Businessmodel of U.S. Bank

Customer Segments

US Bancorp provides products and services to a diverse base of clients. The Company offers a range of products that serve customers across three principal categories:

• Individual Customers, comprising general consumers across multiple demographics to whom the Company provides a range of consumer banking products and services;
• Commercial Customers, comprising business entities across a range of commercial business sectors, to which the Company offers various banking and lending services;
• Institutional Customers, comprising non-profits and charitable organisations, government and public bodies, and other financial institutions. US Bancorp provides services primarily to customers within the Company’s domestic markets, to domestic customers with foreign operations and to large national customers operating in specific industries targeted by the Company.

The Company principally serves customers across its native US, with a particular presence in the country’s Midwest and West regions. Through certain subsidiary operations, the Company also provides services to customers in Canada, Mexico, Brazil, and parts of Europe.

Value Propositions

US Bancorp provides value to its customers in the following ways:

• Its industry standing and reputation, with the Company established as a leading provider of financial services to clients across the US, with a reputation for being a popular and reliable provider of consumer and commercial banking products;
• Its broad range of products and services, with the Company offering a diverse portfolio of products and services – including credit, lending, and wealth management services – catering to individual consumers, commercial entities, and institutional clients;
• Its accessibility, with the Company making its products and services easily available to its clients, providing direct banking assistance through its extensive network of bank branches across the US, as well as self-service online and mobile banking platforms; and
• Its industry expertise and experience, with the Company employing specialist banking personnel across its enterprise, as well as a team of experienced industry executives. ### Channels

US Bancorp operates a website at www.usbank.com, through which it provides detail on its individual banking and lending services, as well as its various branch locations. The Company’s website also serves as a link to the Company’s online banking portal, which enables customers to manage their accounts directly, make payments, apply for products, and access resources. US Bancorp also offers a mobile app for iOS and Android devices that provides similar functionality.

US Bancorp provides services through various subsidiary companies and operating divisions dedicated to specific services, notably its core subsidiary US Bank. US Bank serves consumers through its extensive branch office network, comprising 3,133 banking offices principally operating in the Midwest and West regions of the US, where in-branch staff can assist customers directly.

The Company additionally operates a network of 4,936 automated teller machines across the US, which customers can use independently to make withdrawals and deposits.

Customer Relationships

US Bancorp provides a range of products and services to its customers on a self-service basis, primarily through its online and mobile banking portals. These channels allow customers to manage their accounts, make payments and transfers, apply for lending products, and access resources without interacting directly with members of the Company’s sales and service teams. Additionally, customers are able to use the Company’s network of automated teller machines to independently make withdrawals and deposits.

US Bancorp provides direct personal banking assistance to its customers through its network of US Bank-branded branches. In-branch staff are able to consult directly with clients in order to tailor products and services to their individual needs and circumstances, ensuring that they receive access to appropriate products.

US Bancorp operates a dedicated customer support organisations, the members of which can be contacted over the phone or online, and are able to provide personalised responses to queries, complaints, and enquiries. The Company also offers a range of online resources – such as FAQs, user guides, and product information – which can be accessed independently.

Customers can follow US Bancorp’s activities and interact with the Company directly through its social media accounts, including with Facebook and Twitter.

Key Activities

US Bancorp is a multi-state financial services holding company. The Company operates principally through its banking subsidiary US Bank, which provides a broad range of banking services in domestic markets.

The Company’s portfolio of products and services includes lending and depository services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and automated teller machines processing, mortgage banking, insurance, brokerage and leasing.

US Bank serves a diverse range of clients, including individuals, businesses, institutional organisations, governmental entities and other financial institutions. US Bank operates a network of more than 3,000 branches across the US, as well as online and mobile banking platforms.

Key Partners

US Bancorp works closely with a broad network of partner companies and organisations in order to provide customers with effective services. These partners can be organised broadly into the following categories:

• Supplier and Vendor Partners, comprising suppliers of services, equipment, and technologies that are utilised across the enterprise, as well as companies to which certain non-technical functions can be outsourced;
• Campus Partners, comprising various universities and higher education institutions with which the Company partners to provide banking services that cater to the needs and circumstances of students;
• Joint Venture Partners, comprising various other financial services and banking companies with which the Company jointly provides services and products through mutually owned entities; and
• Strategic and Alliance Partners, comprising market leading companies across multiple business segments with which the Company collaborates on joint marketing and other projects. US Bancorp has a number of partnerships in place. This includes a number of university partnerships – including with California State University, Washington State University, and John Carroll University – as well as a credit partnership with Fidelity Investments, and a partnership with FutureAdvisor.

Key Resources

US Bancorp’s key resources are its financial reserves, its online and mobile banking platforms, its IT and communications infrastructure, its network of physical branch offices, its partnerships, and its personnel.

US Bancorp owns and or leases a portfolio of physical properties that are key to its operations. At December 31st 2015, the Company and its subsidiaries owned and operated a total of 1,594 facilities and leased an additional 2,091 facilities. This includes its network of branch offices across the US, its nine freestanding operations centres, and its 11 principal operations centres.

US Bancorp uses a number of technologies in its various service offerings. Searches of records published by the US Patent and Trademark Office identified no patent applications filed in US Bancorp’s name.

Cost Structure

US Bancorp incurs costs in relation to the development of its online and mobile banking platforms, the maintenance of its IT and communications infrastructure, the operation of its physical branch office network, the implementation of marketing and advertising campaigns, the procurement of professional services, the management of its partnerships, and the retention of its personnel.

In 2015 US Bancorp recorded compensation expenses in the amount of $4.81 billion, employee benefit expenses in the amount of $1.17 billion, net occupancy and equipment costs in the amount of $991 million, professional services expenses in the amount of $423 million, marketing and business development costs in the amount of $361 million, and technology and communications costs in the amount of $887 million.

Revenue Streams

US Bancorp generates revenue through the provision of various banking and lending services to individuals, commercial entities, and institutional bodies. The Company derives its revenue primarily in the form of service and product fees. It also derives revenue in the form of interest.

In 2015 US Bancorp recorded total net revenue for the year in the amount of $20.31 billion, up slightly on the $20.16 billion recorded by the Company in the 2014. The Company’s non-interest income totalled $9.09 billion, with credit and debit card revenue, merchant processing services, and trust and investment management fees all accounting individually for more than $1 billion in annual revenue.