The Canadian bank's USD 2.8 billion deal, initially announced in August, includes provisions for Scotiabank to appoint two directors to KeyCorp’s board of directors. Scotiabank officials described the move as part of the bank's wider strategy to refocus on the North American trade corridor while evaluating its presence in less profitable South American markets.
They also noted that reallocating capital from developing to developed markets is an important component of the bank’s new direction, and they characterised the KeyCorp stake as a relatively low-risk opportunity to strengthen Scotiabank's position in North America, with the potential for favourable returns.
According to Reuters, Canadian banks have historically sought US acquisitions to drive growth, although such moves often come with significant costs. Representatives from Scotiabank and KeyCorp have not commented on the approval at the time of writing.
In September 2024, Scotiabank revealed a collaboration with Nova Credit to increase digital credit access for newcomers to Canada. Through this partnership, Scotiabank offered newcomers from specific countries the chance to obtain higher credit limits. This was achieved by allowing them to use their credit history from their home country when applying online for increased credit limits.
Credit invisibility, which refers to the absence of a credit record, poses a significant challenge for newcomers to Canada, as gaining access to the formal credit system typically demands a local credit history. A Statistics Canada report that analysed data from 2015 to 2019 revealed that around 26% of economically invisible families in Canada were immigrants.
In the context of this partnership, Scotiabank officials stated that Canada depended on the achievements of its immigrant population and the contributions they make to the economy.
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