Toronto-based financial services giant Scotiabank recently announced a massive plan to invest $1 billion USD in its digital transformation. According to Reuters, the bank will commit the fund “over the next three years on technology that will benefit customers as well as lower operating costs and increase profits.”
The bank says that it is making the push in large part because of changing consumer behavior. Branches are receiving less traffic, and it wants to get ahead of the trend by phasing out more physical locations in favor of higher-value digital services and mobile applications.
“Our customers want to do more of their banking through digital channels,” said Brian Porter, Scotiabank chief executive. Porter added that nearly half of these funds will be directed towards expansion in Latin America, a further commitment to a push that Scotiabank has been advocating in recent years.
“We intend to be a digital leader in the financial services industry not only here in Canada, but also in our key Pacific alliance markets of Mexico, Peru, Colombia and Chile,” said Porter.