Online Banking Is Changing the Way Canadians Manage Money: Can Scotiabank (TSX:BNS) Cash In on This Trend?

Young woman sat at laptop by a window

Canadians are changing the way they bank. A recent survey conducted by Abacus Data on the banking habits of Canadians found that 88% of Canadians used online banking in the last year. Over 50% said that online banking is now their most common banking method.

It’s a race to see which Canadian bank can best capitalize on this trend. So far, Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) seems to be leading the pack.

Aggressive investment in digital banking

In 2018, Scotiabank made technology investments totaling $3.3 billion, approximately 11% of the company’s revenue. In a letter to shareholders, CEO Brian Porter wrote, “We have invested aggressively in technology and digital capabilities to ensure that the bank is more agile and more capable of adapting to a rapidly changing world. Our investments in technology are enabling a better customer experience and more efficient operations.”

Last week, Scotiabank launched a new app for mobile devices. This is not an updated version of the previous app; rather this is a new design for better customer engagement. The app contains features shown to be most important to Canadians when using online banking. The app contains easy navigation shortcuts and enhanced money management tools. It is designed for compatibility with screens of all sizes and takes up less memory on the device. Since security is a major concern with online banking, the app includes multi-factor authentication for identity verification and upgraded data encryption.

Scotiabank is also the parent company of Tangerine, one of Canada’s most popular, direct online banks. Tangerine, which was launched as ING Direct in Canada in 1997, was acquired by Scotiabank in 2012. Tangerine operates independently as a wholly owned subsidiary of Scotiabank. Tangerine boasts over two million customers and over $38 billion in total assets. Last year, Tangerine became the official and exclusive bank of the Toronto Raptors. This move has given Tangerine plenty of press of late, as the Raptors make their debut in the NBA Finals.

Stock performance

Scotiabank stock plunged 15% last year and has made only minor gains this year. The stock is trading at $70.83 at the time of writing, with a current dividend yield of 5.08%.

In the latest earnings release, Scotiabank reported second-quarter net income of $2.3 billion and diluted earnings per share of $1.73. In addition to the massive investment in technology, the bank is also investing heavily in expansions into Latin America. International banking earnings were up 14% year over year on an adjusted basis. This growth came at a cost as the company spent billions on acquisitions, most notably in Peru and Chile. As many of its competitors focus on expansion in the U.S., Scotiabank is counting on accelerated growth into Latin America to drive profits. Latin America now accounts for over 30% of the bank’s net income.

Bottom line

Scotiabank realizes that the future of banking is changing rapidly. Online banking is growing faster than any other banking channel and 40% of Canadians have reported they intend to increase their use of digital banking in the future. As Porter noted, “We know that digital customers are happier customers: they choose to have more products with us, they are more likely to recommend our bank to their family and friends, and they choose to stay with us longer.” With its huge investment in technology, Scotiabank hopes to generate happier customers, which ultimately will result in happier shareholders.

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Company fined $44,500 for unauthorised excavation works and damage to water main

Construction company Megastone Holdings Pte Ltd was fined $44,500 for carrying out excavation works without an approved plan from National Water Agency PUB and damaging a 300 mm diameter water main along Pan Island Expressway (PIE), which led to a loss of approximately 1.8 million litres of potable water, equivalent to three quarters the size of an Olympic swimming pool.

PUB noted that it had to shut down the water main to carry out urgent repair works to avoid further disruption of water supply to the customer and minimise water loss.

According to the authority, water supply to the airport catering company, SATS Inflight Catering, was disrupted for about two hours.

PUB stated that on 27 March 2018, Megastone Holdings conducted excavation works at a slip road from Pan Island Expressway (PIE) to Airport Boulevard for the purpose of laying a precast drain. An underground water main was punctured when the tip of the excavator bucket hit the water main.

Investigations revealed that the contractor had failed to exercise due diligence when conducting excavation works in the vicinity of a water main.

PUB said that the contractor had excavated an area more than what was earlier marked out on site. The steel plate welded at the end of the excavator bucket to prevent puncturing of any underground pipes had also dropped off during the excavation.​​​

​​​In addition, the contractor had failed to submit a plan to PUB as required, prior to carrying out excavation work that falls within 10m laterally from the centreline of the 300mm diameter water main.

The plan should be endorsed by a professional engineer and contain information on the impact assessment and methodology of carrying out the excavation works, and an instrumentation and monitoring proposal, added the authority.

Megastone Holdings was charged under the Public Utilities Act and the Public Utilities (Protection of Water Pipes Infrastructure) Regulations, and fined a total of $44,500 for its offences.

The penalty for damaging PUB water main or connecting pipe with a diameter of 300mm or more is a fine of up to $200,000 or imprisonment for up to three years, or both; while offences for carrying out works within the vicinity of water mains without an approved plan from PUB carry a fine of up to $10,000.

This is Megastone Holding’s first offence, PUB noted. ​​​

​​​PUB stated that it has taken enforcement action against 34 contractors for causing damage to water mains or connecting pipes since 2015.

PUB stressed that it takes a serious view against acts of water wastage, which could be prevented if due diligence had been exercised by all parties. Contractors should always refer to PUB’s advisory on the prevention of damage to water pipe infrastructure before carrying out any construction works.

The post Company fined $44,500 for unauthorised excavation works and damage to water main appeared first on The Online Citizen.

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A&W Promotion: Free 2-Liter Bottle of Any Flavor A&W Root Beer Coupon

A&W Promotion

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Free 2-Liter Bottle

It is wise for us to evaluate if there are areas of our life where technology is doing more harm than good, but through A&W you can pledge to go technology free from their promotion! For a limited time only, you can get a coupon for a free A&W Root Beer!

It’s a little incentive to keep you motivated to go technology-free for one hour every Friday night this summer and connect with your family.

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Get a free A&W Root Beer 2-liter bottle when you pledge to e technology free.

All you have to do is fill out your information with the link we provide and then you can select to print the coupon on your computer or to receive it in the mail! If you select mail delivery, allow6-8 weeks for it to arrive. Please note that the coupon max value is for one bottle up to $1.99 and you must use the coupon by September 30, 2019!

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The post A&W Promotion: Free 2-Liter Bottle of Any Flavor A&W Root Beer Coupon appeared first on Hustler Money Blog.

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3 Oversold Stocks to Buy Right Now

Going against the grain

It can be a bit unnerving to buy stocks that have been falling in value. However, buying at a reduced price can make a significant difference in how your returns will ultimately look. Below are three stocks that have seen a lot of selling lately that could be good buys today.

Cenovus Energy (TSX:CVE)(NYSE:CVE) has declined by 9% in just the past month, as it finished the week just below $11 per share. While it’s not approaching its 52-week low, the stock recently fell into oversold territory as per the Relative Strength Index (RSI). RSI as a technical indicator that looks at a stock’s recent trading activity and its gains and losses. The more the losses outweigh the gains, the lower the RSI number. Once it falls below 30, it is said to be oversold and could be due for a recovery.

Last week, Cenovus fell to an RSI of 24. Although it recovered on Friday with the share price jumping 3.9%, it’s still well off where it was earlier in the month and could still have more of a rally left.

For the past few months, Cenovus has seen support at around $11 a share, so I wouldn’t be surprised if it rises further in price this week. Bad news in the oil and gas sector may have spooked investors, causing Cenovus and similar stocks to falter recently.

Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS) dropped into an RSI of below 30, but unlike Cenovus, it has failed to rise just yet. A disappointing earnings result saw a massive sell-off of the stock as it hit a new 52-week low.

Canada Goose is a tricky one. Although the stock has plummeted recently, it’s still a bit of an expensive buy, as it trades at a price-to-earnings ratio of 35 and its price-to-book multiple is over 12. Even with a big drop in price, investors are still paying some big premiums to own the stock.

However, the good news is that if Canada Goose can rebound with an improved quarter in its next earnings release, all may be forgotten, and we could see the stock recover back above the $60 mark. As long as Canada Goose can continue producing strong growth numbers, investors will likely continue paying big premiums for it.

Great Canadian Gaming (TSX:GC) is another stock that has dropped sharply in value after releasing quarterly results that were a bit underwhelming. Like Canada Goose, it has been a very strong growth stock on the TSX. However, it trades at much more modest multiples, making it a bit more of an appealing buy today.

In just three months, Great Canadian has lost more than 18% of its value. It went from trading over $50 a share to being in danger of dropping below $40. The stock has been in and out of oversold territory for about a month now, failing to rally and pull itself out of there for good. Last week, it finished at an RSI of just under 30.

The stock is also getting close to its 52-week low, and it may only be a matter of time before investors buy up the stock, recognizing the significant value at its current price point.

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Fool contributor David Jagielski has no position in any of the stocks mentioned.

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The 3 Week Diet Review

With obesity at epidemic proportions, it’s no wonder that losing weight is the number 1 goal around the world. Despite this, most people who embark on a weight loss program quit within 2 weeks. Why is this so? We have all the best workout machines from treadmills with state of the art technology to mechanical…

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