KeyBank Marks $100M for Technology to Support Continued Growth

KeyCorp is increasing its number of frontline bankers and client advisers by 10% and has boosted its investment in technology by nearly $100 million this year to support the company’s growth.

The firm defines frontline bankers as investment bankers, middle market relationship managers, payments advisors and wealth managers, according to a Tuesday (July 22) earnings release.

With these bankers, KeyCorp is pursuing opportunities in areas like wealth management and embedded banking, KeyCorp Chairman and CEO Chris Gorman said Tuesday during the company’s second-quarter earnings call.

KeyCorp’s growing investment in technology supports these bankers and enables them to be “more impactful to both their clients and their prospects,” Gorman said.

Gorman added that the company replaces core systems every year, has migrated half of its apps to the cloud, remains committed to continuous improvement, and is focused on using technology to “not only take out expense but have it be a better experience for both our teammates and our employees.”

“We accelerated investments in people and technology late last year, and we are already seeing returns on those investments,” Gorman said. “For example, in the case of our middle-market banking, the teams that we onboarded in Chicago and Southern California this last November have already driven new client growth, loan volumes, payments and investment banking business.”

KeyCorp, which is based in Cleveland, Ohio, provides banking services in 15 states under the name KeyBank National Association and offers corporate and investment banking products throughout the United States under the name KeyBanc Capital Markets.

During the second quarter, the company saw 21% year-over-year growth in its revenue and 10% year-over-year growth in noninterest income, according to the earnings release. It also saw its commercial loans grow $2.1 billion, its assets under management reach a record high of $64 billion, its investment banking pipelines remain at “historically elevated levels,” and its commercial payments-related fees increase by high-single-digits.

Gorman said during the call that KeyCorp’s investment banking had its second-best first half of the fiscal year in the company’s history.

Looking ahead, KeyCorp raised its outlook for fiscal year 2025. The company now expects its average loans to be down 1% to 3%, compared to its previous outlook of down 2% to 5%; its ending loans to increase about 2%, up from flat; its net interest income to increase 20% to 22%, up from its previous outlook of about 20%; and its adjusted noninterest income to be up 5%, according to a presentation released Tuesday.

KeyCorp Chief Financial Officer Clark Khayat said during the earnings call: “While client sentiment has improved compared to where it was on our last earnings call in mid-April, the environment remains dynamic.”

Gorman said during the call that KeyCorp’s commercial clients are “cautiously optimistic,” and its consumers are “just fine.”

“I’m out talking to our clients all the time, and it’s interesting,” Gorman said. “They go through all the macro concerns — geopolitical, tariffs, trade — and then you ask about their business, and they say they feel pretty good about their business.”

Gorman also said during the call: “We are enjoying significant success in the marketplace while concurrently making investments in people and technology that will drive our future growth.”

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