Scotiabank invested in technology in the second quarter driven by project-related costs and software and licensing expenses.

The Canadian bank’s tech spend in Q2 increased 13% year over year to $383 million, according to the bank’s quarterly earnings presentation.

WHY IT MATTERS: In Q2, the bank focused on customer growth, purposeful allocation of capital and operational efficiency to increase profitability and reduce costs, Chief Executive Scott Thomson said today during the bank’s earnings call.

The Bank of Nova Scotia (Scotiabank) headquarters in Toronto, Ontario, Canada, on Wednesday, March 8, 2023. Rising rates are expanding Canadian banks' net interest margin, but a flatter and inverted yield curve limits upside, and a peak may come in 2023.
Photographer: Della Rollins/Bloomberg

This is a continued effort from Q1 when Thomson discussed efforts to reduce spending in noncritical areas as the bank monitored the macroeconomic environment.

BY THE NUMBERS: Scotiabank posted in Q2:

  • Digital usership grew 6% YoY to 9.9 million; and
  • Mobile usership increased 11% YoY to 7.8 million.

NOTEWORTHY: In April, Scotiabank’s Group Head of International Banking and Digital Transformation Ignacio “Nacho” Deschamps announced his retirement.

He “led the bank through an enterprise wide digital journey,” CEO Thomson said in a release.

The bank appointed Francisco Aristeguieta as group head of international banking, according to a bank release. Aristeguieta’s appointment was effective May 1, and he is responsible for driving the engagement of clients in international markets.

FUTURE LOOK: The bank completed its national rollout of mobile app rewards program Scene+ during the quarter, Thomson said, noting that there are plans to enhance the program this summer with the addition of home hardware.

“The Scene+ program is exceeding our expectations. Scene+ has in excess of 13 million members and climbing with Quebec driving an oversize share of that growth,” Thomson said.

Editor’s note: All amounts have been converted to USD.

Whitney McDonald

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