What Is Canadian Online Banking? Definition, Pros and Cons

Everything is digital these days. You can file your taxes online, order your groceries from Amazon and meet your doctor over Zoom. Now, your banking is also accessible via a web-based browser or mobile app with Canadians turning to digital platforms in record numbers.

However, these days, online banking is losing a share of its users to mobile applications. According to the Canadian Bankers Association (CBA), in 2024, 47% of Canadians say “online banking is their most common banking method.” But that number is lower than it used to be. In 2018, 52% of Canadians agreed with the statement.

While mobile banking may be taking over, there’s no doubt that online banking still has a place in the Canadian financial landscape. The CBA reports 87% of Canadians said they had accessed their online banking within the past year. So, clearly, it’s not going anywhere.

Online banking allows Canadians to manage their finances digitally. Instead of needing to visit a physical branch, you can check your balance, pay bills, and transfer money all from the comfort of your own home. It’s become a core part of everyday banking.

While you might agree on its importance, understanding how online banking works, what it offers, and where it may fall short can help you decide how it fits into your overall financial management routine.

What Is Online Banking?

Online banking refers to the ability to access and manage your bank accounts through a secure, web-based platform. In most cases, this means logging in through your bank’s website using a computer or tablet, rather than visiting your branch in person. It’s also not the same as using your mobile application.

While both offer digital access to your accounts, mobile banking is designed specifically for smartphones, with features optimized for on-the-go use. Online banking, on the other hand, provides a more in-depth experience and is better suited for reviewing transactions, managing multiple accounts, or handling more complex banking tasks.

Other tasks that you might perform using your online banking include:

• Managing your chequing and savings accounts
• Moving money between accounts
• Paying bills online
• Setting up scheduled or automatic payments
• Sending Interac e-Transfers
• Reading your credit card statement
• Making a mobile cheque deposit
• Setting up alerts
• Downloading account records

With the ability to complete a variety of jobs, online banking is especially useful for more detailed financial oversight.

How Online Banking Works in Canada

If you want to set up online banking, you first need to open a bank account in Canada. Once you have your debit card number or bank account details, you can visit your bank’s website to find their registration portal. Here, you can create your online access. Most banks integrate their online banking with their mobile applications which means you can use this login information there as well.

After you complete the online setup, you can use the platform for a number of tasks rather than needing to visit your bank in person. It is important to note that you will need to use an ATM to make a cash withdrawal. Today, though, you can deposit a cheque through your mobile banking app. Run into any issues? Just use the chatbot on the bank’s website or reach out to the institution’s customer service department by phone or secure messaging.

Pros of Online Banking

• Convenience and round-the-clock access from anywhere
• Speedy transaction times when using features like e-transfers and mobile cheque deposits
• Allows for automation, reducing the risk of errors for transactions like bill payments
• Simplifies account tracking
• Provides access to budgeting tools

Cons of Online Banking

• Limited personal support, which can make online banking feel restrictive
• Cash deposits require an ATM or branch visit
• Learning curve for less tech-savvy users who are unfamiliar with digital tools
• Relies on an internet connection or mobile access that may not always be available

Online Banking vs Traditional Banking

Online banking is often a complement to traditional, in-branch service, with many Canadians using both to manage their finances. Understanding how the two compare helps you to determine when it is best to use online banking and when a trip to the branch is necessary.

Takeaway

Today, online banking is an important part of how Canadians manage their money. Not only does it offer convenience, but also speed and the ability to access everyday banking tasks without needing to visit a branch in person. In short, for many Canadians, online banking simplifies their financial management.

That said, online banking isn’t a perfect solution and there are times when you will want to head into your local branch for in-person support. This is why, in practice, there is a place for both types of banking. By understanding how online banking works, you are better equipped to use its services and also determine when in-branch service is the right move.