First Horizon Business Model Canvas

Treasury counterparties, brokers and institutional investors provide funding and hedging for First Horizon, linking short-term liquidity to wholesale markets. With the US 10-year Treasury averaging ~4.3% in 2024, wholesale access supports balance-sheet optimization and funding cost management. Global OTC derivatives notional exceeds $600 trillion (BIS), enabling interest-rate and FX solutions, while active investor relations sustain stable capital access.

First Horizon leverages 150+ correspondent banks to expand payments and syndications, accessing >$10bn liquidity lines during 2024 stress. Core vendors and fintechs support operations across a ~$86bn balance sheet (2023) and cut time-to-market ~30–50%. Mortgage/channel partners and treasury counterparties link originations to secondary-market liquidity amid $13.8T US mortgage debt (2024).

Advisory, investment management, and trust services for affluent clients form First Horizon’s Wealth & Private Banking core, delivering tailored fiduciary solutions and estate planning. Customized credit lines and mortgage solutions complement deposit and planning needs to deepen client relationships. Holistic financial planning boosts retention and lifetime value. Discretionary mandates drive recurring fee revenue—industry advisory fees averaged about 0.82% AUM in 2024.

First Horizon focuses on low‑cost deposit gathering, ALM-led liquidity and fee growth from commercial cash management. Underwriting and portfolio management drive commercial, CRE and mortgage income while syndications limit concentration. Wealth/Trust and servicing deliver recurring fees—servicing ~$30B and ~$120M fees in 2024; advisory fees averaged 0.82% AUM.

Modern cores, APIs and data platforms enable scalable services and real-time processing across First Horizon’s network, supporting digital growth in 2024. Cybersecurity and fraud detection tools harden client and bank defenses amid heightened regulatory scrutiny in 2024. Workflow automation lowers errors and operating costs, while advanced analytics deliver personalization and actionable risk insights.

Stable, diversified deposit base funds lending and drives net interest spread; 2024 prioritized core deposits and liquidity. Experienced bankers, risk and compliance teams plus modern cores, APIs and analytics enable scalable, personalized services and lower costs. Regional footprint, brand and ~400 branches support origination and client retention, with CET1 at 10.1% (2024).

First Horizon delivers treasury, lending, and advisory tailored to growing businesses in the middle market (defined as $10M–$1B in annual revenue), a segment that generates roughly one-third of US private‑sector GDP. Industry knowledge speeds deal structuring and execution, shortening time‑to‑close on complex financings. Scalable cash‑management and credit solutions adjust across downturns and growth phases. Data‑driven analytics steer liquidity, working capital and capital‑allocation decisions.

Relationship-centric service across ~400 branches (2024) pairs local decisioning and single-point contacts to speed outcomes and boost retention. Integrated Wealth & Private Solutions offers tax-aware planning and customized credit amid a 2024 Fed funds rate of 5.25–5.50%. Middle-market treasury and lending target firms that drive roughly one-third of US private-sector GDP, while >80% of retail interactions shifted to digital in 2024.

Periodic planning sessions deepen client insight and, per First Horizon reporting, support advisory growth alongside the bank’s 2024 focus on wealth services. Regular portfolio and credit reviews adapt advice to market shifts and higher volatility seen in 2024 markets. Financial education initiatives—linked to a 2024 industry finding that educated clients are more loyal—build confidence and retention. Clear documentation and follow-ups create operational clarity and audit trails.

Assigned bankers support 1M+ clients and $83.4B assets (2023), with SLAs and proactive outreach for rapid resolution. 75% mobile adoption (2024) plus in-app chat and MFA reduce branch/call volumes. Event-driven personalization (McKinsey 5–15% uplift) and 2024 wealth-service expansion deepen relationships.

Relationship Manager Direct (First Horizon, NASDAQ: FHN) connects clients to bankers via phone, email, and secure messaging; high-touch service shortens decision cycles and coordinated calendars ensure timely meetings, while documentation flows through encrypted client portals for compliance and auditability.

Physical branches (~360 in 2024) offer sales, service and cash; advisory teams handle complex commercial and wealth needs.

Digital channels provide 24/7 self-service with 99.9% platform uptime; digital onboarding reduced account opening to minutes and raises engagement.

APIs and fintech partners expand reach (embedded finance market ~$138B in 2024), supporting treasury, mortgage leads and marketplaces.

Small and middle-market businesses require deposits, credit, and treasury services to manage working capital and fund growth; SMBs represent 99.9% of US firms and employ about 61 million people (U.S. Census/BLS 2023). Cash flow predictability and payment speed are critical—56% of firms cite cash flow as a top concern (Federal Reserve Small Business Credit Survey 2023). Industry nuances drive product fit, and growth phases need scalable lending, payments, and treasury solutions that can expand from $250k to multi‑million credit lines.

Retail: 64% digital-first, ~70% still value branches; lifecycle moves from checking to mortgages and wealth. Affluent: bespoke credit/advisory; First Horizon assets $92.4B (2023). SMBs: 99.9% of US firms, 61M employees; 56% cite cash flow as top concern. CRE: fed funds 5.25–5.50% (end‑2024); munis ~$4T, nonprofit assets ~$4.5T (2024).

Core systems, cloud platforms, and customer-facing digital features demand sustained investment for First Horizon, with cloud migrations and API workstreams driving most near-term spend. Cyber defense and fraud prevention are ongoing, aligning with Gartner's estimate that global security spending reached about 200 billion in 2024. Vendor and license costs scale with active users and transaction volumes, while modernization initiatives have been shown to lower long-term unit costs through automation and cloud efficiency.

Deposit pricing and wholesale funding drive core funding costs, with the fed funds target at 5.25–5.50% end-2024 directly affecting margins; active hedging and deposit mix shifts reduce sensitivity. Personnel costs are largest operating line—FHN employed about 7,000 staff in 2024, making payroll the top expense. IT, cyber and modernization (global security spend ~200 billion in 2024) and compliance remain material ongoing investments.

In 2024 treasury and payments—cash management, ACH, wires and merchant services—remained a core fee driver for First Horizon, with pricing tied to service levels and value delivered to corporates and SMBs.

Net interest income is driven by asset‑liability spreads and core deposits sustaining margins. Wealth fees averaged about 0.70% of AUM in 2024 (Cerulli), with >90% client retention commonly. Card interchange exceeded $130B in the US (2024); mortgage origination volumes fell in 2024 as rates remained elevated.