Canadians look for a ‘human connection’ when banking #CanadaFinance

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Canadians are increasingly looking for a stronger relationship with their bank, according to a new survey by Meridian Credit Union Ltd.

Its More than a Number survey of 1,542 Canadians said 61 per cent of respondents don’t believe their bank knows them on a personal level, while 46 per cent say they are looking for a more personalized relationship with their banking provider.

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This comes as artificial intelligence takes over some of the more routine customer service tasks.

The survey said 87 per cent feel they need to speak with a real person for their banking needs and 66 per cent are worried about losing the human connection with their bank as institutions embrace AI.

“What we’re hearing from nearly 90 per cent of Canadians in our latest survey is that they prefer human-to-human interaction when discussing their finances, rather than relying on AI or automated responses,” Shawn Kauth, vice president of wealth at Meridian, said in a statement.

“This highlights the strong need for personal connections, especially among younger generations like Gen Z’s and Millennials, who are grappling with significant anxieties around both the affordability of their lifestyle and long-term financial planning.”

But Canadian banks have largely embraced AI and its potential.

Three Canadian banks — Royal Bank of Canada, Toronto-Dominion Bank and Bank of Montreal — each ranked within the Top 10 globally in AI research, according to an April report by Evident Insights Ltd.

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TD is already using AI to pre-approve customers for mortgages and lines of credit. It also offers a virtual assistant to help customer service agents.

Meanwhile, Bank of Canada governor Tiff Macklem in a speech last week said central banks are using AI to forecast inflation figures, track the economy and verify regulatory data, among other tasks.

“We’ve only just begun to explore this technology,” he said. “With very large and highly disaggregated data sets now available, there is huge potential to use AI to understand how consumers and businesses are behaving and how companies are setting their prices.”

But is abundant AI really what Canadians want from their banks?

The Meridian survey found that generation Z — arguably the generation most likely to be comfortable dealing with AI — would actually prefer speaking to a human as well.

Fifty-six per cent of gen-Zers are concerned about losing a human connection with their bank, while 81 per cent believe serious financial matters should be dealt with by a real employee instead of an AI chatbot.

Most gen-Zers were also more generally frustrated with their financial institution, with 59 per cent saying their bank operates in its own interests, while 48 per cent said their bank treats them like a number.

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With the price of copper nearly doubling since the pandemic, EV charging stations have become prime targets for thieves looking to make a quick score.

EV charging stations are generally unmanned, in secluded areas apart from the rest of a parking lot and cutting the cord can be fairly simple.

In the U.S., nearly 20 per cent of EV charges end in failure, with 10 per cent of those are due to a damaged or missing cable.

Fixing the issue is top of mind for EV charging companies, but a solution is no easy task, as protective materials can compromise the weight and flexibility of the charge cords.

Read more here.

• 12:55 p.m.: Bank of Canada governor Tiff Macklem hosts a fireside chat in Toronto
• Today’s data: U.S. FHFA House Price Index for July, U.S. Conference Board Consumer Price Index for September
• Earnings: Canadian Critical Minerals Inc., Autozone Inc.

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Looking at the people and those in leadership roles of a company can be valuable when looking to invest. As Martin Pelletier puts it, if a company treats its employees like partners, focuses on building relationships, making sure clients feel valued is a recipe for business success and is thus a great investing opportunity. Read more here.

Build your wealth

Are you a Canadian millennial (or younger) with a long-term wealth building goal? Do you need help getting there? Drop us a line at [email protected] with your contact info and your goal and you could be featured anonymously in a new column on what it takes to build wealth.

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Read them here

Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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