10-Q, Member Exclusive

Is KeyBank the missing link in Scotiabank’s US market expansion strategy?

  • Earlier this month, Scotiabank agreed to a $2.8 billion investment in KeyCorp.
  • Unlike most Canadian banks that opt for full acquisitions, Scotiabank’s minority stake in a US bank is a more cautious move. We explore why.
close

Email a Friend

Is KeyBank the missing link in Scotiabank’s US market expansion strategy?

    What happens when the 18th-largest US bank offloads some of its stake to Canada’s third-biggest bank


    When SVB went under last year, it sent shockwaves through the US financial services industry, impacting every player in some way. Regional banks, however, were hit the hardest.

    As soon as SVB’s troubles surfaced, regional bank stocks tumbled and have lagged behind the broader US equity market ever since. A year on, the landscape for small banks hasn’t changed much. They are still grappling with declining net interest income, and compelled to offer higher rates to depositors even as borrower demand remains sluggish. Even KeyBank, positioned 18th among US banks with assets of about $185.23 billion, found itself on the losing end of last year’s financial turmoil.

    Despite the challenges at home, the situation has become a gateway for international players seeking to expand in the competitive US market. Scotiabank, Canada’s third-largest bank with around $1.2 trillion in assets, is among those capitalizing on the opportunity.

    The deal

    Earlier this month, Scotiabank agreed to a $2.8 billion investment in KeyCorp, the holding company for KeyBank. Scotiabank plans to buy 14.9% of KeyCorp or about 163 million shares of KeyCorp’s common stock in two installments: an initial $800 million investment and a further $2 billion, subject to the Federal Reserve’s approval.

    The initial installment is expected to close by the end of Scotiabank’s fiscal fourth quarter in October, with the remaining amount to be finalized in fiscal 2025.

    Both sides walk away with something


    subscription wall for TS Pro

    0 comments on “Is KeyBank the missing link in Scotiabank’s US market expansion strategy?”

    Banking as a service, Embedded Finance, Member Exclusive

    A closer look at Citi’s strategy for growing its TTS business in the 2025 BaaS landscape

    • Citi continues to build infrastructure through API-driven solutions and deeply integrated partnerships — a strategy that has proven to be a reliable growth engine and a core pillar of the bank’s long-term vision.
    • We look at how its Treasury and Trade Solutions (TTS) division is playing a central role in expanding the bank’s footprint in Banking-as-a-Service (BaaS).
    Sara Khairi | July 10, 2025
    Artificial Intelligence, Banking, Member Exclusive

    How Bank of America cracked the code on AI adoption by making Erica indispensable to both customers and employees

    • Bank of America transformed its customer chatbot Erica into an employee productivity powerhouse, achieving 50% IT service desk automation by strategically targeting common pain points and building adoption incrementally over five years.
    • Learn the adoption secrets behind getting 90% of employees to embrace AI tools, including how Bank of America overcame the adoption hump and integrated generative AI with 25 proof-of-concept projects now entering production.
    Rabab Ahsan | July 08, 2025
    Embedded Finance, Member Exclusive

    KeyBank deepens its collaboration with Qolo, modeling how banks can build deeper fintech partnerships

    • The KeyBank-Qolo alliance reflects an evolution in how banks and fintechs can co-create value through deeper integration.
    • We break down their partnership mechanics and what makes it effective.
    Sara Khairi | July 03, 2025
    10-Q, Member Exclusive

    With its historic asset cap lifted, what exactly does Wells Fargo plan to do with its regained freedom?

    • In early June 2025, Wells Fargo finally saw the infamous asset cap lifted.
    • What did it take for Wells to reach this turning point? And how does it plan to make the most of its second chance?
    Sara Khairi | June 30, 2025
    10-Q, Member Exclusive

    Wise goes West: Why the London fintech star is headed for a US stock exchange, and what it signals about global capital markets

    • Wise announced it plans to shift its primary stock listing to a US stock exchange, a move both strategic and symbolic that underscores tectonic shifts in the global listings landscape.
    • Wise’s decision is less about location and more about evolution. And London, for now, remains a proud hometown - but a second choice.
    Sara Khairi | June 16, 2025
    More Articles