Scotiabank to Invest $1 Billion in Digital Technology

Scotiabank has set aside $1 billion for investing in digital technology over the next three years.

The announcement comes weeks after the financial services firm kick-started nearly half a dozen digital labs and teamed up with QED Investors to promote fintech startups in Latin America.

Decreasing activity at its branches and the rising popularity of mobile banking apps seem to have driven the bank toward digital technology.

“Our customers want to do more with their banking through digital channels,” said Brian Porter, CEO of Scotiabank. “We intend to be a digital leader in the financial services industry, not only here in Canada, but also in our key Pacific Alliance markets of Mexico, Peru, Colombia, and Chile.”

The bank also believes that digital technology will dramatically improve its productivity, besides helping it to cut operational costs.

Over the past 18 months, Scotiabank has invested millions of dollars into new technologies, such as analytics and machine learning, with the bank already announcing plans to cut 5% of its branches in the next two years.

The bank said half of its $2 billion technology budget for the next three years would be invested in digital technology as it looks to position itself at the forefront of banking innovation.

At its digital labs, engineers are tasked with developing technology solutions that dramatically improve customer experiences. Some reports suggest the bank is even trying to explore artificial intelligence.

Alongside Scotiabank, most banks in the developed world are scrambling to adopt digital technology in order to improve productivity and keep pace with evolving consumer trends.

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