Canadian bank websites need improvement

Canada’s financial institutions need to work on their online banking services, according to a recent study. Forrester Research says only one of Canada’s seven largest bank websites is completely up to snuff.

TD Canada Trust earned the highest ranking in the survey, scoring 74 out of a maximum 100 points in Forrester’s assessment. It was also the only bank that exceeded all of Forrester’s minimum standards. Scotiabank, RBC, Bank of Montreal and CIBC scored in the mid-60s.

The study titled “Canadian Bank Secure Web Site Rankings” was broken down in to 24 criteria across six categories: site navigation, presentation, integration of site functions, trust, functionality and service. Forrester examined everything from the site’s layout and text size to online security guarantee’s, preemptive alerts (e.g. for non-sufficient funds, direct deposits) and whether users can download transaction information to their personal financial management software.

Desjardins came in last in the survey. It was the only bank that failed to meet the research firm’s overall standard. The Montreal-based financial institution scored just 43 points, failing all but one of the six categories. Its lowest ratings were for navigation and trust. National Bank was the second worst site overall with a score of 59.

Trust was the category most banks struggled with. Scotiabank, RBC, Bank of Montreal and CIBC all failed to meet Forrester’s minimum requirement of 50 points. Brad Strothkamp, the author of the report, notes that few Canadian banks offer online security guarantees that cover things like ID theft, e-mail fraud and unauthorized transactions on consumer’s accounts.

The author goes on to say that while TD and National Bank are more advanced in this area, there is still room for improvement. The author notes, E*Trade’s total protection guarantee is one model Canadian banks should consider adopting for their own sites. E*Trade’s guarantee covers online fraud and phishing (e-mails that try to get account numbers and passwords by masquerading as a trustworthy business in a seemingly official electronic communication).

Site content and functionality were also problematic. In Forrester’s opinion Scotiabank, Bank of Montreal, CIBC, National Bank and Desjardins all failed to meet expectations.

Forrester also didn’t like the sign-in methods used by Canadian banks. U.S. banks allow users to create personalized user names and quick navigation links to specific secure areas of the site whereas Canadian banks still require a card number to log on (although many allow users to remember their card numbers the next time they visit from the same computer).

Although at first glance all of these sites might seem fine, they cannot be judged on pure functionality or on a look-and-feel basis, Strothkamp says. His main advice: banks need to begin by understanding more about their users to help them better achieve their goals online.

Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com

(03/27/06)