According to Canadian Bankers Association, more than 68% Canadians preferred online banking in 2017 and the number has only increased ever since. The convenience, attractive features and competitive pricing offered by online banks in Canada has made it the most favorite way to bank leaving the traditional banks sidelined.

The emerging trends in finance has seen a number of online banks crop-up in recent years in Canada offering decreased service rates, increased interest rates and better banking products. The only thing online banks cannot offer in comparison to the traditional banks are the safety deposit lockers, which is a very small glitch when compared to the numerous benefits online banking delivers.

Branchless over Branch:

An ideal bank is one, which helps you save money and enhance your portfolio not one, which asks you to pay for the services they provide with your money. Well, that is in the “ideal world”. Owing to the fact that we do not live in one, the banking system had been pretty much different and complicated from the one we desire. However, the branchless online banks have changed that trend.

Without a tangible office space eating up a share of the profit, the online banking system is able to divert these funds over to providing superior customer benefits. With 24/7 customer service, anytime online or mobile access, unlimited fee-less transactions, paperless banking operations, amazing interest rates and competitive product lines the online banks are soon leaving the traditional banks to “bite the dust”.

Branchless Hype – Justified:

The Canadian market is flooded with a number of online banks in the recent years. Most of the top traditional banks have started their own online wing and their brick and mortar offices have become a showroom for their online products. The reasons for the rapid rise in the popularity of branchless banking are numerous, including:

  • Innovation is the by-word for the online banking system and the reason they are able to provide such competitive interest rates. The trick is to invest the money in novelty, which never fails to show profit in today’s dynamic ecosystem.
  • Having a bank account where you do not need to pay fees for one is definitely a feature any customer would appreciate and when online banks offer the no fees bank accounts they are bound to be a popular choice.
  • Today’s fast-paced life has made it a mandate for the adoption convenience and the online banking system is all about convenience without any time restrictions.
  • Innovative and amazingly attractive product lines are another striking feature of online banks. Such products were never an option with the traditional banking system and hence, are the cherry on the pie of online banks.
  • Along all the features of a traditional bank, online banks provide some special features like Mobile Deposit and Interact e-transfer making the customer’s life much simpler and hassle-free.

Security Concerns? Oh, Please!

The online banks are highly established financial institutions and most of them are linked to Canada’s traditional banks hence, the chances of them failing are extremely slim. The Canadian online banking systems are extensively tested for security breaches and have a number of high technology security measures in place. Moreover, the stringent regulation and compliance rules have enhanced the efficiency of the online banking system in general. This high security is another feature Canadians are going branchless with their finances.

Above all else, every savings, joint and trust accounts along with TFSAs and RRSPs up to $100,000 are insured and covered by the Canadian Deposit Insurance Corporation. Thus, in the unlikely event of a security breach Canadians and their money are well protected.

Branchless High-flyers:

Tangerine, motubank, Scotia OnLine, EQ Bank are among the top online banks of Canada and each one excelling in different arenas.

  • Tangerine for example, is considered the best branchless bank offering rather low fee on daily banking services. Moreover, they are considered the top technology adopters in the banking arena and are widely applauded for their excellent customer service.
  • Meridian, a Canadian credit union’s latest venture is motusbank. With its impressive product range and attractive interest rates, it is increasingly becoming a favorite among Canadians.
  • The online venture of one of Canada’s top five banks is Scotia OnLine. It’s intuitive digital interface and amazing user experience has earned it the name of “The Best Consumer Digital Bank in Canada” by Forrester.
  • Owned by Canada’s Equitable Bank, EQ Bank is a pole apart from Canada’s other online banking systems. It observes a no branch, no ATM policy and is run entirely through web and mobile apps.
  • Another traditional bank’s online wing is the BMO Online. The specialty of this bank is that it offers discounted monthly fee rates to students, seniors and members of the armed force.

The Canadian financial market is today flooded with such online branchless banks each offering a unique feature that the customer may choose according to their needs. The increase in the number of online banking systems in Canada makes it evident the way Canadians have embraced digital banking.

Vidya Ramakrishnan

Vidya is a content marketer with over 12 years of progressive experience in content management, marketing, and client servicing. She is a B2B and aims to deliver customer delight with her eclectic mix of skills that she has picked over her years of carving her content career. She is fascinated by the next-gen digital technologies and has spent many curious years reading, understanding, and writing about how these technologies work and can influence lives in the future.