Online banking, NFT, DeFi and more – Doctors

This issue of Leger’s Technology and innovation series explores Canadians’ perspectives on fintech in Canada, including online versus traditional banking, NFTs, DeFi, cryptocurrency and more.

Leger’s Tech and Innovation series, launching in 2022, explores Canadians’ perceptions of the technologies and innovations shaping our future. Led by Leger’s Alberta office, the series is designed to help governments and businesses understand public opinion, an important factor when designing new policies or developing new product and service offerings. A new survey (included with a free report) is published monthly.

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OTHER ARTICLES IN THIS SERIES

Renewable energy and Going Green

Technical industry talent, attraction and retention

Attitudes towards technology and the metaverse

The latest edition of the series will focus on education and will be released in January. Watch!

What is fintech in Canada all about? To those outside the fintech world, cryptocurrency, NFTs and DeFi can seem cryptic. But for those with an intimate knowledge of the industry, the various technologies that fall under the fintech (or financial technology) umbrella offer the potential to revolutionize financial services as we know them.

According to Investopedia, “Until now, financial institutions have offered a variety of services under a single umbrella. The scope of these services spanned a wide spectrum from traditional banking to mortgage and trading services. At its most basic, Fintech breaks these services down into individual offerings.”

What do Canadians think about fintech in Canada? Do they trust the online banks? How much do they know about fintech? And how likely are they to use different financial technologies in the future? We conducted a large-scale online survey to find out.

SURVEY HIGHLIGHTS: FINTECH IN CANADA

WHILE TRADITIONAL BANKS STILL DOMINATE THE CANADIAN MARKET, TWO IN FIVE WOULD CONSIDER AN ONLINE BANK FOR THEIR NEXT PRODUCT.

Canadians likely to consider an online bank place the highest value on low account fees, the ability to manage everything online and an easy-to-use website/app.

Those likely to consider online banking are more likely to be under 55, male, employed, have an annual income of over $60,000 and have a university degree.

ONLINE BANKS WILL HAVE TO DIFFERENTIATE BEYOND OFFERING NEW TECHNOLOGY SINCE MOST RELY ON TRADITIONAL BANKS TO DELIVER THIS.

A strong majority trust traditional banks to adopt the latest technologies (82%), and also wishes their bank to adopt the latest technologies (80%).

This suggests that traditional banks will continue to pose tough competition to online banks, and that online banks need to differentiate beyond their technology.

WHEN CHOOSING A BANK OR FINANCIAL SERVICES, CANADIANS LOOK FOR TRANSPARENCY, STABILITY/PREDICTABILITY AND AVAILABILITY.

These top brand values ​​represent positioning and messaging opportunities for online banking, as they will resonate most with the Canadian market. The importance of other brand values ​​to Canadians is shown below.

VISUAL: IMPORTANCE OF BRAND VALUE

THERE IS AN OPPORTUNITY TO EDUCATE CANADIANS ABOUT FINTECH. AS MANY ARE AWARE OF THE TECHNOLOGIES EXISTING, FEW ARE KNOWLEDGEABLE.

Among those aware of each fintech trend/technology featured, more Canadians “don’t know much” compared to those who know “a little” or “a lot” about each.

Financial technologies that Canadians are most knowledgeable about are cryptocurrencies, buy now/pay later (eg PayBright) and crowdfunding.

DESPITE NFT’S BEING A HOT TOPIC IN THE MEDIA, THEY HAVE THE LOWEST USER INTENT VS. OTHER FINTECH TRENDS ON SHOW.

Only a quarter of those who are aware of NFTs are likely to use them. On the other hand, intent to spend is highest for DeFi (decentralized finance) (49%), international online money transfers (48%) and peer-to-peer lending (44%).

Buy now, pay later (e.g. PayBright) has high awareness (62%) and intent to use (39%), suggesting it may be a growing trend in the coming years.

RESEARCH METHODOLOGY

• A total of 1,544 Canadians were surveyed from November 3 to 6, 2022. Respondents were randomly selected from Leger’s LEO panel.
• To ensure that the sample is representative of the entire adult population of Canada, the raw data were weighted according to the actual distribution of the population based on sex, age and region using data from Statistics Canada’s most recent available census.
• By way of comparison, a probability sample of this size would have a margin of error of ±2.5% with a 95% confidence interval (19 times out of 20).