BMO Financial Group continued to enhance its digital strategy in the first quarter of 2023 via new digital card options, investment in AI capabilities and other automated solutions.

THE BIGGER PICTURE: “We introduced several new automated solutions in commercial banking to improve efficiency and deliver best-in-class client and employee experiences,” said Chief Executive Darryl White during today’s earnings call.

For example, the $805 billion bank introduced a fully digitized mortgage refinancing process in partnership with fintech Blend, White said.

Additionally, the bank is scaling its AI-powered chat tool BMO Assist in the U.S. to improve customer service offerings, according to the bank’s earnings presentation. The investment follows the trend of AI-driven assistant launches from Truist, Bank of America and the excitement surrounding ChatGPT.

BY THE NUMBERS:

• Active digital engagement in retail channels increased 6% year over year to 3.6 million;
• Active digital engagement in commercial banking grew 11% YoY to 242,000; and
• Adjusted expenses increased 9% YoY to $4.1 billion.

MARKET REACTION: BMO’s stock was down 1.89% to $94.57 at 12 p.m. ET Tuesday, compared to $96.39 at market close Monday.

NOTEWORTHY: The bank recently closed two acquisitions: On Feb. 1, it completed the acquisition of Bank of the West for $13.8 billion, and in December 2022, the bank closed its acquisition of sustainability advisory service Radicle Group, according to the bank’s earnings supplement.

The Bank of the West deal brings thousands of new employees and 1.8 million customers to the bank, White said during the earnings call. “We come together with a shared vision to drive progress for our customers and communities.”

FLASHBACK: The bank tapped robotic process automation provider UiPath in 2022 to advance its risk and cybersecurity automation.

“We are working together with several business partners to build creative solutions for the bank,” Lisa Christofilos, chief information officer of data and analytics at BMO, previously told Bank Automation News.

FORWARD LOOK: BMO continues to invest in talent and technology, specifically in its wealth management business, White said, noting, “We’re driving progress for our clients by investing in innovation such as the launch of BMO Investor Line ESG Insights tool that helps investors make informed decisions that align with their strategies and with their values.”

“The strategic investments we’ve been making in talent and technology are driving good growth in each of our businesses,” he said.

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