Online banking has transformed the way Canadians — and people across the globe — handle their personal finances.
Banking used to mean taking a trip to your local branch or, at the very least, visiting an ATM. It meant in a lot of cases, speaking to an employee, which required you to do your banking during your financial institution’s hours of operation. And that wasn’t always a particularly convenient way of managing your money.
Online banking turns that old approach to personal finances on its head. Convenience and accessibility are the name of the game. You can do just about anything online when it comes to your banking needs. From transferring funds between your online bank accounts to paying bills, it’s simple and secure.
Let’s take a closer look at online banking.
What Online Banking is Available in Canada?
There are many online banking options available across Canada, from a variety of financial institutions. From the largest national banks to credit unions in Canada, there’s no shortage of options.
The exact services offered can vary from one financial institution to the next. However, there are certain foundational tools and types of document access that you should expect. The Financial Consumer Agency of Canada named these online banking features as common ones across credit unions and banks:
- General account access
- Options to open an account, like no-fee chequing accounts
- Fund transfers between accounts you own or have access to
- Bill payments, including scheduled and future-dated bill payments
- Access to digital loan applications
As we mentioned, both banks and credit unions offer options for online banking. Wondering what sets these two types of financial institutions apart? Knowing the difference can help you find the best online banking option for your needs.
What’s the Difference Between Credit Unions and Banks?
On the surface, it can be hard to tell what sets traditional banks and credit unions apart. They both offer a similar set of banking products and services, helping you address the same basic needs.
However, there’s a major difference in how banks and credit unions are structured. Banks, whether an online Canadian bank or any other kind, are generally for-profit institutions. Credit unions, on the other hand, are non-profit organizations.
While banks have customers, credit unions have members. Why is that important? Because credit unions offer member benefits that banks generally can’t match.
As a member of Innovation Federal Credit Union, for example, you can enjoy free banking. What’s more, you earn cash dividends paid from our profits. We also regularly invest in local community development, scholarships, and a variety of similar initiatives.
Online Banking and Mobile Banking
Online banking is a big concept, once you start thinking about it. The term refers to a digital connection between you and your bank, using just about any kind of device.
Mobile banking, on the other hand, is more specific. It requires a mobile device (a smartphone or tablet, for example) and an online banking app.
The convenience of mobile banking is hard to beat. You can check in on your accounts and recent transactions no matter where you are with your mobile banking app. However, some financial institutions only offer certain services, generally the most popular and frequently used options, through mobile apps.
For more complex processes, you may need to visit your bank or credit union’s website. That’s still much more convenient than having to take a trip to an ATM or branch, however.
Popularity of Online Banking in Canada
Overall, online banking is broadly popular across Canada. And it makes sense. Why spend the extra time on in-person banking when you don’t need to?
A 2022 survey by the Canadian Bankers Association found 78 per cent of Canadians use digital channels to handle most of their banking needs. Additionally, 89 per cent of Canadians used online banking at some point in the previous 12 months. Finally, 65 per cent used a mobile app.
It’s clear that online and mobile banking are especially popular in Canada, and for good reasons. Their convenience and accessibility are hard to beat.
Finding the Right Online Banking Partner
There are plenty of online banking options available across Canada, so finding basic services isn’t that difficult. With online banking becoming increasingly common, what’s most important is finding banking that suits your needs.
At Innovation, becoming a member means more than convenient and secure online banking. You earn cash dividends, save on common banking fees, and help support your local community.
Open your bank account online in Canada now: Apply for an account in minutes!