Regional bank Fifth Third just inked a major deal with fintech Brex to power its entire commercial card program, marking a pivotal shift in how traditional banks are embracing fintech partnerships over costly in-house development. The move comes as Fifth Third positions itself to become the ninth-largest U.S. bank through its pending Comerica acquisition.
Fifth Third is betting big on fintech partnerships instead of building from scratch. The Cincinnati-based regional bank announced Tuesday it's handing over its entire commercial card program to Brex, the San Francisco startup that's been quietly building the infrastructure that powers corporate spending for thousands of companies.
The deal puts $5.6 billion in commercial card volume onto Brex's embedded payments platform, which automates expense reporting using AI tools that can categorize transactions, flag policy violations, and integrate directly with accounting systems. For Fifth Third, it means instant access to technology that would have taken years and millions of dollars to develop internally.
"Our partnership with Brex is a commitment to redefine how companies leverage financial technology," Fifth Third CEO Tim Spence told CNBC. "By combining the strength of a leading bank with Brex's AI-driven innovation, we're creating intelligent solutions that simplify complexity, drive efficiency and enable businesses to scale globally with confidence."
The timing isn't coincidental. Fifth Third is in the middle of acquiring Comerica for $2.8 billion, a deal that would vault it to become America's ninth-largest bank with $288 billion in assets. That scale requires enterprise-grade fintech infrastructure, and building it in-house would divert resources from the integration process.
This reflects a broader shift happening across regional banking. While the megabanks like JPMorgan Chase and Bank of America can afford to spend billions on proprietary technology, mid-tier banks are increasingly turning to fintech partnerships to compete. Brex has positioned itself perfectly for this trend, offering white-label solutions that let banks deliver cutting-edge features without the development headaches.
The partnership gives Brex access to extensive business client base, while the bank gets AI-powered expense management tools that can automatically reconcile transactions, enforce spending policies, and generate real-time financial insights. It's the kind of seamless integration that modern CFOs expect but traditional banking infrastructure struggles to deliver.
