Table of Contents
Executive Summary
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- The issues
- TD and RBC are the leading choices
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- Figure 1: Choice of main FI, December 2018
- Tangerine is the top alternative choice
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- Figure 2: Switching choice of main FI, December 2018
- Lower chequing fees and higher savings interest are the top switching influencers
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- Figure 3: Interest in incentives to switch (any rank), December 2018
- Rewards programs will encourage more cross-sell
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- Figure 4: Interest in incentives to buy more products, December 2018
- The opportunities
- Having multiple products at one bank discourages switching
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- Figure 5: Attitudinal statements relating to loyalty in banking, December 2018
- Bundling discounts have wide appeal
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- Figure 6: Attitudinal statements relating to loyalty (select), 18-44s vs over-45s, December 2018
- Branches continue to play an important relationship building role
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- Figure 7: Attitudes about customer relationships in banking, December 2018
- Digital banks mainly used as a supplemental bank
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- Figure 8: Attitudes about digital banks, Simplii Financial and Tangerine, December 2018
- What it means
Key Players – What You Need to Know
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- Impact of new consumer protection legislation on banks
- Meridian Credit Union clears key hurdle to launching new national bank
- Coast Capital Savings approved to become BC’s first federal credit union
- Meridian Credit Union launches “Price Drop”
- Borrowell launches first free AI powered credit coaching tool
- Bankers association says Canada needs a digital ID system
Regulatory Developments
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- Impact of new consumer protection legislation on banks
- Naming and shaming
- Whistleblower protections
- Sales tactics
- Regulatory relief
- Meridian Credit Union clears key hurdle to launching new national bank
- Coast Capital Savings approved to become BC’s first federal credit union
Industry Developments & Innovations
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- Meridian Credit Union launches “Price Drop”
- Borrowell launches first free AI powered credit coaching tool
- MasterCard to drop its name from logo
- Bankers association says Canada needs a digital ID system
- RBC launches new accelerator programme
Marketing Initiatives
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- Simplii Financial launches first-ever campaign
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- Figure 9: Choosing Simplii Financial means your banking is one less thing to juggle, September 2018
- HSBC gets opera singers to pitch its services
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- Figure 10: HSBC Bank Canada | Don’t let your banking become a tragedy, November 2018
- CIBC adds a personal touch to its multicultural marketing
- PayPal debuts Xoom in Canada
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- Figure 11: Paypal money go Xoom, December 2018
- Meridian Credit Union making more inroads in the GTA
- BMO launching new financial-crimes unit
Bundling and Switching Initiatives
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- Scotia’s Momentum Rewards Bundle
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- Figure 12: Scotiabank’s Momentum banking bundle, September 2017
- RBC VIP Banking bundle and new account offer
- Other banking bundles
- Switching offers for new customers
The Consumer – What You Need to Know
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- TD and RBC are the leading choices
- Tangerine is the top alternative choice
- Lower chequing fees and higher savings interest are the top switching influencers
- No-fee banking is the main selling feature of digital banks
- Rewards programs will encourage more cross-sell
- Around two in three consumers would recommend their main FI
- Having multiple products at one bank discourages switching
Choice of Main FI
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- TD and RBC are the leading choices
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- Figure 13: Choice of main FI, December 2018
- Significant regional differences in market penetration of banks
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- Figure 14: Choice of main FI choices (select), Atlantic Canada vs Quebec, August 2016
- One in four Asian Canadians considers TD as their main FI
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- Figure 15: Choice of main FI, Asian Canadians vs overall population, December 2018
Switching Choice of Main FI
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- Tangerine is the top alternative choice
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- Figure 16: Switching choice of main FI, December 2018
- TD and Scotia are top switching choices of younger consumers
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- Figure 17: Switching choice of main FI (select), 18-44s vs over-45s, December 2018
Incentives to Switch
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- Lower chequing fees and higher savings interest are the top switching influencers
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- Figure 18: Interest in incentives to switch (any rank), December 2018
- Men value full range of products and digital capabilities more
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- Figure 19: Select interest in incentives to switch (any rank), by gender, December 2018
- Higher interest rates matter more to older consumers
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- Figure 20: Select interest in incentives to switch (any rank), 18-44s vs over-45s, December 2018
- Lower fees matter less to over-55s
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- Figure 21: Interest in incentives to switch (rank #1), by age, December 2018
Digital Banks
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- No-fee banking is the main selling feature of digital banks
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- Figure 22: Attitudes about digital banks, December 2018
- 35-54s more enthused about digital banks
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- Figure 23: Attitudes about digital banks, by age, December 2018
- Men more likely to be attracted by high interest savings accounts
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- Figure 24: Attitudes about digital banks, by gender, December 2018
- Digital banks mainly used as a supplemental bank
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- Figure 25: Attitudes about digital banks, Simplii Financial and Tangerine customers, December 2018
Incentives to Increase Share of Wallet
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- Rewards programs will encourage more cross-sell
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- Figure 26: Interest in incentives to buy more products, December 2018
- Over-55s generally less interested in incentives
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- Figure 27: Interest in incentives to buy more products (select), by age, December 2018
- Higher income earners more interested in most incentives
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- Figure 28: Interest in incentives to buy more products, HHI under $50K vs over $50K, December 2018
- Financially stressed parents with young children more interested in incentives
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- Figure 29: Interest in incentives to buy more products (select), by parental status, December 2018
- TURF Analysis
- Methodology
- Rewards and a price matching program would appeal to around 60%
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- Figure 30: TURF Analysis – Cross-sell incentives, December 2018
Customer Relationships
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- Around two in three consumers would recommend their main FI
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- Figure 31: Attitudes about customer relationships in banking, December 2018
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- Figure 32: Agreement with statement “I would recommend my main bank/credit union to a friend/family member”, by select FIs, December 2018
- Around seven in ten have a good relationship with their local branch
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- Figure 33: Agreement with statement “I have a good relationship with my local bank/credit union”, 18-44s vs over-45s, December 2018
- Desjardins and RBC customers appear to have a stronger relationship
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- Figure 34: Agreement with statement “I have a good relationship with my local bank/credit union”, Desjardins customers vs overall, December 2018
- Branches continue to play an important relationship building role
Loyalty
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- Having multiple products at one bank discourages switching
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- Figure 35: Attitudinal statements relating to loyalty in banking, December 2018
- Bundling discounts have wide appeal
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- Figure 36: Attitudinal statements relating to loyalty (select), 18-44s vs over-45s, December 2018
- Young men more likely to contemplate switching
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- Figure 37: Attitudinal statement relating to switching, by age and gender, December 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
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