Table of Contents
Executive Summary
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- Market factors
- Overall negative impact of lower oil prices on the Canadian economy
- Impact of interest rates, inflation and exchange rates
- Outlook on the real estate and housing market
- British Columbians have the highest net worth
- Household debt in Canada
- Population count and growth in Canada
- Companies, brands and innovation
- The consumer
- Most Canadians have at least one debt product
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- Figure 1: Ownership of lending products, January 2015
- TD^ and RBC are the market leaders for consumer lending products
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- Figure 2: Choice of financial institution for lending products, January 2015
- Having a prior banking relationship emerges as the most significant overall choice factor
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- Figure 3: Reasons for selecting the financial institution for lending products, January 2015
- Satisfaction of factors by FI: CIBC and Tangerine lead in satisfaction scores
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- Figure 4: Satisfaction with factors when applying for lending products, January 2015
- Young females are the most debt burdened
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- Figure 5: Attitudes towards borrowing, January 2015
- What we think
Issues in the Market
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- Establishing positive banking relationships with debt burdened groups
- The facts
- The implications
- Mortgage owners and their intention to switch financial institutions
- The facts
- The implications
- Marketing additional lending products to existing customers
- The facts
- The implications
- Can specialized credit card companies successfully expand into the larger consumer lending market in the coming years?
- The facts
- The implications
Trend Application
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- Trend: Help Me Help Myself
- Trend: Life Hacking
- Trend: FSTR HYPER
Market Drivers
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- Key points
- Economic overview
- Overall negative impact of lower oil prices on the Canadian economy
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- Figure 6: Canada’s GDP, by quarter, Q1 2008-Q1 2014
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- Figure 7: Household disposable incomes and savings in Canada, by quarter, Q1 2008-Q1 2014
- Figure 8: Canada’s unemployment rate, by gender, 2008-14
- Impact of Interest rates, inflation and exchange rates
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- Figure 9: Inflation rates in Canada, 2004-14
- Outlook on the real estate and housing market
- British Columbians have the highest net worth
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- Figure 10: Canada median net worth, by province, 2012
- Household debt in Canada
- Demographic overview
- Population count and growth in Canada
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- Figure 11: Share of population of Canada, by territory/province, 2014
- Canada’s population is expected to age in the coming years
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- Figure 12: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Figure 13: Projected trends in the age structure of the Canada population, 2014-19
Who’s Innovating?
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- Key themes
- Quantum credit cards “impossible” to hack
- Marketplace lending or person-to-person lending
- Float Money (US)
Companies and Products
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- TD Financial Group
- Overview and company information
- Recent activity
- RBC
- Overview and company information
- Recent activity
- Scotiabank
- Overview and company information
- Recent activity
- American Express
- Overview and company information
- Recent activity
- Meridian Credit Union
- Company overview
- Recent activity
- Capital One
- Overview and company information
- Recent activity
Brand Communication and Promotion
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- Key points
- Citibank is the most active direct mailer
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- Figure 14: Direct acquisition mail volume related to lending, January 2014-January 2015
- RBC unveils 'movie trailers' aimed at new home buyers
- RRSP Loan from Tangerine
- RBC’s Year of the Goat Visa Gift Card
- Personal Loan from Citibank
- TD’s Unsecured Line of Credit Offer
The Consumer – Ownership of Lending Products
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- Key points
- Most Canadians have at least one debt product
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- Figure 15: Ownership of lending products, January 2015
- Around a quarter of seniors have a mortgage product
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- Figure 16: Ownership of lending products, by age, January 2015
- 45-54s have the highest incidence of owning four or more products
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- Figure 17: Repertoire analysis of ownership of lending products, January 2015
The Consumer – Choice of FI for Lending Products
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- Key points
- TD^ and RBC are the market leaders for consumer lending products
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- Figure 18: Choice of financial institution for lending products, January 2015
The Consumer – Choice Factors for Selecting FI
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- Key points
- Having a prior banking relationship emerges as the most significant overall choice factor
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- Figure 19: Reasons for selecting the financial institution for lending products, January 2015
- Reward and loyalty programs are key in credit card decisions
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- Figure 20: Reasons for selecting the financial institution for credit cards, January 2015
- Consumers choosing mortgage provider based on previous experience
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- Figure 21: Reasons for selecting the financial institution for mortgages, January 2015
- Loan choice factor varies by product type
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- Figure 22: Reasons for selecting the financial institution for loans, January 2015
- Prior banking relationship is the leading choice factor when selecting line of credit
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- Figure 23: Reasons for selecting the financial institution for line of credit, January 2015
The Consumer – Satisfaction with Factors
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- Key points
- Older debt product holders are significantly more satisfied with the application process
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- Figure 24: Satisfaction with factors when applying for lending products, January 2015
- Satisfaction of factors by FI: CIBC and Tangerine lead in satisfaction scores
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- Figure 25: Satisfaction rank by factor, January 2015
The Consumer – Switching Lenders
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- Key points
- Mortgage holders most likely to want to switch lenders
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- Figure 26: Switching intention by product, January 2015
- Interest rates are the main reason for switching lenders
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- Figure 27: Reasons for switching lenders, January 2015
The Consumer – Attitudes towards Borrowing
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- Key points
- Summary of attitudes towards debt and borrowing
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- Figure 28: Attitudes towards borrowing, January 2015
- Young males more likely to use a debt counselling agency
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- Figure 29: Attitudes regarding debt burden and its impact on lifestyle, January 2015
- Almost half of 25-44s are interested in consolidated borrowing options
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- Figure 30: Attitudes around comfort with debt levels, January 2015
- Young males and non-Caucasian Canadians more positive on balance transfer offers
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- Figure 31: Attitudes regarding awareness of debt usage, January 2015
- Young females are the most debt burdened
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- Figure 32: Difficulty with debt (% agree), by gender 18-34, January 2015
The Consumer – Chinese Canadians and Consumer Lending
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- Key points
- Chinese Canadians under-index on ownership of lines of credit and loans
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- Figure 33: Ownership of lending products, Chinese Canadians vs overall population, January 2015
- TD is the most popular choice among Chinese Canadians for lending products
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- Figure 34: Choice of financial institution for lending products, Chinese Canadians vs overall population, January 2015
- Half of Chinese Canadians interested in a consolidated borrowing option
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- Figure 35: Select attitudes towards borrowing, Chinese Canadians vs overall population, January 2015
The Consumer – Target Groups
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- Key points
- Three target groups
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- Figure 36: Target Groups, January 2015
- Debt Minimalists (34%)
- Savvy Borrowers (36%)
- Debt Burdened (30%)
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