Canada Leads World in Online Banking Usage
comScore has released a report on the Canadian online banking sector showing that Canada is one of the world's most developed markets for online banking. "Canadians are typically very savvy Internet users, a fact that is underscored by their heavy usage of online banking," said Brent Bernie, president of comScore Media Metrix, comScore Canada. "But because the Canadian online banking sector is so developed and competition already so fierce, banks need to closely examine how they are meeting the needs of their consumers online if they are to achieve customer growth and retention through this increasingly important channel."
Some key facts that highlight Canadians' heavy usage of online banking:
- Of the 37 global markets individually-reported by comScore, Canada ranked number one in adoption of online banking, with 67.1 of Canadian Internet users banking online in April 2008. Other English-speaking countries had significantly lower penetration, including the U.K. (49.5 percent), U.S. (44.4 percent), and Australia (41.7 percent).
- Canadians also led the world in online banking frequency, with an average of 8 usage days and 10.5 online banking visits per visitor in April.
- Canadians spent an average of 46 minutes on banking sites in April, viewing approximately 121 pages per visitor.
Of the nearly 24 million Canadian Internet users, 15.5 million visited a banking site in April. RBC Financial group led the category with 4.6 million visitors, followed by TD Bank Financial Group with 4.5 million visitors and Bank of Montreal Sites with 3 million visitors. Among those banks in the top 10, Bank of Montreal Sites experienced the greatest increase in visitation during the past year, growing 22 percent.
A demographic profile of the visitors to the online banking category reveals that while the percent of consumers using online banking services is generally higher among younger age segments, the frequency of usage is slightly higher among older age segments. Highlighting the generational gap that exists among users of online baking, approximately 74 percent of those between the ages of 25-44 use online banking services compared to 63 percent among those age 55 and older.
As an age group that often confronts financial challenges, including retirement planning and paying for their kids' university education, 45-54 year olds represent a particularly important age segment for online banking. The segment shows both high penetration (73 percent) and the heaviest frequency in usage (12 visits and 157 pages per visitor per month).
Light users of online banking accounted for 32.3 percent of Canada's online population in April, according to the comScore Segment Metrix H/M/L service, which provides analysis of online activity by heavy, medium and light users of the Internet and specific site categories. Light online bankers represent an opportune target for banks seeking new customers since they may be more easily enticed to switch brands through incentive offers than heavier users who are more highly engaged in their banks' sites and theoretically, more brand loyal.
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