Fifth Third Bancorp Expands Services with DTS Connex Acquisition

Fifth Third Bancorp has acquired DTS Connex, expanding its retail banking services. The banking group primarily operates in three sectors: retail banking (59.3% of NII), commercial banking (37.7%), and investment services (3%). With USD 167.2 billion in current deposits and USD 117.6 billion in current loans, Fifth Third Bancorp has a significant presence in the US market, offering its products and services through a network of 1,089 banking centers.

Fifth Third Bancorp (NASDAQ: FITB) has announced its acquisition of DTS Connex, a leading provider of cash management software solutions for multi-location businesses such as retailers, restaurants, and healthcare providers. This strategic move aims to bolster Fifth Third's retail banking services by integrating advanced cash logistics capabilities and infrastructure into its Commercial Payments business.

The acquisition will bring expanded capabilities in cash logistics offerings, infrastructure, and risk management to Fifth Third's Commercial Payments division. DTS Connex's technology solutions address the complex needs of clients seeking to enhance efficiency, transparency, and oversight in cash logistics management. Bridgit Chayt, head of Commercial Payments at Fifth Third, stated, "This acquisition expands our ability to automate cash operations and fosters deeper collaboration across the cash ecosystem through advanced data sharing" [1].

Fifth Third Bancorp currently holds the sixth-largest position in the commercial payments market by revenue, processing $17 trillion in payments volume in 2024. The bank enjoys top-five market share in six payment categories, including coin and currency revenue and retail lockbox remittances [1]. This acquisition is a significant milestone in Fifth Third's commitment to client-centric innovation and simplifying payments.

DTS Connex will continue to operate independently as a wholly owned subsidiary of Fifth Third, maintaining its commitment to serving clients with the same level of excellence and service. The financial terms of the transaction were not disclosed. DTS Connex provides innovative cash management solutions to leading retailers, restaurants, and multi-location businesses in the US and Canada, linking these businesses to their banks, couriers, and cash management devices to share real-time transaction information across operational platforms [1].

This acquisition is part of Fifth Third's ongoing strategy to integrate advanced payments technology solutions. In recent years, the bank has acquired Big Data Healthcare LLC and Rize Money, Inc., and launched Newline™ by Fifth Third, delivering modern technologies for a seamless embedding of financial services into client platforms and products. Newline has been selected by industry leaders, including Trustly and Stripe, to expand their capabilities [1].

Fifth Third Bancorp's dedication to relationships and innovation is evident in its leadership in the industry. The bank's commitment to client experience and strategic partnerships will be further enhanced by the expertise and technology brought by the DTS Connex team. Lou Salafia, founder and CEO of DTS Connex, expressed his admiration for Fifth Third's focus on client experience and the strong partnerships it will bring to the table [1].

References:
[1] https://www.nasdaq.com/press-release/fifth-third-announces-acquisition-dts-connex-adding-scale-innovation-cash-management