Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on marketing financial services to New Canadians
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- Figure 1: Short, medium and long-term impact of COVID-19 on marketing financial services to new Canadians, November 2020
- Opportunities and challenges
- Using branches to forge relationships with New Canadians
- A third of New Canadians are likely to switch their main FI in the next year
- Helping New Canadians overcome barriers
- Encouraging product consolidation to discourage switching
- Opportunity for FinTech challengers
- New Canadian finances disproportionately hit by COVID-19
- How can credit unions appeal to New Canadians?
The Market – Key Takeaways
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- Immigration down in 2020 due to COVID-19
- Impact of COVID-19 on marketing financial services to New Canadians
- Canada plans record levels of immigration over the next three years
- Economic impact of COVID-19
- New benefits as CERB ends
Market Factors
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- Impact of COVID-19 on marketing financial services to New Canadians
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- Figure 2: Short, medium and long-term impact of COVID-19 on marketing financial services to new Canadians, November 2020
- Immigration is fuelling Canada’s population growth…
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- Figure 3: Percentage of Canadians who are visible minorities or not visible minorities, by age, 2016
- …and Asia is the primary source
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- Figure 4: Distribution of immigrants living in Canada, by region of birth, 1996-2036
- Immigration down in 2020 due to COVID-19
- Economic impact of COVID-19
- Deferrals being rolled back
- New benefits as CERB ends
Companies and Brands – Key Takeaways
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- Canada plans record levels of immigration over the next three years
- Digital tools and New Canadians
- Meridian’s new hybrid mortgage
- Robo-advisor Wealthsimple hits unicorn status
- Canadians now have the option to build their credit scores via rent payments
- PC Financial combines no fees and PC Optimum in new PC Money Account
Competitive Strategies
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- Digital tools and New Canadians
- Scotiabank launches Advice+, a digital, financial planning centre
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- Figure 5: Scotiabank – It’s You, Plus, September 2020
- Scotiabank simplifies digital banking with a new resource for seniors
- BMO launches AI financial advice tool and adds features to its financial planning platform
- TD launches new financial planning and investing app
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- Figure 6: Find your beginning with TD GoalAssist, October 2020
- CIBC launches new platform to help clients build their financial plans
- BMO’s new digital mortgage pre-approval tool
- Tangerine lets new clients sign-up digitally by taking a selfie
- RBC uses AI to enhance security
- Meridian’s new hybrid mortgage
- Robo-advisor Wealthsimple hits unicorn status
- Canadians now have the option to build their credit scores via rent payments
Marketing Campaigns
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- PC Financial combines no fees and PC Optimum in new PC Money Account
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- Figure 7: PC Money™ Account | A New Way, September 2020
- Figure 8: PC Financial Facebook ads, September 2020
- CIBC’s new brand campaign to promote alerts
- TD thanks everyday COVID-19 pandemic heroes
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- Figure 9: TD Thanks You Angela, September 2020
- Desjardins launches “Your Selfie Life”
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- Figure 10: Desjardins YourSelfieLife 30E Prores, September 2020
- Canada’s largest banks post about fraud prevention
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- Figure 11: CIBC fraud prevention related Twitter post, May 2020
- Figure 12: Tangerine identity theft Facebook ads, July 2020
- Banking packages for newcomers
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- Figure 13: RBC Newcomer Advantage | No-monthly-fee banking, October 2020
- Scotiabank’s StartRight
- RBC Newcomer Advantage
- BMO NewStart Program
The Consumer – Key Takeaways
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- Big banks dominant choice of New Canadians
- Around half of New Canadians have cut spending due to COVID-19
- New Canadians are more prolific users of mobile, branches, phone and call centre channels
- Paying off debt is the top priority
- A third of New Canadians are likely to switch their main FI in the next year
Choice of Main Financial Institution
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- New Canadians are younger…
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- Figure 14: Age distribution, New Canadians vs overall, August 2020
- …and poorer
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- Figure 15: Age distribution, New Canadians vs overall, August 2020
- Big banks dominant choice of New Canadians
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- Figure 16: Choice of main FI, New Canadians vs overall, August 2020
- Using branches to forge relationships with New Canadians
- Helping New Canadians overcome barriers
- New Canadians are more likely to switch their main FI
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- Figure 17: Switching of main FI, New Canadians vs overall, August 2020
- More than half have switched after arrival in Canada
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- Figure 18: Switching of main FI among new Canadians, August 2020
- Encouraging product consolidation to discourage switching
- Opportunity for FinTech challengers
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- Figure 19: motusbank Instagram post, October 2020
Personal Finance Attitudes
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- Around half of New Canadians have cut spending due to COVID-19
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- Figure 20: Personal finance attitudes, New Canadians vs overall, August 2020
- New Canadian finances disproportionately hit by COVID-19
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- Figure 21: Impact of COVID-19 on Finances (% agree), New Canadians vs overall, August 2020
- A quarter of New Canadians send money home
- A fifth are worried about the amount of debt they are carrying
Banking Channel Usage
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- New Canadians are more prolific users of mobile, branches, phone and call centre channels
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- Figure 22: Channels used for banking transactions (any usage), New Canadians vs overall, August 2020
- Online and mobile used most by New Canadians
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- Figure 23: Correspondence analysis – Symmetrical map – channel usage of New Canadians, August 2020
- Online is used most by the overall population
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- Figure 24: Correspondence analysis – Symmetrical map – channel usage of overall population, August 2020
- Branches are used for all types of transactions
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- Figure 25: Branch transactions, New Canadians vs overall, August 2020
- Online banking is used by all Canadians
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- Figure 26: Online banking transactions, New Canadians vs overall, August 2020
- Mobile is fast emerging as a channel of choice for New Canadians
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- Figure 27: Mobile banking transactions, New Canadians vs overall, August 2020
- Automated phone banking is still ‘alive’, while call centres are used for customer service
- ATMs have distinct functions
Financial Priorities
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- Paying off debt is the top priority
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- Figure 28: Financial priorities (any rank), New Canadians vs overall, August 2020
- Some gender differences
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- Figure 29: Financial priorities (select), by gender, August 2020
- Higher-income New Canadians have more priorities
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- Figure 30: Financial priorities (select), HHI of over CA$70K vs under CA$70K, August 2020
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- Figure 31: Financial priorities (select), HHI of over $70k vs under $70k, August 2020
- Helping New Canadians save for retirement and education
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- Figure 32: Moka Instagram post, July 2020
- New Canadians are also keen to establish physical roots
Banking Attitudes
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- Most New Canadians prefer banks to credit unions
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- Figure 33: Banking and general attitudes of New Canadians, August 2020
- How can credit unions appeal to New Canadians?
- Most happy with customer service but bothered by bank fees
- New Canadians are more technology friendly
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- Figure 34: Technology attitudes (select), New Canadians vs overall, August 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Mintel Trend Drivers
- Abbreviations and terms
Appendix – Banking Channel Usage Charts
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- Figure 35: Automated phone banking transactions, New Canadians vs overall, August 2020
- Figure 36: Call centre transactions, New Canadians vs overall, August 2020
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- Figure 37: ABM transactions, New Canadians vs overall, August 2020
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