Scotiabank study reveals five banking challenges for newcomers to Canada
First-hand experiences shared by newcomers highlight the challenges of finding a solid financial footing
As Canada continues to rebuild from the impact of the pandemic, immigration will act as a key economic driver that can help address labor shortages and strengthen the social and economic fabric of our communities.
Scotiabank recently conducted research to better understand the experiences of newcomers when moving Canada. This included in-depth interviews with newcomers and the financial advisors who serve them, to learn more about the unique challenges they face when starting out in life. Canada.
Research found that newcomers most often feel worried, overwhelmed and confused about their finances and navigating the Canadian banking system.
High rental costs, obtaining proper documentation and identification, purchasing a cellphone and credit card, and finding employment were identified as common challenges shortly after their arrival in Canada. Research has found that lack of knowledge of the financial system and cultural norms exposes newcomers to financial fraud, targeting them for internet and telephone scams.
Research also found that newcomers take a long-term view when it comes to achieving financial success in Canada.
“At Scotiabank, we want to help newcomers Canada find their financial footing from the start because the long-term financial success of Canada it depends,” said Terri-Lee Weeks, Executive Vice President of Retail Clients at Scotiabank. “We know that newcomers often choose to come Canada in the hope of living a better quality of life with access to greater opportunities. However, upon arrival, they continue to face challenges that can have a long-term impact on their lives as well as on the Canadian economy in general. We can help break down barriers by providing the right advice and expertise. »
The research revealed the main motivations for coming to Canada include the search for a better quality of life and a better future, career opportunities in Canada, and bring families together. Scotiabank start right® The program offers targeted support for newcomers, ranging from unlimited no-fee international money transfers and no-fee accounts for the first year to the qualified and inclusive expertise of welcoming counselors across the country.
Based on the 5 main challenges to start from the beginning CanadaScotiabank offers the following general banking advice for newcomers who want to set themselves up for success beyond the basics:
- Develop your financial literacy
The Canadian financial and banking system is very different from other countries. With a slew of new abbreviations and terminologies to learn, newcomers may be confused by a seemingly complicated system. Newcomers surveyed identified concise and easy-to-digest explanations of Canadian banking terms as a positive factor in helping them gain financial literacy in Canada. Scotiabank start right® Web page has a selection of articles that can help new Canadians understand all facets of Canadian banking. Scotiabank advisors are also always available to answer your questions or provide further explanation of banking terminology in various languages.
- Know how credit products work and how to start building credit
A constant source of frustration for newcomers Canada experience is the roadblocks caused by a lack of Canadian credit score history. The approval process to get a credit card and start building a credit score can often be slow and tedious, with foreign workers often required to have a pay stub before being approved. Scotiabank start right® program allows you to qualify for your first credit card with a limit of up to $15,000, without providing a credit history first. This will help you start building your credit score as soon as you arrive at Canada.
- Access online banking
Newcomers surveyed highlighted the need for additional assistance on how to effectively use and navigate banking tools such as the website and mobile app, make wire transfers, and use the tools investment online. Scotiabank offers online advice to help new customers get started with online banking.
- Explore the different credit card options that might be available to you
Lack of eligibility for premium credit cards was identified as another issue for newcomers. Canada. Despite saving money to cover their spending on the card, the required documents and immigration status meant they were often limited to entry-level credit cards with insufficient minimum credit limits for initial spending, in especially for those arriving with a family. Scotiabank offers a wide range of credit cards for newcomers, and a Scotiabank advisor can help you choose the right one for you.
- Beware of fraud
The new comers Canada are often looking for opportunities to generate revenue, but may be exposed to incidents of fraud. It is important to know how to recognize, reject and report the most common types of scams. In phishing scams, fraudsters posing as government agencies, banks, communication providers, or other businesses send text messages to potential victims tricking them into providing personal or financial information that can be used to commit financial crimes. Mail and loan scams offer the promise of financial gain for an upfront fee, but once these fees are paid, no money is paid out.