Scotiabank Strategy & Financial Objectives

Key Issues - Digital Focus • . One of the Bank's key strategic priorities is digital transformation and management has already embarked on a number of related initiatives Embarked on a number of "Rapid Labs" to reduce pain points in key business processes including Mortgages, Credit Cards, Day to Day Banking, Branches, Small Business and Wealth Opening a digital factory in 2H/16 to house our data scientists, data analytics and digital teams Piloting new branch formats that centralize around advice Implementing Agile processes across the Bank In addition, Tangerine provides the Bank with a key competitive advantage as a low-cost, scalable digital bank Direct everyday savings bank with a chequing • account and newly launched credit card "Innovation incubator" that can prove technologies before deploying across Scotiabank Highest ranking by J.D. Power House for customer satisfaction (Net Promoter Score of 80) 2 million customers (attractive client profiles) and 12 million direct ready Canadians Over 90% of Tangerine clients are non-Scotiabank clients MORTGAGE Rapid Labs ■ Over half of applicants able to complete full process in a single branch visit Processing time for each application reduced by ~40% DAY-TO-DAY 10 ■ Re-invented and streamlined customer experience (e.g., online authentication, instant enrollment in online banking) ■ Time to access account online reduced from 2 weeks to < 10 minutes SMALL COMPANIES ■ First-in-Canada account- opening process without an in-person visit ■ Customer turn-around time reduced from multiple week to minutes CREDIT CARDS D Fastest credit card application and fulfillment process in Canada ■ More than doubled the website yield rate BRANCH ■ The time to open a new 品 account in the branch will be cut in half ⚫ Will provide a seamless cross-sell and multi- product experience ■ Will have instant enrollment to online banking WEALTH ■ Will move from a very manual process to a fully digital experience ■ Time to open an account will reduce from ~1 week to 1 day ■ Processing time for an app- lication will be cut in half 17 Scotiabank®

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