Redefining online journeys in the financial sector

Canadians are embarking on a new post pandemic era and resuming more in person activities after a two-year hiatus. For Canadian financial institutions, executives have realized that the banking experience is forever changed with the expanding reach of digital. In Ipsos’ 2021 CSI Digital Finance study, findings showed that almost all respondents who have relied on digital financial management tools during the pandemic will continue to use these platforms in the future. Convenience, efficiency, and speed continue to be key pillars driving this growing appeal.

Financial executives can view these digital platforms less as a new channel or a touchpoint to manage, and more as an opportunity to drive “customer value”. Value is an area that is highlighted and continued to decline throughout the pandemic for several Canadian financial institutions (FIs). Today, most digital financial users report logging into these channels at least once a week (30% going in daily), and that presents FIs with an opportunity to interact with customers more frequently than ever before. Increasing digital footfall means that banks have a chance to remodel complex journeys such as account opening and mortgage applications. It also delivers a new space to drive awareness through advertising and has pushed many to rethink the delivery of financial advice. 

To benefit from digital banking, improving the customer/user experience online is a must. While these platforms in theory are meant to reduce customer effort, they also pose short comings for users. Service interruptions and glitches are reported for some brands, in addition to navigation paths that can be unintuitive for the masses. The biggest pain point stems from the inability to complete a full banking journey, such as opening an account, in a single channel online. Almost 60% of respondents have tried to get something accomplished online first before being forced to switch to another channel. Additionally, many report having to shuffle between online and mobile banking (even when dealing with the same provider), due to incapacity to complete all desired transactions in one space. Financial institutions that are creating a smooth online presence for themselves are likely the ones creating stronger emotional bonds with their customers, and thus will benefit from increased loyalty and higher scores on key CX metrics (such as NPS, satisfaction and likelihood to continue using/adding more services). 

The CSI digital finance study in 2021 revealed an overall market NPS score of 15 for digital financial tools (online banking, mobile banking, online brokerage and investment tools). This means that more customers are likely to recommend these channels than those who don’t, but not without a cost. With digital giants in entertainment and retail constantly redefining online journeys, clients now expect similar experiences from their FIs. Looking at the financial advice journey, less than 50% report receiving any tips or advice through digital platforms and for those that do, only 30% found the advice to be impactful or useful. This opens the door for discussions around the future of advice, what it looks like today and how customers want to receive it, particularly on the investment front.

With no playbook to fall back on, FIs have the responsibility to reimagine a banking future that marries digital strength with the trust and knowledge of traditional financial advisors. Digital excellence has the capacity to drive powerful emotional bonds with clients, but not in isolation. The secret sauce is up for grabs, and we are looking forward to seeing how the market dynamics will trend in our next edition of CSI digital finance in 2022.

About the study:

CSI DIGITAL FINANCE is a syndicated study that provides an understanding of the digital landscape and experiences across various financial tools in Canada– including but not limited to those provided by banks. The breadth of the study allows the measurement and comparison of experiences between online banking vs. mobile banking vs digital investment tools, focusing on both satisfaction and the usability aspect of the interactions. The study runs twice a year and is owned and managed by Ipsos Canada.