Get ready for Canada’s digital banking boom
Digital banking is set to boom in Canada, with more than 25 per cent of Canadian adults expected to have an account by 2024, according to research from global financial comparison platform finder.com.
Survey results reveal an estimated 4.4 million Canadians, approximately 15 per cent of the adult population, currently have accounts with online-only banks, with 3.7 million more (12 per cent) planning to open an account in the next five years.
Gen Y is currently the biggest adopter of branchless banking (23 per cent), followed by Gen X (14 per cent), Gen Z (13 per cent) and Baby Boomers (nine per cent).
Men are much more likely to have an online-only bank account than women, and by 2024 it’s estimated that one in three men (33 per cent) will have an online-only bank account, compared to around one in five women (22 per cent).
Convenience is the number one reason Canadians are choosing digital-only banks, followed by lower fees and the ease of transferring money, Finder says.
Digital banking isn’t for everyone, however. Of those who don’t have or plan on opening an online-only bank account, 80 per cent say they’re happy with their current bank. More than a quarter say they prefer having the option to talk to someone in person, and one in five say they don’t trust branchless banks.
Older generations are least likely to trust in branchless banks, while younger Canadians are more likely to say the hassle of changing banks is a factor in their decision not to open an online-only bank account.