Personal banking is one of the industries most profoundly impacted by the rise, and now dominance, of digital channels. Financial institutions have seen a top-to-bottom transformation of how clients choose a service provider, carry out daily transactions and make sometimes life-altering decisions to prepare for the future.
In order to keep up with this transformation, banks have had to both adapt the in-branch experience and rise to meet the ever-growing commodity demand by offering digital channels that allow clients to conduct their everyday activities without ever having to set foot in a branch. The push and pull between offline services and online convenience are especially apparent when deep-diving into the types of transactions favoured by clients, and the channels used for those transactions.
Unsurprisingly, demographics also impact personal banking habits. Digital-savvy Millennials veer towards online and mobile channels, while older adults feel more secure with traditional banking methods. This doesn’t mean that Millennials completely renounce their parents’ ways, but rather that they interact with their money in a different, more diversified way.
Canadians have always had strong relationships with their financial institutions. The trends outlined here provide a snapshot of how we bank, why we make certain choices and how we can anticipate further transformation in the personal banking industry. By focusing on how digital can enhance the banking experience rather than disrupt it, banks will be able to maintain and even further strengthen their relationships with Canadians.
It will certainly be interesting to track how the use of physical and digital channels evolve in personal banking, especially since Millennials are now the largest generation in Canada, and many are approaching key life milestones that usually require the involvement of financial institutions. The most important thing to remember is that while digital platforms expand service opportunities by means of convenience and simplicity, clients will still seek out professional expertise when faced with big questions or concerns. That’s why it’s so important to offer a diversified and reliable customer experience.
Read our case study to learn more about how Adviso helps one of the largest financial institutions in Canada, National Bank, enhance their digital presence and customer experience.