Table of Contents
Executive Summary
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- The issues
- Consumers are open to help with their financial lives
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- Figure 1: Interest in banking features, November 2019
- Bank employees are trusted by young and old
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- Figure 2: Attitudes towards role of humans in Banking, November 2019
- Online, Branch ATM and bank mobile apps are perceived as most convenient/easy to use
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- Figure 3: Features associated with convenience and ease of use, November 2019
- Majority interested in a fraud protection service
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- Figure 4: Interest in financial services trends, November 2019
- The opportunities
- Open Banking will result in closer price competition….
- …but the dominance of the big five is not under threat
- Using branches to forge relationships with New Canadians
- What it means
The Market – What You Need to Know
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- Impact of artificial intelligence
- Security is a key area of focus for Canadian banks
- Immigration is fuelling Canada’s population growth
- Application Programming Interfaces and Open Banking
- Wellspent helps users “Tinder” their spending
- New tools helping older adults and their caregivers
Market Factors – The People
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- Immigration is fuelling Canada’s population growth…
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- Figure 5: Percent of Canadians who are visible minorities or not visible minorities, by age, 2016
- …and Asia is the primary source
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- Figure 6: Distribution of immigrants living in Canada, by region of birth, 1996-2036
The Market – What’s New?
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- Application Programming Interfaces and Open Banking
- Impact of artificial intelligence
- Security is a key area of focus for Canadian banks
The Market – Fintech Apps Helping Financial Lives
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- Wellspent helps users “Tinder” their spending
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- Figure 7: Wellspent | Reflection | Basic, June 2019
- New tools helping older adults and their caregivers
- SilverBills
- EverSafe
- Silvernest
- Ready, Set, Bank digital tutorials
- Golden Financial Care
- Other US companies offering innovative services
Key Players – What You Need to Know
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- RBC files AI patents to predict clients' needs
- CIBC “Pace It” gives credit card clients flexible instalment options to pay off purchases
- Borrowell launches Boost, Canada’s first bill-tracker and predictive advance
- BMO introduces AI Powered Solution for personalized banking insights
- Wealthsimple unveils new chequing account and Mogo ups Wellness
Key Players – Innovations & Industry Developments
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- Borrowell launches Boost, Canada’s first bill-tracker and predictive advance
- BMO and RBC forge ahead on AI
- Amazon envisions paying with a wave
- Attijariwafa Bank Signs Partnership Agreement with National Bank of Canada
- Data breaches at Capital One, TransUnion, Desjardins
- Scotiabank enhances Scotia eHOME
- RBC to ratchet up efforts to turn Ventures users into banking clients
- CIBC ‘Pace It’ provides flexible instalment options while RBC clients can use rewards points to pay bills
- Wealthsimple unveils new chequing account partnership with two major Canadian banks
Key Players – Marketing Campaigns
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- Tangerine partners with Cineplex to launch Tangerine Tuesdays
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- Figure 8: Tangerine partners with Cineplex for Tangerine Tuesdays, December 2019
- Simplii looks to smooth foreign currency exchanges
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- Figure 9: Order your Pesos like you order food – right from your phone, October 2019
- Mogo Ups Financial Wellness
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- Figure 10: MOGO Financial health email campaign, December 2019
- Mobile app innovations
- CIBC in-app card replacement
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- Figure 11: Replace Your Lost or Stolen Credit Card, October 2019
- BMO mobile banking on iOS gets QuickPay feature
- PayMi, a relatively new payments app, partners with CIBC
- Email campaigns aimed at driving mobile app usage
- Security messaging becomes more prominent
The Consumer – What You Need to Know
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- Consumers are open to help with their financial lives
- Online, Branch ATM and bank mobile apps are perceived as most convenient/easy to use
- Majority interested in a fraud protection service
- Bank employees are trusted by young and old
- Consumers expect ease and simplicity
New Banking Features
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- Consumers are open to help with their financial lives
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- Figure 12: Interest in banking features, November 2019
- Women more interested in saving/spending and less in investing recommendations
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- Figure 13: Interest in banking features (select), men vs women, November 2019
- Younger Canadians keener on banking features
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- Figure 14: Interest in banking features (select), 18-44s vs over-45s, November 2019
- Higher income earners are more open to digital help
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- Figure 15: Interest in banking features (select), by household income of over and under $70K, November 2019
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- Figure 16: Interest in banking features (select), Asian Canadians vs overall, November 2019
- TURF Analysis for preferred banking advancements
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- Figure 17: TURF analysis – interest in banking advancements, November 2019
Perceptions of Banking Channels
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- Online, Branch ATM and bank mobile apps are perceived as most convenient/easy to use
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- Figure 18: Features associated with convenience and ease of use, November 2019
- Older customers find online banking more convenient than apps
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- Figure 19: Features associated with convenience and ease of use (select), 18-44 vs over-45s, November 2019
- Branches drive safety and trust perceptions
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- Figure 20: Features associated with safe and trusted, November 2019
- Age differences mainly around trust/safety perceptions of branch, online, ATM and app banking
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- Figure 21: Features associated with trust and safety (select), 18-44 vs over-45s, November 2019
- Online banking and branch ATMs are deemed most “personally suitable”
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- Figure 22: Features associated with “for someone like me”, November 2019
- Personal suitability is strongly age dependent
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- Figure 23: Features associated with “for someone like me” (select), 18-44 vs over-45s, November 2019
Financial Services Trends
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- Majority interested in a fraud protection service
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- Figure 24: Interest in financial services trends, November 2019
- Older more interested in fraud protection
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- Figure 25: Interest in financial services trends, 18-44s vs over-45s, November 2019
- Around a third are interested in “banking on the go”
- Open Banking will result in closer price competition….
- …but the dominance of the big five is not under threat
- Canadians banks partnering with Fintech companies
- Around three in 10 younger consumers interested in a micro-investing app
Attitudes towards Innovations
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- Bank employees are trusted by young and old
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- Figure 26: Attitudes towards role of humans in Banking, November 2019
- Non-English speakers expect branch service in their own language
- Using branches to forge relationships with New Canadians
- Banks assuaging security concerns as innovation advances
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- Figure 27: Attitudes about Innovations in banking, November 2019
- Apple and Google are less trusted compared to banks
- Mobile apps are a key banking innovation
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- Figure 28: Attitudes about Innovations in banking (% any agree) 18-44s vs over-45s, November 2019
- Half of consumers willing to compromise on privacy
- Parents with young children are keener on innovation and apps
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- Figure 29: Select attitudes about Innovations in banking (% any agree), parents vs non-parents, November 2019
Simplicity vs Innovation
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- Consumers expect ease and simplicity
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- Figure 30: Attitudes towards banking ease, November 2019
- Will access to credit improve with Fintech?
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- Figure 31: Select attitudes towards banking ease (% any agree), 18-44s vs over-45s, November 2019
- Younger Canadians expect both ease and innovation: is this a contradiction?
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- Figure 32: Interest in banking innovations, 18-44s vs over-45s and overall, November 2019
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- Figure 33: Interest in banking innovations (select), by gender, November 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
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