Canadian Financial Institutions Have Ample Opportunity to Meet the Needs of the Modern, Digital Consumer
Javelin Strategy & Research Names Best in Class and Leaders in Canadian Digital Banking in Latest Scorecard Report
SAN FRANCISCO, Aug. 07, 2023 (GLOBE NEWSWIRE) — Javelin Strategy & Research today released its 2023 Canadian Digital Banking Scorecard. The third edition of the scorecard underscores the opportunities for each of the seven largest retail financial institutions in Canada to differentiate and build digital experiences that can attract, satisfy, and retain consumers. The need to differentiate is growing increasingly important as traditional financial institutions continue to compete with neobanks and financial apps eager for young, new-to banking Canadians and new-to-Canada immigrants.
Javelin assessed the online and mobile banking channels of the seven largest Canadian financial institutions: BMO, CIBC, Desjardins, National Bank of Canada, RBC, Scotiabank, and TD. The scorecard identifies many of these meaningful changes among the six categories measured: Ease of Use, Security Empowerment, Financial Fitness, Money Movement, Customer Service and Account Opening.
Toronto-based Canadian Imperial Bank of Commerce (CIBC) exhibited the most comprehensive use of digital channels, earning Best in Class—the top overall honor—in both mobile and online banking in Javelin’s scorecard. Competition was tight, but CIBC stood out with unparalleled digital customer service support, a chart-topping virtual assistant, robust account-opening experiences, and centralized security centers.
However, there are clear and viable pathways for runners-up to take the lead as many of Javelin’s 350-plus digital banking features and functionality remain up for grabs in the Canadian market. Median scores failed to eclipse 40% in either channel, with categories like Financial Fitness seeing sub-30% median scores despite being a prominent driver of fintech success.
“The market’s underwhelming performance should serve not only as a wake-up call for digital upgrades but also as proof that the market is ripe for digital differentiation,” said Dylan Lerner, senior analyst in Javelin’s Digital Banking practice and author of the report. “There still remains a vast opportunity for meaningful changes to improve the Canadian digital banking experience.”
“One overarching theme this year was the growing gap between digital banking channels, with online banking stagnating as banks focus their investments in mobile,” Lerner continued. “Banks seem to be struggling to find a balanced approach to managing their digital assets. However, these strategic decisions are becoming only more critical as tight budgets and the rising expectations of consumers turn up the pressure on banks to make the right moves.”
More information about the 2023 Canadian Digital Banking Scorecard can be found at javelinstrategy.com.
About Javelin Strategy & Research
Javelin Strategy & Research, part of the Escalent family, helps its clients make informed decisions in a digital financial world. It provides strategic insights to financial institutions including banks, credit unions, brokerages and insurers, as well as payments companies, technology providers, fintechs and government agencies. Javelin’s independent insights result from a rigorous research process that assesses consumers, businesses, providers, and the transactions ecosystem. It conducts in-depth primary research studies to pinpoint dynamic risks and opportunities in digital banking, payments, fraud & security, lending, and wealth management. Learn more at javelinstrategy.com.
CONTACT: Contact Sarah Keller, 734.779.6847 [email protected]
