Bank of Montreal introduced a new digital account opening program and finalized its integration of Bank of the West during the second quarter. 

Following the acquisition, the $882 billion Bank of Montreal (BMO) reported a 53% year-over-year increase in expenses related to computers and equipment to $688 million and a 90% jump in software and related expenses YoY to $205 million. 

WHY IT MATTERS: The automated account opening program is aimed at customers who are new to Canada, as well as eligible international students, allowing bank account applications to be processed instantly, according to the bank’s earnings presentation today.

Additionally, during Q2 BMO enhanced its digital onboarding solution and “optimized and modernized” its website, according to the presentation. 

The improved digital customer experience capabilities will drive greater client satisfaction, BMO Chief Executive Officer Darryl White said during the call. 

“This quarter, we also continued to make progress on our strategic priorities: To continue building a digitally enabled bank, enhancing customer loyalty and being our clients’ lead partner in the climate transition, benefiting from the investments we’ve made in technology,” White said. 

THE BIGGER PICTURE: Enhanced digital capabilities follow the bank’s Q1 investment in AI and digital card options. 

In Q1, the bank deployed automated commercial banking solutions and announced during today’s earnings call that it had added “several thousand” new commercial deposit accounts during Q2, White said. 

BY THE NUMBERS: BMO reported for Q2: 

• Adjusted non-interest expenses grew 29% YoY to $3.4 billion as a result of the Bank of the West purchase; 
• Active digital engagement in retail channels increased 6% YoY to 3.7 million; and 
• Active digital engagement in commercial banking grew 7% YoY to 249,000. 

FLASHBACK: The bank selected bill pay and invoicing platform BILL to help power its Bill Connect platform in March, using the AI-driven platform to help small and medium-size businesses with electronic payments, tracking invoices and managing cash flow. 

FUTURE LOOK: BMO is in the process of finalizing the integration of Bank of the West following the Q1 close of the acquisition as BMO looks to improve its North American footprint and onboard its new customer base, Chief Financial Officer Tayfun Tuzun said during the call.  

“Transitions like these with large acquisitions always tend to slow down new customer onboarding,” Tuzun said. “It’s going to be a little bit slow out of the gate. But we expect that activity, especially post-conversion on Labor Day, to normalize from the current level.” 

Editor’s Note: All amounts in USD 

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