Scotiabank’s technology spending rose 13% year-over-year in the second quarter

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

The Canadian bank’s technology spending in the second quarter rose 13% year over year to $383 million, according to the bank’s quarterly earnings presentation.

why does it matter: In the second quarter, the bank focused on customer growth, targeted capital allocation and operational efficiencies to increase profitability and reduce costs, CEO Scott Thompson He said today during the bank’s earnings call.

The Bank of Nova Scotia (Scotiabank) headquarters in Toronto, Ontario, Canada, on Wednesday, March 8, 2023. Higher rates are expanding net interest margins for Canadian banks, but a flat and inverted yield curve limits the upside, and the peak could come in 2023.
Photographer: Della Rollins/Bloomberg

This is an ongoing effort from the first quarter when Thompson discussed efforts to reduce spending in non-critical areas as the Bank was monitoring the macroeconomic environment.

In numbers: Scotiabank’s second quarter record:

  • digital users grew 6% year-over-year to 9.9 million; And
  • The number of mobile users increased by 11% year-on-year to 7.8 million users.

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

CEO Thomson said in a statement that he “led the bank through an enterprise-wide digital journey.”

The bank has appointed Francisco Aristeguita as head of the International Banking Group, according to a bank statement. Appointed effective May 1, Aristeguieta is responsible for driving customer engagement in international markets.

a future vision: The bank completed its national rollout of its Scene+ mobile app rewards program during the quarter, Thompson said, noting that there are plans to boost the program this summer with the addition of home appliances.

“Scene+ exceeds our expectations. Scene+ has over 13 million members and climbs with Quebec a large share of that growth,” Thompson said.

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

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