Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Canadian Mass Affluents - December 2011

Canada may be a small country in terms of population, but a relatively high percentage of them are quite affluent. About one-third of Canadian households earn C$100K+, and 22% earn C$150K+. An outsize percentage of the most affluent are new immigrants, mainly from Asia, who are driving population growth.

This study is a comprehensive update of the Canadian mass affluent market and the way in which financial services organisations seek to cater for this market segment. The definition of “mass affluent” is a fluid one, but for the purposes of this report, Mintel has concentrated on Canadians with at least $100,000 in investible assets. It covers the competitive landscape, consumer behaviors and attitudes, the regulatory and legislative environment, profitability and growth drivers, and current marketing strategies.

What you need to know:

  • What is the size of the mass affluent market in Canada?
  • What is driving the growth in mass affluents in Canada?
  • What is the competitive landscape and regulatory environment in the financial services industry?
  • What internal and external factors will have an impact on the Canadian economy over the next few years?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Scope and Themes

      • What you need to know
        • Data sources
          • Consumer survey data
            • Abbreviations and terms
              • Abbreviations
                • Companies mentioned in this report
                • Executive Summary

                  • Industry overview
                    • The consumer: financial and investment decision-making
                      • Credit cards, mobile phones, and payment behavior
                        • Bank communications and financial information
                          • Marketing strategies and channels
                            • Who are the innovators?
                            • Insights and Opportunities

                              • Key points
                                • Canada’s highest earners could use some debt management advice
                                  • Many Canadians don’t have a financial plan, but might need one
                                    • Alerts service may pave the way for mobile payments
                                    • Inspire Insights

                                        • Trend: Edutainment
                                          • What we've seen
                                            • Industry application
                                              • Trend: Guiding Choice
                                                • What we've seen
                                                  • Industry application
                                                  • Market Size

                                                    • Key points
                                                      • One third of Canadian families earn $100K+
                                                          • Figure 1: Canadian families, by income range, 2005-09
                                                        • Ottawa has highest median incomes
                                                            • Figure 2: Median total income of census families by family type and metro area, 2009
                                                          • Population of Canada is 34.5 million and growing
                                                            • Figure 3: Population of Canada by province, 2007-11
                                                        • Competitive Context

                                                          • Key points
                                                            • The Big Five control more than 80% of the Canadian banking market
                                                              • Figure 4: Market shares of Big Five Canadian banks, by assets, July 31, 2011
                                                              • Figure 5: Net income at Big Five Canadian banks, first three quarters of 2011
                                                            • Three big companies dominate life insurance market
                                                              • Figure 6: Large Canadian life insurers, assets and market shares, Q2 2010 vs. Q2 2011
                                                              • Figure 7: Net income at big Canadian life insurers, first half 2011
                                                            • Financial regulation in Canada constrains competition
                                                            • Economic Context

                                                              • Key points
                                                                • Canadian economic growth forecast for 2011-12 scaled back
                                                                  • IMF sounds warning on Canadian household debt
                                                                    • Home prices have outpaced household incomes by a wide margin
                                                                        • Figure 8: Canadian home prices, June 2005-August 2011
                                                                    • Marketing Channels

                                                                      • Key points
                                                                        • Canadian financial planners can benefit from social media
                                                                          • Calgary firm uses online community to vote on funding projects
                                                                          • Market Drivers

                                                                            • Key points
                                                                              • Entrepreneurship drives wealth
                                                                                • Business equity is largest asset held by wealthiest Canadians.
                                                                                  • Canada’s population growth is being driven by affluent immigrants
                                                                                    • More than one in four expected to be foreign born by 2031
                                                                                      • Immigration to Canada is “sticky”— nearly 80% become citizens
                                                                                        • More than one third of immigrants come from three Asian countries
                                                                                          • Figure 9: Canada: Permanent residents by source country, 2005-10
                                                                                      • Leading Companies

                                                                                        • Key points
                                                                                          • Retail banks
                                                                                            • Royal Bank of Canada
                                                                                              • TD Bank (Toronto-Dominion)
                                                                                                • Bank of Nova Scotia (Scotiabank)
                                                                                                  • Bank of Montreal (BMO)
                                                                                                    • CIBC (Canadian Imperial Bank of Commerce)
                                                                                                      • National Bank Financial Group
                                                                                                        • Desjardins Group (Fédération des Caisses Desjardins du Québec)
                                                                                                          • President’s Choice Financial (PC)
                                                                                                            • Canadian Tire Financial Services
                                                                                                              • HSBC Bank Canada
                                                                                                                • Card issuers
                                                                                                                  • Capital One Bank Canada
                                                                                                                    • American Express
                                                                                                                      • Insurance companies
                                                                                                                        • Manulife Financial
                                                                                                                          • Sun Life Financial
                                                                                                                            • Great-West Lifeco
                                                                                                                              • Intact Insurance
                                                                                                                              • Innovation and Innovators

                                                                                                                                • Key points
                                                                                                                                  • BMO rolls out 'Tap and Go' payment solution for mobile phones
                                                                                                                                    • Manulife offers three-in-one insurance product
                                                                                                                                      • CIBC is first to offer mobile stock trading application
                                                                                                                                        • TD launches no-fee auto rewards credit card
                                                                                                                                          • Capital One adds two new cash-back Aspire cards
                                                                                                                                            • National Bank of Canada initiates Quebec stock index
                                                                                                                                              • Canadian Tire teams with GaggleUp to offer savings, boost rewards
                                                                                                                                                • RBC announces collaboration with Travelocity
                                                                                                                                                  • National Bank Securities launches new portfolios aimed at recent retirees
                                                                                                                                                    • BMO introduces home ownership app for iPhone and Android devices
                                                                                                                                                      • BMO MoneyLogic lets customers track and manage spending and saving
                                                                                                                                                        • RBC Wealth Management launches major global branding campaign
                                                                                                                                                          • CIBC Wealth Builder Option for mortgages helps grow investments
                                                                                                                                                          • Marketing Strategies

                                                                                                                                                            • Key points
                                                                                                                                                              • Overview
                                                                                                                                                                • Representative direct mail advertising
                                                                                                                                                                  • Mutual Fund from President's Choice Financial
                                                                                                                                                                    • Figure 10: President’s Choice direct mail ad, August 2011
                                                                                                                                                                  • Term Life Insurance from Manulife
                                                                                                                                                                    • Figure 11: Manulife direct mail ad, September 2011
                                                                                                                                                                  • Marriott Rewards Platinum Visa Card from Chase
                                                                                                                                                                    • Figure 12: Chase Visa direct mail ad, August 2011
                                                                                                                                                                  • Starwood Preferred Guest Credit Card from American Express
                                                                                                                                                                    • Figure 13: Starwood Preferred Guest American Express direct mail ad, August 2011
                                                                                                                                                                  • Equity Power Mortgage from HSBC
                                                                                                                                                                    • Figure 14: HSBC Premier direct mail ad, August 2011
                                                                                                                                                                  • Home Equity Loans from HSBC Finance Mortgages Inc.
                                                                                                                                                                    • Figure 15: HSBC Finance direct mail ad, August 2011
                                                                                                                                                                  • The Search for Yield Seminar from TD Bank Financial Group
                                                                                                                                                                    • Figure 16: TD Bank direct mail ad, May 2011
                                                                                                                                                                  • Insurance Quote from RBC
                                                                                                                                                                    • Figure 17: RBC direct mail ad, August 2011
                                                                                                                                                                  • Home and Car Insurance from RBC
                                                                                                                                                                    • Figure 18: RBC Insurance direct mail ad, August 2011
                                                                                                                                                                  • Tax-Free Investment Savings Account from ING
                                                                                                                                                                    • Figure 19: ING Direct direct mail ad, January 2011
                                                                                                                                                                • The Consumer—Who Makes Financial Decisions?

                                                                                                                                                                  • Key points
                                                                                                                                                                    • Just 5% rely on financial advisors
                                                                                                                                                                        • Figure 20: Primary investment decision maker, by gender, September 2011
                                                                                                                                                                      • Youngest respondents most likely to go it alone
                                                                                                                                                                        • Figure 21: Primary investment decision maker, by age, September 2011
                                                                                                                                                                      • Little differences among income groups
                                                                                                                                                                        • Figure 22: Primary investment decision maker by household income, September 2011
                                                                                                                                                                    • Who Pays the Bills in the Household?

                                                                                                                                                                      • Key points
                                                                                                                                                                        • Paying bills is a one-(wo)man job
                                                                                                                                                                          • Figure 23: Person primarily responsible for everyday financial tasks, by gender, September 2011
                                                                                                                                                                          • Figure 24: Person primarily responsible for everyday financial tasks, by age, September 2011
                                                                                                                                                                          • Figure 25: Person primarily responsible for everyday financial tasks by household income, September 2011
                                                                                                                                                                        • Nine out of 10 pay bills online, mostly at bank’s website
                                                                                                                                                                          • Figure 26: Method for paying bills, by gender, September 2011
                                                                                                                                                                        • Nearly 80% of the oldest group pay bills online
                                                                                                                                                                          • Figure 27: Method for paying bills, by age, September 2011
                                                                                                                                                                        • Highest earners more likely to pay bills online
                                                                                                                                                                          • Figure 28: Method for paying bills, by household income, September 2011
                                                                                                                                                                      • Most are Confident about Saving for Retirement

                                                                                                                                                                        • Key points
                                                                                                                                                                          • Two thirds of the affluent are on track for funding retirement
                                                                                                                                                                            • Figure 29: Attitudes about household financial situation, by gender, September 2011
                                                                                                                                                                          • Oldest respondents are most confident about retirement
                                                                                                                                                                            • Figure 30: Attitudes about household financial situation, by age, September 2011
                                                                                                                                                                          • Highest earners are most worried about their debt burdens
                                                                                                                                                                            • Figure 31: Attitudes about household financial situation, by household income, September 2011
                                                                                                                                                                          • Easterners more confident about life insurance coverage
                                                                                                                                                                            • Figure 32: Attitudes about household financial situation, by province, September 2011
                                                                                                                                                                        • Preferred Marketing Channels

                                                                                                                                                                          • Key points
                                                                                                                                                                            • Most affluent Canadians rely on professional’s advice when buying financial products
                                                                                                                                                                                • Figure 33: Attitudes about insurance and advertising by gender, September 2011
                                                                                                                                                                              • Older people more likely to rely on professionals
                                                                                                                                                                                • Figure 34: Attitudes about financial products and advertising, by age, September 2011
                                                                                                                                                                              • Highest earners tend to be do-it-yourselfers
                                                                                                                                                                                • Figure 35: Attitudes about financial products and advertising, by household income, September 2011
                                                                                                                                                                              • Responses vary by geography
                                                                                                                                                                                • Figure 36: Attitudes about financial products and advertising, by province, September 2011
                                                                                                                                                                            • Miles Trump Cashback for Credit Card Rewards

                                                                                                                                                                              • Key points
                                                                                                                                                                                • Well-off Canadians love their credit card miles
                                                                                                                                                                                  • Figure 37: Attitudes about credit cards, by gender, September 2011
                                                                                                                                                                                • Youngest group is least fond of annual fees
                                                                                                                                                                                  • Figure 38: Attitudes about credit cards, by age, September 2011
                                                                                                                                                                                • Highest earners less likely to pay credit card bills in full
                                                                                                                                                                                  • Figure 39: Attitudes about credit cards, by household income, September 2011
                                                                                                                                                                              • Most are Worried about Mobile Payment Security

                                                                                                                                                                                • Key points
                                                                                                                                                                                  • Nearly half of affluent consumers say they would not use mobile phones for payment
                                                                                                                                                                                    • Figure 40: Attitudes about mobile payments, by gender, September 2011
                                                                                                                                                                                  • Youngest group is most open to mobile payments
                                                                                                                                                                                    • Figure 41: Attitudes about mobile payments, by age, September 2011
                                                                                                                                                                                  • Highest earners more willing to go mobile
                                                                                                                                                                                    • Figure 42: Attitudes about mobile payments, by household income, September 2011
                                                                                                                                                                                • Bank Communications Could be Improved

                                                                                                                                                                                  • Key points
                                                                                                                                                                                    • Consumers want more—and better—information
                                                                                                                                                                                      • Figure 43: Attitudes about financial communications, by gender, September 2011
                                                                                                                                                                                    • Youngest group is most critical about bank communications
                                                                                                                                                                                      • Figure 44: Attitudes about financial communications, by age, September 2011
                                                                                                                                                                                    • No significant difference across regions
                                                                                                                                                                                      • Figure 45: Attitudes about financial communications, by province, September 2011
                                                                                                                                                                                  • Newspapers are Main Source of Financial Information

                                                                                                                                                                                    • Key points
                                                                                                                                                                                      • Media, financial advisors are main sources of information
                                                                                                                                                                                        • Figure 46: Information sources for financial decisions, by gender, September 2011
                                                                                                                                                                                      • Youngest group goes online for financial news
                                                                                                                                                                                        • Figure 47: Information sources for financial decisions, by age, September 2011
                                                                                                                                                                                      • Highest earners are more self-reliant when it comes to information
                                                                                                                                                                                        • Figure 48: Information sources for financial decisions, by household income, September 2011
                                                                                                                                                                                    • Appendix—Trade Associations and Agencies

                                                                                                                                                                                      Companies Covered

                                                                                                                                                                                      • Bank of America Corporation
                                                                                                                                                                                      • Bank of Montreal
                                                                                                                                                                                      • Bank of Nova Scotia
                                                                                                                                                                                      • Canada Deposit Insurance Corporation (CDIC)
                                                                                                                                                                                      • Canadian Banker’s Association (CBA)
                                                                                                                                                                                      • Canadian Imperial Bank of Commerce
                                                                                                                                                                                      • Canadian Payments Association (CPA)
                                                                                                                                                                                      • Credit Union Central of Canada
                                                                                                                                                                                      • Federal Deposit Insurance Corporation
                                                                                                                                                                                      • Hewitt Associates
                                                                                                                                                                                      • Hudson's Bay Company
                                                                                                                                                                                      • Insurance Bureau of Canada (IBC)
                                                                                                                                                                                      • Interac Association
                                                                                                                                                                                      • International Monetary Fund
                                                                                                                                                                                      • Meridian Credit Union Limited
                                                                                                                                                                                      • National Bank of Canada
                                                                                                                                                                                      • Netflix, Inc.
                                                                                                                                                                                      • The PNC Financial Services Group

                                                                                                                                                                                      Canadian Mass Affluents - December 2011

                                                                                                                                                                                      £3,199.84 (Excl.Tax)