Scotiabank tech spend climbs 13%

Scotiabank 's tech spend climbed in the fourth quarter as the bank invested in digitalization and automation to keep up with client demand. The Canadian bank’s spend on technology during the quarter increased 13% year over year to CA$570 million ($421 million), according to the bank’s earnings supplement. [caption id="attachment_57371861" align="alignright" width="300"] Courtesy/Bloomberg [/caption] Total non-interest expenses increased 6% YoY to $3.5 billion, according to the supplement. The increase in spending reflects “higher share-based compensation, technology costs and business access,” Chief Financial Officer Raj Viswanathan said during today’s Q4 earnings call. Increased tech spend was accompanied by an uptick in digital and mobile usership in Q4. BY THE NUMBERS: Scotiabank reported in Q4: Active mobile users in Canada increased 11% YoY to 4.2 million. Active digital users in Canada grew 7% YoY to 4.8 million. Revenue grew 6% YoY to $6.2 billion. BIGGER PICTURE: As a result of digital efforts, the bank cut headcount during Q4 and recorded a restructuring charge and severance provisions of $191 million, according to the earnings release. In fact, during the quarter, headcount fell 2% year over year to 89,483 employees, and branch count fell 2.4% YoY to 2,379, according to the bank’s earnings supplement. NOTEWORTHY : In November, the bank appointed Aris Bogdaneris as its group head of Canadian banking, according to a Scotiabank release. He replaces Dan Rees . In his new role, effective Nov. 3, Bogdaneris is responsible for keeping up with changing client needs across digital and physical channels, according to the release. [stock_market_widget type="inline" template="generic" assets="BNS" markup="{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}" api="yf"]. Editor's note: All amounts have been converted to U.S. dollars. Join us for Bank Automation Summit U.S. 2024 in Nashville, Tenn., on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.

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