In a relatively mature industry, what target markets are available for Canadian financial institutions to develop their business and find sustainable growth? This report details the strategies of the Canadian Financial leaders—domestic demographic targets; specific marketing strategies; growth through foreign acquisitions; usage of technological advances; and specific product developments. This report looks at banking services for individual customers, such as savings and checking accounts, mortgages, personal loans, debit cards, and credit cards.

Until very recently, the Canadian financial sector has been somewhat insulated. Each type of institution had a unique niche in the market, with allowances as to what type of financial products they could provide, and competition that was closely monitored by regulatory authorities. In the last few decades, however, due to regulatory evolutions, the lines demarcating established niches and barriers to foreign entry have become blurred.

Today, the chartered banks that dominate the industry have developed into “one-stop” financial providers. This has left trust companies and credit unions at the mercy of market supply and demand. Competition comes not only from domestic sources, but also from international entities, as regulatory barriers to foreign entry have become more relaxed.

Globally, financial institutions are in the midst of aggressive merger and acquisition activity, resulting in growing corporations with ever-increasing market shares. Meanwhile, Canadian banks face regulatory barriers to such strategies domestically. In the face of such strong competition outside of Canada’s borders, Canadian financial institutions need to, and are developing, growth strategies that include both foreign and domestic components.