U.S. Bancorp 2009 Annual Report

Combining Straightforward Banking and Innovation

A rock solid foundation allows us to make improvements and test innovations

U.S. Bancorp has adhered to conservative and traditional banking principles and products through the years and throughout the recent financial crisis. We've focused on what's fundamental to our future — and to the future of our customers, shareholders and employees. A large part of what's fundamental is to embrace what we understand, avoid what doesn't feel right for our customers, and keep it as simple as possible in a complex, technological world.

Our four major lines of business serve a wide range of customers while maintaining our low-risk profile. We will continue to grow our bank through the organic growth of our established lines of business — Payments, Consumer Banking, Wholesale Banking and Wealth Management. We manage the bank for solid, long-term growth, and we do not aspire to focus on the more complicated businesses such as investment banking, brokerage or insurance.

Where fundamental meets the future

At the same time, we are at the forefront of innovation to make banking faster, easier or more convenient for our customers. We are also developing service delivery that is more cost effective and reliable.

We look for innovations that make our products and services simpler and more transparent and that allow our customers to choose products that are right for them. In 2009, for example, we introduced our Platinum, Gold and Silver package accounts for consumers and business customers, bundling the most-used accounts into quick and cost-saving packages with special product benefits.

Our ongoing commitment is for surer ways to keep our systems and our customers' accounts safe from cyber predators and identity thieves. Innovation in fraud detection and mitigation is always at the top of our priority list, as are new techniques and technologies to aid risk management.

Rarely is our innovation a "big bang" that transforms an industry; often it is a new way to make progress from where we had been before. Innovation may be in delivery, packaging or incremental innovation in product improvement or delivery channels. Collaboration and alliances with valued partners also lead to innovation — our July launch of Syncada, a joint venture with Visa, handles payments on behalf of corporations and government agencies.

We want our customers to bank the way they want, when they want and where they want. Many choose our branches, our business relationship managers and our private bankers. Others phone our call centers or bank online. Still others want to take the bank along with them everywhere — and "we have an app for that!"

We are very close to that point where the physical, electronic and virtual blend into the best possible customer experience.