Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Credit Unions and Retail Banking - Canada - February 2017

“Family relationships are an influential factor behind choice of first bank so incentivizing parents to open accounts for their children is a sound strategy.”

–    Sanjay Sharma, Senior Financial Services Analyst

This report will cover the following areas:

  • TD and RBC are the top two primary bank choices
  • Family and branch locations are dominant factors in first bank choice
  • Low fees rated as the top essential feature
  • Seven in 10 consumers agree that face-to-face access helps build long-term relationships
  • Women and older customers have higher trust levels

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

      • Regional classifications
        • Income
        • Executive Summary

            • The issues
              • TD and RBC are the top two primary bank choices
                • Figure 1: Choice of primary financial institution, November 2016
              • Family and branch locations are dominant factors in first bank choice
                • Figure 2: Top reasons for choice of first bank (%), November 2016
              • Low fees rated as the top essential feature
                • Figure 3: Importance of primary financial institution features (% who rated feature as essential or preferred), November 2016
              • Seven in 10 consumers agree that face-to-face access helps build long-term relationships
                • Figure 4: Attitudes related to customer relationships, November 2016
              • Women and older customers have higher trust levels
                • Figure 5: Attitudes related to trust, November 2016
              • The opportunities
                • Incentives for parents to set up children’s accounts might help in new customer acquisition
                  • Mobile banking apps can be made more user-friendly
                    • Increasing trust levels
                      • What it means
                      • The Market – What You Need to Know

                        • Chatbots and banking customer service
                          • Robo-investment advisors
                            • Digital disruption in lending
                              • Canadian banks react to the fintech challenge
                                • Canadian economy finishes 2016 on a strong note
                                • Market Factors

                                  • Chatbots and banking customer service
                                    • Robo-investment advisors
                                      • Digital disruption in lending
                                        • Canadian banks react to the fintech challenge
                                          • Real estate sales activity in 2017 to mainly decline, according to the CREA
                                            • Canadian economy finishes 2016 on a strong note
                                            • Key Players – What You Need to Know

                                              • Credit Karma crosses the border to Canada
                                                • Peer-to-peer Lending Loop returns to the market
                                                  • Hollis Wealth sold by Scotiabank to Industrial Alliance
                                                    • Coast Capital going national
                                                      • Erica: Bank of America’s first Artificial Intelligence voice banking system
                                                        • Air Canada and CIBC launch multicurrency prepaid card for travellers
                                                          • MasterCard’s bot for banks
                                                          • Industry Developments

                                                            • Servus launches new lower interest payday loan alternative
                                                              • Canadian credit unions set to benefit from Grow and Celero partnership for digital banking solutions
                                                                • Credit Karma crosses the border to Canada
                                                                  • Peer-to-peer Lending Loop returns to the market
                                                                    • Coast Capital going national
                                                                      • Hollis Wealth sold by Scotiabank to Industrial Alliance
                                                                        • Canada's first ski-thru ATM opens on Whistler Mountain
                                                                          • Bay Street fintech fund tops $100 million mark
                                                                            • Fintech firm buys home improvement financing assets from TD Bank
                                                                            • Innovations

                                                                              • Marcus, Goldman Sachs’s online lender for the masses
                                                                                • Air Canada and CIBC launch multicurrency prepaid card for travellers
                                                                                  • Erica: Bank of America’s first Artificial Intelligence voice banking system
                                                                                    • Lucy launched by Thinking Capital
                                                                                      • MasterCard’s bot for banks
                                                                                      • Marketing Campaigns

                                                                                        • Select campaigns from Mintel Comperemedia
                                                                                          • HSBC offers a cash incentive for new advance customers
                                                                                            • Figure 6: HSBC advance chequing account mail advertisement, December 2016
                                                                                          • BMO targets new Canadians
                                                                                            • Figure 7: BMO New Canadian offer, Print advertisement, October 2016
                                                                                          • Prospera markets to parents
                                                                                            • Figure 8: Prospera credit union youth savings account mail, September 2015
                                                                                        • The Consumer – What You Need to Know

                                                                                          • TD and RBC are the top two primary bank choices
                                                                                            • Family and branch locations are dominant factors when selecting first bank
                                                                                              • Value for money among top two factors with regard to primary Financial Institute
                                                                                                • Around half of consumers use mobile banking
                                                                                                  • Seven in 10 consumers agree that face-to-face access helps build long-term relationships
                                                                                                    • Women and older customers have higher trust levels
                                                                                                    • Choice of Primary Financial Institution

                                                                                                      • TD and RBC are the top two primary bank choices
                                                                                                        • Figure 9: Choice of primary financial institution, November 2016
                                                                                                      • Desjardins and Tangerine appeal to a younger clientele, BMO to older consumers
                                                                                                        • Figure 10: Choice of primary FI (select), age differences, November 2016
                                                                                                      • TD is the clear favourite among Asian Canadians
                                                                                                        • Figure 11: Choice of primary FI, overall population vs Asian Canadians, November 2016
                                                                                                      • Credit Unions and small banks play a larger role in the US
                                                                                                      • Reasons Influencing Choice of First Bank

                                                                                                        • Family and branch locations are dominant factors
                                                                                                          • Figure 12: Top reason for choice of first bank (%), November 2016
                                                                                                        • More than half of 18-24s influenced by parents/friends
                                                                                                          • Figure 13: Choice of family related reason as #1 factor for choosing their first bank account, by age, November 2016
                                                                                                        • Branch locations increase brand familiarity
                                                                                                        • Importance of Features in a Primary FI

                                                                                                          • Low fees rated as the top essential feature
                                                                                                            • Figure 14: Importance of primary financial institution features (% who rated feature as essential or preferred), November 2016
                                                                                                          • Branches as a source of reassurance
                                                                                                            • Mobile banking and online chat matter more to the young
                                                                                                              • Over-65s more likely to rate free chequing accounts as essential
                                                                                                              • Mobile Banking

                                                                                                                • Around half of consumers use mobile banking
                                                                                                                  • Figure 15: Mobile banking usage, November 2016
                                                                                                                • Mobile banking usage peaks among 18-24s
                                                                                                                  • Figure 16: Mobile banking usage, by age, November 2016
                                                                                                                • Canadian mobile banking usage is similar to the US
                                                                                                                  • About half of users are satisfied with mobile banking capabilities
                                                                                                                    • Figure 17: Attitudes related to mobile banking, November 2016
                                                                                                                  • Women and older mobile banking users more satisfied
                                                                                                                    • Women more likely to prefer using a phone/tablet for banking transactions
                                                                                                                      • Younger mobile app users are the leaders in activity and usage
                                                                                                                        • Figure 18: Attitudes related to mobile banking (select), 18-44s vs over-45s, November 2016
                                                                                                                      • Over-45 mobile banking users are more likely to use tablets
                                                                                                                        • One in five 18-24s began using mobile banking in the past six months
                                                                                                                          • Mobile banking apps can be made more user-friendly
                                                                                                                            • Making it easier to open accounts using mobile apps
                                                                                                                              • Mobile banking usage trends by financial institutions
                                                                                                                              • Customer Relationships

                                                                                                                                • Seven in 10 consumers agree that face-to-face access helps build long-term relationships
                                                                                                                                  • Figure 19: Attitudes related to customer relationships, November 2016
                                                                                                                                • RBC and Desjardins customers are more open to consolidation
                                                                                                                                  • Figure 20: Agreement with ‘one bank to manage all’ statement (% agree), by primary FI customers, November 2016
                                                                                                                                • Younger consumers more likely to build relationships with companies that have a strong social media presence
                                                                                                                                  • Around half of consumers believe that financial advisors at banks/credit unions are as good as those at brokerages
                                                                                                                                    • Figure 21: Attitudes relating to banking services, November 2016
                                                                                                                                • Trust in Financial Institutions

                                                                                                                                  • Women and older customers have higher trust levels
                                                                                                                                    • Figure 22: Attitudes related to trust, November 2016
                                                                                                                                  • Desjardins customers relatively more confident about mistakes being fixed quickly
                                                                                                                                    • Figure 23: Attitudes related to correcting errors, by primary FI customers, November 2016
                                                                                                                                  • CIBC scores lower on trust with regard to fair treatment
                                                                                                                                    • Figure 24: Attitudes related to trust, by primary FI customers, November 2016
                                                                                                                                  • Increasing trust levels
                                                                                                                                    • Women and older consumers are also more confident about the safety of their personal information
                                                                                                                                      • Canadian banks enjoy higher levels of trust compared to US banks
                                                                                                                                      • Appendix – Data Sources and Abbreviations

                                                                                                                                        • Data sources
                                                                                                                                          • Consumer survey data
                                                                                                                                            • Abbreviations and terms

                                                                                                                                            Companies Covered

                                                                                                                                            To learn more about the companies covered in this report please contact us.

                                                                                                                                            Credit Unions and Retail Banking - Canada - February 2017

                                                                                                                                            US $3,995.00 (Excl.Tax)