Changes are sweeping through the market
Since 2020, the use of cloud-based financial services has surged. Consumers have learned how to avoid having to visit to branches in person. When it comes to payments, contactless has become the norm and is now used for 62% of all transactions in Quebec. Quebecers have returned in large numbers to negotiating major transactions in person (such as developing a financial plan or for mortgage financing). On the other hand, the use of online tools for everyday needs seems to have become a permanent part of our habits.
Quebecers perform a multitude of transactions online
Source : NETendances 2021, Services bancaires en ligne
Fintech innovations
If online financial services have gained a lot of traction, it’s particularly thanks to disruptive solutions developed by new companies. A multitude of players are revolutionizing the sector, offering 100% cloud-based alternatives and reduced management fees.
Examples of disruptive financial solutions in Quebec
While these “neobanks” are thriving in various places around the world, here in Quebec the regulatory framework is holding back the development of this market. And not just a little: Compared to the rest of North America, Quebec is the province with the strictest banking regulations.
Overthrowing traditional banking institutions
Forced to keep up with the times, traditional banks are having to buckle down to stay competitive, particularly amongst younger consumers. Strategic investments in artificial intelligence and exploring solutions making use of the blockchain are some of the avenues being explored.
Times are changing at the big banks!
Source : NETendances 2021, Services bancaires en ligne
Some are taking things even further, like U.S. firm BNY Mellon, the first bank in the world to start managing cryptocurrency assets.
In short, the entire industry is in turmoil!
