2024
8
Newer Canadians and Banking Market Report 2024
2024-06-27T11:01:37+01:00
REPB49959BD_25A0_4AB5_9FC2_184CA106E6A7
3695
174131
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Report
en_GB
Canadian banks are hitting the mark in providing the necessary resources for new Canadians, with 89% of newcomers agreeing that they would recommend their main bank to a friend or…

Newer Canadians and Banking Market Report 2024

£ 3,695 (Excl.Tax)

Report Summary

Canadian banks are hitting the mark in providing the necessary resources for new Canadians, with 89% of newcomers agreeing that they would recommend their main bank to a friend or family member. Branch locations are commonly leveraged by newcomers to open new products, and enhancements in mobile chatbot assistance and budgeting tools are especially appreciated by this segment.

With immigration rates projected to continue in the medium-term future, competition to win over new Canadians will only grow more intense. New Canadians’ inclination to maintain financial products across multiple institutions will provide a challenge to banks’ cross-sell strategies and reward institutions that proactively partner with foreign banks to provide newcomers a seamless transition.

Despite potential roadblocks to relationship deepening, opportunity remains for both legacy and challenger institutions. New Canadians gravitate toward banks that are active in their local communities, and their appreciation for a physical presence has ensured that Big Five banks maintain a strong market share. Although digital banks often must wait a few years before new Canadians consider new products, positive views of account diversification and mobile tools portend a niche for fintechs to fill.

This report looks at the following areas:

  • Banking institutions chosen by new Canadians
  • Satisfaction rates of new Canadians toward their primary banks
  • Bank branch visit motivation
  • Interest in mobile/online banking features
  • New Canadians’ attitudes toward banking

New Canadians seek banks that combine the physical presence necessary to help with account openings and the digital features that can guide money management.

Patrick Rahlfs, Principal Analyst – Financial Services

Table of Contents

  1. Executive summary

    • What you need to know
    • New Canadians are branch users due to urgent needs
    • Graph 1: bank branch visit motivations, by new Canadians, 2024
    • Assistance and budgeting tools are key mobile features
    • Graph 2: desired online/mobile banking features, by new Canadians, 2024
    • New Canadians enjoy new relationships, but want to stay connected
    • Interoperability becomes key
    • Market predictions
    • Opportunities
    • International students demand additional support
    • Financial advice can transform relationships from good to great
  2. Consumer Insights

    • Consumer fast facts
    • Banking relationships
    • TD Bank and RBC have the most relationships with new Canadians
    • Graph 3: banking relationships of new Canadians, 2024
    • Women are more likely to consider relationships with digital banks
    • Graph 4: banking relationship type, by gender, 2024
    • Newer Canadians are less likely to immediately open a digital bank account
    • Graph 5: banking institution type, by years living in Canada, 2024
    • South Asian consumers show strong levels of account ownership across the big 5 banks
    • Graph 6: banking relationships of new Canadians, by race, 2024
    • Scotiabank has had recent success converting newer Canadians…
    • Graph 7: banking relationship, by years living in Canada, 2024
    • …often gaining a lower-income average customer
    • Graph 8: banking relationship, by household income, 2024
    • Banking satisfaction
    • New Canadians are mostly satisfied with their primary banks
    • Graph 9: satisfaction with primary bank, 2024
    • 18-24 year old new Canadians are least satisfied
    • Graph 10: satisfaction with primary bank, by age, 2024
    • Lower-income consumers have more polarized satisfaction levels
    • Graph 11: satisfaction with primary bank, by household income, 2024
    • Financial situation and bank satisfaction are directly related
    • Graph 12: satisfaction with primary bank, by financial situation, 2024
    • Bank branch visits
    • New Canadians are more likely to utilize branch locations
    • Graph 13: bank branch visits, by new Canadians, 2024
    • Over 30% of new Canadians branch users opened an account in-person
    • Graph 14: reasons for bank branch visit, 2024
    • Newer Canadians are less likely to use branches for daily transactions
    • Graph 15: reasons for bank branch visit, by new Canadians, 2024
    • Branch utility evolves with different age segments
    • Graph 16: reasons for bank branch visit, by age, 2024
    • Very new Canadians drive in-brach acquisitions
    • Graph 17: reasons for bank branch visit, by years living in Canada, 2024
    • Consumers in worse financial situations drive much day-to-day activity
    • Graph 18: reasons for bank branch visit, by financial situation, 2024
    • Online/mobile banking features
    • Mobile apps must have versatile functionalities
    • Graph 19: interest in online/mobile features, 2024
    • New Canadians are particularly eager for assistance
    • Graph 20: interest in online/mobile features, by new Canadians, 2024
    • Older consumers seek a wider variety of mobile features
    • Graph 21: interest in online/mobile features, by age, 2024
    • Higher-income consumers want support from potential harm
    • Graph 22: interest in online/mobile features, by household income, 2024
    • Financially constrained customers seek budget management
    • Graph 23: interest in online/mobile features, by financial situation, 2024
    • New Canadians' attitudes toward banking
    • New Canadians trust and would recommend their banks
    • New Canadians enjoy customer service, but often prefer maintaining old accounts
    • Graph 24: attitudes toward banking in Canada and home country, 2024
    • South Asian immigrants are more tied into previous banks
    • Graph 25: maintaining multiple bank accounts, by race, 2024
    • Young new Canadians have more trouble switching primary banks
    • Graph 26: new Canadians switching banks, by age, 2024
    • Higher-income new Canadians are most critical of customer service
    • Graph 27: attitudes toward advice and customer service, by household income, 2024
    • Parents often look immediately to buying a home when arriving
    • Traditional banks resonate with those looking for community presence
    • Graph 28: attitudes toward banking, by banking institution type, 2024
  3. Competitive strategies

    • Marketing and advertising
    • TD Bank includes multilingual messaging in paid social
    • BMO partners with YouTuber for new Canadian tips
    • Credit unions encourage conversation
    • Scotiabank introduces itself as a new neighbour
    • Simplii Financial targets international student community
    • Opportunities
    • Urgent needs beget urgent marketing approach
    • Extend service beyond purely financial assistance
  4. The Market

    • Market drivers
    • The immigrant population is expected to grow for the next decade and beyond
    • Graph 29: percentage of immigrants, 1981-2041 (projected)
    • About 60% of recent immigrants are less than 35 years old
    • Graph 30: age of population, overall vs recent immigrants, 2021
    • India rose to become the top source of Canadian immigrants
    • Graph 31: top places of birth of immigrants, 2016-21
  5. Appendix

    • Consumer research methodology
    • Generations
    • Abbreviations and terms

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