In common with banks globally, Canadian banks are experiencing a huge uplift from technology. The transformation is being helped by expert ‘labs’ that foster innovation and attract technology specialists. Banks are also partnering with a wide variety of different companies to meet challenges such as cyber security. Large banks with greater scale and more technology resources than regional banks will have an advantage in the new economy, which favors globalization. Banks are customizing the client experience and exploring artificial intelligence and, to a lesser degree, blockchain. Continued investment in technology will be required to withstand global competition and to retain market share.
Company specific thoughts:
Of the banks surveyed, TD and BNS have bigger technology budgets than the other banks, as well as more senior executives engaged in technological transformation. The smaller banks, particularly LB and CWB, will be challenged to keep up because of their modest technology budgets and other resources.
Financials: Up close
The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.