Scotiabank tech spend rises 13% YoY in Q2

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

The Canadian bank’s technology spending rose 13% year over year to $383 million in the second quarter, 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 enhance profitability and reduce costs, CEO Scott Thomson said today during the bank’s earnings call.

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

By the numbers: Scotiabank posted in Q2:

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

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

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

According to a bank release, the bank appointed Francisco Aristagueta as Group Head of International Banking. Aristagueta’s appointment was effective May 1, and he is responsible for driving increased client engagement in international markets.

Look Future: Thomson said that during the quarter the bank completed its national rollout of the mobile app rewards program Scene+, noting that it plans to expand the program this summer with home hardware.

“The Views+ program has exceeded our expectations. Views+ has more than 13 million members and with Quebec driving a large portion of that growth,” Thomson said.

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