In an era of real-time payments, data-rich treasury solutions and sustainable finance, Chad Wallace of Scotiabank sits down with The Digital Banker to discuss how collaboration, innovation and open banking are redefining Canada’s transaction banking landscape.
A developing scene
Canada’s transaction banking landscape is characterised by a combination of collaboration, regulatory engagement, and client-focused innovation. While the Real-Time Rail is still in development, real-time payment capabilities are already in use through Interac’s infrastructure, which is anticipated to support RTR.
“A distinguishing feature of the Canadian market is the ability to drive network scale across the country,” says Chad Wallace, Executive Vice President, Global Transaction Banking, Scotiabank, “given the smaller number of financial institutions in the ecosystem and their involvement in co-developing the future of payments through Payments Canada’s consultative framework—aligning policy, technology, and client needs.”
Canada’s financial ecosystem has also promoted robust competition, with new governance in the PSP and NBF space allowing direct access to clearing. Additionally, the move toward open banking is expected to unlock new use cases and contribute to broader data access and financial inclusion.
Solving the corporate treasury puzzle
Canadian corporates face persistent challenges in managing reconciliation from various sources of reporting and navigating the burdensome KYC process across multiple products—issues that are especially critical in treasury and cash management.
“Many companies struggle to track their cash inflows and outflows across regions or business units in real time,” explains Wallace.
Cash flow analysis remains a key challenge, particularly given limited data, inconsistent domestic payment formats and manual reporting. These hurdles can result in fragmented visibility, delays and increased operational overhead.
To address these challenges, Scotiabank works closely with clients to improve automation through API connectivity into tools designed for the Office of the CFO. The bank also leverages Artificial Intelligence (AI) and Optical Character Recognition (OCR) to extract invoice data from remittance emails and other sources. When paired with enriched data from newer payment rails, this approach boosts straight-through processing, reduces manual effort, and improves reconciliation timelines.
“As expectations evolve, so too does the demand for more intelligent, data-driven solutions,” says Wallace. “We enable clients to access richer payment insights—accelerating receivables matching, improving reconciliations, and increasing the accuracy of cash forecasting.”
Harnessing the power of AI and real-time data
Digital transformation is reshaping transaction banking globally, and Scotiabank is harnessing technologies such as AI, real-time payments, and data analytics to reinvent the client experience.
“AI is a key enabler for innovation and to drive business results,” notes Wallace. “We are pursuing and scaling opportunities where we use AI in our business today to make it easier for employees and for our clients to do business with us.”
Scotiabank applies AI and analytics to enhance fraud detection, enrich transaction data and automate reporting processes. These applications reduce risk, increase data quality and offer clients more informed decision-making capabilities.
The bank is also enabling embedded payment experiences through APIs, helping clients integrate banking into their workflows and connect seamlessly with ERP and TMS platforms. To deliver a unified digital experience, Scotiabank is rolling out a cross-border digital banking platform that provides real-time balance and transaction reporting, alerts, and approvals — all within a single ecosystem. Designed for commercial and corporate clients operating across multiple markets, the platform has been designed to deliver a secure, efficient and intuitive cash management experience.
Sustainability as a strategic lever
Sustainability has become a defining theme in treasury and transaction banking. Increasingly, it’s being viewed as a lever for sustainable finance—particularly in supply chain finance, ESG-linked trade instruments and green payment solutions.
“Global sustainable trade finance and cash management revenues are expected to reach US$28–35 billion this year,” shares Wallace, citing McKinsey estimates. “At Scotiabank, we continue to assess opportunities to align treasury services with sustainability objectives in collaboration with clients and industry partners.”
The next frontier: open banking
Open banking — or Consumer Directed Finance in Canada — represents the next big leap for the market.
“As Canada’s regulatory framework evolves, we see significant potential to improve access and usability of financial data while appropriately managing risks and providing consumer protection,” explains Wallace.
Scotiabank’s ambition is to be embedded wherever clients need it—within ERP systems, expense management tools, cash flow reporting, or as part of account management. Consent-based data sharing and frictionless payments could unlock a new wave of innovation, driving personalised services, fintech collaboration and operational efficiency in treasury and cash management.
“At Scotiabank, we’re excited to embark on this journey to co-create new and relevant experiences with our clients,” concludes Wallace.
