Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on consumer finances
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- Figure 1: Short-, medium- and longer-term impact of COVID-19 on consumer finances and priorities, January 2021
- Opportunities
- The prepaid and secured card market opportunity
- Is the widespread pessimism justified?
- How can the financial industry help Canadians manage money better?
- How can the financial industry connect better with women?
- Half of parents of under-18s list saving for children’s education as a priority
- Challenges
- Financial and mental health concerns combine to hit financially weaker Canadians
- Women under more COVID-19-related financial pressure
- Non-Chinese Asian Canadians less financially secure
The Market – Key Takeaways
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- Economic impact of COVID-19
- Households sitting on a huge pile of cash
- Bank of Canada projects 4% growth in 2021
- Digital tools and Canadians
The Market – Market Factors
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- Economic impact of COVID-19
- Households sitting on a huge pile of cash
- Bank of Canada projects 4% growth in 2021
- Impact of COVID-19 on consumer finances and priorities
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- Figure 2: Short-, medium- and longer-term impact of COVID-19 on consumer finances and priorities, January 2021
- New benefits come into force as CERB ends
- Mortgage deferrals also help contain delinquencies
The Market – Apps & Tools
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- Digital tools and Canadians
- Scotiabank launches Advice+, a digital, financial planning centre
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- Figure 3: 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 4: Find your beginning with TD GoalAssist, October 2020
- CIBC launches new platform to help clients build their financial plans
- RBC debuts Aiden
- HSBC announces real-time payments tool
- TD unveils new digital cash flow tools
- CIBC launches AI-powered virtual assistant
- BMO launches new digital feature called Card Tracker
- Scotiabank rolls out AI-powered cash flow predictor Sofia
- Debt management apps can help some borrowers
- Splitwise
- epost
- Debt Manager
- Canadian Mortgage app
- Debt planner pay-off
- PocketGuard
- Wellspent helps users “Tinder” their spending
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- Figure 5: Wellspent | Reflection | Basic, June 2019
Companies and Brands – Key Takeaways
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- Challenger bank Neo raises $25 million
- Borrowell to acquire Refresh Financial
- Capital One stops ‘risky’ buy-now-pay-later credit card transactions
- RBC offers Snapchatters COVID career help
- Simplii became the first Canadian bank to let clients use their credit cards for global money transfers
- The Canucks’ newest preferred partner is a Canadian start-up that helps build credit easily
Competitive Strategies
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- Borrowell to acquire Refresh Financial
- Challenger bank Neo raises $25 million
- Rakuten partners with Google Pay
- Wealth One aiming for profitability amid tensions with China
- Wealthsimple testing new feature
- Capital One stops ‘risky’ buy-now-pay-later credit card transactions
Marketing Campaigns
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- RBC offers Snapchatters COVID career help
- Simplii became the first Canadian bank to let clients use their credit cards for global money transfers
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- Figure 6: Simplii Twitter and Facebook ads, December 2020
- Sweeter than Honey: Capital One Shopping
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- Figure 7: Capital One Shopping – Fondue, November 2020
- The Canucks’ newest preferred partner is a Canadian start-up that helps build credit easily
The Consumer – Key Takeaways
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- One in four have a secured credit card
- Two in five have cut spending due to the COVID-19 pandemic
- Majority feel in control of their finances
- Women under more COVID-19 related financial pressure
- Half have been negatively impacted financially by COVID-19
- Saving is the top overall priority
Use of Financing
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- One in four have a secured credit card
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- Figure 8: Usage of financial products and services, November 2020
- Secured and prepaid credit cards are growing
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- Figure 9: Usage of financial products and services, by age, November 2020
- The prepaid and secured card market opportunity
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- Figure 10: Chatr secured credit card email campaign, November 2020
- Alternative financial services providers: servicing a short-term need at a high cost
- Unsecured lines of credit held more by higher income earners and over-35s
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- Figure 11: ScotiaLine personal line of credit email campaign, January 2021
- Second mortgages: the need for caution
Personal Finances
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- Two in five have cut spending due to the COVID-19 pandemic.
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- Figure 12: Personal finances attitudes & behaviours, November 2020
- Majority feel in control of finances but find it hard to save
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- Figure 13: Personal finance attitudes, November 2020
- Over-55s best placed financially
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- Figure 14: Personal finances attitudes & behaviours (select), by age, November 2020
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- Figure 15: Personal finance attitudes (select), 18-54s vs over-55s, November 2020
- Non-Chinese Asian Canadians less financially secure
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- Figure 16: Personal finances attitudes & behaviours (select), non-Chinese Asian Canadians vs overall, November 2020
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- Figure 17: Personal finance attitudes (select), non-Chinese Asians vs overall, November 2020
- Women under more COVID-19-related financial pressure
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- Figure 18: Personal finances attitudes & behaviours (select), men vs women, November 2020
- How can the financial industry connect better with women?
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- Figure 19: SoFi Women in Leadership YouTube screenshot, March 2020
- Figure 20: BMO | Jane’s Story, March 2020
Impact of COVID-19
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- Half have been negatively impacted financially by COVID-19
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- Figure 21: Impact of COVID-19 on finances, November 2020
- Impact is inversely related to age
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- Figure 22: Impact of COVID-19 on finances (% agree), by age, November 2020
- Financial and mental health concerns combine to hit financially weaker Canadians
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- Figure 23: “The COVID-19 pandemic has negatively impacted my finances” (% agree), by current financial situation, November 2020
- Most Canadians are worried about the future: but is the widespread pessimism justified?
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- Figure 24: General attitudes related to economic future, November 2020
Financial Priorities
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- Saving is the top overall priority
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- Figure 25: Financial priorities, November 2020
- Paying for day-to-day living expenses is the top short-term priority
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- Figure 26: Short-term vs long-term financial priority, November 2020
- Age/lifestage determine strength of priorities
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- Figure 27: Financial priorities, by age, November 2020
- Half of parents of under-18s list saving for children’s education as a priority
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- Figure 28: Desjardins Facebook ad, September 2020
- A fifth of over-65s are keen on giving to charities
- Women have a few differing priorities
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- Figure 29: Financial priorities (select), men vs women, November 2020
- Investing is a higher priority for Chinese Canadians
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- Figure 30: Financial priorities (select), differences by ethnicity, November 2020
- How can the financial industry help Canadians manage money better?
Consumer Confidence and Financial Literacy
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- Half of Canadians feel their finances are in good shape
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- Figure 31: Attitudes related to consumer confidence, November 2020
- Over-55s are most confident about their finances
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- Figure 32: Attitudes related to consumer confidence, 18-54s vs over-55s, November 2020
- Women are more worried
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- Figure 33: Attitudes related to consumer confidence (select), men vs women, November 2020
- More than half spend time researching best ways to save/invest
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- Figure 34: Attitudes related to financial knowledge, November 2020
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- Figure 35: Moka Facebook post, December 2020
- Young men are most engaged and confident …
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- Figure 36: Select attitudes related to financial knowledge (% agree), by age and gender, November 2020
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- Figure 37: Manulife investments mobile advertisement, May 2018
- … while those with HHI >$150,000/year are also in a distinct tier of financial confidence
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- Figure 38: Select attitudes related to financial knowledge (% agree), HHI $150,000/year or more vs overall, November 2020
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- Figure 39: Scotia direct online advertisement, October 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Mintel Trend Drivers
- Abbreviations and terms
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