Scotiabank to cut five percent of branches over two years in move to digital

Scotiabank continues its shift to digital with the company’s latest restructuring announcement.

As part of this digital initiative, Scotiabank will cut five percent of its branches over the course of the next two years. The introduction of new digital technologies will aim to help the company reduce operating costs and increase profits.

These changes are being rolled out as a result of customers transacting far less at branches and much more through digital portals. According to Scotiabank, this cost efficiency program will deliver a 200-250 basis point improvement in productivity ration by 2019, and a 50 percent increase in productivity overall by 2021.

“Our customers want to do more of their banking through digital channels and we want them to conduct more of their business with our Bank. Our digital-first mindset should send a clear message to customers, employees and shareholders: When it comes to digital banking, we are positioning Scotiabank to lead,” said President and CEO Brian Porter in a statement.

He went on to say that the Scotiabank digital shift extend far beyond its Canadian roots.

“We intend to be a digital leader in the financial services industry not only here in Canada, but also in our key Pacific Alliance markets of Mexico, Peru, Colombia and Chile,” said Porter.

Last week, the company announced new facilities to develop such technology, emphasizing an importance on artificial intelligence and blockchain currencies.

Banks have steadily moved towards digital-first mindsets as more consumers prefer to complete transactions online.

Source: Scotiabank