Banks and Consumers
The bottom line
- Over 99 per cent of Canadians have a bank account
- 64 per cent of Canadians pay their credit card balance in full each month
- Canadians are careful borrowers. Only 0.38 per cent of mortgages are in arrears
The bottom line
For consumers and businesses, Canada’s competitive banking system provides good value, ready access and wide choice.
Canada’s competitive banking system provides good value, ready access and wide choice for consumers and small business. In fact, of the 77 banks operating in Canada, more than 40 offer financial products and services to Canadian consumers, including bank accounts, credit cards, loans and investments.
Affordable banking services
Over 99 per cent of Canadians have a bank account. Whether it’s a savings, chequing, low-fee, student, senior, full bells and whistles or a plain vanilla account, there is a lot of choice for Canadians and over 100 account packages to choose from in the marketplace.
- Banks have worked hard to ensure that there are low-cost accounts, priced at $4 or less per month, for those who need or want them.
- Sixty per cent of Canadians spend $15 or less per month on bank service fees and 31 per cent pay no service fees at all.1
- Youth, students and seniors can access discounted or free accounts.
- Payday loans aren’t the answer for small, short-term borrowing: overdraft protection, lines of credit and low-rate credit cards are affordable alternatives. And banks are strong supporters of credit counselling if needed.
Lending to business
Banks play an essential role in the business operations of small- and medium-sized enterprises (SMEs), meeting their diverse financial needs to drive innovation, development and growth.
- 78% of SMEs report a positive relationship with their main financial institution.2
- Small business owners also tend to be loyal: half of SMEs have had a business relationship with their main financial institution for more than 10 years and, of those, 22 per cent have for more than 20 years.3
Mortgages
Canadians continue to have access to a banking system that is accessible, affordable and competitive. They remain confident in the safety of their deposits, and continue to make use of affordably-priced credit, including mortgages.
- Canadians are careful borrowers. Only 0.38% of mortgages are in arrears.4
- Banks have developed a model plain language mortgage document to help make the contract terms easier to understand for customers.
Credit cards
A credit card is a convenient and flexible payment tool that can be used in 170 countries and at 30 million locations around the world. Credit cards are:
- Accessible – as unsecured credit, you don’t need to have a collateral to back up the loan. And the loan is interest free from the time of purchase until the end of the billing period.
- Convenient – credit cards can be used 24 hours a day, seven days a week, every day of the year and allow you to instantly pay for what you need.
- Safe – credit cards offer fraud protection with zero liability to the consumer.
- 64% of Canadians pay their credit card balance in full each month.5 And 93 per cent who do not pay off their card balances each month report that they pay more than the minimum amount.6
- The majority of Canadians use credit cards as a payment tool rather than a loan product. For them, reward programs, insurance, retail discounts and affinity programs are very attractive.
- There are more than 70 low interest rate cards to choose from.7
Technology
Canadian banks continue to invest in new technology to allow clients to bank whenever and however it suits them, and customers can:
- Get money at more than 59,000 ABMs
- Make purchases at 450,000 retailers in Canada.
From 1996 to 2009, the six largest banks have invested $55.8 billion in technology to ensure an accessible, secure and convenient banking system.
Convenience of banking
Canadians are able to conduct transactions in a variety of ways including: online, mobile, ABM and telephone banking as well as traditional in-branch services.
- Canadians are able to access banking services 24/7.
- 45 per cent of Canadians say they bank primarily online.8
- Five per cent of Canadians say they have used mobile banking in the last year and 23 per cent say they plan to use it in the next two to three years.9
Consumer education and financial literacy
Financial literacy is an essential life skill and Canadians agree that an understanding of money and financial matters is an important component of a teen’s education.
- Over 600 bankers across Canada volunteer their time to deliver the CBA’s Your Money financial literacy program for youth (www.yourmoney.cba.ca).
Canada’s stable & secure banking system
Canadians overwhelmingly agree that Canada’s banks are more stable and secure compared to other banks around the world thanks to better business practices.
- 78 per cent of Canadians believe Canada’s banks have played a substantial role in ensuring that the country’s banking system is among the most effective and stable in the world.10
- 82 per cent believe that because Canada’s banks have been more responsible in their lending and credit services, the Canadian system continues to work effectively even during the recent financial turmoil.11
- For the third year in a row the World Economic Forum has ranked Canada’s banks as the most sound in the world.
- The banking sector helps Canada grow, generating $55 billion, or 3.4 per cent, of Canada’s GDP.
General inquiries:
1-800-263-0231 or inform@cba.ca
Media inquiries:
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca
