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2019 Canadian Shopper Survey: Younger Customers are Critical to Bank Growth

Chequing acquisition is shifting from branch-led to marketing-led dynamics. Consumer perceptions of convenience and distinctiveness, led by investments across the purchase funnel, are playing a bigger role in driving acquisition performance.

Given their scale advantage, the Big 5 national banks enjoy the highest scores for perceived convenience and distinctiveness and, as a result, received an outsized share of acquisition in Canada in 2019.

But competition for new customers remains fierce. The 2019 Canadian Shopper Survey reveals significant challenges for Canada’s Big 5 banks as they seek to stay relevant over the next decade.

First, banks need to attract younger customers. Second, Canadian consumers — just like those in other parts of the world — are growing more comfortable with non-banks. Third, branches are far less important to consumers than they used to be, at least for sales and service.

There’s no doubt that there will be expensive trade-offs for Canadian banks moving forward. As interest rates continue to shift, traditional banks risk losing customers and/or deposits based on rate alone. Those trends will only be exacerbated if current value propositions are undifferentiated and/or unsubstantiated. Banks must closely examine the trade-offs between price, incentives, products, features and marketing to determine how to compete most efficiently and effectively.


Nathaniel Halsey
Principal, San Francisco

Anna James
Research Manager, Chicago

For more information, contact Novantas Marketing

+1 (212) 953-4444

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