When we kicked-off Scotiabank’s digital transformation five years ago, we aimed at becoming the leader in digital banking. We decided to differentiate ourselves based on the relevance, simplicity, and speed of every customer interaction. We recruited new digital talent, implemented new ways of working based on agile methodologies and – putting the customer at the center of all decisions – we undertook the development of our own digital platforms to deliver personalized, intuitive, and real-time product acquisition and self-service experiences.
Today, 60% of sales to consumer banking customers are made through the mobile banking app, which was co-created with hundreds of local users and achieved an NPS (Net Promoter Score) of 80%. Thanks to the use of new analytical capabilities to personalize product offerings, personal loan and credit card volumes sold through the app grew by more than six times compared to the previous year. Leveraging the physical distribution network was critical to scaling digital adoption and sales exponentially. Branches use the app to sell products through paperless, end-to-end digital journeys on the customer’s phone. More than half of the products sold by branches were sold on the customer’s mobile device; two out of three savings accounts opened by branches were opened on the customer’s phone. After an in-branch digital acquisition experience, the customer is enabled for a mainly-digital relationship, will buy more products and do more transactions, and will do so from home.
The pandemic radically changed consumer needs and expectations and redefined the criteria for innovating and competing. The ability to adapt rapidly and develop and scale new digital solutions became the most valuable competitive advantage. The resilience and scalability of technology services and the security of digital platforms became top priorities. In this context, a new imperative emerged: digitize the economy and reduce the use of cash. Digital payments became the industry´s biggest bet. PLIN, a P2P payment platform built by Scotiabank along with BBVA and Interbank, was launched at the beginning of 2020 and surpassed one million users after just five months in market. Today, PLIN integrates 7 financial institutions, has 6.5 million users and has processed 65 million payments for more than US$ 2 billion. We believe that interoperability with platforms such as BCP’s Yape is the way forward to build a more digital, efficient, and inclusive payment ecosystem.
The development and scaling of a new mobile banking platform and business was the objective of the first transformation cycle. The objective of the second cycle, kicked-off last year, is the redefinition and automation of manual and inefficient business processes and the building of new data science and analytics capabilities. This will allow us to deliver a hyper-personalized value proposition, a seamless experience across digital and physical channels, and an optimal operation in terms of speed and efficiency. Scotiabank is a more competitive bank by harnessing the transformative power of data, cloud and new technologies in the hands of world-class talent operating in an agile and customer-centric culture. Our ability to learn and adapt is making a difference in an increasingly demanding and competitive environment. This is just the beginning!