Canadians

are increasingly switching

financial institutions

, putting pressure on the banks to focus more on retaining their clients in the coming years, according to a study by Environics Research.

About 57 per cent of the 45,000 people surveyed in 2025 had

opened a new bank account

or banking product within the preceding 12 months, though 33 per cent of them “remained loyal” to their

primary financial institution

.

But 24 per cent

moved on to a new bank

, Heidi Wilson, vice-president of Environics Research’s financial services segment, said, a three-point increase compared to 21 per cent in 2023 and 2021.

“In the 20 years we’ve been running this study, it’s the highest incidence ever of those switching a financial account; 24 per cent, or one in four Canadians, are choosing to go with a financial institution that is not their primary bank,” she said.

“In particular, it’s the highest incidence ever of those opening up a new chequing account at a competitor. That should be alarming because once you open up that new chequing account, those other accounts follow.”

Canadians don’t tend to switch banks, but that may be changing, giving

fintechs

,

credit unions

and

smaller banks

a rare opportunity in a sector that has been dominated by the Big Six for decades.

Ottawa is also looking to boost competition in the financial sector. The federal government’s latest budget vowed to introduce a series of measures — from cutting fees to simplifying the process of switching chequing accounts — to encourage alternative financial institutions outside the Big Six banks to grow.

“It’s no longer about consolidation at one bank or getting all of your money parked in one spot,” Wilson said. “It is about what is going to work best for me.”

A “significant portion” of those who switched moved out of the Big Six, she said.

People are looking to switch because of better rates and fees, the survey said. But Wilson said factors such as “easy online banking” and “appreciating your business” also play a role.

With Canada’s immigration levels on the decline, she said banks will need to compete more for existing customers rather than newcomers.

Instead of spending money on trying to lure new clients through promotions such as offering iPads, earbuds or gold, Wilson said banks should invest in retention strategies that keep clients that they already have happy and focus there.

“Financial institutions spend millions each year luring in new customers,” she said. “What are they offering their loyal customers who have been with them for years? This is something I expect will change in 2026 and ’27.”

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• Email: nkarim@postmedia.com