New entrants to the market, new business models, changing customer expectations and fragmentation of traditional services are all contributing to put traditional banks under pressure. Metro, mBank and others are all demonstrating that focusing on the new experiences and needs of their customers is driving increased loyalty and revenue. Meanwhile services like Barclays PingIt and Paypal demonstrate that disruptive services can significantly move customers away from traditional banking offerings. The appetite for such services is clearly there, and the maturity and takeup of them can only move on an upward trajectory.
Indeed, changes are afoot and the physical manifestation of these changes is apparent. At a macro level, the branch appears to be in decline with most established brands reducing their footprint. Cash is no longer king, mobile payments are increasing in popularity and no longer is the current account the only thing one uses to manage money. Banking is becoming more democratised by technology and new services are changing the way we think about banking, our money and the application and capability of technology.
This case study realised in Canada also demonstrates that Banks are changing at all.
Today, customers can bank anytime and anywhere through a variety of services. There are over 60,000 ABMs and Interac payment terminals at over 450,000 retailers across Canada. And technology has transformed personal banking, giving Canadians the flexibility to bank at their convenience with the same security they’ve come to expect at traditional branches.
Rise of Mobile Banking
First introduced in 2010, Canadians conducted more than 200 million transactions on their mobile devices in 2015. A 2016 survey by the Canadian Bankers Association found that 44 per cent of Canadians conducted at least some of their banking transactions on a mobile device, an 11 point jump from 2014 when 33 per cent of Canadians took advantage of mobile banking. The same survey found that 17 per cent of Canadians are using mobile to conduct the majority of their transactions, up from five per cent four years earlier.
With the recent spike in mobile banking, Canadian banks have delivered mobile banking capabilities that meet their customers’ needs and expectations. According to Forrester’s 2016 ‘Global Mobile Banking Functionality Benchmark’ report, Canada’s largest banks rank among the top globally for their mobile banking capabilities.
The vast majority of people using their mobile phones for banking are doing so through apps, with bill payments and account balance checks driving the increase in mobile app usage more than any other activity.
The Future of Mobile Banking
Banks continue to look for new ways to incorporate banking services into their mobile apps and Canadians are noticing. Perhaps the best indicator of future mobile banking use comes from Canadians themselves. When asked, more than half of Canadians said it was somewhat likely (17 per cent), very likely (18 per cent) or certain (17 per cent) that they would be conducting more of their banking on a mobile device.