Three of Canada’s “Big Five” banks cited increased technology spend while providing insights into how they are each utilizing technology during this week’s third-quarter earnings calls. Here’s a rundown of what the Royal Bank of Canada, Bank of Montreal and Scotiabank revealed during their reports to shareholders:

RBC

The $1.3 trillion Royal Bank of Canada reported earnings of $3.4 billion on Wednesday for the quarter ending July 31, which CEO David McKay said was driven “in part by strong client activity as we continued to attract new clients and deepen existing relationships.” At the same time, the Toronto-based bank acknowledged its tech spending had grown. RBC, like many banks, does not break out technology as a separate category in its earnings report.

Expenses were up 1.5% year over year, CFO Rod Bolger said, which was partly due to higher salary and benefit costs. COVID-19 led to lower facility and cleaning costs, he added, saying that savings were “partly offset by higher technology and equipment costs,” as well as marketing and travel expenses.

When asked whether the bank would focus on reducing the rise in expenses, Bolger said investing in people and technology would remain a priority.

“We look to spend dollars where it makes sense to continue to grow market share, to continue to invest in distribution. And we think that’s one of the key reasons why we’re growing market share in our core businesses,” Bolger said. “And that’s not only people but also technology, and we will continue to do that, but we’re also going to continue to, as you refer to, grind down other costs in an effective way as we digitize and leverage that technology, we expect other cost growth to moderate.”

McKay touted its recently announced technology park, the Calgary Innovation Hub, saying it would “further support the Canadian-tech ecosystem.” He also mentioned that the bank had expanded its slate of partners “who continue to be a differentiator for RBC,” and specifically mentioned partnerships with fintechs Ampli, a cash-back shopping app, and Financeit, a Buy Now, Pay Later platform.

RBC also this year launched RBCx, a financial platform aimed at helping technology entrepreneurs by providing access to capital solutions, innovative products and services, and operational expertise to help technology companies scale.

Stocks of RBC [NYSE: RY] were trading at $104.41, down 1.20% from market open, as of 4 p.m. Thursday.

Bank of Montreal

The $767.4 billion Bank of Montreal saw expenses rise but beat analysts’ expectations with reported earnings of $1.9 billion, an 85% increase compared with Q3 2020, the bank reported Tuesday.

Technology figured into rising expenses — up 2% from Q2 and 8% YoY, CEO Darryl White said. “We’re making targeted investments to position our business for growth, including in marketing, sales force and technology,” he added.

White said digital channels are the bank’s strategic focus, and that requires a technology foundation.

“We’re embracing the future as a digital-first bank, with a strong technology foundation built to navigate change and lead in loyalty, profitability and efficiency improvement,” he said. “Digital isn’t just a channel at BMO, it’s the way we operate every part of the business.”

Specifically, White cited the bank’s use of cloud, data, artificial intelligence, platforms and user-friendly tools as key to creating faster customer service.

Digital transformation requires “productive partnerships,” he added, noting that the bank has partnered with AWS as its strategic cloud provider for both modernizing the banking platform and deploying apps.

White also mentioned BMO’s recent announcement that it would expand its relationship with core provider FIS in the U.S.

BMO [NYSE: BMO] stocks were trading at $100.60, down 3.03% from market open as of 4 p.m.

Scotiabank

The $917.4 billion Scotiabank reported earnings of $1.9 billion on Tuesday, with non-interest expenses up 8% last quarter from Q3 2020 due to technology-related costs as well as higher performance-based compensation, employee benefits and professional fees. That increase was also in line with higher revenues, said Chief Financial Officer Raj Viswanathan.

President and CEO Brian Porter did not specifically address technology spend but did point out that some of the bank’s technology projects have received recognition.

“Investments in the future of our bank and the communities we serve gain notable recognition again this past quarter, particularly as it relates to our efforts to digitize the bank,” Porter said. “Scotiabank was recognized as the most innovative in data by The Banker’s Global Innovation and Digital Banking Awards in 2021, highlighting our use of data analytics to identify and support our most vulnerable customers in challenging times.”

Scotiabank [NYSE: BNS] shares were trading at $62.99, down 1.61% from market open as of 4 p.m.

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