As digital banking becomes more prevalent and commonplace in Canada, trends in digital banking are shifting to accommodate for new customer expectations and competitive technologies.

Among the top digital banking trends in Canada, some of the biggest priorities amongst financial institutions include highly personalized banking advice, modernized payment technology, and increased use of artificial intelligence.

In this article, we discuss these three trends and the impact they are having on the Canadian banking industry. Keep reading to learn how CPQi can help support financial institutions to keep up with trends and remain competitive in 2022 and beyond.

3 Top Digital Banking Trends in Canada

Digital banking is taking large strides in the Canadian financial industry, as more institutions work to adopt even more advanced technologies with the capabilities to improve customer experiences while also boosting revenues and ensuring top-notch security.

Let’s take a look at three of the top digital banking trends to watch in Canada in 2022:

1. Personalized Financial Advice

The growing prevalence of advanced technologies in the Canadian financial industry comes with as many challenges as it does advantages. In particular, institutions must consider how they can make these technologies more accessible to customers to achieve higher rates of customer satisfaction.

One such method for boosting client satisfaction levels is offering highly targeted and personalized financial advice. Customers no longer want generic guidance on how to properly manage their finances — they want advice that is specific to their personal financial well-being and situation.

In a recent report from J.D. Power, researchers discovered that overall customer satisfaction can be increased by 229 points on a 1,000-point scale when banks provide their customers with advice or guidance that meets all of their needs.

According to the report, banks are achieving this goal around 53% of the time currently, showing there is still significant room for improvement in terms of personalization.

Digital Banking Trends in Canada

2. Modernized Payments

The payments landscape is one of the fastest evolving sub-sects of the Canadian financial industry.

As customers grow more accustomed to digital payments, increasing customer demand is placing more pressure on institutions to provide safer, faster, and more innovative payment experiences.

According to Deloitte, fraud mitigation is one of the most important factors for Canadian banks to consider when working to modernize payments. Deloitte states that:

While Canada’s financial institutions tend to be at the leading edge of fraud management, some of their practices and processes will need to change to circumvent the heightened risk of fraud created by real-time payments.”

The Deloitte report further comments on the necessity of payment modernization to help reduce operational costs, offering the example that a reduction in cheque usage can result in up to $4.5 billion in savings over a five-year period.

3. Artificial Intelligence

Artificial intelligence (AI) has long been included in the conversations regarding digital banking and the digital transformation of the Canadian financial industry.

As more institutions warm to the idea of utilizing AI more heavily to power digital solutions, the potential competitiveness and profitability of advanced AI are becoming more widely recognized.

According to recent data from McKinsey & Company, the use of advanced AI can result in roughly $1 trillion in value and a 15.4% increase in sales compared to traditional AI and analytics. Moreover, thinking back to the first trend we discussed, McKinsey & Company states that this increase in value can largely be attributed to a boost in revenues from the personalization of services for members and staff.

One major challenge that comes alongside an uptick in the use of AI is finding professional talent with a high level of expertise in working with this technology.

In Deloitte’s 2022 Banking and Capital Markets Outlook, of the 236 Canadian financial executives surveyed, 65% stated that hiring tech talent is one of the biggest challenges they are currently facing, with a particular emphasis on the need for upskilling (the practice of teaching employees new skills).

Final Thoughts: Stay Ahead of Digital Banking Trends with CPQi

With our strategically placed headquarters in Canada, our team at CPQi has nearly two decades of experience providing Canadian institutions with the support, implementations, and staff and resource augmentation these institutions need to thrive.

Not only this but CPQi also works to ensure financial institutions across the Americas and Europe have access to advanced transformational services that help to cut costs and keep institutions operating smoothly as they introduce new technologies to their business structures.

CPQi’s recent acquisition by Exadel positions us to have an even more impactful role in the global financial markets.

To get started with CPQi, call our team today.

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