Article content continued

“We’ve already built many strategic partnerships with fintech firms, and are leveraging their creativity and agility to drive business value and help us deliver an even better customer experience,” he said.

“We are looking to build even more partnerships with other innovative firms.”

Speaking to media after the meeting, Porter said the friendly collaboration doesn’t mean Scotia opposes greater regulatory scrutiny or rule making for fintech lenders and deposit-takers.

“If you’re taking deposits or you’re making loans, then why would you be different than anybody else?” he said. “So I think that in terms of a degree of consumer protection that there should be a level playing field.”

Porter told shareholders Scotiabank is fortunate to have a large “internal disruptor” in Tangerine, an online bank that was known as ING Direct before Scotia bought it in 2012.

By 2020, fewer than 10 per cent of financial transactions are expected to take place in branches, Porter said.

“At the same time, we expect sales through digital channels to increase materially – likely in excess of 50 per cent of total products sold.”

During a question and answer session at the annual meeting, Porter said he believes investors have knocked too much off Scotia’s shares in response to concerns about the oil industry and slowing growth in some emerging markets.

He said the biggest problems in emerging markets exist in places where Scotia doesn’t have operations.

“Sometimes people throw the baby out with the bathwater,” he said. “The premium will come back, we just have to have patience and time.”

As for the impact of low prices on the oil and gas industry, Porter said Scotia has managed its loan book and worked with customers through similar cycles.

“We think the market overreacted,” he said.

One shareholder asked Porter to disclose the cost of two legal claims, including a class action settlement involving overtime pay. Porter declined, saying the amount was not material to the bank’s operations.