Fifth Third Completes Acquisition of Provide, a Fintech Company Serving Healthcare Practices Nationally

Rhea-AI Summary

Fifth Third Bancorp (NASDAQ: FITB) has finalized the acquisition of Provide, a digital platform focused on healthcare practices. This strategic move aims to enhance the client experience for healthcare providers, allowing them to concentrate on patient care while Fifth Third streamlines their banking needs. Provide, which originated over $1 billion in loans, will operate independently, continuing to expand its offerings. The acquisition aligns with Fifth Third's commitment to the healthcare sector, leveraging its strong digital capabilities to meet complex lending needs within a rapidly growing industry.

Positive

• Acquisition enhances client experience for healthcare providers, enabling them to focus on patient care.
• Provide has a strong history with over $1 billion in loans originated and broad banking services.
• Integration will enhance Fifth Third's digital capabilities in the healthcare banking sector.

Negative

• None.

Fifth Third Bancorp (NASDAQ: FITB) today announced it has closed on the acquisition of Provide, a digital platform for healthcare practices.

“Provide enables us to deliver a client experience that allows healthcare providers to focus on what they do best—providing the care their patients need while we make their banking experience convenient and efficient,” said Kala Gibson, head of business banking.

Building on Fifth Third’s strong legacy of digital innovation and focus on the healthcare sector, this acquisition adds world-class national digital capabilities addressing the most complex lending and banking needs of retail healthcare providers. In 2018, Fifth Third was an early investor in Provide, and the bank began funding loans through the company’s platform in 2020. Provide will maintain its brand identity and operate as an independent business line as it continues to scale and expand product offerings for healthcare practices and the doctors who own them nationwide.

Founded in 2013 by Daniel Titcomb and James Bachmeier III, Provide offers an integrated suite of financial products that makes starting and running a healthcare practice easier, giving providers more time to care for their patients. Provide’s first product was practice lending, enabling providers to start, buy or expand healthcare practices, and it has since grown to offer banking accounts and payments services. Through its history, Provide has originated more than $1 billion in loans, and in partnership with Fifth Third, has provided core banking and payments services to over 70% of the doctors for whom it provides financing.

The healthcare industry is one of the largest and fastest growing segments of the U.S. economy. Over the last decade, Fifth Third’s healthcare team has expanded its presence and expertise to become one of the top healthcare banking platforms for middle-market and corporate clients.

About Fifth Third

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of June 30, 2021, the Company had $205 billion in assets and operates 1,096 full-service Banking Centers, and 2,369 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 53,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2021, had $483 billion in assets under care, of which it managed $61 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.”

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FAQ

What is the purpose of Fifth Third's acquisition of Provide?

The acquisition aims to enhance the banking experience for healthcare providers, allowing them to focus on patient care.

How much has Provide originated in loans to date?

Provide has originated over $1 billion in loans since its inception.

What will be the operational status of Provide after the acquisition?

Provide will maintain its brand identity and operate as an independent business line under Fifth Third.

How does this acquisition impact Fifth Third's position in the healthcare sector?

This acquisition strengthens Fifth Third's digital capabilities and positions it as a leading banking platform for healthcare providers.