A Comparative Look: How Canadian Banks Stack Up Against Global Digital Transformation Leaders

Digital transformation is no longer a future aspiration for banks—it is a present-day imperative. As Canadian banks accelerate their digital agendas, understanding how they compare to global peers is critical for leaders seeking to drive meaningful change. Drawing on insights from the Global Banking Benchmark Study, this page provides a side-by-side comparison of Canadian banks’ digital transformation progress, priorities, and barriers with those of leading markets including the US, UK, Australia, France, Germany, and Southeast Asia. The analysis highlights where Canadian banks are leading, where they lag, and what actionable lessons can be drawn from transformation leaders worldwide.

Shared Imperatives, Local Nuances

Across all major markets, banks recognize that digital capabilities are mission critical. The COVID-19 pandemic accelerated digital adoption, exposing gaps in customer experience and operational agility. While 83% of banks globally report having a clearly articulated digital transformation strategy, more than half admit they have yet to make significant progress on execution. This gap between aspiration and action is a recurring theme, with regional differences in what drives or hinders progress.

Canadian Banks: Progress and Priorities

Canadian banks are well aware of the digital imperative:

• 74% of Canadian banking leaders say evolving customer expectations have exposed weaknesses in their current customer experience.
• 68% believe legacy systems and infrastructure are preventing them from delivering the digital experiences customers expect.
• 64% cite cybersecurity as their number one priority over the next three years.
• 26% have a fully agile operating model—comparable to peers in France and Australia, but behind the UK and US.

Top transformation priorities for Canadian banks:

• Improving cybersecurity (18%)
• Reducing costs through efficiency (16%)
• Enabling greater agility (16%)
• Growing revenue from existing products (14%)
• Growing revenue with new products/services (10%)
• Improving customer experience (10%)

Main barriers:

• Legacy technology (48%)
• Regulatory challenges (40%)
• Lack of unified strategy (38%)

How Canada Compares: A Global Benchmark

Customer Experience: A Universal Priority

Improving customer experience is the top digital transformation goal worldwide. Canadian banks are:

• Prioritizing the unification of customer data (56%) to build richer customer insights.
• Introducing new products and services (38%) and creating personalized journeys (34%) as key strategies for customer experience transformation.

This focus is consistent with global peers:

• US (44%), UK (40%), Australia (43%), and Germany (37%) all cite personalized customer journeys as a leading priority.
• Southeast Asian and French banks are also focused on combining customer data for richer insights.

Operational Agility and Technology

Legacy technology and lack of agility are persistent barriers across markets:

• Canadian banks (48%) are among the most likely to cite legacy systems as a major hindrance, similar to the US (38%), UK (32%), Australia (31%), and Germany (34%).
• Agile operating model adoption in Canada (26%) is on par with France (26%) and Australia (29%), but lags the UK (34%) and US (33%).
• Investment in cloud-based core banking systems is a top operational priority for Canadian banks, mirroring global leaders.

AI and Intelligent Technologies

AI is rapidly moving from experimentation to enterprise-wide adoption:

• Over half of Canadian banks are pursuing generative AI use cases, primarily for internal, non-customer-facing applications such as credit analysis, risk measurement, and document automation.
• This trend is mirrored in the US (53%), UK (45%), Germany (47%), and Australia (31%), where internal AI use cases dominate current investments.

ESG and Diversity: Emerging Differentiators

Environmental, social, and governance (ESG) considerations are increasingly driving transformation:

• 86% of Canadian banks say ESG is a key driver of their digital transformation plans, among the highest globally.
• However, 57% lack the data, capabilities, or processes to evaluate ESG performance, highlighting a gap between intention and action.
• On diversity, equity, and inclusion (DEI), 50% of Canadian banks have made commitments—higher than the US (22%) and France (37%), but behind Germany (58%) and Southeast Asia (42%).

Regional Snapshots: Key Contrasts

• US: Focused on AI, customer experience, agility, and cybersecurity. 61% believe they’re ahead in customer experience transformation.
• UK: Prioritizes cybersecurity, customer experience, and efficiency. 63% believe they are ahead of competitors in customer experience.
• Australia: Emphasizes agility, customer experience, and new customer acquisition. Regulatory and budget constraints are top barriers.
• France: Agility and new customer acquisition are top priorities, with ESG and data access as key challenges.
• Germany: Focuses on cybersecurity, revenue growth, and agility. Leads in DEI commitments.
• Southeast Asia: Customer experience and new products are top priorities, with ESG and DEI as strong differentiators.

What Sets Transformation Leaders Apart?

Banks making the most progress—transformation leaders—share several traits:

• Customer-led culture: 95% say customer centricity drives key decisions.
• Agile operating models: 99% have embraced agility at scale.
• Platform-based, data-driven approaches: Leaders invest in cloud, AI, and analytics to enable real-time insights and innovation.
• Partner ecosystems: 98% have broad partner networks to compete with digital-first challengers.
• Talent and culture: Investment in upskilling, reskilling, and cultural change is as important as technology.

Actionable Insights for Canadian Banking Leaders

1. Benchmark Against Global Peers: Use these insights to assess your bank’s progress relative to global leaders. Identify gaps in customer experience, operational agility, and technology adoption.
2. Prioritize Data and AI: Invest in modern data architectures and AI capabilities to enable personalization, efficiency, and innovation at scale.
3. Accelerate Cloud Migration: Modernize core banking systems to unlock agility and support new digital business models.
4. Embed ESG and DEI: Move beyond intention to action by developing robust data and processes for ESG measurement and DEI commitments.
5. Foster a Culture of Agility: Break down silos, empower cross-functional teams, and invest in talent development to drive transformation at pace.

Conclusion: Charting a Path Forward

While the pace and focus of digital transformation vary by region, the direction is clear: banks must become more agile, data-driven, and customer-centric to thrive. Canadian banks have strong foundations and a clear sense of purpose, but accelerating progress will require bold action, investment in technology and talent, and a willingness to learn from global leaders. Those who act decisively will define the future of banking in Canada and beyond.