The Canadian banking space is moving steadily toward digital—driven by gradual branch closures, shifting consumer preferences, and pandemic-related changes. Banks must now determine how to allocate future investments to maximize their returns in key channels, both physical and digital.
WHAT’S IN THIS REPORT? Insider Intelligence forecasts the growth or decline over the next five years for Canada’s key banking channels: branches, digital platforms, smartphones, call centers, and ATMs. The report identifies the drivers behind the trajectory of each channel’s penetration, including changes to consumer behavior or advancements in technology. It also highlights how the coronavirus pandemic has impacted each of these growth trajectories in the immediate and longer term. Penetration forecasts for two possible pandemic scenarios are included: a moderate one, in which the Canadian economy reopens within the coming months; and a severe one, in which persistent public health threats due to the virus keep branches closed for an extended period.
KEY STAT: Decreasing branch penetration through 2024 will be informed by banks gradually scaling back their physical footprints, the rising popularity of digital channels, and the anticipated aftermath of the coronavirus pandemic, which will accelerate shifts in customer behavior away from physical channels.
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