Scotiabank saw digital adoption among customers and its tech spend tick up during its fiscal second quarter 2024.
The Toronto-based bank reported active mobile users increased 10% year over year to 4.3 million, while its digital adoption rate increased 2.7% YoY to 64.5% in Canada in the quarter ended April 30.
The $1 trillion bank reported technology spend of CA$556 million ($407 million) in Q2, up 7% YoY, while its non-interest expense was $3.4 billion, up 3% YoY.
“Expenses grew a modest 3% year over year driven by higher technology-related costs,” Raj Viswanathan, chief financial officer, said during the bank’s earnings call today.
THE BIG PICTURE: Scotiabank in April deepened its relationship with Google Cloud to use the tech provider’s services for cloud migration and generative AI capabilities, according to an April 8 Scotiabank release.
Google Cloud will provide the bank with digital tools to improve client experience and enhance security, the release stated. Under the strategic partnership, Scotiabank will use the following services from Google Cloud:
- Vertex AI to manage and deploy AI at scale;
- Contact Center AI to better assist customers;
- A cloud-based client data hub for Scotiabank’s Wealth Management business for enhanced security; and
- An improved mobile banking channel for better client experience.
According to the May 16 “Evident AI Dispatch” report from AI company Evident, Scotiabank ranked 18th among the top 50 global banks on the AI readiness index, with JPMorgan Chase topping the charts.
BY THE NUMBERS: In Q2, Scotiabank also reported:
- Headcount of 89,090, down 2% YoY;
- Total customer deposits of $517 billion, up 3.8% YoY;
- Net income of $1.4 billion, down 2% YoY; and
- Productivity ratio (or efficiency ratio) of 56.4, compared to 57.8 during the corresponding period last year.
OF NOTE: The bank is updating its cloud strategy as well as its payments channels. It renewed a multiyear agreement with payments service provider Global Payments in the prior quarter, Cameron Bready, chief executive of Global Payments, said during that company’s first-quarter earnings call.
Editor’s note: All amounts have been converted to U.S. dollars.
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