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At the recent Customer Experience Strategies Summit (CXS), we sat down with Harry Clapham, Director of Operations Strategy and Enablement at Tangerine Bank, for a candid and insightful conversation on AI transformation in banking. The session touched on everything from hockey rivalries to governance frameworks, but the core message was clear: AI is no longer optional—it’s foundational.
Why AI? Why now?
Tangerine Bank, a digital-first subsidiary of Scotiabank, has already carved out a reputation for innovation. With 90% of its customers digitally active and a long list of accolades—including being named the top bank in Canada by Forbes—Tangerine isn't a laggard. But as Harry noted, “the fear of doing nothing is now greater than the fear of doing something with AI.”
Harry emphasized that customers today expect intelligent, responsive digital experiences. Nearly half of consumers are comfortable with AI-influenced decisions, and more than half would prefer interacting with AI over waiting for a human agent. For Tangerine, this is not just about cost—it's about meeting evolving customer expectations.
Strategy first. AI second.
A key takeaway from Harry’s approach: AI is not a strategy in itself. It’s a tool to serve a broader vision. Before implementing AI, Tangerine invested heavily in defining its long-term strategic goals. Only after aligning on “the what and the why” did they begin exploring AI as a method to get there. Harry's advice?
Start with the outcome. If AI is the best way of getting there, use it. If not, don’t force it.
Building the AI roadmap: Where to start
Tangerine’s journey began with foundational work in the chat channel, deploying a natural language processing (NLP) chatbot in the mobile app to handle FAQs. With over 50% containment, this early step created a solid data foundation for understanding customer needs. From there, Tangerine introduced human agents into the channel, enabling a seamless escalation path.
The final phase? Generative, agentic AI capable of handling more complex interactions—always with a “human-in-the-loop” safety net to ensure quality and trust.
Harry outlined four dimensions for prioritizing AI use cases:
- Effort & Cost – What’s the investment to launch?
- Impact & Scalability – What’s the potential ROI?
- Technology Readiness – Is the solution mature enough?
- Operational Readiness – Are people, data, and processes in place?
Choosing the right partner
In selecting ASAPP, Harry prioritized agility, accessibility, and actionable reporting. “We’re a smaller team,” he explained. “We needed a vendor we could interact with frequently, one that empowers us to manage the bot ourselves, and one with real-time reporting we could use for root-cause analysis and executive updates.”
Beyond day-to-day execution, Harry also valued ASAPP’s strategic input. The partnership helped Tangerine envision not just immediate improvements but long-term opportunities for differentiation.
AI, humans, and the contact center of the future
Harry envisions a fundamental shift in contact center operations—from cost center to value generator. Rather than replacing staff, AI creates capacity. That capacity, in turn, unlocks richer, more relationship-based conversations—whether it’s guiding a first-time homebuyer or offering personalized financial advice.
This transformation also demands a new approach to hiring, training, and org design. The contact center agent of the future won’t just handle routine queries—they’ll serve as strategic advisors powered by real-time insights and predictive tools.
Responsible AI: risk, governance, and regulation
Operating in a highly regulated environment, Tangerine integrates AI within Scotiabank’s enterprise AI governance framework. That includes early-stage risk reviews, model transparency, and strong collaboration with regulatory stakeholders.
Harry shared a framework for building internal buy-in:
- Active Listening – Understand stakeholder concerns.
- Challenge with Empathy – Reflect concerns and shift narratives.
- Collaborate Early – Bring risk teams in from the beginning.
What’s next for tangerine?
The transformation is just beginning. Early results are promising: 91% intent recognition in chat, over 60% containment, and 80%+ agent adoption of internal knowledge tools. But this isn’t just about KPIs. It’s about redefining what a digital bank can be.
As Harry put it, “Imagine a world where the agent knows everything about the customer, is supported by AI suggestions, and delivers service that's fast, personalized, and deeply human. That’s what we’re building.”
Final words of advice
Harry left the audience with two key pieces of advice for AI change agents:
- Get excited – This is a once-in-a-generation opportunity.
- Match your message to the room – Don’t lead with excitement if your stakeholders aren’t ready for it. Lead with evidence, data, and empathy.
Tangerine’s AI journey isn’t just a case study in digital transformation—it’s a model for how to balance innovation with responsibility, and how to blend the best of AI with the best of human capabilities.
