Digital Banking

Canadian banks failing at customer convenience?

Image courtesy of iStock

April 29, 2021

Canada may not be the best choice when it comes to offering customers convenient and quick service, according to a study from Biometric authentication technology provider, iProov.

The study, "Online Banking in Canada: How are Canada's Top Banks Balancing Security with User Experience for Online Customers,"put five of Canada's largest banks to the test. The results indicated that Canadians were being shortchanged when it comes to online services and convenient banking, especially in comparison with U.S. banks, according to a company press release.

Researchers attempted to open online checking accounts at each of the banks and then carry out a number of transactions. The research looked at 61 data points, including how easy it was for a customer to move money, request a new debit card or change personal details online.

Highlights of the research include:

• The majority of banks didn't allow customers to open a bank account online. Only 40% of the banks allowed the customer to fully complete the onboarding process online, while 60% require an in-person visit to a branch. This stands in contrast to similar research in the U.S., where only 20% of banks fail to offer a full online onboarding experience.
• None of the banks allowed customers to open accounts via mobile apps. While all five provided customers with an app for mobile banking, their apps didn't support the opening of an account. This again stands is in contrast to the U.S., where one-third of the banks offer onboarding via an app.
• An overwhelming majority of the banks – 80% – require more than a week to open an account.
  The fastest onboarding process in Canada takes five days, compared to the U.S., where half of the American banks onboard the customer within 30 minutes, and only in one instance did it take five days, which was the longest it took any U.S. bank.
• It takes an average of 19 clicks to open a bank account online in Canada.
  The shortest user journey for the Canadian banks requires 13 clicks from opening the website to completing the application process, while the longest takes 22 clicks. The average in the U.S. was also 19 clicks.
• Changing a PIN and requesting a new debit card require offline intervention. Secure transactions can rarely be completed online. Only one bank enables a new debit card to be requested online and one makes it possible to change a PIN online.
• Resetting a forgotten password can be done online, but it takes effort by the customer. One bank requires seven pieces of information, including the employer's name and mother's maiden name, before the password can be reset online.