Fifth Third Bancorp Closes Buyout Of Big Data Healthcare

Fifth Third Bancorp FITB announced that it has completed the acquisition of Big Data LLC, a tech-based company based in Madison, WI. Big Data LLC provides solutions for healthcare payments and remittances. The financials of the transactions were not disclosed.
The acquisition enhances the range of services associated with the financial aspects of national healthcare, and catering to the intricated needs of the clients. Also, it leverages Fifth Third's digital advancement and its dedication to serving the healthcare sector.
Kevin Lavender, head of commercial banking at Fifth Third said, "Fifth Third has a long history of expertise in the healthcare banking space and is deeply committed to bringing our solutions to healthcare clients. This acquisition allows Fifth Third and Big Data Healthcare to collaborate, scale and continue to accelerate healthcare technology solutions that benefit current and future clients."
Big Data Healthcare utilizes intelligent data automation to improve healthcare outcomes. Its main offering, FUSE, is a bank-neutral online portal that streamlines the process of reconciling remittances with deposits. It also enhances visibility by improving file and data management while working simultaneously with existing systems.
David Plotkowski, chief executive officer of Big Data Healthcare said, "We are impressed with Fifth Third's commitment to maintain and grow existing business while remaining an agile and neutral partner. They truly are committed to keeping the client at the center and we look forward to mutual success in the future."
Bridgit Chayt, head of wholesale payments said, "We value the relationships and experience of the Big Data Healthcare team. We're committed to helping solve the unique challenges our clients face from manual processes to regulatory complexities."

Our Take

Fifth Third's deposit balances represent an important source of funding and revenue growth opportunity. The company continues to focus on core deposit growth in its retail and commercial franchises on the back of branch expansions and digital initiatives. It has been leveraging bolt-on buyouts to strengthen digital bank product offerings.
Over the past six months, shares of FITB have lost 29.5% compared with the industry's decline of 17.3%.

Image Source: Zacks Investment Research

Currently, FITB carries a Zacks Rank #4 (Sell).

Inorganic Expansion Efforts by Other Banks

Amid a challenging operating backdrop due to expectations of economic slowdown, banks are undertaking expansion moves through acquisitions. Recently, Bank of Montreal BMO announced the closure of its acquisition of Bank of the West from BNP Paribas BNPQY.
With this deal, BMO expanded its presence across more than 500 additional branches and commercial and wealth offices in major U.S. growth markets. For BNPQY, the sale is part of its efforts to streamline operations and enhance operating efficiency.