How Canadians are using digital banking to simplify their lives

Digital banking is exactly what it sounds like: banking online from your desktop, laptop, tablet or smartphone.

Some examples of digital banking include online bill payment, direct deposit and email money transfer.

Today, Canadians can choose to work with traditional brick-and-mortar banks that offer supplementary digital services or go exclusively online with digital-first banks.

Let's dig a little deeper into how going digital can have a positive impact on the day-to-day banking experience, what tools and services Canadians use the most and the groups that prefer digital banking over more traditional avenues.

Digital banking is convenient

Today, it's possible to deposit a cheque by taking a picture of it. You can transfer money to a friend on the other side of the world in an instant. You can even set up an automatic bill payment to pay off your student loans using just your smartphone. The best part: you can access all of these tools and services from the comfort of your home or while on the go.

Canadians are taking full advantage of these digital banking options. On average, 82% of respondents to the Simplii survey said they use digital banking, compared to 18% who still use more traditional banking methods.

Digital preferences

Of Canadians who bank digitally:

• 48% use online banking on a laptop or desktop
• 34% use mobile banking on a smartphone or tablet

Traditional preferences

For those who take a more traditional approach:

• 9% bank in person at a brick-and-mortar branch
• 6% use an ATM
• 3% bank over the phone

Almost 90% of Canadians feel that technology has improved their banking services, according to a study conducted by the Canadian Banking Association (CBA)Opens a new window in your browser.. And, when looking specifically at the millennial generation, this number increases to a whopping 98%.

So, what kind of services are we talking about?

Online and app-based banking

Online banking and mobile apps allow users to complete their regular banking tasks (like bill payments and deposits, to name a few) from just about anywhere. They also provide immediate access to users' banking information. From transaction history and account balances to ATM locators and investment calculators, it's never been easier to keep track of your money and make informed financial decisions.

Tap and pay

Canadians love tap and pay. We use this tool an average of 9.1 times per month. Why? It's so easy. There's no need to count cash or remember a PIN, and with the tap of a credit card or smartphone, you can make a purchase in a matter of seconds.

Photo cheque deposit

Canadians are writing cheques less frequently, and this trend is expected to increase. The CBA reported that only 38% of Canadians will continue to write cheques in 5 years' time. When Canadians do receive cheques, simplicity is key. They are using their smartphones to do a photo deposit instead of heading to the bank.

Time is money! And digital banking can help you save on both fronts.

The Simplii study found that 78% of Canadians feel that digital tools and services has helps them save time.

When it comes to saving money, going digital can help with that, too. Many digital banks offer the following cost-saving services:

• Low or no minimum balance required
• High-interest savings rates
• No fee daily banking

Overall, the CBA report found that only 12% of Canadians consider in-person banking their method of choice This number is expected to decline even further in the near future.

Preferences have changed greatly over the last 2 decades. Sixteen years ago, the CBA asked Canadians how they preferred to bank: 30% of respondents said they would rather use in-branch banking experiences, and only 16% reported using mostly online services.

When it comes to who prefers digital versus traditional banking options, millennials are leading the charge. The CBA reports that 36% of millennials primarily use banking apps, as opposed to 23% for all other demographics. What's more, 54% of millennials plan to increase their use of banking apps over the next 5 years.

Alberta and Saskatchewan have the highest rates of digital banking in Canada

From a regional perspective, Canada's western provinces (with the exception of Manitoba), have a higher preference for digital banking. Alberta and Saskatchewan rated 7 points higher than the national average, with 89% of Simplii respondents reporting that they preferred digital, compared to just 11% that chose traditional banking.

On the opposite end of the scale, Manitoba had the lowest preference rates for digital banking at 76%, which is 6% lower than the national average.

Looking forward: what’s the future of digital banking?

The future is digital and Canadians are into it! The CBA reports that almost 40% of those surveyed plan to increase their use of online banking over any other method.

More specifically, Canadians predict that they will increase their use of the following tools and services:

• 45% plan to increase use of tap and pay
• 40% plan to do more digital transfers
• 40% plan to use more mobile banking apps

In a complex world, Canadians turn to digital technologies to streamline their lives. Banking is no exception. When Canadians want a banking experience that is positive and efficient, they can accomplish whatever task at hand with a simple swipe of a screen.