Canadian Imperial Bank of Commerce (CIBC) is speeding up its transition to digital services as it seeks to cut $600 million in costs by 2018. The bank said it is forecasting C$4.9 billion in annual profit from its three main operating businesses by 2018, an impressive 29% rise on 2014. Technology will be key in achieving this, as the bank looks to make savings and boost efficiency through digitization, it said. CIBC will seek to shift transactions to digital channels, investing in an online platform that drives self-service. Around $70 million a year will be spent to transform the bank’s 1100-strong branch network, with digital zones for routine transactions allowing staff to focus on sales and advice services. Meanwhile, there will be job cuts. A ‘mobile first’ approach will be adopted for all new projects, with more products made available through digital. By 2018, the bank has set a target of getting 15% of all sales via digital channels, compared to just 4% today. It also wants 70% of clients engaged with digital, compared to 48% today, and a quarter of assisted channel leads sourced from digital. The bank is working with partners such as Telus, Tim Hortons and the MaRS innovation hub.
