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Amid financial stress, nearly half (46%) of Canadians are open to banking alternatives to manage their money

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Meridian's 'More Than a Number' survey reveals how Canadians feel about the state of the economy, their finances, and their banking relationships – in their own words.

Toronto, Ontario – September 24, 2024 – According to a recent survey by Meridian, three in five (61 per cent) Canadians feel their bank doesn’t know them on a personal level, while close to half (46 per cent) are looking for a more personalized banking relationship. Additionally, despite the rise of technical innovations in digital banking, many Canadians (87 per cent) still need to feel that they can work through their most serious financial problems with a real person and not an AI. Two in three (66 per cent) are concerned about losing the ‘human connection’ with their bank due to the rise of AI.

Our More Than a Number study goes beyond the confines of traditional surveys to give Canadians an opportunity to express their financial outlook in their own words,” said Matthew Seagrim, Chief Digital & Marketing Officer at Meridian. “It reveals that Canadians want to develop a more personal relationship with their financial institution as they seek advice to navigate a challenging economy.”

The survey also reported that three-quarters of Canadians say they are aware that credit unions offer similar services to banks (74 per cent), but half of those don't currently bank with a credit union (52 per cent). Close to three in 10 Canadians (28 per cent) expressed interest in learning more about banking with a credit union. Unlike traditional banks, credit unions such as Meridian leverage a co-operative operating model that prioritizes people before profit, addressing the growing frustration with impersonal banking services and offering a more personalized and member-focused approach.

These findings come at a time when Canadians are feeling significant financial pressure, despite easing interest rates.

According to the survey:

  • Ontarians are more likely to feel their lifestyle is becoming unaffordable due to rising costs (62 per cent vs 53 per cent rest of Canada) and express greater concern for their long-term future due to the current economy.
  • Women are more likely to worry about their long-term financial future (40 per cent vs. 18 per cent men).
  • Millennials are more likely to agree that it is becoming increasingly difficult to make ends meet (71 per cent) and their lifestyle is becoming unaffordable (63 per cent). More of them also agree that the average Canadian can't get ahead in this economy (82 per cent).
  • 61 per cent of Gen Z feel panicked, anxious, or uneasy about money. Nearly a third experience constant anxiety in the pit of their stomach.
  • As three quarters (74 per cent) struggle to make ends meet, Gen Z is looking to their bank for guidance, only to be let down. Six in 10 Gen Zs (59 per cent) say their bank is operating in its interest rather than their own, and half (48 per cent) say their bank treats them as ‘just a number.’

Key findings from the Meridian More Than a Number survey:

  • Competition please: Six in 10 Canadians (60 per cent) say we need more competition in banking to help create new services and reduce fees. Almost half (46 per cent) of Canadians are open to alternatives other than managing their money with a bank. When reflecting on financial advice for their younger self, a Baby Boomer respondent from Ontario advises: “Try to have a better understanding of the options available.”
  • Yearning for learning: Half of Gen Z (48 per cent) wish they had access to better financial guidance and 51 per cent believe that banks are too focused on selling products rather than giving them advice. Over a third (38 per cent) say the advice they receive from their bank feels like an upsell. Younger Canadians are left seeking help in planning for their financial future. As a Gen Z respondent from Alberta puts it: “I don't have time to make a financial plan and don't know enough about how to make one.”
  • Treat me like a person, not an account number: While Gen Z is highly comfortable with transacting digitally, the rise of AI is giving this generation pause, with over half (56 per cent) fearing the loss of a human connection with their bank. Eight in 10 (81 per cent) note that serious financial matters should be dealt with by a person not a chatbot, and three quarters (75 per cent) want the option to choose between both digital and in person banking options.

About Meridian’s More Than a Number study

The Leger Opinion online panel was used to survey 1,542 Canadians over the period of July 2nd to 6th, 2024. Sampling was done within age, gender, and region quotas. The length of the survey was 10 minutes. Data was weighted on age, gender, and region according to 2021 census figures. An associated margin of error for a randomly selected sample of n=1,542 would be ±2.5%, 19 times out of 20. The survey included several open-ended questions to provide an opportunity for Canadians to express their thoughts in their own words. Anonymous quotes have been included throughout the analysis.

About Meridian

Meridian is Ontario’s largest credit union, and one of the largest in Canada. Guided by our purpose, “helping you achieve your best life,” Meridian delivers personal, and wealth financial business solutions to over 380,000 Members. Our bold Meridian for Good strategy is aimed at helping people get access to the money and advice they need; plan for a better future that is clean, resilient, and diverse; and be financially confident. Meridian has two operating subsidiaries: Meridian OneCap Credit Corp (“MOCC”) and motusbank. For more information, please visit: meridiancu.ca.

We acknowledge the land on which we operate is the traditional territory of many nations including the Mississaugas of the Credit, the Anishinaabe, the Chippewa, the Haudenosaunee and the Wendat peoples and now home to many diverse First Nations, Inuit, and Métis. We also acknowledge that Toronto is covered by Treaty 13 with the Mississaugas of the Credit.

Media contact: Erick Bauer, Meridian, Erick.Bauer@meridiancu.ca; 416-587-4185

Meridian Credit Union communications are intended for informational purposes only and do not constitute financial advice or an opinion on any issue. We would be pleased to provide additional details or advice about specific situations if desired.

For permission to republish this content, please contact the Meridian Credit Union Marketing Department at communications@meridiancu.ca. ©️ 2023 Meridian Credit Union