Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on Fintech and the Canadian consumer
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- Figure 1: Short, medium and longer-term impact of COVID-19 on financial technology and the Canadian consumer, February 2021
- Opportunities
- Mobile banking advantages can be highlighted to drive usage
- Young women are more banking app-dependent but less interested in other financial apps
- Fintech partnerships can hasten innovation in larger banks
- How can Fintech help consumers?
- Challenges
- Is the reduction in branch visits a permanent behavioural shift or a pandemic-inspired temporary measure?
- Fintechs are unlikely to be a major threat to established financial institutions
- Open Banking in a Canadian context
The Market – Key Takeaways
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- Economic impact of COVID-19
- Bank of Canada projects 4% growth in 2021
- Impact of COVID-19 on Fintech
- Central Banks and digital currencies
The Market – Market Factors
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- Economic impact of COVID-19
- Households sitting on a huge pile of cash
- Bank of Canada projects 4% growth in 2021
- Impact of COVID-19 on Fintech
- Central banks and digital currencies
The Market – Apps & Tools
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- Digital tools and Canadians
- Artificial intelligence
- Scotiabank rolls out AI-powered cashflow predictor Sofia
- BMO launches AI financial advice tool and adds features to its financial planning platform
- CIBC launches AI-powered virtual assistant
- RBC debuts Aiden
- Financial planning and advice
- TD launches new financial planning and investing app
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- Figure 2: Find your beginning with TD GoalAssist, October 2020
- Scotiabank launches Advice+, a digital, financial planning centre
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- Figure 3: Scotiabank – It’s You, Plus, September 2020
- CIBC launches new platform to help clients build their financial plans
- New digital banking features
- Scotiabank simplifies digital banking with a new resource for seniors
- TD unveils new digital cashflow tools
- CIBC adds spending insights to mobile app
- HSBC announces real-time payments tool
- BMO launches new digital feature called Card Tracker
- Case study: Ally Bank uses gamification to drive financial literacy
Companies and Brands – Key Takeaways
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- Canada approves world’s first Bitcoin ETF for retail investors
- Libra rebrands
- New platform allows users to invest in consumer credit
Competitive Strategies
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- Canada approves world’s first Bitcoin ETF for retail investors
- Other companies follow suit
- Libra rebrands
- Walmart partners with Ribbit (US)
- PayPal launches new service enabling users to buy, hold and sell cryptocurrency
- Wealthsimple testing new feature
- PayFare files to go public on the Toronto Stock Exchange
Marketing Campaigns & Launches
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- BMO creates 281 pieces of content to be relevant to Millennials
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- Figure 4: New BMO eclipse Visa Infinite Card | My Kind of Rewards, December 2020
- ATB lends its name to new digital challenger brand
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- Figure 5: Brightside latest Instagram post, February 2021
- Challenger bank Neo raises $25 million
- Hudson’s Bay and Neo Financial announce strategic partnership
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- Figure 6: Neo Financial Instagram post on HBC card launch, February 2021
- Gemini to offer credit card with crypto rewards (US)
The Consumer – Key Takeaways
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- Mobile banking is the most popular Fintech tool
- Online banking is preferred to mobile apps
- Branch visits take a pandemic hit as digital usage accelerates
- Consumers see positives in Fintech
Fintech Tools and Products
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- Mobile banking is the most popular Fintech tool
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- Figure 7: Usage of Fintech tools, December 2020
- Usage declines with age
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- Figure 8: Usage (net) of Fintech tools, by age, December 2020
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- Figure 9: Moka Facebook post, December 2020
- Women are equally engaged in some tools
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- Figure 10: Usage of and interest in Fintech tools, by gender, December 2020
- How can interest levels of women be enhanced?
- Fingerprint access and mobile banking are of more interest to older non-users…
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- Figure 11: Interest in Fintech tools, 18-44s vs over-45s, December 2020
- …while fraud detection, voice and virtual assistant access and mobile payments are of equal interest
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- Figure 12: LifeLock ID theft protection ad, February 2021
- Cryptocurrencies are experiencing a second boom
Attitudes towards Mobile Apps and Automated Banking
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- Perception of no value-add is the main hurdle for mobile banking adoption
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- Figure 13: Attitudes related to mobile apps and automated banking, December 2020
- Mobile banking advantages can be highlighted to drive usage
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- Figure 14: Commerce Bank mobile banking app email ad, December 2020
- Many consumers are looking for guidance and banks are responding
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- Figure 15: Attitudes related to mobile apps and automated banking (% agree), by age, December 2020
- More than half of 18-34s are interested in using wearables for store payments
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- Figure 16: Amazon One: an easier way through your day, September 2020
- Half find chatbots useful for answering simple questions
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- Figure 17: Digit Instagram post, January 2021
Banking Channels
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- Online banking is preferred to mobile apps
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- Figure 18: Banking channels usage and attitudes, December 2020
- Apps favoured by younger consumers, computers favoured by older consumers
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- Figure 19: Banking channels usage and attitudes, by age, December 2020
- Young women are more banking app-dependent than young men
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- Figure 20: Banking channel usage – 18-34s, by gender, December 2020
- Young men more likely to download and not use financial apps
- Branch visits take a pandemic hit as digital usage accelerates
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- Figure 21: Attitudes related to impact of COVID-19 on channel usage, December 2020
- Three in four 18-34s have increased mobile banking usage due to the pandemic
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- Figure 22: Attitudes related to impact of COVID-19 on channel usage, by age, December 2020
- Is the reduction in branch visits a permanent behavioural shift or a pandemic-inspired temporary measure?
Consumer Impact & Innovations
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- Consumers see positives in Fintech
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- Figure 23: Attitudes related to the impact of Fintech on consumers (% agree), December 2020
- Men generally are more optimistic about Fintech
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- Figure 24: Attitudes related to the impact of Fintech on consumers (% agree), by gender, December 2020
- Fintech partnerships can hasten innovation in larger banks
- Older consumers more concerned about security
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- Figure 25: Attitudes related to the impact of Fintech on consumers (% agree), 18-44s vs over-45s, December 2020
- Two in five parents are interested in apps to help children learn about finances
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- Figure 26: Interest in innovations, December 2020
- Interest in innovations highest among 18-34s
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- Figure 27: Sensibill Instagram post, March 2019
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- Figure 28: Interest in innovations, by age, December 2020
- Seniors demonstrate some interest in specialized apps
Challengers versus Established Banks
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- Big banks dominate Canadian consumer banking
- Big tech far less trusted than Canadian banks
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- Figure 29: Attitudes towards challenger banks and Fintech impact, December 2020
- The prospects of Fintech challengers
- Open Banking in a Canadian context
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- Figure 30: Attitudes towards challenger banks and Fintech impact (% agree), by age, December 2020
- Preference for humans ensures that branches will not go away
- Young men are the best bet for challenger banks
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- Figure 31: “Fintech companies are a real alternative to banks” (% agree), by gender and age, February 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Mintel Trend Drivers
- Abbreviations and terms
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