Growing use of digital banking is accelerating during pandemic: ABC survey
Banking preferences are changing with technology, world events and the generational influences of younger customers
TORONTO, March 31, 2022 /CNW/ – The widespread migration to digital technologies driven by public health measures has accelerated changes in the way Canadians bank, as more than three-quarters of customers (78%) have come to trust digital channels to do most of their banking. This is one of the many discoveries of How Canadians Banka recent survey of 4,000 Canadians commissioned by the Canadian Bankers Association (CBA).
- 78% of Canadians use digital channels to do most of their banking, up from 76% in 2018 and 68% in 2016.
- 89% of Canadians said they had used online banking services in the past year.
- 65% of Canadians have used mobile app banking in the past year, up significantly from 2018 and 2016 results at 56% and 44% respectively.
- Three in four Canadians (75%) intend to maintain the digital banking habits developed during the pandemic.
- 86% of Canadians trust their bank to provide secure digital banking services.
“The pandemic has proven to be a major catalyst for change as Canadians have moved more of their day-to-day activities online, including widespread adoption of digital banking and contactless transaction methods,” said Anthony G. Ostler, President and CEO, ABC. “Reliable digital banking solutions were already in place when it mattered most thanks to a long-standing commitment to empowering the customer experience through technology. Other innovations were developed in record time to support consumers as their lives changed dramatically. These factors combined have helped Canadians get more online than ever before while reducing risk and providing convenience at a critical time.”
Digital by Default: Technology and Generational Influences of Young Customers
As technology evolves and changes the way we live and work, digital consumer expectations rise. This is the main driver for continued innovation as banks seek new, simpler ways for Canadians to access their banking services consistently and securely. And Canadians clearly appreciate the convenience of these innovations and feel better served as a result.
- 90% of consumers believe that new technologies have made banking much more convenient.
- 86% of Canadians agree their bank has improved service through technology. More than a third (34%) of Gen Z consumers “strongly agree” that technology improves their banking experience.
- 84% of consumers are satisfied with Tap & Pay contactless payments, up from 74% in 2018.
The widespread shift to online and mobile banking has accelerated during the pandemic, and consumers under 30 are key drivers of this trend. Indeed, the preferences of customers favoring digital should become more entrenched in the years to come.
Ostler adds, “The pace of change in any industry is usually driven by the customer. And what bank customers want is a digital approach to their financial transactions, in real time, from anywhere, on a reliable and secure network. investments in modernization have helped banks to Canada anticipate and respond to the evolving preferences of their customers.”
Online banking remains the most common way to bank
As banking technologies have come to the fore, online banking has cemented its position as the most common form of banking for most Canadians.
- Half of customers (49%) say online banking is now their most common banking method – 20% more than app banking, the second-ranked method, although that gap is closing.
- 46% of Canadians have increased their use of online banking in recent years, particularly among consumers under 30 (58%).
- A large majority (93%) of Canadians are satisfied with online banking services.
While not surprising given recent events, the average Canadian visits their bank’s website five times more often than they visit their branch. While online is the predominant method of banking for most Canadians, this dominance is diminishing over time as more and more customers turn to mobile app-based tools.
Mobile app-based banking continues to rise, led by Gen Z and millennial adoption
Every Canadian with a smartphone now has a bank in their pocket. Since most Canadians own these devices, banks offer mobile banking and payment services and applications that allow customers to perform various transactions using their phones. As a result, the number of Canadians banking on the go continues to grow, especially among younger customers.
- 37 percent of Canadians have increased their use of mobile banking in recent years, led by bank customers under 30 (59 percent).
- Nearly half of Gen Z (46%) and well over a third of Millennials (37%) say apps are their primary banking method, compared to 29% for all demographics combined.
- Gen Zers are five times more reliant on mobile banking technology than Canadians aged 65+.
- 80% of Canadians say they are satisfied with mobile banking, up from 73% in 2018.
High levels of confidence in banking innovation
With many digital services available today, trust in the security of personal data and financial information has eroded across many sectors of the economy. However, the opposite seems to be true for the banking sector, where confidence is gaining.
- 87% of customers trust their bank to protect their personal information.
- Banks always put their customers at the center of trust innovation.
from Canada banks have earned a solid reputation as pillars of stability, but they are also dynamic and constantly anticipate and adapt to changing customer preferences. Canadians place great trust in banks because they have provided convenience through technology for decades – always with an emphasis on security and privacy.
Digital currencies: interest is growing, but consumers are wary
While the end of physical cash is not near, a dizzying array of cryptocurrencies have been launched in recent years. How are Canadians reacting to these innovations?
- Led by younger Canadians, more than half (56%) of consumers would consider using a private cryptocurrency.
- 64% of Canadians say convenience is the main reason they use or would use cryptocurrency.
- A third (36%) of consumers expect to use an alternative currency in five years.
Learn more about these and other ABC results How Canadians Bank survey at cba.ca/technology-and-banking
About the Canadian Bankers Association
The Canadian Bankers Association is the voice of more than 60 domestic and foreign banks that contribute to from Canada economic growth and prosperity. The CBA advocates for public policies that contribute to a healthy and prosperous banking system to ensure that Canadians can achieve their financial goals. cba.ca
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SOURCE Canadian Bankers Association
For further information: Mathieu Labrèche, Director, Media and Communications Strategy, Canadian Bankers Association, [email protected]