In 2021, the number of new smartphone banking users in Canada will plummet to a third of the previous year’s level, which will considerably increase competition among financial institutions (FIs), including Scotiabank. As the battle for new mobile users heats up, FIs’ mobile banking app features will be crucial. This report identifies which key growth opportunities Scotiabank might focus on to gain and retain customers.

For example, Scotiabank repurposed the Scotiabank Arena first as a kitchen to provide meals for healthcare workers and shelters during the early months of the pandemic, and later used it as a vaccination center. Marketers also helped customers access pandemic relief through their banks during a time of crisis. “Client relief was significant,” DePaoli said.

“Set future-dated payments in e-Transfer”: RBC and Scotiabank. “Set alerts for international debit or credit transactions”: CIBC. “Authenticate through the mobile app when calling customer service”: Desjardins. “Automatically move money to savings based on a calculation of what you can afford”: Scotiabank. “View a financial wellness score”: TD.

The bigger picture: CIBC is following the lead of Scotiabank, which provides prospective customers with a similar digital ID verification process. Both banks are capitalizing on the trend of more customers opening their accounts digitally in Canada.

Adam Swinemar, vice president of digital channels at Scotiabank, noted that the influx was a key challenge presented by the pandemic: “Banks have had to shift just as our customers have had to shift.”. Consumers will continue to realize the benefits of smartphone banking beyond lockdown.

Laura Curtis Ferrera, global CMO of Scotiabank, said, “It’s essential that I build a marketing strategy that ladders up to the bank strategy. It’s the No. 1 thing that I have to do. There can be no misunderstanding about what we’re doing.”. Establishing a strong working relationship with the CEO and CFO ensures alignment on objectives and key performance indicators (KPIs).

Canada’s Scotiabank just debuted a BNPL installment offering that lets credit cardholders convert payments into BNPL plans. These offerings could chip away at Klarna’s growth and make it harder for the provider to keep its impressive market share.

Meanwhile, RBC came in second at 836 and Scotiabank rounded out the podium at 830. CIBC, which reported 11% year-over-year growth for active mobile users, touted the app’s slew of recent or new features, including digital replacement cards, smart balance alerts, and an AI-based virtual assistant.

Just five big banks dominate Canada’s banking sector: BMO, TD Bank, RBC, CIBC, and Scotiabank. Digital banking is on the rise—the proportion of adults who use a digital channel at least monthly is projected to reach 72.0% in 2021—but the digital-only space is controlled by two incumbent-backed players: Simplii and Tangerine.

Canada’s incumbent banks lose ground in customer satisfaction: The Big 5 Canadian banks saw lower overall satisfaction as a group in J.D. Power’s annual survey—but this poses little risk to their market positions, given the strong satisfaction with their direct bank units and their hard-to-replace legacy offerings.

The Canadian banking sector is highly concentrated and is dominated by just five big players: BMO, RBC, TD Bank, Scotiabank, and CIBC. Digital banking usage in Canada is expected to be pervasive—the proportion of adults who use a digital channel at least once a month is projected to reach 72.0% in 2021—but the online-only space is dominated by incumbent-owned players Simplii and Tangerine.

The banking system in Canada is dominated by the “big five” chartered banks: RBC, TD, BMO, Scotiabank and CIBC. The banking sector is highly regulated and tends to move in lockstep, innovating at the same gradual pace with little perceived risk of disruption.

The country’s five largest banks—Scotiabank, CIBC, TD Bank, BMO, and RBC—dominate the sector. Digital banking penetration in Canada is forecast to spike from 69.7% in 2019 to 76.5% by the end of 2021, but most digital-only account holders are concentrated between two incumbent-owned digital banks, Tangerine and Simplii.