Digital has fundamentally reshaped consumer behavior in retail banking. According to our research, roughly 90% of Canadian banking customers use digital channels and more than 30% of customers are now banking exclusively virtually. In response, banks across Canada and globally are making large investments in digital technology and analytics to deliver a better experience at a lower cost, deepen and broaden existing client relationships, extend their distribution reach, and protect relationships against both traditional and new competitors.
To further our understanding of these trends from the customer’s perspective, we conducted a survey of ~4,000 Canadian consumers focusing on their digital banking needs, attitudes, and behaviors. We supplemented this research with targeted mystery shopping of leading Canadian banks to determine how they are positioning and explaining their digital capabilities during the account opening process.
This research led us to four key takeaways:
- Banks need a behavior-based segmentation approach to understanding and supporting clients who are at varying stages of transition
- Banks must take a proactive approach to digital education focused on showcasing the value of embracing digital to heavy branch users
- Further digital migration will improve customer experience as customers of all stripes exhibit greater delight in using digital channels
- The role of human channels will shift to a focus on advice and support of complex needs