The need to re-shape its geographic focus and business mix and digital transformation dominate the Scotiabank AGM.
“We have a particular focus on Canada, US, and the high-growth and stable countries of the Pacific Alliance trading bloc.”
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Around 85% of Scotiabank’s 2018 earnings come from just six markets: Canada, US, Mexico, Peru, Chile and Colombia.
“Broadly speaking, the Pacific Alliance countries have business-friendly environments, healthy democracies and a commitment to good governance. They offer above-average economic growth and, most importantly, a rapidly expanding middle class.”
“Scale matters in banking, now, more than ever,” President and CEO Brian Porter tells shareholders at the Scotiabank AGM.
“That is why we are focusing on building scale through organic efforts. And buying scale through key acquisitions and better leveraging our existing scale to generate efficiencies.”
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By GlobalDataScotiabank invested C$7bn on acquisitions in 2018. The Bank is focused on integrating these acquisitions and generating synergies and benefits in the near term and beyond.
Investments in 20188 include Canadian wealth-management firms, Jarislowsky Fraser and MD Financial Management.
Other notable 2018 deals include a majority stake in BBVA Chile.
“When it comes to integrations, we have a long and successful track record. In the case of our current integrations, we are very comfortable with how each of them is proceeding.”
Scotiabank AGM: digital transformation
Acknowledging that technology is integral to operating the bank, Porter discussed Scotiabank’s digital transformation.
“By investing in software, data, and analytics, we are developing a deeper understanding of our customers’ needs and financial goals. In doing so, we are providing our customers with a better banking experience that is much more personalised.”
As a specific example of the bank’s technological advancement, Porter references Scotiabank’s new mortgage experience eHome. This, he says, is the first truly digital, end-to-end mortgage process in Canada.
Canadians can now complete a mortgage application, obtain approval, and close on a home purchase without having to visit branch.
Porter also details Scotiabank’s investment in Artificial Intelligence (A.I.) to drive operational efficiency, and by extension, create tangible business value.
To date, Scotiabank has more than 200 automated processes in place. Porter says that this helps create tens of millions of dollars in value for our shareholders.
