Good morning, Mr. Chair and members of the committee. Thank you for the opportunity to speak with you today.
First of all, let me tell you a bit about our bank. Scotiabank is Canada's most international bank, anchored by a strong franchise here at home. We have just under 1,000 branches here in Canada and 2,800 ABMs. Our bank is 175 years old this year, and we're very proud of that. We've seen a lot of changes in such areas as electronic banking, but we fully recognize that new channels are additional options for our customers rather than replacements for branches.
I am going to focus my remarks in the next few minutes on ABM fees, although I will be pleased to answer any questions you may have.
I would first like to state that I appreciate the concerns expressed by the members of this committee and by Minister Flaherty. We strongly agree with the minister and the Department of Finance officials that the best way to protect the consumer interest and make the marketplace effective is through competition and choice.
We face stiff competition for clients. The number of different account packages and features that exist is a good example of the degree of competition driving these differences. We are constantly reviewing our account packages to ensure that they remain competitive and effective in meeting the needs of our customers. We're also interested in finding solutions to address access issues for customers most impacted by the fees that result from the use of our competitors' ABMs.
More than 75% of our customers never pay an ABM convenience fee, as they choose to use Scotiabank machines. Furthermore, we're adding branches and ABMs across the country so our customers can find a Scotiabank when they need one. In addition, customers can access Internet and telephone banking at their convenience.
Finally, we're seeing an increasing trend by customers to use point of sale as an opportunity to take cash back and minimize fees.
Consumers benefit from the range of options they have to access their accounts, including a coast-to-coast ABM network that ranks Canada first in the world in terms of access as defined by ABMs per capita. Canada's major banks control one-third of the ABMs in Canada. Two-thirds of the ABMs are controlled by other providers.
I know the committee has been interested in ABM fees in the U.K. market. While this model may seem attractive on the surface, it provides significantly less access, it relies on a lower standard of disclosure of fees, and it results in higher costs to consumers through hidden charges. This model is sound from neither the consumer's perspective nor in the interest of competition. It is very important to consider the total cost of banking, and on this metric Canada is one of the best in the world.
In summary, we offer our clients very competitive service packages. We also welcome input not only from our customers but from the government on an ongoing basis as we review and upgrade our service offerings.
Mr. Chair and members of the committee, I'd like to thank you very much for the opportunity to speak with you today.