Table of Contents
Executive Summary
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- The issues
- Consumer confidence is middling at best
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- Figure 1: Consumer confidence and opinions about the economy (% agreement), June 2016
- Real estate and housing market values are not national concerns
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- Figure 2: Opinions about real estate and housing, June 2016
- A quarter of Canadians are living from pay cheque to pay cheque
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- Figure 3: Agreement with statements on savings and spending, June 2016
- Saving for retirement is the top long term priority; vacation, credit card debt and emergency funds are the top three short-term priorities
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- Figure 4: Financial priorities, June 2016
- Women are more motivated to look for ways to save money
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- Figure 5: Agreement with statements on saving money, June 2016
- The opportunities
- How can the financial services industry respond to the squeeze faced by consumers?
- Helping Canadians plan for retirement
- Opportunity for financial advisors and the financial industry to make the topic of investments more appealing to women
- What it means
The Market – What You Need to Know
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- Canada’s population is expected to age in the coming years
- The population is growing and becoming more ethnically diverse
- Canadian real estate prices to see largest annual increase this century, according to a Royal LePage forecast
- Canada’s inflation rate moved up to 1.7% in April
- Canada’s economy disappoints; risk of contraction in the second quarter
Market Factors
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- Canada’s population is expected to age in the coming years
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- Figure 6: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Figure 7: Projected trends in the age structure of the Canada population, 2014-19
- The population is growing and becoming ethnically diverse
- Women outnumber men in Canada
- Women’s representation and participation in the labour force
- Part-time work
- Wage gap declines but women still earn less than men
- New financial literacy initiatives rolling out across Canada
- Canadian real estate prices to see largest annual increase this century, according to a Royal LePage forecast
- Canada’s economy disappoints; risk of contraction in the second quarter
- Canada’s inflation rate moves up to 1.7% in April
Key Players – What You Need to Know
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- BMO launches service allowing people to open accounts through smartphones
- Meridian introduces Sweep: A feature that ‘sweeps’ money daily
- PayPal launches peer-to-peer payments in Canada
- Canadian Tire introduces mPay
- Scotiabank gives Apple Pay users 10% cashback
Innovations
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- BMO launches service allowing people to open accounts through smartphones
- With $1 million in funding, Toronto-based Drop hopes to dominate North America’s loyalty market
- MasterCard Canada planning to roll out ‘selfie pay’ in Canada
- PayPal launches peer-to-peer payments in Canada
- Digital banking upheaval the focus of Ivey’s new lab
- Meridian introduces Sweep: A feature that ‘sweeps’ money daily
- Tangerine and Ryerson University partner to open FinTech incubator
- HSBC’s new PFM (Personal Financial Management) tool, Nudge and other PFM tools
- Scotiabank branches out with two new branch formats, Express and Solutions
Marketing Campaigns
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- Apple Pay arrives in Canada
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- Figure 8: TD bank Apple Pay online advertisement, July 2016
- Scotiabank targets new immigrants
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- Figure 9: Scotiabank’s StartRight program advertisement, July 2016
- Scotiabank gives Apple Pay users 10% cashback
- RBC’s High Interest Savings Promotion
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- Figure 10: RBC High interest savings promotion email advertisement, July 2016
- Canadian Tire introduces mPay
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- Figure 11: Canadian tire new mobile app print advertisement, November 2015
- CIBC launches its new smart account
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- Figure 12: CIBC direct mail advertisement for CIBC smart account, April 2016
The Consumer – What You Need to Know
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- Consumer confidence is middling at best
- Real estate and housing market values are not national concerns
- A quarter of Canadians are living from pay cheque to pay cheque
- Saving for retirement is the top long-term priority; vacation, credit card debt and emergency funds are the top three short-term priorities
- Women are more motivated to look for ways to save money
- One in five Canadians have shopped with their mobile phone
Consumer Confidence and Opinions About the Economy
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- Consumer confidence is middling at best
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- Figure 13: Consumer confidence and opinions about the economy (% agreement), June 2016
- Women are more pessimistic than men
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- Figure 14: Significant differences in consumer confidence (% agreement), by gender, June 2016
- Albertans are more optimistic about the local economy, while Quebecers are less so
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- Figure 15: Agreement with statement on economic conditions, Quebec vs Alberta, June 2016
- …while Chinese Canadians appear more optimistic
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- Figure 16: Select consumer confidence statements (% agreement), Chinese Canadians vs overall population, June 2016
- Inflation is a concern for many older Canadians
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- Figure 17: Opinions about inflation (% agreement), June 2016
Real Estate Prices and Housing Affordability
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- Real estate and housing market values are not national concerns
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- Figure 18: Opinions about real estate and housing, June 2016
- Young Canadians are most concerned about housing affordability
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- Figure 19: Agreement with statement on housing affordability, by age, June 2016
Personal Finances
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- A quarter of Canadians are living from pay cheque to pay cheque
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- Figure 20: Agreement with statements on savings and spending, June 2016
- On the positive front, a third of young Canadians have at least $1,000 saved for emergencies
- Young women are most stressed about their finances
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- Figure 21: Agreement with statements on personal finances, June 2016
- But among older women, this worry may be due to a lack of confidence
- Younger Canadians more likely to believe their generation is financially worse off
- Older Canadians are more likely to manage their finances carefully
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- Figure 22: Agreement with statements on managing finances, June 2016
Retirement and Inflation
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- Middle aged Canadians are worried about retirement
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- Figure 23: Agreement with statements on financial worry factors, June 2016
- Women are reacting to inflation through stricter expense control
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- Figure 24: Personal finances, by gender, June 2016
Financial Priorities
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- Saving for retirement is the top long term priority
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- Figure 25: Long term priorities (beyond a year), June 2016
- Buying a home is the top priority for young women
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- Figure 26: Top long-term priority (Rank #1), by age and gender, June 2016
- Vacation, credit card debt and emergency funds are the top three short-term priorities
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- Figure 27: Short term priorities (within a year), June 2016
- Paying credit card debt is the top short-term priority for men
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- Figure 28: Top short-term priority (Rank #1), by age and gender, June 2016
- Women place a higher priority on saving for a vacation and emergency fund
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- Figure 29: Significant differences by gender, short and long-term priorities, June 2016
- Buying investments is a much higher priority for Chinese Canadians
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- Figure 30: Significant differences in short and long-term priorities, Chinese Canadians vs overall population, June 2016
Spending Behaviour
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- Women are more motivated to look for ways to save money
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- Figure 31: Agreement with statements on saving money, June 2016
- Older Canadians and women more likely to use loyalty cards
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- Figure 32: Agreement with statements on loyalty rewards cards, June 2016
Shopping Habits
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- One in five Canadians have shopped with their mobile phone
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- Figure 33: Agreement with statements on shopping behaviour, June 2016
- Older consumers more likely to stick to familiar brands but less likely to travel far for discounts
- For one in five women, shopping is a stress reliever
- Buying on credit: Difference between reality and self-perception
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- Figure 34: Agreement with statements on credit, June 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
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