A Look Into the 2025 MoneySense Best Online Banks and Credit Unions in Canada Rankings

Blind Trust in Banks

Many Canadians have a deep-rooted trust in banks - sometimes without question. Whether this loyalty is driven by habit, tradition, or a lack of trust in alternatives, the result is the same: consumers sticking with big banks, even when better rates and lower fees exist elsewhere. The truth is, Canada has plenty of outstanding banking options beyond the major players.

Big Banks: More Expensive, Less Competitive

Finding the best banking rates and fees isn't easy, but one thing is clear: big banks aren't the most cost-effective choice. Smaller institutions offer lower rates and fees to attract customers, while big banks emphasize the "experience" of being a customer - often as a distraction from their less competitive pricing.

Where Big Banks Have the Advantage

Big banks excel in certain areas, particularly in offering a wide range of accounts and products. Their ability to facilitate digital account openings often outshines smaller firms, thanks to their broader selection of financial products.

Desktops: The Key to a Superior Banking Experience

Every banking firm should offer a desktop platform - it's that simple. Even if you rely on your phone for everyday banking, avoiding firms without a desktop option is wise. Why? Because desktops generally provide more features and functionality than mobile apps. You never know what you'll need - until you suddenly do.

The "Less is More" Myth

Many firms market stripped-down mobile platforms as a benefit, but that's not always the case. The reality? They choose to limit features on mobile. Instead of designing fully functional mobile platforms, firms decide for you which tools should be available - often at the cost of convenience and control.

Beware of App Store Ratings

When comparing mobile banking apps, don't take Apple Store or Google Play ratings at face value. These scores can be manipulated and often focus on surface-level usability rather than the depth of features and real functionality. A high rating doesn't always mean a better banking experience.

Account Management: A Big Bank Strength

Managing finances - checking balances, reviewing past transactions, and accessing account details - is a major component of digital banking. While big banks generally lead in this area, most firms struggle to deliver the same level of excellence across both desktop and mobile platforms.

Big Banks Lead in Digital Transactions

A seamless digital transaction experience is critical for banking customers. Big banks tend to outperform smaller firms in this area, offering smoother, more reliable transaction processes.

A Lack of Educational Resources

While a few big banks provide strong educational content, the industry as a whole falls short. More targeted resources and a stronger focus on mobile-friendly financial education are needed to help consumers make informed decisions.

Weak Account Analysis and Budgeting Tools

Budgeting and account analysis remain underdeveloped in digital banking. Of the firms analyzed, only 50% offer basic account analysis, and just 25% provide comprehensive budgeting tools with real transactional data. There's significant room for improvement.

The Changing Face of Customer Service

Customer service used to be measured by in-person visits, phone calls, and emails. Today, the landscape includes live chat, virtual assistants, social media interactions, and form-based inquiries, plus the ability to book digital or in-person appointments. However, rather than improving service, new methods often seem like cost-cutting tactics, replacing traditional support without addressing underlying service issues.

The Decline of Customer Service

Customer service in digital banking is heading in the wrong direction. Many firms prioritize what's convenient for them rather than what's best for customers. Virtual assistants, for example, are often just glorified FAQs, marketed as cutting-edge support but offering little real assistance.