Table of Contents
Introduction
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- Methodology
- Abbreviations
- Regional classifications
- Excluded
Executive Summary
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- The market
- Overall negative impact of lower oil prices on the Canadian economy
- Outlook on the real estate and housing market
- Household debt in Canada
- Population count and growth in Canada
- Companies and innovations
- The consumer
- Around three in five Canadians have outstanding debt
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- Figure 1: Ownership of debt products, April 2015
- More than a third of those with debt owe more than $100,000
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- Figure 2: Amount of outstanding debt held, April 2015
- Majority of Canadians expect to be debt-free and not overly dependent on government old age security at retirement
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- Figure 3: Attitudes related to personal finances, April 2015
- British Columbians feel most vulnerable to interest rate hikes
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- Figure 4: Attitudes related to debt, April 2015
- What we think
Issues and Insights
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- Are Canadians carrying too much debt?
- The facts
- The implications
- Impact of marketplace lenders on the consumer lending business in Canada
- The facts
- The implications
- A third of young Canadians are stressed about money and looking for help
- The facts
- The implications
- Are British Columbians more likely to be impacted by potential interest rate hikes?
- The facts
- The implications
Trend Application
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- Trend: Click and Connect
- Trend: Guiding Choice
- Trend: Totophobia
Market Factors
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- Key points
- Economic overview
- Overall negative impact of lower oil prices on the Canadian economy
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- Figure 5: Canada’s GDP, by quarter, Q4 2008-Q4 2014
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- Figure 6: Household disposable incomes and savings in Canada, by quarter, Q4 2008-Q4 2014
- Figure 7: Canada’s unemployment rate, by gender, 2008-15
- Impact of interest rates, inflation and exchange rates
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- Figure 8: Inflation rates in Canada (%), 2004-14
- Bank of Canada keeps interest rate steady at 0.75%
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- Figure 9: Canada bank rate, 2005-15
- Outlook on the real estate and housing market
- Consumer Confidence
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- Figure 10: Consumer Confidence Index, monthly, January 2008-February 2015
- 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, 2015 (projected)
- Minority groups account for less than 20% of Canada’s population
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- Figure 12: Estimated population of Canada, by ethnicity, 2011
- Canada’s population is expected to age in the coming years
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- Figure 13: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Figure 14: Projected trends in the age structure of the Canada population, 2014-19
Strengths and Weaknesses
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- Strengths
- Weaknesses
Companies and Innovations
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- Key points
- OnDeck Peer-To-Peer Lending Expands To Canada
- Borrowell set to become second member of Canadian marketplace lenders’club
- Earnest uses “merit-based” credit scoring factors
- UK – Door-to-door consumer lending
- Lending Club partners with BancAlliance, a national consortium (US) of 200 community banks
- Colombia – Credit fairs reach the masses
- Use of personal data to make lending decisions
- PayPal expands into the lending space
- Goldman Sachs entering the online lending market
- Float Money (US)
- Facebook enters the money transfer market
- Some popular apps for debt management
The Consumer – Ownership of Debt Products
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- Key points
- Around three in five Canadians have outstanding debt
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- Figure 15: Ownership of debt products, April 2015
- Debt ownership peaks among 25-44s
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- Figure 16: Ownership of debt products, by age, April 2015
- About a third have two or more products with outstanding debt
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- Figure 17: Repertoire of ownership of debt products, April 2015
The Consumer – Amount of Debt Held
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- Key points
- More than a third of those with debt owe more than $100,000
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- Figure 18: Amount of outstanding debt held, April 2015
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- Figure 19: Amount of outstanding debt held, by household income, April 2015
The Consumer – Attitudes Related to Personal Finances
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- Key points
- Summary of attitudes towards personal finances
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- Figure 20: Attitudes related to personal finances, April 2015
- Majority of Canadians expect to be debt-free and not overly dependent on government old age security at retirement
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- Figure 21: Attitudes related to retirement, April 2015
- Higher income earners more likely to label debt as “good” and “bad”
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- Figure 22: Attitudes related to spending habits, April 2015
- About half of consumers with debt have no problem meeting their debt repayments
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- Figure 23: Attitudes related to comfort with debt payments, April 2015
The Consumer – Interest in Debt Management Tools
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- Key points
- Usage of debt management tools is low
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- Figure 24: Interest in debt management tools, April 2015
- Younger Canadians more likely to be interested in debt management tools
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- Figure 25: Interest in debt management tools (have not used but would be interested in using), April 2015
The Consumer – Attitudes towards Debt
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- Key points
- Summary of attitudes towards debt
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- Figure 26: Attitudes related to debt, April 2015
- British Columbians feel most vulnerable to interest rate hikes
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- Figure 27: Attitudes related to debt levels, April 2015
- Young Canadians more likely to feel that debt causes a significant amount of stress in their life
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- Figure 28: Attitudes related to debt and stress, April 2015
- Canadians have somewhat contradictory views on holding debt
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- Figure 29: Attitudes related to risk tolerance, April 2015
The Consumer – Chinese Canadians and Debt
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- Key points
- Chinese Canadians more likely to have mortgages and less likely to have auto loans
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- Figure 30: Ownership of debt products, Chinese Canadians versus. Overall population, April 2015
- Chinese Canadians are confident about their financial future and are comfortable with their debt levels
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- Figure 31: Attitudes towards personal finances, Chinese Canadians vs. Overall population, April 2015
The Consumer – Target Groups
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- Key points
- Four target groups
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- Figure 32: Target groups, April 2015
- Stressed (29%)
- Cautious (28%)
- Credit Confident (22%)
- Vulnerable (21%)
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