Wells Fargo & Company (NYSE:WFC) Q1 2018 Earnings Conference Call Transcript

Apr 13, 2018 • 10:00 am ET


Wells Fargo & Company (NYSE:WFC) Q1 2018 Earnings Conference Call Transcript


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Timothy Sloan

as part of our efforts to build a better bank and rebuild trust with our stakeholders. These efforts include progress on our six goals.

Starting with our goal of becoming the leader in customer, service and advice, we focused on new ways to create a better customer experience. This includes a number of changes to help our customers better manage their accounts by leveraging data and technology. In the first quarter, we rolled out Predictive Banking, which provides personalized insights and guidance to mobile deposit customers. A year ago, we introduced automatic zero balance alerts, and we now send over 20 million low and zero balance alerts a month. In November of last year, we introduced Overdraft Rewind, which has helped over 800,000 customers avoid overdraft charges.

We also offer our customers a variety of ways to waive the standard monthly service fees on checking accounts based on account usage or direct deposit. And as a result, approximately 90% of our checking account customers do not pay a monthly fee. These actions are designed to help our customers succeed financially and to build long-term relationships. And we've made changes to compensation and processes in our branches, which are also improving customer service. And in the first quarter, customer loyalty survey scores reached their highest levels since August of 2016.

Team member engagement is our second goal, and I believe we have the best team in the industry. In March, we increased the minimum hourly pay rate for US based team members to $15 an hour, and approximately 36,000 team members received an increase. We also reviewed pay for team members whose salaries were slightly above the new minimum wage. And this month, we're increasing base pay for approximately 50,000 additional team members. In March, we granted an award of restricted stock rights to about 250,000 team members, including 50 shares of stock for full time eligible team members and 30 shares for part time team members. In the first quarter, our team member turnover continues to be about 15% below fourth quarter of 2016 levels.

Our next goal is being a leader in innovation. In the first quarter, we rolled out our digital mortgage application, which combines the power of Wells Fargo's data with a You Know Me customer experience. In many cases, homebuyers are now able to receive pre-approved loan decisions immediately, either online or through their mobile device. In March, 10% of competed retail applications were through our digital mortgage application. We also started a team member pilot of our Control Tower feature, designed to provide customers a comprehensive view of the places their Wells Fargo card or account information is connected.

In January, we were named one of only 12 companies in Apple's business chat pilot, which is a new way to connect with our customers and accelerates our customer service transformation toward messaging. Our industry leading technology was recently recognized by Dynatrace, which named Wells Fargo's mobile app number one in overall performance, functionality and quality,