National Bank of Canada says its personal banking business will look different within a few years, with a more mobile-first and simpler experience, as newer online lenders attract customers.
Chief executive Laurent Ferreira laid out the plan on Wednesday in a speech to the Canadian Club Toronto, as reported by The Canadian Press. He said competition in personal banking is intensifying, and that customer habits are moving toward fully digital services that are gaining momentum.
A structural shift, not a passing trend
Ferreira described the changes under way as structural. Rather than treating digital-only rivals and artificial intelligence as threats alone, he said the bank sees opportunities to win market share. Personal banking, he said, will go through changes over the next few years: more mobile-centric, more digital and simpler to use.
The comments reflect a broader tension across the industry. Established banks hold large deposit bases, branch networks and long customer relationships. Newer entrants have fewer legacy systems and can design products around the phone from the start. Customers who find an online account easier to open, use and understand may not feel a strong pull to stay with the institution their parents used.
AI changes deposits and payments
Ferreira singled out AI as a force that will reshape the way deposits and payments work. He did not outline specific products in the remarks reported. But the direction is clear enough. Software that can analyze spending, move money between accounts and flag problems automatically could change where customers choose to hold their money and how they pay.
For banks, deposits are the raw material of lending. Anything that makes it easier for customers to shift balances elsewhere, or to be served by a competitor’s interface, puts pressure on that funding base. That helps explain why a bank of National Bank’s size is talking publicly about modernization rather than leaving it to quiet internal projects.
Partnering with new players
The CEO also said the bank’s strategy could include working with some of the newer companies that have better technology or a different business model. Such partnerships have become a common route for established lenders. They allow a bank to add capabilities faster than it could build them, in exchange for sharing revenue or customer relationships.
The approach carries trade-offs. Partnerships can speed up product launches, but they can also make a bank dependent on outside technology and complicate oversight. Regulators in most major markets expect banks to remain accountable for services delivered through third parties.
Security spending rises alongside digital investment
Ferreira acknowledged the risks that come with more digital services. He said the bank is increasing investment to protect client data, because AI is being used as a cyber weapon by fraudsters and hostile foreign governments. That warning reflects a worry shared across the sector: the same tools that make banking smoother can also be used to build more convincing scams and sharper attacks.
For customers, the point is practical. A bank that pushes more activity into apps needs to keep fraud controls, identity checks and customer support strong enough to match. Convenience that comes at the expense of security is unlikely to build loyalty.
The wider backdrop
The comments land in a busy period for Canadian finance. The Bank of Canada is due to announce its next interest-rate decision on October 28, and recent coverage suggests markets are weighing whether the central bank will end its long pause. Canadian inflation rose to 3.1% in September, pushed up by higher gasoline prices, according to Statistics Canada figures. Banks are navigating higher costs of living for customers while also spending to modernize.
National Bank did not release financial details alongside the speech, and Ferreira’s remarks were a statement of direction rather than a detailed roadmap. Investors and customers will watch for specifics in the coming quarters, including how much the bank plans to invest, which partners it chooses and how quickly new services reach customers.
What is already apparent is that the leaders of established banks no longer see digital transformation as optional. When a chief executive says personal banking will be rebuilt around the smartphone, the competitive pressure is real, and the pace of change is likely to accelerate.
