Digital Banking in Canada: How to Get Started

Digital banking is an umbrella term used to refer to both online banking and mobile banking. You can use it to remotely access your bank or credit union account and complete financial transactions using a computer, tablet or smartphone.

Digital banking has quickly become the most popular way to bank. More than two thirds of Canadians who have financial accounts (69%) say one of the most important bank services/features to them is online access, according to a survey conducted online by The Harris Poll on behalf of NerdWallet from September 3-6, 2024 among 1,030 Canadian adults ages 18 and older.

Types of digital banking

If you have access to an internet connection, digital banking can make banking easier, faster and more accessible so you can manage your money anytime, anywhere. Digital banking includes:

Online banking

Online banking enables you to manage your bank accounts and services on your financial institution’s website using a desktop or laptop computer.

Using your login ID and password, you can log into your online bank account and pay bills and taxes, send money to friends, transfer money between accounts and so much more.

Many online banking platforms have built-in security features, such as the ability to send alerts about potential suspicious activity on your account

Mobile banking

Mobile banking is conducted through a financial institution’s mobile app by downloading it to a smartphone or tablet.

Mobile banking typically offers the same services as online banking but is more streamlined for convenience and better functionality on devices with smaller screens. It also allows you more flexibility to complete transactions like paying bills or depositing cheques using your phone on the go.

Banking apps often come with built-in security features, like alerts and biometric authentication, to prevent fraudulent activity.

🤓 Nerdy Tip: Many Canadian financial institutions offer both online banking and mobile banking, which you can use interchangeably. You may also be able to use the same login information for both methods.

Common digital banking services

While digital banking isn’t all-encompassing, you can easily manage the majority of your finances from your laptop or phone. Some of the most common digital banking services available to Canadians include:

Checking your account balances.
Transferring money between accounts.
Opening new accounts.
Applying for credit cards.
Paying bills.
Applying for bank loans.
Scheduling regular payments, such as a mortgage or car payment.

Benefits and perks of digital banking

Digital banking doesn’t completely replace the need to visit a bank or an ATM, especially if you need to withdraw cash. However, digital banking offers a number of perks and advantages, including:

Convenience: You can bank at any time from any place without needing to visit your bank’s branch during set operating hours.
Features: Many banks offer personalized information about your banking habits on your online or mobile dashboard. These tools help you track your spending and stay on budget.
Security: Digital banking is typically just as safe as in-person banking. Of course, it’s up to you to make sure you choose a strong password and protect your account information using features like two-factor authentication.
Automatic payments: Online banking allows you to schedule regular automatic payments to pay monthly bills that are the same amount and always due on the same day so you never have to pay late fees.
Potentially better rates and fewer fees: If you conduct online banking with an online bank, you may have access to better interest rates on savings accounts. Because online banks have lower overhead costs than brick-and-mortar banks, they may pass those savings to their clients by offering better rates and fewer or lower fees.

Which financial institutions offer digital-first banking?

Most, if not all, financial institutions in Canada offer digital banking options. As more Canadians turn to digital banking, banks are upgrading and expanding their online platforms and mobile apps to keep up with the interest.

That said, some online banks, though limited in their offerings, offer digital-first products that stand out, such as:

EQ Bank: Known for offering competitive promotional interest rate for its non-registered savings account and comparable standard interest rate for the EQ Bank TFSA Savings Account.
Simplii Financial: Offers no-fee chequing accounts, bonus interest rate on its high-interest savings account (HISA), and access to CIBC’s ATM network.
Tangerine Bank: Provides no-fee, interest-earning chequing accounts, bonus interest rate on its HISA, and access to Scotiabank ATMs.

To keep up with the low-fee services and high interest rates offered by online-only banks, Canada’s Big 6 Banks have improved their account, web platform and app offerings as well. Many traditional banks tend to include packages for people who want all their banking in one place, often trading higher interest rates for more comprehensive financial products and services.

How to get started with digital banking

If you have a bank account already, you can follow basic instructions from your bank to set up online banking.

Register: To register for your online login access on your bank’s website, you typically need to answer a few personal questions to verify your identity and enter your banking client card or debit card number.

Verify: You will then be asked for your phone number where your bank will send you an activation code. After you enter the activation code, you can set up your password and security questions. And, you’re set.

For additional support, you can visit your bank in person or call customer service. You can also refer to the specific directions on your bank’s online banking setup guide.

Opening a new bank account: If you’re opening a new account online, some of the steps may look similar to those covered above. When you visit the financial institution’s product page for the bank account you want, you may see a “Join Now” or “Open an Account” button. Click the button and follow the steps, which typically involve entering contact information and confirming your identity. This process should only take a few minutes.

Set up mobile banking: To set up mobile banking, visit your smartphone’s app store and download your bank’s mobile banking app. Once you open the app, it will usually guide you through the setup process.

Survey Methodology

This survey was conducted online by The Harris Poll on behalf of NerdWallet from September 3-6, 2024 among 1,030 Canadian adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 3.6 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Bria Weaver at [email protected].