Description

“Consumer confidence remains fragile as new variants of COVID-19 confound scientists and policymakers, causing continued economic grief to the hardest hit sectors and the more vulnerable sections of the population. But more financially secure households are sitting on a record pile of cash which can be the spur for an economic recovery once the pandemic ends.”

Sanjay Sharma, Senior Financial Services Analyst

This report covers the following:

  • The impact of COVID-19 on consumer finances and priorities.
  • This Report explores consumers’ personal finances, spending habits, use of financing products/services, financial priorities, financial literacy and consumer confidence. Given the economic impact of COVID-19, we also explore its effect on the personal finances of Canadians at this time when the pandemic is still going strong.

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
      • Executive Summary

          • Top takeaways
            • Market overview
              • Impact of COVID-19 on consumer finances
                • Figure 1: Short-, medium- and longer-term impact of COVID-19 on consumer finances and priorities, January 2021
              • Opportunities
                • The prepaid and secured card market opportunity
                  • Is the widespread pessimism justified?
                    • How can the financial industry help Canadians manage money better?
                      • How can the financial industry connect better with women?
                        • Half of parents of under-18s list saving for children’s education as a priority
                          • Challenges
                            • Financial and mental health concerns combine to hit financially weaker Canadians
                              • Women under more COVID-19-related financial pressure
                                • Non-Chinese Asian Canadians less financially secure
                                • The Market – Key Takeaways

                                  • Economic impact of COVID-19
                                    • Households sitting on a huge pile of cash
                                      • Bank of Canada projects 4% growth in 2021
                                        • Digital tools and Canadians
                                        • The Market – Market Factors

                                          • Economic impact of COVID-19
                                            • Households sitting on a huge pile of cash
                                              • Bank of Canada projects 4% growth in 2021
                                                • Impact of COVID-19 on consumer finances and priorities
                                                  • Figure 2: Short-, medium- and longer-term impact of COVID-19 on consumer finances and priorities, January 2021
                                                • New benefits come into force as CERB ends
                                                  • Mortgage deferrals also help contain delinquencies
                                                  • The Market – Apps & Tools

                                                    • Digital tools and Canadians
                                                      • Scotiabank launches Advice+, a digital, financial planning centre
                                                        • Figure 3: Scotiabank – It’s You, Plus, September 2020
                                                      • Scotiabank simplifies digital banking with a new resource for seniors
                                                        • BMO launches AI financial advice tool and adds features to its financial planning platform
                                                          • TD launches new financial planning and investing app
                                                            • Figure 4: Find your beginning with TD GoalAssist, October 2020
                                                          • CIBC launches new platform to help clients build their financial plans
                                                            • RBC debuts Aiden
                                                              • HSBC announces real-time payments tool
                                                                • TD unveils new digital cash flow tools
                                                                  • CIBC launches AI-powered virtual assistant
                                                                    • BMO launches new digital feature called Card Tracker
                                                                      • Scotiabank rolls out AI-powered cash flow predictor Sofia
                                                                        • Debt management apps can help some borrowers
                                                                          • Splitwise
                                                                            • epost
                                                                              • Debt Manager
                                                                                • Canadian Mortgage app
                                                                                  • Debt planner pay-off
                                                                                    • PocketGuard
                                                                                      • Wellspent helps users “Tinder” their spending
                                                                                        • Figure 5: Wellspent | Reflection | Basic, June 2019
                                                                                    • Companies and Brands – Key Takeaways

                                                                                      • Challenger bank Neo raises $25 million
                                                                                        • Borrowell to acquire Refresh Financial
                                                                                          • Capital One stops ‘risky’ buy-now-pay-later credit card transactions
                                                                                            • RBC offers Snapchatters COVID career help
                                                                                              • Simplii became the first Canadian bank to let clients use their credit cards for global money transfers
                                                                                                • The Canucks’ newest preferred partner is a Canadian start-up that helps build credit easily
                                                                                                • Competitive Strategies

                                                                                                  • Borrowell to acquire Refresh Financial
                                                                                                    • Challenger bank Neo raises $25 million
                                                                                                      • Rakuten partners with Google Pay
                                                                                                        • Wealth One aiming for profitability amid tensions with China
                                                                                                          • Wealthsimple testing new feature
                                                                                                            • Capital One stops ‘risky’ buy-now-pay-later credit card transactions
                                                                                                            • Marketing Campaigns

                                                                                                              • RBC offers Snapchatters COVID career help
                                                                                                                • Simplii became the first Canadian bank to let clients use their credit cards for global money transfers
                                                                                                                  • Figure 6: Simplii Twitter and Facebook ads, December 2020
                                                                                                                • Sweeter than Honey: Capital One Shopping
                                                                                                                  • Figure 7: Capital One Shopping – Fondue, November 2020
                                                                                                                • The Canucks’ newest preferred partner is a Canadian start-up that helps build credit easily
                                                                                                                • The Consumer – Key Takeaways

                                                                                                                  • One in four have a secured credit card
                                                                                                                    • Two in five have cut spending due to the COVID-19 pandemic
                                                                                                                      • Majority feel in control of their finances
                                                                                                                        • Women under more COVID-19 related financial pressure
                                                                                                                          • Half have been negatively impacted financially by COVID-19
                                                                                                                            • Saving is the top overall priority
                                                                                                                            • Use of Financing

                                                                                                                              • One in four have a secured credit card
                                                                                                                                • Figure 8: Usage of financial products and services, November 2020
                                                                                                                              • Secured and prepaid credit cards are growing
                                                                                                                                • Figure 9: Usage of financial products and services, by age, November 2020
                                                                                                                              • The prepaid and secured card market opportunity
                                                                                                                                • Figure 10: Chatr secured credit card email campaign, November 2020
                                                                                                                              • Alternative financial services providers: servicing a short-term need at a high cost
                                                                                                                                • Unsecured lines of credit held more by higher income earners and over-35s
                                                                                                                                  • Figure 11: ScotiaLine personal line of credit email campaign, January 2021
                                                                                                                                • Second mortgages: the need for caution
                                                                                                                                • Personal Finances

                                                                                                                                  • Two in five have cut spending due to the COVID-19 pandemic.
                                                                                                                                    • Figure 12: Personal finances attitudes & behaviours, November 2020
                                                                                                                                  • Majority feel in control of finances but find it hard to save
                                                                                                                                    • Figure 13: Personal finance attitudes, November 2020
                                                                                                                                  • Over-55s best placed financially
                                                                                                                                    • Figure 14: Personal finances attitudes & behaviours (select), by age, November 2020
                                                                                                                                    • Figure 15: Personal finance attitudes (select), 18-54s vs over-55s, November 2020
                                                                                                                                  • Non-Chinese Asian Canadians less financially secure
                                                                                                                                    • Figure 16: Personal finances attitudes & behaviours (select), non-Chinese Asian Canadians vs overall, November 2020
                                                                                                                                    • Figure 17: Personal finance attitudes (select), non-Chinese Asians vs overall, November 2020
                                                                                                                                  • Women under more COVID-19-related financial pressure
                                                                                                                                    • Figure 18: Personal finances attitudes & behaviours (select), men vs women, November 2020
                                                                                                                                  • How can the financial industry connect better with women?
                                                                                                                                    • Figure 19: SoFi Women in Leadership YouTube screenshot, March 2020
                                                                                                                                    • Figure 20: BMO | Jane’s Story, March 2020
                                                                                                                                • Impact of COVID-19

                                                                                                                                  • Half have been negatively impacted financially by COVID-19
                                                                                                                                    • Figure 21: Impact of COVID-19 on finances, November 2020
                                                                                                                                  • Impact is inversely related to age
                                                                                                                                    • Figure 22: Impact of COVID-19 on finances (% agree), by age, November 2020
                                                                                                                                  • Financial and mental health concerns combine to hit financially weaker Canadians
                                                                                                                                    • Figure 23: “The COVID-19 pandemic has negatively impacted my finances” (% agree), by current financial situation, November 2020
                                                                                                                                  • Most Canadians are worried about the future: but is the widespread pessimism justified?
                                                                                                                                    • Figure 24: General attitudes related to economic future, November 2020
                                                                                                                                • Financial Priorities

                                                                                                                                  • Saving is the top overall priority
                                                                                                                                    • Figure 25: Financial priorities, November 2020
                                                                                                                                  • Paying for day-to-day living expenses is the top short-term priority
                                                                                                                                    • Figure 26: Short-term vs long-term financial priority, November 2020
                                                                                                                                  • Age/lifestage determine strength of priorities
                                                                                                                                      • Figure 27: Financial priorities, by age, November 2020
                                                                                                                                    • Half of parents of under-18s list saving for children’s education as a priority
                                                                                                                                      • Figure 28: Desjardins Facebook ad, September 2020
                                                                                                                                    • A fifth of over-65s are keen on giving to charities
                                                                                                                                      • Women have a few differing priorities
                                                                                                                                        • Figure 29: Financial priorities (select), men vs women, November 2020
                                                                                                                                      • Investing is a higher priority for Chinese Canadians
                                                                                                                                        • Figure 30: Financial priorities (select), differences by ethnicity, November 2020
                                                                                                                                      • How can the financial industry help Canadians manage money better?
                                                                                                                                      • Consumer Confidence and Financial Literacy

                                                                                                                                        • Half of Canadians feel their finances are in good shape
                                                                                                                                          • Figure 31: Attitudes related to consumer confidence, November 2020
                                                                                                                                        • Over-55s are most confident about their finances
                                                                                                                                            • Figure 32: Attitudes related to consumer confidence, 18-54s vs over-55s, November 2020
                                                                                                                                          • Women are more worried
                                                                                                                                              • Figure 33: Attitudes related to consumer confidence (select), men vs women, November 2020
                                                                                                                                            • More than half spend time researching best ways to save/invest
                                                                                                                                              • Figure 34: Attitudes related to financial knowledge, November 2020
                                                                                                                                              • Figure 35: Moka Facebook post, December 2020
                                                                                                                                            • Young men are most engaged and confident …
                                                                                                                                              • Figure 36: Select attitudes related to financial knowledge (% agree), by age and gender, November 2020
                                                                                                                                              • Figure 37: Manulife investments mobile advertisement, May 2018
                                                                                                                                            • … while those with HHI >$150,000/year are also in a distinct tier of financial confidence
                                                                                                                                              • Figure 38: Select attitudes related to financial knowledge (% agree), HHI $150,000/year or more vs overall, November 2020
                                                                                                                                              • Figure 39: Scotia direct online advertisement, October 2020
                                                                                                                                          • Appendix – Data Sources and Abbreviations

                                                                                                                                            • Data sources
                                                                                                                                              • Consumer survey data
                                                                                                                                                • Mintel Trend Drivers
                                                                                                                                                  • Abbreviations and terms

                                                                                                                                                  About the report

                                                                                                                                                  This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                                                                                  Market

                                                                                                                                                  Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                                                                                                                  Consumer

                                                                                                                                                  Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                                                                                  Brand/Company

                                                                                                                                                  Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                                                                                  Data

                                                                                                                                                  Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                                                                                  Below is a sample report, understand what you are buying.

                                                                                                                                                  Click to show report

                                                                                                                                                  Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Also, our reports come in PDF, Powerpoint, Word and Excel Databook formats.

                                                                                                                                                  Trusted by companies. Big and small.

                                                                                                                                                  Bell Logo - Mintel client
                                                                                                                                                  Boots Logo - Mintel Client
                                                                                                                                                  Kelloggs Logo - Mintel client
                                                                                                                                                  Samsung Logo - Mintel client
                                                                                                                                                  Nike Logo - Mintel client
                                                                                                                                                  Walgreens Logo - Mintel client

                                                                                                                                                  Want to speak to us directly?

                                                                                                                                                  Contact us on via phone or fill out a form with your enquiry.

                                                                                                                                                  Contact Us