Fifth Third pursues alternative growth strategy (with stake in Ohio Startups)

Story excerpt provided by Cincinnati Enquirer.

Written by Alexander Coolidge.

Mergers and acquisitions are heating up among banks nationwide as low-interest rates and a sluggish economy keep a cap on revenue growth from lending. But Fifth Third has failed to find an attractive takeover target to boost its own business.

Fifth Third Bancorp is pursuing an alternative growth strategy, instead of solely using the banking industry’s traditional tactic of gobbling smaller rivals…

…In the last six months, Fifth Third has bought stakes in Zipscene, a consumer insights firm in Downtown Cincinnati; Cleveland-based human resources firm OnShift Inc.; and Transactis, a New York electronic and billing company. The common thread among these investments is these business-to-business firms all offer services that Fifth Third plans to turn around and market to its roster of business lending clients…

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Originally published May 6, 2016.