Fifth Third Bank

Keep the Customer at the Center

"We strive to keep the customer at the center of everything we do. Improving their lives through our financial products and the customer experience we provide is both our corporate social responsibility and our passion."

Scenario B. Adebesin,
Director of Corporate Social Responsibility


BY THE NUMBERS

 

 

Improving Lives of Consumers

We are committed to providing better financial solutions for all the people we serve. We strive to do that with every business decision and customer interaction.

The goal is to develop products and services—like our down payment assistance program and new Fifth Third Momentum™ app—that genuinely make a positive difference in people’s lives.

One of those people is Nikki Hiciu. She finished graduate school with more than $75,000 in student loans. The 34-year old accountant paid off about $35,000 and was making $500 monthly payments when she began using the Fifth Third Momentum™ app. The app allows college graduates to pay off student loans faster by automating frequent micropayments toward the balance on student loan accounts. Nikki’s husband, Christian, used the app to pay toward her loan, too. Between the two of them, they paid about $50 extra per month using the Momentum app.

 

“The debt can feel overwhelming,” Nikki said, “but the Fifth Third Momentum app makes it easier to pay my loans off early.”

“College debt affects our communities and our economy,” said Greg Carmichael, chairman, president and CEO of Fifth Third Bancorp. “As a bank, we need to bring innovative solutions to the market, to lead the way in helping the next generation pay off their student loans. Fifth Third Momentum is a simple digital tool to help pay these debts faster.”

With the app, customers with a Fifth Third debit card can link student loans held by over thirty servicers to the app. Once connected, customers can round their debit card purchases up to the next dollar or add one dollar to every purchase. The extra amount is applied to the balance on the designated loan weekly once a minimum of five dollars in round ups is achieved. In the app’s first four months, customers paid an extra $250,000 toward their student loans.


Fifth Third estimates that customers who round up $25 a month using the Fifth Third Momentum app could pay off a 20-year loan three years sooner and pay 8 percent less in total by avoiding interest that would have accumulated, based on a loan of about $37,000 with 6.8 percent interest.

Fifth Third surprised Hiciu and thanked her for using the app by giving her $37,000, the average debt for a 2017 graduate. Hiciu was one of three Momentum app users who were randomly chosen to have up to $37,000 of their loans paid off.

With most of their remaining debt now paid, the couple will put the money that used to go toward Hiciu’s loans in a college savings account for their 18-month-old daughter.

In the Fifth Third Momentum app’s first four months, customers paid an extra $250,000 toward their student loans.

 

Programs, Education and Responsiveness

Lives also are improved through specialized programs for financial education, and through workshops and strategic alliances that bring more financial education to more people. Whether providing information on home ownership, identity protection or saving and investing, or by providing personalized help like credit counseling and tax preparation, we go the extra mile to boost financial wellness. More about these programs, which we call our Fifth Third L.I.F.E. (Lives Improved through Financial Empowerment®) programs, can be found here.

Our executive leadership and employees also work within each community on boards and as volunteers to ensure that our investments are improving lives in the communities we serve and bettering neighborhoods as a whole.

Finally, we always are honored to address immediate community needs. We responded to the devastating hurricanes and flooding that affected many in our footprint last year, and we again rallied to fight hunger in the U.S. by providing one million meals during the month of May.

Responsible Banking

Keeping the customer at the center of everything we do is the central component of our commitment to responsible banking. It’s the commitment we make to consumers to deliver best-in-class financial products and services, and to provide access to those services whenever and wherever consumers want them. We are responsible for ensuring that our complete product and service suite is accessible to all consumers, in all markets, and that we’re offering the right types of responsive products and services.

Our commitment is to act always in the best interest of consumers by providing reasonably priced products, defining clear terms and disclosures, and offering fair and consistent service. By doing so, we can build lasting customer relationships and meet our responsibility to help them prosper.

Impact Story

A Family’s Dream Made Possible by Fifth Third’s Down Payment Assistance Program

Alaysyah Yahyisrael wanted more space for her family and a yard for their dog, but at age 24, she figured a down payment for a house was out of her reach. Her goal was to stay in the neighborhood where she rented an apartment. It was close to her toddler son’s daycare facility and a short commute to her job with FedEx. Mostly, she wanted a manageable monthly payment.

“But all the houses seemed like too much—too much money, too much of a down payment, too much in taxes,” said Yahyisrael. “It seemed like it wasn’t going to work out.”

Things began to change after Yahyisrael met with her real estate agent and her Fifth Third mortgage loan originator. She qualified for our Down Payment Assistance program which offers 3 percent of the purchase price in down payment assistance, up to $3,600*, for low-income borrowers or those purchasing in a designated low-income area and financed through us. The program also can be combined with state and local programs to help consumers take advantage of grants and other resources for their home purchase. Her mortgage loan officer helped her qualify for two programs.

In 2017, Yahyisrael and her family moved into a $60,000 four-bedroom, two-bathroom, 2,246-square foot-home. She needed to bring $194 to the closing. “I love it. I can’t believe it,” Yahyisrael said, as she sat on the front porch with her boyfriend, Julian Robinson, and their son. “It’s more than I could have dreamed about.”

"I wanted to make sure her house fit her needs. She couldn’t have done this without Fifth Third."

Misha Houston,
Alaysyah Yahyisreal's Real Estate Agent,
Re/Max Preferred Group

Impact Story

Fifth Third Day Babies Get Financial Boost

Clinton and Kara Ciani’s daughter, Clark Jacob, was born on May 3, 2017. Soon after, the couple received another gift: $1,053 from Fifth Third Bank in honor of Fifth Third Day, the fifth month and third day of the year.

 

"Fifth Third Day Babies: What better way to celebrate than to recognize the brightest new members of our community?"

Tim Elsbrock,
President, Cincinnati Region

The idea was to help families start their babies’ first savings account or a 529 college savings plan account, a tax-advantaged savings plan designed to encourage saving for college costs. Only about 3 percent of Americans have a 529 account according to a study by the U.S. Government Accountability Office.

On Fifth Third Day, 108 families of babies born in hospitals from Northern Kentucky to Dayton received $1,053 from Fifth Third. Families also received a new parent care package.

The Ciani family was thrilled to receive the money and planned to open a 529 account for their daughter. “We want to help lessen the burden on our children,” Clinton Ciani said. His wife, Kara, added: “The sooner you start, the easier it is…. It’s her birthday; we can start today. You can’t really get much sooner than that.”

For over 25 years, the Bank has used May 3 (5/3) as a day to thank valued customers, recognize employee contributions and support communities across our footprint.

Building Better Businesses

Keeping the customer at the center of everything we do is inclusive of all our customers—not just those of our Consumer Bank. We understand that businesses, especially small businesses, are the lifeblood of economically vibrant and healthy communities.

Small businesses supply products and services to meet the needs of communities and provide employment opportunities for residents. Our primary service to businesses is to lend and provide quality depository and efficiency services.

Small Business Lending & Technical Assistance

Fifth Third is a U.S. Small Business Administration (SBA) lender. In 2017, our SBA lending was $155.9 million. SBA loans offer many benefits for small businesses, including fixed and variable interest rates with flexible terms, the ability to finance loan closing costs and lower down payments on commercial real estate.

We offer many types of SBA lending options, including SBA Express Loans, which feature simpler application processes and faster approval than 7(a) general purposes loans. Fifth Third’s SBA Express Loan production was $29.6 million and increased 24 percent in dollar volume from 2016.

Last year, we created a new small business community lender role and hired bankers to focus on low- and moderate-income markets. This builds upon our $30 billion Community Commitment, which includes $10 billion for small business lending, product innovation and enhanced underwriting and fulfillment.

The team assists small business owners and emerging entrepreneurs in achieving their financial goals by providing smart financial solutions for both personal and business needs. “The Small Business Community Lending team is a critical component of our outreach to underserved or under-banked small business owners in our communities,” said Kala Gibson, head of Business Banking.

We also provide technical assistance to small businesses. Our employees often provide one-on-one business consulting to small business owners on topics such as financial management, marketing and executive education.

Expanding Economic Opportunities

Community development financial institutions, otherwise known as CDFIs, share a common goal of expanding economic opportunity in low-income communities by providing access to financial products and services for residents and businesses. We are committed to supporting the work of CDFIs as part of our efforts to boost small business growth in underserved communities within our geographic footprint.

In 2017, we supported the Economic & Community Development Institute (EDCI) in Columbus, Ohio, through the Fifth Third Community Development Corporation (CDC). The Fifth Third CDC approved a $2 million investment in the institute’s micro-loan fund. EDCI is the third-largest U.S. Small Business Administration intermediary micro-lender and the largest in Ohio. It is also the largest U.S. Treasury-designated CDFI in the state with a focus on small business.

As is often the case, Fifth Third CDC’s investment was broadened by support from our Bank and employees. We provided $15,000 in charitable contributions and 185 volunteer service hours (July 2016-July 2017) to support EDCI’s small business education, technical assistance and Women’s Business Center programs. Banking center managers and small business lenders worked with ECDI’s Women’s Business Center to provide educational workshops. This support came after Fifth Third Bank (Central Ohio) provided a leadership gift of $50,000 for the build-out of ECDIs Women’s Business Center in 2014. At that time, it was the only SBA-funded Women’s Business Center in the state of Ohio. Today, it serves 345 women-owned small business members. Stefanie Steward-Young, our CRA strategies director, serves as Board Chair.

Impact Story

The Accion Impact

Our commitment to put business customers at the center of everything we do is the driving force behind our ongoing collaboration with Accion U.S. Networks, a global Community Development Financial Institution (CDFI).

Fifth Third and Accion share the goal of expanding access to capital and education resources to underserved small businesses. Our alliance makes that possible in Florida, Illinois, Indiana, Michigan and Ohio. In 2017, we collaborated with Accion to help entrepreneurs overcome barriers and achieve business growth, and Accion leveraged our grant to provide capital to small business owners and personal technical assistance for every small business owner who applies for a loan.

Dayton, Ohio, business owner Kevin Clemons is a prime example of a customer that Accion was able to assist. Clemons always had been interested in computer science and information systems, starting when his mother bought him a Commodore 64 as a child. After serving in the U.S. Marine Corps for eight years and becoming a top-level security engineer for the military, Clemons started his own cybersecurity firm in 2005. His business, ClemCorp, specializes in providing premier information technology, systems engineering and scientific services support to clients.

Over the past 12 years, Clemons has been growing his business. He has worked with a number of large clients, including the Wright Patterson Air Force Base. Despite this growth, the business relies on short-term contracts, which are not always paid in time for the business’s payroll cycle. In order to pay his employees, Clemons initially looked into a U.S. Small Business Administration (SBA) loan but did not qualify. His local Chamber of Commerce helped him by reaching out to us. Banker Micah Dickson connected him to Accion, which was able to provide him with a $21,000 loan. “My loan consultant was very good at keeping me informed and worked hard to get me what I needed to cover payroll,” Clemons said.

By the Numbers*



Up Next:

"We see it as an integral part of our business strategies to ensure that our communities thrive. We are committed to forging strategic partnerships across our footprint to positively impact community needs. This work contributed to our ‘Outstanding’ CRA rating and our ongoing fulfillment of our $30 billion Community Commitment."

Byna Elliott,
Chief Corporate Community & Economic Development Officer

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2017 Corporate Responsibility Report

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