PESTEL Analysis
1. Political factors
Political factors have a substantial impact on the sustainability of Scotiabank in the long
term. Following are political factors examined which can influence Scotiabank’s
sustainability and profitability:
Political stability: Having bank branches internationally in many countries, various types
of political tensions occurring in some of those countries can hinder growth opportunities
for Scotiabank.
Government policies: Changes in government policies have a considerable effect on the
banking industry. Thus, for Scotiabank, it is vital to study ongoing political scenarios.
Because Scotiabank has membership with Canadian Bankers Association, it takes part in
conferences regarding internal and international banking industry issues. These
participations can serve as opportunities for Scotiabank to retain its place in the political
environment.
2. Economic factors
The banking industry and the economy are heavily connected; the State of the economy
has a significant influence on the business performance of Scotiabank. Some factors
mentioned as follow:
Gross Domestic Product (GDP) trend: It can guide the capability of Scotiabank to
maintain its long-term growth strategies. For instance, increased GDP growth indicates
that most consumers can spend more on offered products; hence, Scotiabank can
develop or modify its strategic decisions according to this fact.
Inflation, Interest, employment, and exchange rates: Examination of various rates can
assist Scotiabank to develop strategies such that they can lower their costs and increase
their growth opportunities. As an example, the high unemployment rate points towards
the availability of labour relatively at lower wages. It can decrease the production cost of
Scotiabank. The increment in interest rate will promote more investments. At last, the
shifts in the foreign exchange rate can also manipulate profitability and international
trade.
3. Social Factors
Social factors influence Scotiabank from inside and outside. Thus, dealing with employees
and customers of different demographic groups. These can also improve the marketing
decisions of Scotiabank. Following are some factors to consider:
Cultural norms and values: Social norms and values act as variables to determine
customer behavior. Studying the inclination of customers towards services offered by
Scotiabank can help to alter its marketing strategies accordingly for customers having
different traditional backgrounds. Apart from that, Scotiabank is quite active in
employing diverse people. And it serves as an opportunity to attract many customers of
different cultural background.
Spending patterns: Exploration and prediction of buying habits using relevant economic
measures can aid Scotiabank in analyzing customers’ interests and spending patterns.
Scotiabank can study customers’ inclination to products and social trends that determine
the spending behaviors.
4. Technology:
Scotiabank was able to greatly enhance customer serviceability, system accessibility,
environment dependability, and overall efficiency on costs, procedures, and change
management by implementing a "thin client" technology. As a result, the bank was able
to extend the durability of thousands of PCs while also significantly improving
environmental performance. C.MEE is a new technology used by Scotiabank to improve
the customer's experience using large data and artificial intelligence (AI) (CX). C.MEE uses
the most appropriate and timely financial advice to provide consumers with artificial
intelligence (AI). Scotiabank's C.MEE analyses data across client touchpoints — branch,
mobile, online, contact centre, and email — to decide what advice is most appropriate
for a consumer at any particular interaction point, using the Bank's Global AI Platform.
C.MEE is continuously learning and understanding more about where consumers are in
their lives and their financial behaviours, enhancing the relevance of the advice offered,
by taking signals from client activity.
5. Environment:
Since 2014, Scotiabank has raised more than $28 billion of the $100 billion pledged to
mitigate the effects of climate change by 2025 and has served as a book-runner on more
than $10 billion in green, social, sustainability, and sustainability-linked bonds.
Furthermore, it reduced operating greenhouse gas emissions by 20% compared to 2016.
It has committed to obtaining 100 percent of global power from non-emitting sources by
2030, with a 2025 deadline for Canadian operations. Scotiabank also announced a $1.25
million five-year partnership with Queen's University's Institute for Sustainable Finance
to promote sustainable finance education, professional training, research, and outreach
in order to improve Canada's leadership in the field.
6. Legal:
The Scotiabank is dedicated, in line with legal and regulatory duties, to providing prompt,
accurate and balanced disclosure and fair and fair access to all relevant information
relating to this Bank. Undivulged material information shall not, unless this policy of
disclosure is complied with, be shared selectively with an individual or a group. Investor
Relations serves as a liaison to offer financial analysts and investors information about
the Bank in order to guarantee constant coordination. The Bank operates an internet
website that contains investor-related information, including our Disclosure Policy.
Directors, officials, and employees of Scotiabank must observe the Scotiabank Code of
Conduct when using social media or other social networks for personal or commercial
purposes. By reference, the Bank's Disclosure Policy also incorporates portions of the
Scotiabank Code of Conduct, which establishes employee responsibilities for maintaining
information confidentiality, prohibiting trading on the basis of or tipping undisclosed
material information, and limiting the time designated employees may affect Bank
securities trades. In case a representative breaches the arrangement, he or she may
confront disciplinary activity, counting rejection.
References:
https://www.case48.com/pestel-analysis/13753-Scotiabank
https://www.scotiabank.com/ca/en/about/inside-scotiabank/public-policyactivities.html
https://www.investmentexecutive.com/news/industry-news/scotiabank-winstechnology-of-the-year-award
https://scotiabank.investorroom.com/2021-02-17-Scotiabank-Launches-AI-DrivenTechnology-C-MEE-to-Improve-the-Customer-Experience
https://www.contactcenterworld.com/view/contact-center-news/scotiabank-launches-aidriven-technology-c.mee-to-improve-the-customer-experience.aspx
https://www.scotiabank.com/content/dam/scotiabank/canada/en/documents/about/Sco
tiabank_2020_ESG_Report_Final.pdf
https://www.theglobeandmail.com/investing/markets/stocks/BNSN/pressreleases/1424670/
https://www.scotiabank.com/content/dam/scotiabank/canada/common/documents/Disc
losure-Policy-2021-Final.pdf