Scotiabank introduces USD 1.50 digital transfer fee

Each transfer from a Scotiabank account to other local banks via the Scotia Caribbean App and Socia OnLine Banking, will now cost USD 1.50.

Scotiabank had previously been encouraging customers to use its digital channels, as a USD 10 fee will be charged on transactions completed in branch that can be completed via the digital channels.

Scotiabank’s digital push

Scotiabank has been on a digital push since the onset of the COVID-19 pandemic prompted them to cut costs, leading to the closures of several branches around the Caribbean.

In August 2022, for example, Scotiabank has launched the TranXact digital payments platform in a bid to provide banking clients access to its payments and cash management application programming interface (APIs).

The Scotia TranXact APIs integrate directly into clients’ platforms such as treasury management systems and enterprise resource planning systems (ERPs) in order to improve predictability and increase automation. Clients can use the APIs to digitise day-to-day financial activities while improving real-time payment processes and cash flow forecasting. The goal is to provide a frictionless payment experience.

Scotiabank plans to continue investing in the digitisation of cash and treasury management services to meet the increasingly digital needs of global business banking clients.

Closing branches

Scotiabank will be shutting down branches in Kensington and Crapaud and relocating them to a new, state-of-the-art branch in Summerside. The Kensington and Crapaud branches would close sometime during the 2023-24 fiscal year, however, for the time, the automatic banking machines (ABM) will remain.

Scotiabank said half of its USD 2.6 billion technology budget for the next three years would be invested in digital technology as it looks to position itself at the forefront of banking innovation.

Scotiabank had set medium-term targets for at least seven out of teb of its customers to bank online, at least 50% of products to be sold online and less than 10% of transactions to take place in branches.

In July 2022, Scotiabank sold USD 8,9 million of its non-performing retail loans (NPLs) to an external party. Banks usually sell NPLs in order to quickly resolve bad debt. In Scotiabank’s case, however, the entity is actually looking to wind down its operations in Malaysia.