Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer survey data
- Abbreviations and terms
- Terms
- Companies mentioned in this report
Executive Summary
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- Industry overview
- The Consumer – where they bank and why
- How they bank
- Innovations and innovators
- Marketing channels
- Marketing strategies
- Custom consumer groups: Asians
Insights and Opportunities
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- Key points
- Credit unions need to attract younger members: social media can help
- Asians are grossly under-represented in credit unions
- Customers need smartphones for mobile banking to take off
Inspire Insights
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- Inspire Trend: “Extend My Brand”
Market Size
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- Key points
- Total Canadian bank and credit union assets total C$3.3 trillion
- Types of banks and bank regulation in Canada
- Credit unions and caisses populaires
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- Figure 1: Canadian bank and credit union assets, 2010
Competitive Context
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- Key points
- Big Five banks control 80% of Canadian market
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- Figure 2: Market shares of top Canadian banks, by assets, 2010
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- Figure 3: Market shares of top Canadian credit card issuers, by receivables, 2010
- Strict regulation keeps banks safe, but restricts competition
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- Figure 4: Big Five Canadian Banks, assets, 2009-10
- Desjardins has big market share in Quebec
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- Figure 5: Top five credit unions outside Quebec, by asset size, Q4 2009 and Q4 2010
Segment Performance
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- Key points
- Net income jumps 44% at Big Five banks in 2010
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- Figure 6: Net income at Big Five Canadian banks, 2009-10
- Figure 7: Net income at other large financial institutions, 2009-10
- Bank of Canada: Bank capital positions strengthen
- Canadian banks continue to rank as world’s safest
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- Figure 8: World’s safest banking systems, 2010
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- Figure 9: Global Finance ranking of the world’s 50 safest banks, September 2010
- Figure 10: Safest banks in North America, September 2010
- Canadian banks look abroad to invest
Marketing Channels
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- Key points
- Credit unions use social media campaign to attract Gen Y members
- Differentiating credit unions from banks
Market Drivers
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- Key points
- The Canadian economy is stable, but rising consumer debt is a concern
- Solid and steady, if not spectacular
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- Figure 11: Quarterly GDP growth rate, Canada versus U.S., Q2 2007-Q4 2011
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- Figure 12: Unemployment rate, Canada versus U.S., Jan. 2008-April 2011
- Canadian consumer debt levels grow to historic proportions
- Canadian household debt-to-income ratio tops the U.S.
Leading Companies
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- Key points
- Royal Bank of Canada
- TD Bank (Toronto-Dominion)
- Bank of Nova Scotia (Scotiabank)
- Bank of Montreal (BMO)
- CIBC (Canadian Imperial Bank of Commerce)
- Desjardins Group (Fédération des Caisses Desjardins du Québec)
- National Bank Financial Group
- President’s Choice Financial (PC)
- Canadian Tire Financial Services
- HSBC Bank Canada
- ICICI Bank Canada
- MBNA Canada Bank
- Vancouver City Savings Credit Union (Vancity)
- Servus Credit Union
- Coast Capital Savings
- Meridian Credit Union
- First West Credit Union
Innovations and Innovators
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- Key points
- Walmart enters Canadian banking market with rewards credit card
- TD Canada Trust rolls out Sunday banking across Canada
- M&T Bank is latest U.S. bank to test Canadian waters
- B.C. credit union launches financial literacy program for kids
- Mobile phone app lets consumers create virtual wallets
- Scotiabank adds eighth language to StartRight website for newcomers
- BMO hosts “speed mentoring” event to help immigrants find jobs
Marketing Strategies
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- Key points
- Overview
- Representative direct mail advertising
- No Fee Bank Account from President's Choice Financial
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- Figure 13: President’s Choice financial direct mail ad, October 2010
- Tax Free High Interest Savings Account from Canadian Tire
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- Figure 14: Canadian Tire direct mail ad, December 2010
- Banking Package from RBC
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- Figure 15: Direct mail ad, December 2010
- Mobile Banking from Scotiabank
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- Figure 16: Scotiabank direct mail ad, October 2010
- MoneyLogic from Bank of Montreal
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- Figure 17: Bank of Montreal direct mail ad, January 2011
- Easy Web Internet Banking from TD Bank Financial Group
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- Figure 18: TD Bank direct mail ad, October 2010
- Unlimited Chequing Account from CIBC
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- Figure 19: CIBC direct mail ad, January 2011
- Statement Mailing from Steinbach Credit Union
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- Figure 20: Steinbach Credit Union direct mail ad, January 2011
- High-Interest Savings Account from Ally Bank
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- Figure 21: Ally Bank direct mail ad, December 2010
- HSBC Premier from HSBC
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- Figure 22: HSBC direct mail ad, September 2010
- Statement Mailing from Servus Credit Union
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- Figure 23: Servus Credit Union direct mail ad, September 2010
- Statement Mailing from NorthShore Credit Union
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- Figure 24: Northshore direct mail ad, August 2010
- TV advertising
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- Figure 25: TD Bank South Asians, 2010
- Figure 26: TD Canada Trust, 2010
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- Figure 27: Scotiabank Asian mortgage customers, 2010
- Figure 28: BMO Launches MoneyLogic, 2010
Where Canadian Consumers Bank and Why
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- Key points
- More than two thirds bank at big national banks, 19% at credit unions
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- Figure 29: Type of institution for primary banking relationship, by gender, December 2010
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- Figure 30: Type of institution for primary banking relationship, by age, December 2010
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- Figure 31: Type of institution for primary banking relationship, by household income, December 2010
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- Figure 32: Type of institution for primary banking relationship, by census region, December 2010
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- Figure 33: Type of institution for primary banking relationship, by survey language, December 2010
- Influence on choice of primary bank: Location, location, location
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- Figure 34: Primary influence on bank choice, by gender, December 2010
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- Figure 35: Primary influence on bank choice, by age, December 2010
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- Figure 36: Primary influence on bank choice, by household income, December 2010
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- Figure 37: Primary influence on bank choice, by survey language, December 2010
- Most respondents bank at just one institution
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- Figure 38: Number of banking relationships, by gender, December 2010
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- Figure 39: Number of banking relationships, by age, December 2010
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- Figure 40: Number of banking relationships, by household income, December 2010
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- Figure 41: Number of banking relationships, by census region, December 2010
Attitudes Concerning Banking Products and Services
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- Security is most important service banks and credit unions offer
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- Figure 42: Banking service rated “very important,” by gender, December 2010
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- Figure 43: Mean of importance rating for banking services, by gender, December 2010
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- Figure 44: Banking service rated “very important,” by age, December 2010
- Figure 45: Mean of rating for importance of banking services, by age, December 2010
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- Figure 46: Banking service rated “very important,” by census region, December 2010
- Figure 47: Mean of rating for importance of banking services, by census region, December 2010
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- Figure 48: Banking service rated “very important,” by survey language, December 2010
- Figure 49: Mean of rating for importance of banking services, by survey language, December 2010
- Checking accounts are most popular products at primary bank
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- Figure 50: Types of products at primary bank/credit union, by gender, December 2010
- Figure 51: Types of products at primary bank/credit union, by age, December 2010
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- Figure 52: Types of products at primary bank/credit union, by household income, December 2010
- Figure 53: Types of products at primary bank/credit union, by census region, December 2010
- Credit cards are most popular product to have at another bank
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- Figure 54: Banking products at institution other than primary bank, by gender, December 2010
- Figure 55: Banking products at institution other than primary bank, by age, December 2010
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- Figure 56: Banking products at institution other than primary bank, by household income, December 2010
- Figure 57: Banking products at institution other than primary bank, by census region, December 2010
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- Figure 58: Banking products at institution other than primary bank, by survey language, December 2010
Switching Behavior
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- Eight of 10 Canadians have not switched banks in the past five years
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- Figure 59: Number of times switched banks in past five years, by gender, December 2010
- Figure 60: Number of times switched banks in past five years, by age, December 2010
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- Figure 61: Number of times switched banks in past five years, by household income, December 2010
- Lower fees, higher savings rates are most likely reasons to switch banks
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- Figure 62: Reason to potentially switch banks, by gender, December 2010
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- Figure 63: Reason to potentially switch banks, by age, December 2010
- Figure 64: Reason to potentially switch banks, by census region, December 2010
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- Figure 65: Reason to potentially switch banks, by survey language, December 2010
The Consumer and Banking Channels
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- Key points
- Online is most popular banking method by a wide margin
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- Figure 66: Primary method of banking, by gender, December 2010
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- Figure 67: Primary method of banking, by age, December 2010
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- Figure 68: Primary method of banking, by household income, December 2010
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- Figure 69: Primary method of banking, by census region, December 2010
- One in five Canadians—and 25% of men—has a smartphone
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- Figure 70: Attitudes about mobile banking activities, by gender, December 2010
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- Figure 71: Attitudes about mobile banking activities, by age, December 2010
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- Figure 72: Attitudes about mobile banking activities, by household income, December 2010
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- Figure 73: Attitudes about mobile banking activities, by survey language, December 2010
Credit and debit card usage
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- Key points
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- Figure 74: Attitudes about debit and credit card usage, by gender, December 2010
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- Figure 75: Attitudes about debit and credit card usage, by age, December 2010
- Figure 76: Attitudes about debit and credit card usage, by household income, December 2010
Custom Consumer Groups—Asians
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- Key points
- Asians are a highly attractive—and growing—consumer group
- Asians love big national banks, shun credit unions
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- Figure 77: Type of institution for primary banking relationship, white vs. Asian, December 2010
- Asians are more picky when choosing a bank
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- Figure 78: Primary influence on bank choice, by race/ethnicity, December 2010
- Asians more likely to bank online than other Canadians
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- Figure 79: Primary method of banking, by race/ethnicity, December 2010
- Asians have more products at their primary bank than other Canadians do
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- Figure 80: Types of products at primary bank/credit union, by race/ethnicity, December 2010
- Asians have more accounts at their other banks, too
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- Figure 81: Banking products at other than primary bank, by race/ethnicity, December 2010
- Majority of Asians have accounts with more than one bank
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- Figure 82: Number of banking relationships, by race/ethnicity, December 2010
- Asians have switched banks more often...
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- Figure 83: Number of times switched banks in past five years, by race/ethnicity, December 2010
- … and have more reasons to want to switch again
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- Figure 84: Reason to potentially switch banks, by race/ethnicity, December 2010
- More Asians have smartphones, and more interested in mobile banking
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- Figure 85: Attitudes about mobile banking activities, by race/ethnicity, December 2010
- Attitudes about debit and credit cards
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- Figure 86: Attitudes about debit and credit card usage, December 2010
- Asians less worried about security, but want more branch hours
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- Figure 87: importance of banking services, by race/ethnicity, December 2010
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- Figure 88: ranked importance of banking services, by race/ethnicity, December 2010
Cluster Analysis
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- Onliners
- Characteristics
- Demographics
- Conveniently Large
- Characteristics
- Demographics
- Friends and Family Fans
- Characteristics
- Demographics
- Characteristic tables
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- Figure 89: Canadian banking and credit union clusters, December 2010
- Figure 90: Primary banking relationship, Canadian banking and credit union clusters, December 2010
- Figure 91: Primary influence on choice of bank, Canadian banking and credit union clusters, December 2010
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- Figure 92: Number of banking relationships, Canadian banking and credit union clusters, December 2010
- Figure 93: Importance of banking services, Canadian banking and credit union clusters, December 2010
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- Figure 94: Frequency of switching banks, Canadian banking and credit union clusters, December 2010
- Figure 95: Primary banking method, Canadian banking and credit union clusters, December 2010
- Demographic tables
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- Figure 96: Canadian banking and credit union clusters, by gender, December 2010
- Figure 97: Canadian banking and credit union clusters, by age, December 2010
- Figure 98: Canadian banking and credit union clusters, by household income, December 2010
- Figure 99: Canadian banking and credit union clusters, by race, December 2010
- Figure 100: Canadian banking and credit union clusters, by language, December 2010
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- Figure 101: Canadian banking and credit union clusters by employment, December 2010
- Cluster methodology
Appendix—Trade Associations
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