Description

Providing the most comprehensive and up-to-date information and analysis of the Marketing Financial Services to New Canadians market, including the behaviours, preferences and habits of the consumer.

With immigration being the core catalyst for Canadian population growth, despite the slowed levels of immigration because of the COVID-19 pandemic, the Canadian government had set aggressive immigration targets for the coming years. In 2018 Canada brought in 341,000 new immigrants, with 48.1% of the foreign-born population in 2010 coming from Asia and the Middle East (compared to only 27.7% European-born).

New Canadian immigrants are the key acquisition target for marketers, especially in the financial services industry. Because of this, companies and brands are eager to learn more about the choices and preferences of these new groups, helping to target them in advertising campaigns.

New Canadians were the hardest hit in the COVID-19 pandemic, with 17% of recent immigrants to Canada becoming unemployed during March and April 2020, compared with 13.5% Canadian-born or longer-term immigrants. Because of these economic difficulties, financial services are in the unique position to gain consumer trust and loyalty by supporting them in times of hardship. 31% of new Canadians are likely to switch their first-choice institutions in the next 12 months, meaning that these brands will need to work to keep their new Canadian customers into the longer term.

Read on to discover more details or take a look at all of our Canada Consumer Lifestyles, Marketing and Promotions market research.

Quickly understand

  • The impact of COVID-19 on marketing financial services to new Canadians.
  • Consumer attitudes and behaviour related to the choice of main institution for day-to-day banking, attitudes towards banking and insurance, reasons driving brand choices population, banking channels used, financial priorities of this group and recommendations on how to better connect and market to this demographic. Comparisons are drawn between New Canadians and the overall population.

Covered in this report

Brands: Meridian Credit Union, Wealthsimple Inc., Landlord Credit Bureau, Loblaw Cos Ltd., Scotiabank, Bank of Montreal, TD, CIBC, Tangerine, RBC, President’s Choice Financial, Desjardins.

Expert analysis from a specialist in the field

Written by Sanjay Sharma, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Canada is set to welcome a record number of immigrants in the next few years making the new Canadian segment a key target for financial institutions.

Sanjay Sharma
Senior Financial Services Analyst

Table of Contents

  1. Overview

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

    • Top takeaways
    • Market overview
    • Impact of COVID-19 on marketing financial services to New Canadians
      • Figure 1: Short, medium and long-term impact of COVID-19 on marketing financial services to new Canadians, November 2020
    • Opportunities and challenges
    • Using branches to forge relationships with New Canadians
    • A third of New Canadians are likely to switch their main FI in the next year
    • Helping New Canadians overcome barriers
    • Encouraging product consolidation to discourage switching
    • Opportunity for FinTech challengers
    • New Canadian finances disproportionately hit by COVID-19
    • How can credit unions appeal to New Canadians?
  3. The Market – Key Takeaways

    • Immigration down in 2020 due to COVID-19
    • Impact of COVID-19 on marketing financial services to New Canadians
    • Canada plans record levels of immigration over the next three years
    • Economic impact of COVID-19
    • New benefits as CERB ends
  4. Market Factors

    • Impact of COVID-19 on marketing financial services to New Canadians
      • Figure 2: Short, medium and long-term impact of COVID-19 on marketing financial services to new Canadians, November 2020
    • Immigration is fuelling Canada’s population growth…
      • Figure 3: Percentage of Canadians who are visible minorities or not visible minorities, by age, 2016
    • …and Asia is the primary source
      • Figure 4: Distribution of immigrants living in Canada, by region of birth, 1996-2036
    • Immigration down in 2020 due to COVID-19
    • Economic impact of COVID-19
    • Deferrals being rolled back
    • New benefits as CERB ends
  5. Companies and Brands – Key Takeaways

    • Canada plans record levels of immigration over the next three years
    • Digital tools and New Canadians
    • Meridian’s new hybrid mortgage
    • Robo-advisor Wealthsimple hits unicorn status
    • Canadians now have the option to build their credit scores via rent payments
    • PC Financial combines no fees and PC Optimum in new PC Money Account
  6. Competitive Strategies

    • Digital tools and New Canadians
    • Scotiabank launches Advice+, a digital, financial planning centre
      • Figure 5: 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 6: Find your beginning with TD GoalAssist, October 2020
    • CIBC launches new platform to help clients build their financial plans
    • BMO’s new digital mortgage pre-approval tool
    • Tangerine lets new clients sign-up digitally by taking a selfie
    • RBC uses AI to enhance security
    • Meridian’s new hybrid mortgage
    • Robo-advisor Wealthsimple hits unicorn status
    • Canadians now have the option to build their credit scores via rent payments
  7. Marketing Campaigns

    • PC Financial combines no fees and PC Optimum in new PC Money Account 
      • Figure 7: PC Money™ Account | A New Way, September 2020
      • Figure 8: PC Financial Facebook ads, September 2020
    • CIBC’s new brand campaign to promote alerts
    • TD thanks everyday COVID-19 pandemic heroes
      • Figure 9: TD Thanks You Angela, September 2020
    • Desjardins launches “Your Selfie Life”
      • Figure 10: Desjardins YourSelfieLife 30E Prores, September 2020
    • Canada’s largest banks post about fraud prevention
      • Figure 11: CIBC fraud prevention related Twitter post, May 2020
      • Figure 12: Tangerine identity theft Facebook ads, July 2020
    • Banking packages for newcomers
      • Figure 13: RBC Newcomer Advantage | No-monthly-fee banking, October 2020
    • Scotiabank’s StartRight
    • RBC Newcomer Advantage
    • BMO NewStart Program 
  8. The Consumer – Key Takeaways

    • Big banks dominant choice of New Canadians
    • Around half of New Canadians have cut spending due to COVID-19
    • New Canadians are more prolific users of mobile, branches, phone and call centre channels
    • Paying off debt is the top priority
    • A third of New Canadians are likely to switch their main FI in the next year
  9. Choice of Main Financial Institution

    • New Canadians are younger…
      • Figure 14: Age distribution, New Canadians vs overall, August 2020
    • …and poorer
      • Figure 15: Age distribution, New Canadians vs overall, August 2020
    • Big banks dominant choice of New Canadians
      • Figure 16: Choice of main FI, New Canadians vs overall, August 2020
    • Using branches to forge relationships with New Canadians
    • Helping New Canadians overcome barriers
    • New Canadians are more likely to switch their main FI
      • Figure 17: Switching of main FI, New Canadians vs overall, August 2020
    • More than half have switched after arrival in Canada
      • Figure 18: Switching of main FI among new Canadians, August 2020
    • Encouraging product consolidation to discourage switching
    • Opportunity for FinTech challengers
      • Figure 19: motusbank Instagram post, October 2020
  10. Personal Finance Attitudes

    • Around half of New Canadians have cut spending due to COVID-19
      • Figure 20: Personal finance attitudes, New Canadians vs overall, August 2020
    • New Canadian finances disproportionately hit by COVID-19
      • Figure 21: Impact of COVID-19 on Finances (% agree), New Canadians vs overall, August 2020
    • A quarter of New Canadians send money home
    • A fifth are worried about the amount of debt they are carrying
  11. Banking Channel Usage

    • New Canadians are more prolific users of mobile, branches, phone and call centre channels
      • Figure 22: Channels used for banking transactions (any usage), New Canadians vs overall, August 2020
    • Online and mobile used most by New Canadians
      • Figure 23: Correspondence analysis – Symmetrical map – channel usage of New Canadians, August 2020
    • Online is used most by the overall population
      • Figure 24: Correspondence analysis – Symmetrical map – channel usage of overall population, August 2020
    • Branches are used for all types of transactions
      • Figure 25: Branch transactions, New Canadians vs overall, August 2020
    • Online banking is used by all Canadians
      • Figure 26: Online banking transactions, New Canadians vs overall, August 2020
    • Mobile is fast emerging as a channel of choice for New Canadians
      • Figure 27: Mobile banking transactions, New Canadians vs overall, August 2020
    • Automated phone banking is still ‘alive’, while call centres are used for customer service
    • ATMs have distinct functions
  12. Financial Priorities

    • Paying off debt is the top priority
      • Figure 28: Financial priorities (any rank), New Canadians vs overall, August 2020
    • Some gender differences
      • Figure 29: Financial priorities (select), by gender, August 2020
    • Higher-income New Canadians have more priorities
      • Figure 30: Financial priorities (select), HHI of over CA$70K vs under CA$70K, August 2020
      • Figure 31: Financial priorities (select), HHI of over $70k vs under $70k, August 2020
    • Helping New Canadians save for retirement and education
      • Figure 32: Moka Instagram post, July 2020
    • New Canadians are also keen to establish physical roots
  13. Banking Attitudes

    • Most New Canadians prefer banks to credit unions
      • Figure 33: Banking and general attitudes of New Canadians, August 2020
    • How can credit unions appeal to New Canadians?
    • Most happy with customer service but bothered by bank fees
    • New Canadians are more technology friendly
      • Figure 34: Technology attitudes (select), New Canadians vs overall, August 2020
  14. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Mintel Trend Drivers
    • Abbreviations and terms
  15. Appendix – Banking Channel Usage Charts

      • Figure 35: Automated phone banking transactions, New Canadians vs overall, August 2020
      • Figure 36: Call centre transactions, New Canadians vs overall, August 2020
      • Figure 37: ABM transactions, New Canadians vs overall, August 2020

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