Following the recent launch of business credit cards, the Minneapolis-based lender seeks to win small-business customers by bundling services, CFO John Stern said.

Consumer and small-business deposits provide stable funding as U.S. Bank has endeavored to bolster its net interest income and margin this year, Kedia noted Thursday. Third-quarter net interest income rose about 6%, to $4.5 billion, and net interest margin was 2.84%, up 9 basis points year over year, according to the bank’s earnings release.

The savings offering within the Smartly suite, which allows customers to optimize rewards based on their deposit relationships, has amassed around $55 billion in deposits since its 2024 launch, CFO John Stern said Thursday.

“That has really been the way to go,” Stern said in an interview. “We've attempted to replicate that on the small-business side, where we can offer things like checking, merchant [processing] and card.”

In September, the bank launched two business credit cards that offer relationship boosts tied to balances in deposit accounts and are linked with the bank’s spend management platform.

Bundling those services can differentiate the bank as it seeks to scale, Stern said. In terms of deposit pricing, acquiring small-business deposits can be a bit more advantageous because entrepreneurs tend to be less interested in rate and more interested in money movement and other account capabilities, he said.

88% in the third quarter, and its n on-interest bearing and managed deposits increased 6% year over year, according to an earnings presentation .

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