GREAT TIME AND LOOKING
FORWARD TO DOING IT FOR A LONG
TIME MORE.
I THINK WE SPENT 200, MAYBE
$300 MILLION.
WE CROSSED OVER 700 THIS LAST
YEAR ON IT.
AND KATHY AND THE TEAM DO A
GREAT JOB ON IT.
THEY DO A GREAT JOB, 3 YOU
THOUSAND PEOPLE
3,OUSAND PEOPLE
3,00SAND PEOPLE
3,000AND PEOPLE
3,000PED PEOPLE
3,000PEOPPEOPLE
3,000PEOPLEOPLE
3,000PEOPLE,PLE
3,000PEOPLE, ME
3,000PEOPLE, MORE OR LESS.
AS AN INDUSTRY WE WORK TOGETHER
WITH MY COLLEAGUES ACROSS THE
INDUSTRY TO MAKE SURE OUR
INDUSTRY'S SAFE.
WE'VE STAYED AHEAD OF THE CURVE,
KNOCK ON WOOD, WE HOPEFULLY CAN.
MARIA: FIN TECH, SORT OF
NIPPING AT YOUR HEELS.
DO YOU FEEL YOU HAVE TO ACQUIRE
A FIN TECH COMPANY?
>> WE HAD A BILLION AND-A-HALF
LOG-INS INTO OUR APPS LAST
QUARTER.
WE'RE ONE OF THE LARGER DIGITAL
COMPANIES.
IT TAKES HIGH TOUCH AND HIGH
TECH.
WHAT DO WE LEARN?
WE ALWAYS ARE A CURIOUS COMPANY.
WE HAVE TO STAY CURIOUS, WE HAVE
TO THINK ABOUT THINGS.
WE'RE ALWAYS OUT THERE LEARNING.
WHEN WE TALK TO FIN TECH
COMPANIES OR OBSERVE WHAT
THEY'RE DOING, WE'RE TRYING TO
LEARN WHAT DOES THE CUSTOMER SEE
IN THAT ACTIVITY THAT THEY DON'T
SEE IN OUR ACTIVITY A GOOD
EXAMPLE IS FOUR YEARS AGO,
BECAUSE OF THE CRISIS AND
EVERYTHING AND THE CHARGEOUTS WE
TOOK IN SMALL BUSINESS, WE
LENGTHENED THE SMALL BUSINESS
APPROVAL PROCESS TO LIKE 20 DAYS
AND IF YOU THINK ABOUT FOUR,
FIVE YEARS AGO THE ADVENT OF THE
MOBILE LENDERS AND STUFF LIKE
THAT, SMALL BUSINESS.
THEY WERE 120 MINUTES.
120 -- THEY WERE 20
MINUTES.
I'M NOT SURE THEY CAN DO IT IN
20 MINUTES.
20 DAYS IS TOO LONG.
WE BROUGHT THAT BACK IN BY USING
MOBILE APPS AND THINGS LIKE
THAT.
THAT UNITED OUR SMALL BUSINESS.
WE DO MORE SMALL BUSINESS THAN
MOST OF THE PEOPLE IN THE WORLD.
MARIA: WHAT KIND OF YEAR WOULD
YOU EXPECT WHEN YOU LOOK AT
SMALL BUSINESS, WHEN YOU LOOK AT
INVESTMENT IN TERMS OF DEALS,
M&A, CAPITAL MARKETS REMARKS DO
YOU EXPECT?
>> THE PIPELINES ARE DECENT M&A.
YOU'RE SEEING A LOT OF BIG DEALS
AND THE ACTIVITY IS SOLID AND
STRONG THERE.
WHEN YOU THINK ABOUT SMALL
BUSINESS, THE BUSINESS COMMUNITY
IN THE UNITED STATES IS VERY
OPTIMISTIC.
THEY'RE NOT AS OPTIMISTIC AS
THEY WERE AT THE HIGHEST POINT,
THEY'RE STILL OPTIMISTIC ON A
RELATIVE BASIS.
OUR SURVEYS, WE'RE GOING TO
INVEST MORE, WE'RE GOING TO HIRE
MORE, WE CAN'T GET PEOPLE, THOSE
ARE THE COMMON THEMES MANY I
THINK IT'S A GOOD YEAR FOR
INVESTMENT AS LONG AS WE SOLVE A
COUPLE KEY ISSUES.
WITH WE HAVE TO GET THE SHUTDOWN
DOWN.
THE INCREMENTAL IMPACT OF THE
WORKERS IS IMPORTANT.
THE PROCESS OF GETTING APPROVALS
IS HELD UP.
A TRADE SITUATION HAS TO BE
SOLVED.
I'M NOT GIVING ANY NEWS.
EVERYBODY SAYS THAT.
IT'S TIME TO GET SOME OF THAT
STUFF DONE.
MARIA: WHAT ABOUT THE POLITICAL
ENVIRONMENT.
WE HAVE PEOPLE LIKE ALWAYS
ALWAYS
ALLSYS
ALLS ALLS
TALS ALLS
TALK ALLS
TALKINLLS
TALKINGLS
TALKING ABOUT A706% TAX
70% TAX RATE.
>> WE'VE BEEN AROUND FOR SOME
TOUGH ELECTIONS.
IT EBBS AND FLOWS IN THE UNITED
STATES.
A COMPANY LIKE OURS, IT DRIVES
RESPONSIBLE GROWTH, DELIVERS FOR
OUR TEAMMATES, OUR SHAREHOLDERS,
FOR OUR COMMUNITY.
SO WE'LL BE FINE.
MARIA: AS A GLOBAL, COULD YOU
ACQUIRE OVERSEAS, WOULD YOU WANT
TO ACQUIRE CONSUMER LENDING
ABROAD.
>> WE HAVE OUTSIDE THE UNITED
STATES WE SERVE LARGE COMPANIES
AND LARGE INVESTORS.
THAT'S A BUSINESS WHICH IS A
GLOBAL BUSINESS.
WE ALSO BRING U.S. MID-SIZE
COMPANIES TO THE WORLD AND
THINGS LIKE THAT.
WE HAVE NOT YET SEEN ANY -- NOT
THAT WE WOULD ACQUIRE ANYBODY,
THAT'S NOT OUR STRATEGY.
ORGANIC GROWTH TOTALLY.
WE GOT OUT OF THE WEALTH
MANAGEMENT BUSINESS OUTSIDE OF
THE UNITED STATES BECAUSE WE
BASICALLY HAD $1.5 BILLION IN
REVENUE AND DIDN'T MAKE A PEN
ANY.
THOSE RESOURCE COUGHS BE BETTER
SERVED TO A-- RESOURCES COULD BE