Online banking in Canada is here to stay. In the recent Finder: Consumer Sentiment Survey Q1, more than 1,845 Canadians were asked about their plans to open and use banking products. Almost 1 in 4 respondents (24%) said they planned to open an account with an online bank (also known as a digital bank). Compare digital banking providers in Canada below and see which traditional banks offer online banking through their websites and banking apps.What is online banking?As the name suggests, online banking (also known as digital banking) is the activity of dealing with your finances through the internet using a virtual bank account. Some online banks in Canada operate digitally – usually from an app or website rather than from a physical branch – while others provide both online and in-person service.Digital banking in Canada is a fairly loose umbrella term that includes online banking, mobile banking, budgeting apps, and challenger banks (also called new banks, which we’ll explain below). And banking online has steadily been increasing in popularity.What is a digital bank?Digital banks—also known as challenger banks or direct banks—operate entirely online and are designed to be cheaper and more flexible than traditional banks. Ultimately, the aim is to compete with big banks like TD Bank, CIBC, RBC, Scotiabank and BMO. In response, some big banks have actually created their own digital banks to keep customers and profits from leaking away to competitors. For example, Tangerine is owned by Scotiabank, CIBC owns Simplii Financial, and Motusbank is a subsidiary of Meridian Credit Union.Most digital banks were founded in the decade following the 2008 global financial crisis. The number of digital banks in Canada is small but growing, steadily gaining ground in a market dominated by financial industry giants like the big five banks.Compare banks that offer online banking and digital bankingSimplii No Fee Chequing AccountEarn a $400 welcome bonus$0 transactions and eTransfersSavings account and no annual fee cashback credit card also available$0
Learn moreEQ Bank Personal AccountEarn 4% for 12 months and 2.5% thereafter on your savingsFunctions as a hybrid chequing and savings account, with a prepaid card available$0 transactions and eTransfersFree withdrawals from any ATM in Canada$0
Learn moreKOHO Earn InterestEarn 5% interest when you opt into KOHO Extra or KOHO EverythingEarn up to 5.00% interest with a high interest savings account. Pick a KOHO plan and opt-in to Earn Interest.Functions as a hybrid chequing and savings account$0
Learn moreBMO Performance Chequing AccountEarn a $600 welcome bonusEarn 5.5% interest on a Savings Amplifier Account$0 transactions and eTransfers$16.95 (can be waived)
Learn moreScotiabank Preferred PackageEarn a $400 welcome bonusEarn up to 6.05% interest for 3 months on your MomentumPLUS Savings Account.$16.95 (can be waived)
Learn moreRBC Signature No Limit Banking AccountGet Apple Watch Series 9$0 transactions and eTransfersOverdraft fee waived$16.95 (can be partially waived)
Learn moreNeo Money AccountEarn up to 15% cashback on your Money cardActs as a hybrid chequing and savings accountEarn 4% interest on savings$0 transactions and eTransfers$0
Learn moreNational Bank Connected AccountGet $30 towards an eligible National Bank credit card$0 transactions and eTransfers$15.95 (can be waived)
Learn moreTangerine Savings AccountEarn 5.75% interest for 5 monthsEarn 0.7% after promo ends$0
Learn moreTD Unlimited Chequing AccountEarn a $400 welcome bonusUnlimited free transactions and eTransfers$16.95 (can be waived)
Learn moreCIBC Smart AccountGet a $400 Costco Shop CardUnlimited free transactions and eTransfers$16.95 (can be waived)
Learn moreAre new banks or challenger banks “real” banks?“Challenger” is generally used to refer to challenging the market power of traditional banks. Not all challenger banks or new banks are actually banks. According to Canadian regulations, challengers and online banking apps need a full banking license to use the term “bank” in company branding and marketing materials.Tangerine and EQ Bank are chartered (licensed) digital banks that offer a suite of everyday banking products. But apps like Mint and KOHO offer a narrower range of products that target more specific financial needs. Such apps compliment—but aren’t necessarily a substitute for—the institutions you use for everyday banking. Jump to our list of Challenger Banks for more.Digital bank promotions on now
Simplii High Interest Savings Account: Earn 6.00% interest for 5 months on up to $1,000,000 in savings. Apply by April 30, 2024.
Simplii No Fee Chequing Account: Earn $400 when you become a new client and set up a direct deposit of at least $100 for 3 months. Offer ends October 31, 2024.
EQ Bank Personal Account: Earn up to 4.00% interest. Get 2.50% interest on your savings, plus 1.50% bonus interest when you direct deposit your pay.
KOHO Earn Interest: Earn up to 5.00% interest with a high interest savings account. Pick a KOHO plan and opt-in to Earn Interest.
Tangerine No-Fee Daily Chequing Account: Earn up to $500. Use promo code EARNMORE on signup. Get 20% cash back on eligible online Visa Debit transactions when you shop online or in-app for 60 days (up to $400 value), plus earn $100 when you set up automatic transfers.
Tangerine Savings Account: Earn 5.75% interest for 5 months (on up to $1,000,000 in deposits) when you use code EARNMORE when you signup by April 22, 2024.
Tangerine TFSA: Sign up using promo code EARNMORE and earn up to $400 cash back and a 5.25% savings rate.
Tangerine RSP: Sign up using promo code EARNMORE and earn up to $400 cash back and a 5.25% savings rate.
EQ Bank Joint Account: Earn a bonus interest rate of 4.00% (the Base Rate plus an additional 1.5%) for a maximum period of 12 consecutive months when you add and maintain qualifying recurring direct deposits of at least $500 per month
Digital banking with SimpliiSimplii Financial offers an entirely digital banking platform in Canada, which is backed by one of Canada’s Big Five banks, CIBC. It offers a host of online banking products like an everyday chequing account, high-interest savings account, credit card, mortgage, loans and investment opportunities.Simplii offers a seamless digital banking experience through its website and a well-developed app available on both the Apple App and Google Play stores.As a digital bank in Canada, Simplii does not have the overhead costs associated with traditional banks, which means it can pass on those savings to its customers through no-fee accounts and credit card options.Get started with the Simplii No Fee Chequing Account:
ProsOperates entirely onlineOffers a promotional interest rate of 6% through the Simplii High Interest Savings AccountEarn up to 4% cash back through the Simplii Financial Cash Back Visa CardThe No Fee Chequing Account offers unlimited transactions and free Interac e-TransfersOffers mutual funds, RRSP, GIC or TFSAOption to order foreign cashAccess to CIBC’s ATM networkCDIC insuredConsNo in-person serviceLow ongoing savings interest rate after the promo period endsLimited credit card options and perksLimited banking options compared to traditional banksDoes Simplii Financial have a mobile app?Yes, Simplii Financial offers a mobile app for both iOS and Android.Simplii Financial app4.1 – ★★★★★(10.7K reviews)3.9 – ★★★★★(15.5K reviews)
Digital banking with EQ BankEQ Bank is an exclusively digital bank in Canada offering savings accounts, US dollar account, reloadable transaction card, investment accounts, international money transfers, a business bank account and even mortgages. It was founded in 2016 and now has more than $8 billion in deposits.The EQ Bank Personal Account has the functionality of both a savings and chequing account, giving you unlimited transactions and a relatively high interest rate on your balance. The EQ Bank mobile app is also available in both the Apple App and Google Play stores.Get started with the EQ Bank Personal Account:
ProsCompletely digital bankGet a 4% interest rate with the EQ Bank Personal AccountOffers GICs, RSPs, TFSAs and FHSAsSend international money transfers using WiseCDIC insuredConsNo in-person serviceLimited banking optionsSome negative customers reviews mention glitchy money transfers and poor customer serviceDoes EQ Bank have a mobile app?Yes, you can download the EQ Bank app for both iOS and Android devices.EQ Bank app4.9 – ★★★★★(188 reviews)3.1 – ★★★★★(7.31K reviews)
Digital banking with KOHOFounded in 2014, KOHO offers Canadians a virtual banking experience through its KOHO prepaid Mastercard. You can use that card to make unlimited purchases wherever Mastercard is accepted, to pay bills or withdraw funds from domestic ATMs at no extra charge. Add to that a stellar mobile app experience on both iOS and Android, and you have a serious online bank contender.That said, KOHO’s online banking options are limited, as it does not offer products like loans, credit cards or TFSAs. But if you’re looking for a simplified online banking option in Canada that allows you to access funds digitally, KOHO is definitively worth considering.KOHO offers these prepaid card options:KOHO Extra Prepaid Card: Get 2% cash back return on special categories such as transportation, groceries and restaurants, and 0.5% cash back on all other purchases.KOHO Easy Prepaid Mastercard: Earn 1% cash back on groceries and transportation.KOHO Easy Joint Prepaid Card: Unlimited 1% cash back on groceries and transportation, and up to an extra 5% cash back with select merchants.KOHO Essential Prepaid Card: Earn 5% interest on your entire balance.Get started with KOHO Earn Interest:
ProsEntirely onlineEarn up to Up to 5.0% with select accountsManage everything on the mobile appOffers budgeting and financial tracking toolsEarn up to 5% cashback on spendingCanadian Deposit Insurance Corporation (CDIC) insuredConsNo in-person serviceDoes not offer a full suite of banking optionsNo loan or credit card optionsDoes KOHO have a mobile app?Yes, the KOHO app is available on both iOS and Android phones.KOHO app4.8 – ★★★★★(77.9K reviews)4.6 – ★★★★★(65.9K reviews)
Online banking with BMOBMO is one of Canada’s Big Five Banks, and has a robust online banking system. It offers a full suite of banking products from everyday banking and lending to private wealth management. BMO is the 8th largest bank in North America by assets and serves over 12 million customers.Looking at the digital banking side of BMO, it offers an online banking portal and highly-rated mobile app from both the Apple App and Google Play stores. You can manage your accounts, transfer funds, deposit cheques and pay bills all through the online banking system.Get started with the BMO Performance Chequing Account:
ProsOffers both online and in-person serviceBMO offers a wide range of credit cards for travel, rewards, cash back, AIR MILES and moreChoose from an array of savings and chequing accountsOptions for personal loans, lines of credit, car loans and student loansWork with financial plannersOffers programs for newcomers to CanadaSign up for the BMO Family Bundle and save on account feesCDIC insuredConsSome banking tasks can only be completed in person (not through online banking)Can often find cheaper monthly or annual account feesSome users mention that the mobile app can be buggyDoes BMO have a mobile app?Yes, BMO offers a robust mobile app for both iOS and Android.BMO app4.6 – ★★★★★(110.4K reviews)4.2 – ★★★★★(78.4K reviews)
Online banking with ScotiabankScotiabank is one of Canada’s Big Five Banks, so you can expect a robust set of financial products. It also offers a unique rewards points system with the Scene+ program.You can build up Scene+ points with certain Scotiabank credit cards and accounts, and redeem your points towards entertainment, movies, travel, shopping, dining, and banking.Scotiabank offers digital banking in Canada through its mobile app and online banking portal. The Scotiabank app has very high ratings from users in both the Apple App and Google Play stores. The app offers budgeting tools, access to a Scotia advisor and the option to view and redeem your Scene+ points.Scotiabank is offering a very competitive welcome offer: Earn a $400 welcome bonus. Get started with the Scotiabank Preferred Package:
ProsGet access to in-person and online serviceOffers Scotiabank credit cards with perks for travel, rewards, cash back and moreOpen RRSPs, TFSAs, RRIFs, RDSPs, GICs, FHSAs, ETFs and moreOffers financial planning with a Scotia advisorProvides personal loans, lines of credit, car loans and student loansAccess to your TransUnion credit score and reportBanking for newcomers to Canada through the StartRight programSelf directed investing and commission-free ETFs through Scotia iTRADECDIC insuredConsYou may have to visit a branch to complete certain banking tasks rather than through digital banking onlineMonthly and annual account fees can be comparatively costlyApp users complain that the most recent update is very buggyDoes Scotiabank have a mobile app?Yes, you can download the Scotiabank app on both iOS and Android devices.Scotiabank app4.7 – ★★★★★(672.6K reviews)4.6 – ★★★★★(145K reviews)
Online banking with RBCRBC is another of Canada’s Big Five Banks, and provides its customers with a well-established digital banking system in addition to its in-branch service. It serves more than 7 million customers in Canada, the US and in over 25 other countries.The RBC online banking portal and mobile app (available for both iOS and Android) allow you to transfer money, pay bills, monitor your business banking, manage your investments and use wealth management services.Get started with the RBC Signature No Limit Banking Account:
ProsIn-person and digital banking optionsKeep all banking products for the entire family under one roofRBC’s mobile app includes NOMI, a feature that gives insights based on your cash flowRBC offers a range of credit cards for cash back, rewards, travel and moreOptions for personal loans, lines of credit, car loans and student loansRobust wealth management servicesOffers services for newcomers to CanadaCDIC insuredConsCertain banking tasks will require a visit to a RBC branch and cannot be completed onlineMonthly and annual fees can be costlySome RBC users mention that select in-app features don’t work wellDoes RBC have a mobile app?Yes, the RBC app is available for both iOS and Android mobile operating systems.RBC app4.8 – ★★★★★(207.6K reviews)3.1 – ★★★★★(38.2K reviews)
Digital banking with NeoNEO Financial offers a digital banking experience in Canada through its spending, savings, credit, investing and mortgage products. It also offers financial learning resources and a stellar mobile app experience.The Neo Money Account offers some stand out features: Earn 4% interest on your balance + get up to 15% cashback on first-time purchases with your Neo Money card.Get started with the Neo Money Account:
ProsEntirely onlineVery highly rated mobile appEarn 4% interest with the Neo Money Account in addition to cash back on purchasesInvestment portfolio managers availableThe Neo Credit card comes with unlimited cashback, no annual fees and flexible perksNeo Money Account deposits (combined with eligible deposits at Concentra Bank) are CDIC insuredConsDoes not offer a full suite of banking options, like loans and lines of creditNo in-person serviceCan potentially get higher savings interest rates elsewhereDoes Neo have a mobile app?Yes, Neo Financial offers a mobile app for both iOS and Android devices.Neo app4.8 – ★★★★★(28.5K reviews)4.7 – ★★★★★(6K reviews)
Online banking with National BankNational Bank is Canada’s sixth largest bank and, like other big banks, it offers customers a convenient online banking platform. National Bank offers a full suite of banking products – from chequing accounts and credit cards to lines of credit and mortgages.The National Bank mobile app is available on Android and iOS and is very highly rated by users on both platforms. You can deposit cheques, transfer funds, make international money transfers and more all through this digital banking platform.Get $30 towards an eligible National Bank credit card you activate after opening a National Bank Connected Account. Get started with the National Bank Connected Account:
ProsBoth online and in-person service availableVery highly rated mobile appChoose from a variety of National bank credit cards for cashback rewards, travel perks and moreProvides personal loans, lines of credit, car loans and student loansOffers RRSPs, TFSAs, GICs, FHSAs and RESPsGet access to a serious of wealth management servicesOffers programs for newcomers to CanadaCDIC insuredConsSome tasks may not be available through online bankingMonthly and annual banking fees can be expensiveFewer branches and ATM access compared to some other banksDoes National Bank have a mobile app?Yes, you can download the National Bank app on iOS and Android devices.National Bank app4.7 – ★★★★★(190.4K reviews)4.7 – ★★★★★(43.4K reviews)
Digital banking with TangerineBacked by Scotiabank, Tangerine is one of the most well-established, fully online banks in Canada. It offers an impressive suite of digital banking products through its comprehensive digital banking platform – everything from credit cards and mortgages to chequing and savings accounts.Tangerine’s online banking portal and mobile app are designed around a self-service model. That means you can open accounts, apply for credit cards, manage investments, deposit cheques, download documents and cancel a card all from the app, without having to wait in line at a branch or on the phone.One of Tangerine’s biggest draws is its no-fee model. You can get access to all of its accounts and credit cards with no monthly or annual fee. If you’re looking for a comprehensive digital bank in Canada, Tangerine may be just what you need.Get started with the Tangerine Savings Account now and earn an interest rate of up to 5.75%:
ProsManage all of your banking entirely digitally online or through the Tangerine appHighly rated mobile app for both iOS and AndroidView your credit score report through TransUnion2 different $0 annual fee Tangerine credit card options with cash back and travel perksOffers RSPs, GICs, RIFs, TFSAs, Non-Registered Investment Funds and moreGet access to personal lines of credit or home equity line of creditAccess to Scotiabank’s ATM networkCDIC insuredConsNo in-person serviceDoes not offer certain banking products, like wealth management or newcomer-to-Canada packagesDoes Tangerine have a mobile app?Yes, the Tangerine app is available for download on both iOS and Android.Tangerine app4.7 – ★★★★★(63.5K reviews)4.5 – ★★★★★(35.5K reviews)
Online banking with TDTD is not only one of Canada’s Big Five Banks, but is one of the top 10 banks in North America. TD Canada Trust is the commercial banking arm of TD Bank Group, which services over 27.5 million customers worldwide.Like other big banks we’ve discussed, TD offers digital banking through its mobile app and online banking portal. In fact, TD’s mobile app tied for first place in “Highest in Customer Satisfaction” as part of the J.D. Power 2023 Canada Banking Mobile App Satisfaction Study.Get started with the TD Unlimited Chequing Account:
ProsIn-person and online service availableTD offers credit cards with perks for travel, cash back, rewards and moreOffers personal loans, lines of credit, car loans and student loansProvides TFSAs, FHSAs, RRSPs, RESPs, RRIFs, RDSPs, GICs, mutual funds and moreDIY investing through TD Direct Investing and TD Easy TradeTD Wealth Financial Planning or TD Wealth Private Wealth Management availableCDIC insuredConsSome banking tasks cannot be done on the mobile app, but instead will require you to visit a branchMonthly and annual fees can be costlySome TD app users mention that the app occasionally gets stuck while loadingDoes TD Canada Trust have a mobile app?Yes, TD offers a mobile app for both iOS and Android devices.TD app4.5 – ★★★★★(77.6K reviews)4.1 – ★★★★★(101K reviews)
Online banking with CIBCWhether you’re looking for everyday banking solutions or ongoing wealth management, CIBC has a lot to offer its customers both online and in person as one of Canada’s Big Five Banks. When it comes to digital banking, CIBC offers both a mobile app (for iOS and Android) and online banking portal.The CIBC mobile app tied for first place in the J.D. Power 2023 Canada Banking Mobile App Satisfaction Study for “Highest in Customer Satisfaction.” CIBC’s app boasts some interesting features, like allowing you to check your credit score for free, get real-time currency conversions for CIBC Visa Cards, set up savings goals and open accounts.Get started with the CIBC Smart Account:
ProsOffers both online and in-person serviceA range of CIBC credit cards can help you earn rewards, cash back, travel perks and moreGet personal loans, lines of credit, car loans and student loansProvides TFSAs, FHSAs, RRSPs, RESPs, RDSPs, mutual funds, GICs and moreCheck your credit score for free through the CIBC mobile appGet access to a CIBC Private Wealth advisory teamOffers a range of banking products for newcomers to CanadaCDIC insuredConsSome banking tasks cannot be completed through digital bankingMonthly and annual banking fees can be expensiveSome users mention that the newest version of the app has a poor layoutDoes CIBC have a mobile app?Yes, the CIBC mobile app is available for download on iOS and Android.CIBC app4.3 – ★★★★★(20K reviews)3.1 – ★★★★★(42.3K reviews)
Pros and cons of online banking and digital bankingOpting for digital banking can give Canadians many conveniences and perks, but it’s always important to consider the drawbacks when deciding if it’s the right move for you.ProsHigher savings rates. Most online banks offer higher interest rates on savings accounts because the banks have lower overhead costs.Low to no fees. Most of the best online banks don’t charge monthly fees or require you to carry a minimum balance.Convenience. You can access all your accounts and investments through a banking app on any device 24/7. Make transfers, pay pills and track your spending and savings goals easily.ConsNo physical locations. Online banks usually don’t offer face-to-face customer service because they don’t have physical branches.Some limited product offerings. Exclusively online banks have yet to match traditional banks with their range of product offerings which is sometimes still limited to basic accounts and investment options.Limited ATM access. Although this isn’t so bad if an online bank is a subsidiary of a traditional bank and uses its ATM network, this could still be a limitation if you want quick access to cash.What’s the difference between a digital bank and a challenger bank?Online banks, like Tangerine or EQ Bank, are digital banks that usually don’t have physical branches (or they rely on the branches of other physical banks) and customers use mobile banking apps to control their money. These online-only banks are built on existing infrastructure and closely mimic traditional banks.A challenger bank, like Revolut or N26, is a completely digital bank that doesn’t use any existing legacy systems to operate. Unlike regular online banks, challenger banks don’t use any physical infrastructure or digital operating systems that are already being used by existing financial institutions. The technology used by these fully online banking providers is developed from scratch. They get their name from their roles as challengers to traditional banks, like the big five Canadian banks.What is app-based banking?App-based banking is any sort of financial management that you do primarily through an app. It’s basically another name for online banking but based solely through an app. Banking apps are popular tools in the online banking world and can help you save, budget and manage your spending. There are several advantages to app-based banking:Banking access in your pocketMany companies offer 24/7 access to banking supportInstant spending notificationsMany banking apps offer ways to automatically save moneyThings to know about app-based banking from new banksUsing your phone as your main point of contact with your bank can save you time and give you more control over your finances, but there are a few things to be aware of.
Some apps may require credit checks
If you’re planning to apply for a new chequing account or credit card, your bank may pull your credit file in order to assess how likely you are to overdraw the account.
Your money may not be protected the same way it is with big banks
Most banks are insured by the CDIC, which means your deposit of up to $100,000 is backed by the Canadian government. Not all app-based banks have this same protection. You can view CDIC’s Members List to learn if your bank is CDIC insured.
App-based banking doesn’t always afford the same rewards as traditional banks
App-based banks aren’t always able to offer the financial rewards, such as signup bonuses, that are common at many big banks. This varies by institution and is not always the case.
If you forget your PIN or lose your card, most app-based banks won’t panic
A benefit of an app-based bank is having full access to your account at all times. Lots of app-based banks allow you to freeze your account if you lose your card, so if you find it again you can just unfreeze the card in the app. If you forget your PIN, you may even be able to answer security questions in the app.
Some banking apps link to your pre-existing bank accounts and show you ways to spend better
Not all app-based banks are banks in the traditional sense. Some banking apps work alongside your pre-existing accounts to gather all your spending data in one place, offer you insights into the way you spend your money and suggest ways to improve your finances.
Different types of app-based bankingTraditional bank apps. App-based online banking doesn’t only apply to challenger banks. It has also become increasingly possible to bank on your smartphone with traditional banks like the big 5. Check out the top 5 banking apps in Canada here.Apps that help you save. One of the most common reasons for people heading away from traditional banks and towards app-based online banking is how easy app-based banking makes it for people to track, save and manage your money at a glance. Budgeting apps like Emma and Mint are examples.Prepaid card apps. Some companies, like KOHO and Stack, let you control a prepaid card from an app so you can track your transactions and see exactly how much money you have left.Investment apps. Some apps help you save and let you invest in stocks from your phone so that you have more control over your finances, like Wealthsimple.Is online banking safe?Online banking providers need to have the same banking licenses and approvals as existing Canadian banks before they’re able to offer products and services to consumers. These new banks will be regulated by the Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Agency of Canada (FCAC) in the same way that existing banks are regulated.Almost all deposit-taking financial institutions — including traditional big six banks, online banks, money apps and fintechs — are part of the government’s Canadian Deposit Insurance Corporation (CDIC). This Canadian government insurance means that any money in a CDIC-member bank that is lost, either through a bank collapse, insolvency, theft or other ways, is protected and you will be reimbursed the full deposited amount, up to $100,000. The good news is that you can have multiple accounts, up to $100,000, and each of these accounts is protected under CDIC insurance. If you’re unsure, go online or call the online bank or fintech provider and look for CDIC protection.Use of online bank accounts continues to growAccording to results from the recent Finder: Consumer Sentiment Survey Q1, the majority of Canadians (55%) plan to open a bank account or new banking product at one of Canada’s big five banks. However, a growing number of Canadians — almost 1 in 4 (24%) — are turning to online banks, instead.
How to get started with online bankingIf you’re interested in online banking, compare the best digital banks in Canada and sign up. If you want to join one of the new digital bank providers that have yet to open in Canada, you can join their waitlist by visiting their website. When they launch products, those on the waitlist will be the first to know and the first to receive access to these new products.Full list of digital banks, financial apps, and new banks in CanadamotusbankBankMeridian2018EQ BankBankEquitable Group2016TangerineBankScotiabank1997Oaken Financial (trademark of Home Bank)BankHome Trust2013Simplii FinancialBankCIBC2017ManulifeBankThe Manufacturers Life Insurance Company1993Outlook financialBankAssiniboine Credit UnionUnknownAchieva FinancialBankCambrian Credit Union1998Alterna BankBankAlterna Savings and Credit Union2017Motive FinancialBankCanadian Western Bank1984KOHOOnline banking app, prepaid cardsPrivately owned2014MogoOnline platform and mobile appPrivately owned2003MydohApp and smart cash cardRBC2020Neo FinancialOnline platform and mobile appPrivately owned (partnered with mastercard, ATB Financial and Concentra Bank)2019Revolut (coming to Canada soon)AppPrivately owned2015WealthsimpleOnline investment management platform (not a bank, but offers a hybrid savings/chequing account, business accounts and retirement products)Power Corporation of Canada2014CI Direct InvestingOnline investment platform (offers a High Interest Savings Account and investment solutions)CI Financial2014RBC NOMIDigital savings accountRBC2017Samsung PayDigital walletSamsung2015 (available in Canada in 2017)AmpliAppRBC2019President’s Choice BankBankLoblaw Companies1996Wealth OneBankPrivately owned2016NorthOne Business BankingBusiness bankPrivately owned2017StackAppPrivately owned (partnered with Peoples Trust Company)2017Laurentian BankBankLaurentian Bank of Canada2019Nest WealthOnline wealth management platformPrivately owned (National Bank of Canada holds a minority stake)2014Moka (formerly Mylo)AppMogo2017AcceleRate FinancialOnline credit unionAccess Credit Union2010Hubert FinancialOnline savings platform and appSunova Credit Union2010Implicity FinancialOnline platform and appEntegra Credit UnionUnknownMintAppIntuit2006CST SparkOnline RESP providerCanadian Scholarship Trust Foundation2018Emma appAppPrivately owned2018 in London (available in Canada in 2019)Wallet by BudgetBakersAppPrivately owned2010The bottom line on digital banks in CanadaOnline banking is becoming more and more popular – and for good reason. Besides the convenience they provide, digital banks often cater to specific niches and groups, and they’re known for offering innovative apps. But before you ditch your current traditional bank, take the time to read through all of the fine print to make sure the bank you’re interested in is as good as it sounds then compare online banking providers to find the right one for you.Survey Methodology – Finder: Consumer Sentiment Survey Q1The results of the Finder: Consumer Sentiment Survey Q1 were collected through an online Pollfish survey conducted between December 2022 and January 2023. In the survey, 1,846 Canadians from across the country were asked about their current banking services and their intentions and motivations for new banking products. The estimated margin of error for the survey is +/- 3%, 19 out of 20 times.Survey Methodology – Finder: Consumer Sentiment Survey Q2 2023The results of the Finder: Consumer Sentiment Survey Q2 were collected through an online Pollfish survey conducted between April 27 to 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their current banking services and their intentions and motivations for new banking products. The estimated margin of error for the survey is +/- 3.08%, 19 out of 20 times.Online banks, new banks and digital banks FAQs
How can I tell if a digital bank is insured by the CDIC?
Are new banks or digital banks cheaper than traditional banks?
Challenger banks can afford to slash fees because of financial technology (Fintech) that makes it possible to perform many everyday banking functions without leaving your home or dealing face-to-face with bank representatives.Usually, there are no physical branches. Instead, customers access accounts, manage their money and contact customer service representatives through mobile apps, online banking, phone, text messages and email.With very low overhead costs, many challenger banks are able to offer zero monthly account fees, low-cost international money transfers, free domestic transfers and low-fee investment options.
How do I get help with my online banking if there are no bank branches?
Digital banks often have multiple ways to contact customer service, including via online chat, email and phone. Sometimes you can visit a traditional bank’s branch that is a partner with your digital bank. Check with the bank you’re interested in to find out how they handle customer support before signing up.
Why does the Canadian version of the bank I’m interested in offer less features?
Overseas banks that come to Canada aren’t always able to offer the same features to Canadian users because of regulations. In some cases, the bank will roll out new features as it expands, but not always. Banking regulations vary from country to country, making it difficult to offer the same features in every country.
Are digital banks safe?
All banks operating in Canada must be licensed by the federal government. Such licensed banks are referred to as “chartered banks” and are subject to the following:Bank Act. Chartered banks are subject to the federal Bank Act, which has 3 main goals: protect customers’ savings, protect cash reserves and promote competition to reinforce the efficiency of Canada’s financial system.OSFI. All domestic and foreign banks operating in Canada are regulated by the federal Office of the Superintendent of Financial Institutions (OSFI), which supervises federally-regulated financial institutions and pension plans.FCAC. The Financial Consumer Agency of Canada (FCAC) protects consumer interests by enforcing protective measures and educating consumers about their rights and how to manage money.FINTRAC. Federally-regulated financial institutions must comply with policies outlined by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) that are designed to prevent money laundering, terrorist financing and fraud. Suspicious transactions must be reported, and, if necessary, relayed to the appropriate law enforcement body for further investigation.CDIC. The Canada Deposit Insurance Corporation (CDIC) protects customer deposits up to $100,000 per customer per institution. In the event a bank fails, depositors won’t lose all their savings. Coverage applies to chequing accounts, savings accounts, foreign currency accounts, GICs, mutual funds, ETFs and even cryptocurrency accounts.Non-chartered financial companies aren’t necessarily bad or unsafe. However, you won’t receive the same level of protection that you would with a federally regulated financial institution.Challenger banks know that security is a big concern for customers. Measures that are typically taken to protect customer data include data encryption, two-factor authentication, SSL certificates, strong password requirements and constant fraud monitoring. Before opening an account, check with your digital bank to see what security measures it has in place.
Why should students choose online banking?
Challenger banks or digital banks were born with the aim of “challenging” the big traditional banks (like the Big Five), by offering better deals, bureaucracy-free accounts and better online banking services. Challenger banks don’t usually offer dedicated student accounts, but their basic chequing account options come with a series of features that make quite a lot of sense for the typical student who doesn’t know much about banking and whose monthly budget is a bit stretched.In general, young people seem to like digital banking. A lot, actually. There’s a bunch of different reasons behind it, but mostly:Accounts are fast to set up. Opening a bank account takes a few minutes and you’ll get the card within a few days.It’s mobile-friendly. Digital banks come with an app that usually looks good, works well and does cool stuff. For example, most show you data about where and how you spend most of your money. Also, most apps give instant notifications when you use your card to help you keep track of what you spend.You don’t need to actually talk to someone to open an account. Don’t shrug your shoulders, we know you like this. You can even set up your account while waiting for your take out order to arrive with that Netflix crime documentary on in the background.Free to join and low fees. Most challenger banks offer a free basic account and in most cases won’t charge you for basic banking services such as ATM withdrawals, bank transfers and card payments.It can help you save money. When you’re a student, budgeting is an art form – how many rum and cokes can you afford if you still want to eat three decent meals a day? Digital banking apps often have features that can help you budget, by gathering data on your spending habits and regrouping them in clear, colourful graphs.Young brands. For many young people, traditional banks are the banks of their parents. Challenger banks have been able to establish themselves as cool brands. That kind of feeling, although subconscious, often plays a part when you’re choosing a product.
What are other names for online banking or digital banking?
There are multiple terms used to describe online or digital banks. However, there are some distinctions to make:Challengers. It’s a general word that refers to the idea that these companies are “challenging” traditional banks and their power in the market. Not all challengers are banks. Companies like KOHO, for example, provide services to help you save and spend your money in non-traditional ways.Challenger banks. Challengers and digital banking apps are only entitled to call themselves a “bank” if they have a full banking licence, such as Monzo and N26.Digital banking (apps). Challenger banks are usually digital-only, but there are exceptions. The term “digital banking apps” also encompasses budgeting apps such as Mint or Emma, which don’t actually hold any funds, but use Open Banking to connect to your current account and help you manage your finances.
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