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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Innovations in Banking - Canada market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Key points included

  • Consumers are open to help with their financial lives
  • Bank employees are trusted by young and old
  • Online, Branch ATM and bank mobile apps are perceived as most convenient/easy to use

Covered in this report

The majority of Canadians believe that technology can change the financial services industry for the better. The last 50 years have seen plenty of evidence of this as service delivery and ease of transactions have improved exponentially right from the advent of ATMs to online/mobile banking and more recently, Blockchain and artificial intelligence, which has fuelled the rise of cryptocurrencies, chatbots, robo-advisors, etc. Technology has also improved security although data breaches and hackers have occasionally spoiled the party. We are still in the early stages of innovation in banking and there is plenty of scope for technology to impact product innovation and further improve accessibility, security and financial inclusion for all.

Expert analysis from a specialist in the field

Written by Sanjay Sharma, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

As innovation advances, concerns around security persist. Although these concerns will not hinder the pace of innovation, this might slow adoption levels of new features among older consumers Sanjay Sharma
Senior Financial Services Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

      • Regional classifications
        • Income
        • Executive Summary

            • The issues
              • Consumers are open to help with their financial lives
                • Figure 1: Interest in banking features, November 2019
              • Bank employees are trusted by young and old
                • 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
                • Figure 3: Features associated with convenience and ease of use, November 2019
              • Majority interested in a fraud protection service
                • 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

                        • 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

                                    • Immigration is fuelling Canada’s population growth…
                                      • Figure 5: Percent of Canadians who are visible minorities or not visible minorities, by age, 2016
                                    • …and Asia is the primary source
                                      • Figure 6: Distribution of immigrants living in Canada, by region of birth, 1996-2036
                                  • The Market – What’s New?

                                    • 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

                                          • Wellspent helps users “Tinder” their spending
                                            • 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

                                                        • 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

                                                                  • 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

                                                                                    • Tangerine partners with Cineplex to launch Tangerine Tuesdays
                                                                                      • Figure 8: Tangerine partners with Cineplex for Tangerine Tuesdays, December 2019
                                                                                    • Simplii looks to smooth foreign currency exchanges
                                                                                      • Figure 9: Order your Pesos like you order food – right from your phone, October 2019
                                                                                    • Mogo Ups Financial Wellness
                                                                                      • Figure 10: MOGO Financial health email campaign, December 2019
                                                                                    • Mobile app innovations
                                                                                      • CIBC in-app card replacement
                                                                                        • 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

                                                                                              • 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

                                                                                                        • Consumers are open to help with their financial lives
                                                                                                          • Figure 12: Interest in banking features, November 2019
                                                                                                        • Women more interested in saving/spending and less in investing recommendations
                                                                                                          • Figure 13: Interest in banking features (select), men vs women, November 2019
                                                                                                        • Younger Canadians keener on banking features
                                                                                                          • Figure 14: Interest in banking features (select), 18-44s vs over-45s, November 2019
                                                                                                        • Higher income earners are more open to digital help
                                                                                                          • Figure 15: Interest in banking features (select), by household income of over and under $70K, November 2019
                                                                                                          • Figure 16: Interest in banking features (select), Asian Canadians vs overall, November 2019
                                                                                                        • TURF Analysis for preferred banking advancements
                                                                                                          • Figure 17: TURF analysis – interest in banking advancements, November 2019
                                                                                                      • Perceptions of Banking Channels

                                                                                                        • Online, Branch ATM and bank mobile apps are perceived as most convenient/easy to use
                                                                                                          • Figure 18: Features associated with convenience and ease of use, November 2019
                                                                                                        • Older customers find online banking more convenient than apps
                                                                                                          • Figure 19: Features associated with convenience and ease of use (select), 18-44 vs over-45s, November 2019
                                                                                                        • Branches drive safety and trust perceptions
                                                                                                          • Figure 20: Features associated with safe and trusted, November 2019
                                                                                                        • Age differences mainly around trust/safety perceptions of branch, online, ATM and app banking
                                                                                                          • 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”
                                                                                                          • Figure 22: Features associated with “for someone like me”, November 2019
                                                                                                        • Personal suitability is strongly age dependent
                                                                                                          • Figure 23: Features associated with “for someone like me” (select), 18-44 vs over-45s, November 2019
                                                                                                      • Financial Services Trends

                                                                                                        • Majority interested in a fraud protection service
                                                                                                          • Figure 24: Interest in financial services trends, November 2019
                                                                                                        • Older more interested in fraud protection
                                                                                                          • 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

                                                                                                                  • Bank employees are trusted by young and old
                                                                                                                      • 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
                                                                                                                          • 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
                                                                                                                              • 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
                                                                                                                                • Figure 29: Select attitudes about Innovations in banking (% any agree), parents vs non-parents, November 2019
                                                                                                                            • Simplicity vs Innovation

                                                                                                                              • Consumers expect ease and simplicity
                                                                                                                                • Figure 30: Attitudes towards banking ease, November 2019
                                                                                                                              • Will access to credit improve with Fintech?
                                                                                                                                • 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?
                                                                                                                                • Figure 32: Interest in banking innovations, 18-44s vs over-45s and overall, November 2019
                                                                                                                                • Figure 33: Interest in banking innovations (select), by gender, November 2019
                                                                                                                            • Appendix – Data Sources and Abbreviations

                                                                                                                              • Data sources
                                                                                                                                • Consumer survey data
                                                                                                                                  • Consumer qualitative research
                                                                                                                                    • Abbreviations and terms

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