Canadian banks are continuing to invest in AI for improved client experiences and efficiencies. 

There is “continuous demand for digital innovation,” Karin Kirkwood, president of fintech Broadridge Canada told Bank Automation News. “Our banking clients are talking about the type of infrastructure and technology that’s required to deliver on the promise of a good client experience that’s virtual, that’s digital, that’s hybrid and that’s the way in which they want to serve a customer.”

As banks continue to digitalize their operations, they are also trying to make them more efficient, Kirkwood said. 

“Doing more work for clients with less effort is a key theme,” Kirkwood said. “That means taking a lot of manual processes out of the ecosystem, making sure things are done once.” 

BMO is looking to gain customers on the heels of “modernizing the digital capabilities of the bank for the future,” Chief Executive Officer Darryl White said during the Montreal-based bank’s earnings call on Aug. 27.   

Other Canadian banks including Royal Bank of Canada, Scotiabank and National Bank of Canada reported increased non-interest expenses in their fiscal third quarter earnings,  partly driven by investments in technology. 

Investment in digital banking and AI 

BMO, RBC and TD Bank reported growing digital banking adoption in Q3 as consumers make the pivot to online banking. 

The $1.2 trillion BMO reported that its retail digital banking usership increased by 1% year over year to 4.6 million users in the quarter, while $1.2 trillion RBC reported a 10% YoY increase in its digital banking customers to 9.7 million. 

TD Bank reported that nearly 64% of its Canadian clients used digital banking services during its fiscal Q3, up 1.4% YoY. TD has 17 million customers globally, according to its earnings report. 

Banks are also investing heavily in AI tools to provide self-service capabilities for clients and to improve efficiency. 

BMO reported that its AI-driven chatbot, BMO Assist, held 3 million customer interactions in Q3 and provided nearly 150 million financial insights to customers. 

“There are spectacular technology opportunities to reduce costs, particularly when you look at generative AI and how we’re going to start deploying that more at scale in the organization,” RBC Chief Executive David McKay said during the bank’s earnings call. 

Registration is open for the inaugural Bank Automation Summit Europe in Frankfurt, Germany, on Oct. 7-8! Discover the latest advancements in AI and automation in banking. Register here and apply to speak here.