Scotiabank increases tech spend 9% in Q1

The Canadian Scotiabank increased its year-over-year tech spend by 9% to $372 million during the first quarter to support business growth as the bank adjusts to recent staff reductions and prepares for economic uncertainty in the year ahead. WHY IT MATTERS: The $1 trillion bank has committed itself to “purposeful capital allocation,” President and Chief Executive Scott Thomson said during Tuesday’s earnings call, as the bank had previously cut tech staff while making digitization a priority. Due to rising interest rates, the bank is looking to reduce spending in non-critical areas moving forward, Thomson added. “Higher personnel costs and spend on certain technology projects primarily drove the expense growth in the quarter. We will be even more thoughtful about expense control across the bank for the remainder of the year,” he said. [caption id="attachment_57365067" align="alignright" width="300"] Photographer: Christinne Muschi/Bloomberg [/caption] BY THE NUMBERS: Scotiabank posted in Q4: Active digital users increased 7% YoY to 8.8 million; Active mobile users grew 12% YoY to 7.8 million; and Total revenue fell less than 1% YoY to $7.9 billion. MARKET REACTION: Behind lower-than-expected revenue, Scotiabank’s stock opened Tuesday at $51.50 per share, down 2% from Monday’s closing price of $52.70. FLASHBACK: In Q3 2022, Scotiabank added 150,000 new members to its mobile app rewards program Scene+ . The program , launched in December 2021, allows members to earn points through the bank’s mobile app by making purchases with their bank debit or credit cards, according to Scotiabank. In addition to Scene+, the bank launched Scotia TranXact during Q3 2022, which allows business clients access to real-time payments via APIs. FUTURE LOOK: Scotiabank is planning to exercise greater expense control in the year ahead while maintaining a “digital-first mindset,” Chief Financial Officer Raj Viswanathan said during the call. Keeping a digital-first mindset will allow for "better customer and employee experiences at a lower productivity ratio,” Thomson added during the call. Editor’s note: All amounts have been converted to USD. [stock_market_widget type="inline" template="generic" assets="BNS" markup="Shares of {name} ({symbol}) are trading at {price} ({change_pct}) as of {last_update}" api="yf"]. Bank Automation Summit US 2023, taking place March 2-3 in Charlotte, is a crucial event on automation and automation technology in banking. <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home" href="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1677516850402.1677525476589.879&__hssc=41615677.34.1677525476589&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link Learn more">Learn more and <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register" href="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1677516850402.1677525476589.879&__hssc=41615677.34.1677525476589&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link register for Bank Automation Summit US 2023">register for Bank Automation Summit US 2023 .

Scotiabank increases tech spend 9% in Q1

Bank’s active digital users grew 7% YoY to 8.8M

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Scotiabank increases tech spend 9% in Q1

Bank’s active digital users grew 7% YoY to 8.8M

The True Cost of Non-Compliance – Lessons Learned from the Fortune 50

Financing a startup: Breaking through current cost barriers

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