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Consumer Attitudes towards FinTech - Canada - June 2017

Published By :

Mintel

Published Date : Jul 2017

Category :

Banking

No. of Pages : N/A

Awareness of some of the newer digital products is still fairly low so companies offering these products need to explain to Canadians how these products can simplify their financial lives.

Table of Content

OVERVIEW
Regional classifications
Income

EXECUTIVE SUMMARY
The issues
Women are not as prolific in digital finance tool usage
Figure 1: Awareness and usage of digital financial products and services, March 2017
Consumers are not overly enthusiastic about mobile payment adoption
Figure 2: Attitudes related to purchases and payments, March 2017
Men are more optimistic about the positive impact of technology
Figure 3: Agreement with statements on future technology, March 2017
Canadians are fairly satisfied with current providers
Figure 4: Attitudes related to satisfaction with current financial services, March 2017
Around three in 10 Canadians are interested in using technology to improve decision-making
Figure 5: Interest in emerging products and services, March 2017
The opportunities
Increasing usage of digital financial products and services
Mobile banking adoption and monetisation
Financial products and technology companies
The potential of wearables
Robo-advisors and the unadvised market
What it means

THE MARKET – WHAT YOU NEED TO KNOW
Canadian economy has a strong start to 2017
Interest rate hikes could be on the horizon
Home Capital’s troubles
A growing 35-44-year-old population and an increase in Asian Canadians bode well for Fintech adoption
High social media usage and ownership of mobile devices bode well for Fintech

MARKET FACTORS
Canadian economy has a strong start to 2017
Interest rate hikes could be on the horizon
Home Capital’s troubles
A growing 35-44-year-old population bodes well for Fintech adoption
High social media usage and ownership of mobile devices bode well for Fintech
Figure 6: Use of social media sites, March 2017
Figure 7: Ownership of mobile devices, March 2017

KEY PLAYERS – WHAT YOU NEED TO KNOW
MasterCard launches Qkr in Canada, RBC offers e-transfers using Siri
Android Pay launches in Canada
Robots and chatbots
Canadian robo-advisor launches digital life insurance service
MasterCard, MoneyGram and others unveil financial services for Facebook Messenger
InterestPiggy invites companies to compete for customers

INDUSTRY DEVELOPMENTS AND INNOVATIONS
Android Pay launches in Canada
RBC first Canadian bank to offer Interac e-transfer using Siri
MasterCard launches Qkr in Canada
InterestPiggy invites companies to compete for customers
Capital One Canada introduces free credit score checks for cardholders
American Express launches new mobile capability
Robots and chatbots
Canadian robo-advisor launches digital life insurance service
MasterCard, MoneyGram and others unveil financial services for Facebook Messenger
Bank of America opens branches without employees
Alterna Bank introduces Canada's first fully digital mortgage application
Mogo moves into the mobile mortgage market

MARKETING CAMPAIGNS
Select campaigns from Mintel Comperemedia
TD promotes mobile cheque deposits
Figure 8: TD email advertisement, April 2017
CIBC’s modern life, modern bank tagline
Figure 9: CIBC’s Mobile banking app print advertisement, April 2017
Scotia promotes banking at your fingertips
Figure 10: Scotiabank’s mobile banking app email advertisement, April 2017

WORKING AND NEXT – WHAT YOU NEED TO KNOW
Canadian banks react to the Fintech challenge
Robo-investment advisors
Person-to-person lending
Chatbots as virtual customer service agents
Artificial Intelligence and Fintech
Tilt, Airbnb and the convergence of industries

WHAT’S WORKING?
Canadian banks react to the Fintech challenge
Robo-investment advisors
Person-to-person lending
Chatbots as virtual customer service agents

WHAT’S NEXT?
Artificial Intelligence and Fintech
Futuristic Fintech, with a female focus: Joy, LearnVest and Ellevest
Tilt, Airbnb and the convergence of industries

THE CONSUMER – WHAT YOU NEED TO KNOW
Awareness of digital insurance apps, robo-advisors and P2P lending is less than 50%
Younger Canadians have a significantly higher usage of most products
Consumers are not overly enthusiastic about mobile payment adoption
Although trust is not high, few consumers feel unsafe about paying online
Men are more optimistic about the positive impact of technology
Canadians are fairly satisfied with current providers

AWARENESS AND USAGE OF DIGITAL FINANCIAL PRODUCTS
Most are aware of mobile payments, but few use
Figure 11: Awareness and usage of digital financial products and services, March 2017
Relatively simpler apps are more “liked” by users
Figure 12: Proportion of “Likes” among product users, March 2017
Young males are more prolific users of digital finance tools
Figure 13: Usage of digital financial products and services, by gender, March 2017
Younger Canadians have a significantly higher usage of most products
Figure 14: Usage of digital financial products and services, by age, March 2017
Asian Canadians have a higher usage of digital products and services
Figure 15: Usage of digital financial products and services (select), Asian Canadians vs overall populations, March 2017
Older Canadians have lower interest in digital products
Figure 16: Interest in digital financial products and services, March 2017

MOBILE BANKING
Consumers are not overly enthusiastic about mobile payment adoption
Figure 17: Attitudes related to purchases and payments, March 2017
Men more likely to prefer stores that accept mobile payments
Figure 18: Attitudes towards payments (select), by gender, March 2017
Mobile banking adoption and monetisation

PURCHASES AND CREDIT
Younger consumers more hesitant about using credit
Figure 19: Attitudes towards credit purchases, March 2017
Although trust is not high, few consumers feel unsafe about paying online
Figure 20: Attitudes towards safety of personal data, March 2017

IMPACT OF TECHNOLOGY ON THE FINANCIAL LANDSCAPE
Men are more optimistic about the positive impact of technology
Figure 21: Agreement with statements on future technology, March 2017
Women are less convinced about radical change through technology
Figure 22: Agreement with statements on current technology, March 2017
Young males and Chinese Canadians less likely to agree that interest payments are high
Figure 23: Agreement with statements on lending, March 2017

GENERAL PERCEPTIONS ABOUT THE CURRENT STATE OF THE FINANCIAL INDUSTRY
Canadians are fairly satisfied with current providers
Figure 24: Attitudes related to satisfaction with current financial services, March 2017
Satisfaction trends upwards with age
Figure 25: Satisfaction with current providers (any agree), by age, March 2017
Young women most likely to find it difficult to save
Figure 26: Attitudes regarding saving and investing, March 2017
Men are more interested in investing
Older women more likely to feel overwhelmed about Fintech
Figure 27: Attitudes relating to ease of usage, March 2017
Over-55s have a stronger connection with bank branches
Around half of 18-24s unclear about credit scores
Figure 28: Opinions about credit scores, March 2017

OPENNESS TO USE OF EMERGING TECHNOLOGY
Around three in 10 Canadians are interested in using technology to improve decision-making
Figure 29: Interest in emerging products and services, March 2017
Younger Canadians are relatively more interested in new products
Figure 30: Interest in new products and services, by age, March 2017
Financial products and technology companies
Women are less enthusiastic about emerging products
Figure 31: Interest in new products and services, by gender, March 2017
Asian Canadians more open to using wearables
The potential of wearables
Non-financial industry players and the reshaping of financial services
Some 18-34s are willing to trade privacy for better insurance rates
Figure 32: Agreement with statements related to privacy, March 2017
Younger Canadians are relatively more interested in spending alerts
LGBTQs and Quebecers have contrasting views on credit scores
Figure 33: Agreement with general statements on financial services, March 2017

APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms

List of Table

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