Canadian banking customers are voting with their feet at an unprecedented rate, creating a new challenge for the nation's financial institutions. A major study reveals that client loyalty is eroding as consumers actively seek better value and service elsewhere.
Unprecedented Shift in Customer Loyalty
According to a comprehensive study by Environics Research, a record number of Canadians changed their primary financial institution in 2025. The survey of 45,000 people found that while 57% had opened a new bank account or product in the preceding 12 months, a significant 24% moved their business to a completely new bank. This marks a sharp three-point increase from 21% in both 2023 and 2021.
Heidi Wilson, Vice-President of Environics Research’s financial services segment, called the finding alarming. "In the 20 years we’ve been running this study, it’s the highest incidence ever of those switching a financial account," Wilson stated. "Twenty-four per cent, or one in four Canadians, are choosing to go with a financial institution that is not their primary bank."
Beyond the Big Six: A Competitive Opening
The trend represents a rare opportunity for smaller players in a market long dominated by the Big Six banks. Wilson noted that a "significant portion" of those who switched moved their business away from the major national banks. This shift is being fueled by fintech companies, credit unions, and smaller regional banks offering more attractive options.
The federal government is actively encouraging this competition. The latest federal budget included measures designed to help alternative financial institutions grow, such as reducing fees and simplifying the process of switching chequing accounts.
The primary drivers for switching are clear: better rates and lower fees. However, Wilson emphasized that factors like "easy online banking" and feeling that a bank "appreciates your business" are also powerful motivators for customers deciding to leave.
A New Strategy for Retention
With a decline in immigration levels reducing the pool of new customers, banks can no longer rely on a steady stream of newcomers. The study suggests financial institutions must now compete more aggressively for their existing client base.
Wilson argues that banks need to rethink their spending. Instead of investing millions in promotions like iPads, earbuds, or gold to lure new clients, they should focus those resources on retention strategies that reward long-term loyalty. "What are they offering their loyal customers who have been with them for years?" she asked. "This is something I expect will change in 2026 and '27."
The act of opening a new chequing account is particularly significant, as it often leads customers to move their other financial products to the same institution. This makes the initial switch a critical moment for banks to prevent.
The data signals a fundamental change in the Canadian banking relationship. "It’s no longer about consolidation at one bank or getting all of your money parked in one spot," Wilson concluded. "It is about what is going to work best for me." This consumer-first mentality is reshaping the financial landscape and forcing traditional banks to adapt quickly to hold onto their customers.
