SKN | ‘The World Is Our Oyster Now’: Wells Fargo CEO Eyes Growth Beyond Asset Cap

Wells Fargo CEO Charlie Scharf said the bank has entered a new era of strategic freedom following the Federal Reserve’s decision to lift its long-standing $1.95 trillion asset cap in June. Speaking Tuesday at the Goldman Sachs U.S. Financial Services Conference, Scharf outlined how the removal of the cap opens the door for renewed growth, operational improvement, and reinvestment—while acknowledging that artificial intelligence and restructuring will continue to reshape the bank’s workforce.

A New Chapter After a Seven-Year Restriction

For seven years, the asset cap constrained Wells Fargo’s ability to grow deposits and expand its consumer banking operations. Scharf noted that the bank had been allocating $2–$2.5 billion annually toward addressing regulatory shortcomings, but that capital can now be redirected toward strengthening the bank and expanding services.

“With the cap gone, we can now compete on a much more level playing field,” Scharf said. He added that Wells Fargo no longer sees structural barriers preventing it from achieving “best-in-class” growth and returns in its consumer business.

Growth Without Pressure for M&A

Although the regulatory environment has become more favorable to large bank mergers, Scharf said Wells Fargo feels no urgency to pursue acquisitions. The bank’s existing scale, he argued, gives it ample room for organic growth.

“We think we’ve got so many opportunities to grow the franchise… we feel no pressure to do anything,” he said, emphasizing that any potential acquisition would need to be highly strategic and generate meaningfully strong returns.

AI Productivity Soars—but Workforce Shrinks

Artificial intelligence is transforming operations inside the bank, especially in software development. Scharf revealed that Wells Fargo is now 30%–35% more efficient in writing code thanks to generative AI. Although the bank has not yet reduced coding staff, the efficiency gains signal long-term workforce changes.

Across the broader organization, however, headcount has already shrunk from 275,000 to about 210,000 under Scharf’s leadership. More reductions are expected soon.

“We’ll likely have more severance in the fourth quarter,” he said, adding that AI’s long-term impact on staffing will be “extremely significant.”

Despite this, Scharf called AI a “positive reality,” emphasizing the bank’s plans to retrain employees and use natural attrition to manage workforce changes.

A Focus on Market Share and Execution

Scharf’s priority moving forward is rebuilding organic growth momentum, particularly in deposits.

“Our ability to take share now is dependent on our ability to execute with the competitive advantages that we have,” he said.

With the regulatory cap lifted and investment funds redirected toward new initiatives, Wells Fargo is positioning itself for a stronger competitive stance in 2026 and beyond.

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