Table of Contents
Executive Summary
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- The Market
- Population changes brings new opportunities
- The Consumer
- PCs and mobile device ownership is high
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- Figure 1: Device ownership, December 2014
- Bank accounts tend to remain at traditional banks, online-only institutions gain traction
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- Figure 2: Have bank account, December 2014
- Internet banking remains more commonly conducted using PCs than on mobile devices
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- Figure 3: Usage of online banking, December 2014
- Whether online or mobile, account monitoring actions are most popular
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- Figure 4: Banking actions (any device), December 2014
- On-the-go rewards resonate, security concerns hinder interest in mobile payment
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- Figure 5: Interest in products and services, December 2014
- Banking customers have confidence in their financial institution’s ability to keep information safe and still value personal service
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- Figure 6: Attitudes towards technology in financial services, December 2014
- What we think
Issues and Insights
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- Harnessing mobile’s capability to provide information on-the-go
- The facts
- The implications
- Consumers want a more modern in-branch experience
- The facts
- The implications
- Helping parents reach financial goals with PFM tools
- The facts
- The implications
- Customers will respond to incentives
- The facts
- The implications
Trend Application
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- Trend: Life Hacking
- Trend: Access All Areas
- Trend: Help Me Help Myself
Market Drivers
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- Key points
- Demographic overview
- Canadian population count
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- Figure 7: Share of population of Canada, by territory/province, 2014
- Canada’s population is aging and will continue to do so in the coming years
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- Figure 8: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Economic overview
- Consumers’ economy to pick up, but risks remain
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- Figure 9: Household disposable income and savings rate in Canada, Q1 2008-Q1 2014
- Consumer confidence may waver with falling oil prices
- Canada’s employment rates remain steady
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- Figure 10: Canada’s unemployment rate, by gender, January 2008-January 2014
- Wealth distribution in Canada
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- Figure 11: Canada median net worth, by province, 2012
Innovations in Technology in Financial Services
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- Mobile apps from financial institutions
- PC Plus
- Cineplex-SCENE
- Tangerine Bank’s biometric tools for mobile banking
- TD Bank app helps customers pinch pennies
- In-branch innovations
- New RBC location replaces cashier's counter with work stations and touch screens
- TD’s new concept “Green Branch”
- Finance Management Platforms and Apps
- myFinanceTracker from RBC
- Mint
- BillGuard
- Money transfer through social media
- Snapchat
- Venmo payments
- Ribbon
- Mobile payment innovations
- Apple Pay
- Intuit’s GoPayment
- Square Reader (Square Register App)
- Wearable payment innovations
- RBC and Nymi
- Scotiabank and Quick Balance smartwatch app
Financial Institution Overview
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- Banks with Traditional Branches
- TD Financial Group
- RBC
- Bank of Montreal (BMO)
- Scotiabank
- Credit Unions
- Meridian Credit Union
- Vancity
- Online-Only Banks
- Tangerine Bank (formerly ING Direct)
The Consumer – Device Ownership
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- Key points
- Ownership of personal computers and mobile devices is high
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- Figure 12: Device ownership, December 2014
- Differences in ownership of mobile devices
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- Figure 13: Device ownership, by age, December 2014
- Tablet ownership varies less by age
The Consumer – Bank Account Ownership
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- Key points
- Virtually all Canadians hold a bank account
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- Figure 14: Have bank account, December 2014
- Most have their accounts with traditional branches
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- Figure 15: Location of account, December 2014
The Consumer – Usage of Online Banking and Preferred Devices
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- Key points
- Most account holders use online banking
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- Figure 16: Usage of online banking, December 2014
- Virtually all conduct online banking on personal computers and about half use mobile devices
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- Figure 17: Devices used for banking actions, December 2014
- Barriers to mobile banking centre around motivation and security
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- Figure 18: Barriers to online banking via a mobile device, December 2014
- Older consumers need motivation, younger consumers want security and functionality
The Consumer – Electronic Banking Actions and Devices
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- Key points
- Online banking actions centre around account monitoring
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- Figure 19: Banking actions (any device), December 2014
- Seniors are more conservative, younger consumers go beyond the basics
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- Figure 20: Banking actions (any device), by age, December 2014
- Leveraging mobile banking to address needs
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- Figure 21: Devices used for banking actions, December 2014
- Simplifying in-branch transactions
The Consumer – Interest in Technology-based Banking Products and Services
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- Key points
- Mobile apps from banks have traction in terms of usage
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- Figure 22: Interest in products and services, December 2014
- Banks’ mobile apps skews towards younger users
- Customers want rewards on-the-go and mobile cheque deposit
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- Figure 23: Interest in products and services: do not use but would be interested in using, December 2014
- Products and services more appealing to men and younger customers
- Rewards positively influence usage
- Younger banking customers want mobile cheque deposit
- PFM tools pique the interests of parents
- Mobile payment is of interest to younger consumers, security remains a concern
The Consumer – Attitudes towards Technology in Financial Services
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- Key points
- Summary of attitudes towards technology in financial services
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- Figure 24: Attitudes towards technology in financial services, December 2014
- Customers have confidence in their banks
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- Figure 25: Attitudes towards technology in financial services (security & trust), December 2014
- Middle-aged customers show softer trust and confidence in bank security
- Leveraging mobile capabilities as a new channel of service delivery
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- Figure 26: Attitudes towards technology in financial services (satisfaction with mobile/online capabilities & perceived differentiation), December 2014
- Banking customers want incentives and still value personal service
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- Figure 27: Attitudes towards technology in financial services (in-branch value & receptivity towards incentives), December 2014
- Rewards and linkages to PFMs appeal to parents and younger customers
- Quebecers are polarized in their perceptions of financial institutions
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- Figure 28: Attitudes towards technology in financial services: Quebec against overall population, December 2014
The Consumer – Attitudes towards Technology in Financial Services and Chinese Canadians
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- Key points
- Chinese Canadians prioritize savings
- Greater propensity to own a savings account
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- Figure 29: Device ownership: Chinese Canadians vs overall population, December 2014
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- Figure 30: Have bank account: Chinese Canadians vs overall population, December 2014
- Their interest in technology extends into financial services
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- Figure 31: Interest in products and services (use services): Chinese Canadians vs overall population, December 2014
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- Figure 32: Interest in products and services (do not use but would be interested in using): Chinese Canadians vs overall population, December 2014
- Agreement to attitudinal statements reflect higher usage
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- Figure 33: Attitudes towards technology in financial services: Chinese Canadians against overall population, December 2014
The Consumer – Target Groups
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- Key points
- Four Target Groups
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- Figure 34: Target groups for attitudes towards technology in financial services, December 2014
- Tech Enthusiasts (32%)
- Conservative (25%)
- Convenience-Driven (22%)
- Disengaged (21%)
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