According to the latest SRG consumer research, while 85% of newcomers are still with the first bank they opened an account with in Canada five years later, many are still open to brand switching.
SRG’s Newcomers to Canada and Banking report, based on insights from 823 newcomers spanning multiple geographies, reveals that 84% expressed a “willingness to consider additional banking options with the right offer and product.”
According to the data, 81% of newcomers establish a bank account within their first month in Canada, illustrating the essential role of banking services in their settlement. Previous SRG research finds more than half set up bank accounts within the first week of landing, with convenience a key driver for newcomers. CIBC is their top choice, followed by TD Bank and RBC, with the “Big Five” banks holding 85% of primary financial relationships.
The demographic profile of newcomers is largely young and educated, often with university degrees and an average age of 36 years, a population in the prime of their work and family life. SRG’s study finds that newcomers are 65% more likely to be living in family households with children under 18, higher than the broader Canadian population.
Their top-of-mind concerns include affordable housing, stable employment and cost of living. However, loyalty programs such as PC Optimum, Costco Rewards and Scene+, while popular among newcomers, have lower-than-average penetration in the early days. Newcomers to Canada use a limited set of financial products in the early days: credit cards and savings or chequing accounts are the most common.
The numbers reveal that 71% of newcomers have a credit card, and 68% have a savings or chequing account, with the majority of these products held at their primary financial institution.
Other notable financial products include TFSAs (22%), car loans (17%), RRSPs (16%), personal lines of credit (16%), and mortgages (16%). Credit cards, particularly Visa and MasterCard, are
widely held among newcomers, with two-thirds owning a Visa card, the leading brand among newcomers.