Table of Contents
Executive Summary
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- The issues
- One in four Canadians have used fingerprint access
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- Figure 1: Usage of and interest in financial tools, August 2019
- Money-saving tools of most interest
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- Figure 2: Interest in Fintech banking features, August 2019
- Chatbots and texts still not resonating with most customers
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- Figure 3: Fintech-related attitudes (% agree), August 2019
- The opportunities
- Offering more features that can help improve financial lives
- Branches are not going away soon
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- Figure 4: General attitudes towards financial services, August 2019
- Simplifying the user experience
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- Figure 5: Satisfaction with financial tools, August 2019
- Majority of women users of robo-advisory services are unsatisfied
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- Figure 6: Satisfaction with financial tools (select), by gender, August 2019
- What it means
The Market – What You Need to Know
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- Application programming interfaces
- Impact of artificial intelligence
- Competition Bureau study identifies barriers to Canadian Fintech
- CSA Regulatory Sandbox
- New tools helping older adults and their caregivers
- Canada has more seniors than children
Market Factors
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- Application Programming Interfaces
- Impact of artificial intelligence
- Time-pressed Canadians may be looking for tools to make their financial lives easier
- Canada has more seniors than children
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- Figure 7: Population aged 0-14 and 65+, as of July 1, 1995-2035*
Market Perspective
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- Competition Bureau study identifies barriers to Canadian Fintech
- Retail payments and the retail payments system
- Lending and equity crowdfunding
- Investment dealing and advice
- Global reactions to Fintech innovation
- Recommendations for regulators and policymakers
- CSA Regulatory Sandbox
- Eligibility
- Process
- Sandbox principles
- Monitoring
What’s New?
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- New tools helping older adults and their caregivers
- SilverBills
- EverSafe
- Silvernest
- Ready, Set, Bank digital tutorials
- Golden Financial Care
- Other companies offering innovative services (US)
Key Players – What You Need to Know
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- Desjardins expands its voice services and Manulife Bank introduces a chatbot
- Data breaches at Capital One, TransUnion, Desjardins
- Facebook’s Libra in trouble as some partners abandon the project
- PayBright announces partnership with Klarna
- Wealthsimple acquires SimpleTax, also partners with Grayhawk Investments
- Robo-advisor Planswell shuts down
Industry Developments and Innovations
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- Desjardins expands its voice services and Manulife Bank introduces a chatbot
- Data breaches at Capital One, TransUnion, Desjardins
- 3iQ “the Bitcoin Fund” receives favourable ruling from OSC Panel
- Robo-advisor Planswell shuts down
- Facebook’s Libra in trouble as some partners abandon the project
- BMO is forming a new financial crimes unit
- PayBright announces partnership with Klarna
- BMO invests further in Ryerson tech hub partnership
- Wealthsimple acquires SimpleTax, also partners with Grayhawk Investments
Marketing Campaigns
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- Manulife All-In Banking
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- Figure 8: How to bank for free and get Amazon Prime: Manulife All-In Banking Package, June 2019
- EQ Bank is redefining what it means to have a bank account
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- Figure 9: Ask More of Your Account, September 2019
- HSBC is the second bank to bring “Pepper” to Canada’s banking industry
The Consumer – What You Need to Know
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- One in four Canadians have used fingerprint access
- Fintech gender gap persists in both usage and interest
- Money-saving tools of most interest
- Chatbots and texts still not resonating with most customers
- Around one in four conduct most transactions on a mobile device
- Around half trust the financial services industry
Usage of and Interest in Fintech Tools
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- One in four Canadians have used fingerprint access
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- Figure 10: Usage of and interest in financial tools, August 2019
- Age is a major determinant of usage
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- Figure 11: Usage of financial tools, 18-44s vs over-45s, August 2019
- Addressing pain points can stir adoption among older
- Older non-users more interested in fingerprint access
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- Figure 12: Interest in financial tools among non-users (select), 18-44s vs over-45s, August 2019
- Fintech gender gap persists in both usage and interest
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- Figure 13: Usage of financial tools, by gender, August 2019
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- Figure 14: Interest in financial tools among non-users, by gender, August 2019
- Asian Canadians have a higher usage
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- Figure 15: Usage of financial tools, Asian Canadians vs overall, August 2019
- Urban residents have a higher usage
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- Figure 16: Usage of financial tools, urban vs overall, August 2019
- Ontarians have a higher usage of some products
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- Figure 17: Usage of financial tools, Ontario vs overall, August 2019
Satisfaction with Fintech Tools
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- Fingerprint access has the highest and robo-advisors the lowest satisfaction rates
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- Figure 18: Satisfaction with financial tools, August 2019
- Simplifying the user experience
- Reasons driving Fintech satisfaction
- Majority of women users of robo-advisory services are unsatisfied
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- Figure 19: Satisfaction with financial tools (select), by gender, August 2019
Banking Features
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- Money-saving tools of most interest
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- Figure 20: Interest in Fintech banking features, August 2019
- Around half of 18-44s are looking for money-saving tools
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- Figure 21: Interest in Fintech banking features (select), 18-44s vs over-45s, August 2019
- Features that can help improve the financial lives of banking customers
- Younger more interested in account sharing products…
- …and financial concierge services
- Mylo and financial rounding apps
- Other round-up savings programs in Canada
- Consumers want tools that help make their financial lives easier
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- Figure 22: TURF analysis – Fintech features, August 2019
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- Figure 23: Table – TURF analysis – Fintech features, August 2019
Impact of Technology on Financial Transactions
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- Around one in four conduct most transactions on a mobile device
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- Figure 24: Technology and banking behaviours (% agree), August 2019
- Around a third of 18-44s use a financial services mobile app
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- Figure 25: Technology and banking behaviours (% agree), 18-44s and over-45s, August 2019
- Parents of young children are more digitally engaged
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- Figure 26: Select technology and banking behaviours (% agree), parents vs non-parents, August 2019
- Higher income earners more likely to use mobile apps and bank branches
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- Figure 27: Select technology and banking behaviours (% agree), by income, August 2019
- Branches are not going away soon
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- Figure 28: General attitudes towards financial services, August 2019
- Around half would like broader information incorporated into credit scores
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- Figure 29: General attitudes towards financial services (select), 18-44s vs over-45s, August 2019
- Around half trust the financial services industry
- Asian Canadians are more trusting
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- Figure 30: General attitudes towards financial services (select), Asian Canadians vs overall, August 2019
Attitudes towards Fintech
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- Chatbots and texts still not resonating with most customers
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- Figure 31: Fintech-related attitudes (% agree), August 2019
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- Figure 32: Fintech-related attitudes (% agree), 18-44s vs over-45s, August 2019
- Most unaware of Open Banking
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- Figure 33: Select Fintech-related attitudes (% agree), by gender, August 2019
- Only 1% of over-45s think robo-advisors are better than human
- Providing a smooth digital onboarding experience
Future of Fintech
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- Majority confident technology can change the industry for the better
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- Figure 34: Attitudes towards Fintech, August 2019
- Security is more of a concern for older Canadians
- Younger Canadians and men have more confidence in technology
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- Figure 35: Fintech attitudes (% any agree), 18-44s vs over-45s, August 2019
- Asian Canadians are more keen about Fintech…
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- Figure 36: Select Fintech attitudes (% any agree), Asian Canadians vs overall, August 2019
- …while women are generally less enthusiastic
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- Figure 37: Select Fintech attitudes (% any agree), by gender, August 2019
- The potential of wearables
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
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