Wells Fargo

The American multinational financial services company Wells Fargo is planning the largest investment in technology banking personnel in its more than 20-year history.

According to Mr. Tom Harper, who leads this team, the company aims to increase its staff by about 20 people in 2024 and plans to expand its workforce this year as well.

This move is an important milestone for Wells Fargo and reflects its focus on technology-related clients and its expanding role in the industry.

“This is the largest investment in our technology banking team since it started over 20 years ago,” said Mr. Harper. “As we build relationships, we have quietly grown, and we will continue to invest in this area.”

Wells Fargo's commercial banking division has significantly revised its expansion of technology banking, accounting for about 15% of its net income.

Furthermore, the company is not only providing loans to technology companies through various methods such as loans secured by software receivables, but is also looking to participate in M&A, debt and equity capital market transactions, and equity investments in technology companies.

Recovery plan from the regional bank crisis of 2023

The regional banking crisis of 2023 caused significant turmoil in America's tech banking sector as companies scrambled to move funds following the collapse of major players like Silicon Valley Bank and First Republic Bank.

Recently, Wells Fargo focused on supporting existing customers and took a cautious approach to building new partnerships, acting “as strategically as possible.”

According to Mr. Harper, they have gradually grown through these relationship-building efforts. This also means maintaining investment in the industry and converting prospects into loyal customers.

Five years ago, the company established a specialized industry group within its commercial banking division, designating industry experts to provide loans to mid-sized companies across 11 different market segments.

In January 2024, Ms. Mary Catherine Dubois was appointed as the leader of the specialized industry group, and Mr. Harper is now reporting to her. Subsequently, this position was elevated, and Ms. Dubois now reports directly to Mr. Kyle Flanigan, the CEO of the commercial bank.

Mr. Harper emphasizes that this strategy aims to combine talent and assets with other functions such as commercial banking, wealth management, investment banking, and financial services at Wells Fargo.

For example, he works closely with Jerry Walters, the Chief Technology Officer of an investment bank specializing in M&A advisory and capital markets.

Growth restrictions due to Wells Fargo's advance and asset cap

According to Mr. Harper, in the technology sector, Wells Fargo is attempting to participate in various lending methods from its balance sheet, as well as M&A and debt and equity capital market transactions. The bank is also a limited partner in the venture investment firm Northwest Venture Partners and is making equity investments in technology companies that provide products benefiting Wells Fargo.

However, Wells Fargo is under asset cap constraints that prohibit growth beyond approximately $1.95 trillion, exceeding the levels of 2017.

Appointed as CEO in October 2019, Charlie Scharf addressed growth issues by downsizing certain divisions like mortgages and promoting the expansion of other divisions such as credit cards and investment banking.

As a result, Wells Fargo's total commercial loans increased from $500.3 billion at the end of 2017 to $540.7 billion in the first quarter of 2025. However, during the same period, consumer loans facing regulatory challenges, such as mortgages and auto loans, decreased from $445.4 billion to $34.3 billion.