On the eve of earnings season for Canada’s Big Six banks, an independent research analyst says he’s looking for lenders that are trimming their staff.
“We need some operational changes within all of the banks,” Ralph Silva of Silva Research Network, told BNN in an interview. “I’m not proud to say this – but I’m looking for banks that are laying off people. I need all of the banks to get smaller. They need to invest in technology, they need to go all-digital.”
Silva said those ahead of the game when it comes to digital advancement are European banks. He did note that Canadian banks are investing more in digital technology, but not as fast as others, like the “HSBCs of the word.”
He argued a greater investment in technology needs to happen “relatively soon” in order for banks to become more effective. He added that the conservative nature of Canadian banks means they’ll likely take longer to advance digitally.
CIBC kicks off Canadian banks earnings season Thursday.