First-hand experiences shared by newcomers
highlight the challenges of finding a solid financial
footing
TORONTO, July 27,
2022 /CNW/ - As Canada continues to rebuild from the
impact of the pandemic, immigration will act as a key economic
driver that can help address labour shortages and strengthen the
social and economic fabric of our communities.
Scotiabank recently conducted research to better understand the
experiences of newcomers as they move to Canada. This included in-depth interviews with
newcomers and the financial advisors that serve them, to learn more
about the unique challenges they face as they begin their life in
Canada.
The research revealed that newcomers most commonly experience
feeling worried, overwhelmed, and confused by their finances and
navigating through the Canadian banking system.
High rental costs, getting the right documentation and
identification, signing up for a mobile phone and credit card, and
finding employment were identified as the common challenges shortly
after arriving in Canada. The
research revealed that lack of knowledge of the financial system
and cultural norms exposed newcomers to financial fraud, targeting
them for internet and phone scams.
The research also revealed that newcomers take a long-term view
when it comes to achieving financial success in Canada.
"At Scotiabank, we want to help people new to Canada find their financial footing right from
the start because the long-term financial success of Canada depends on it," said Terri-Lee Weeks, Executive Vice President of
Retail Customer at Scotiabank. "We know that newcomers often
choose to come to Canada in the
hopes of experiencing 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 broader Canadian economy. We can help break down barriers
by providing the right advice and expertise."
The research found the top motivations for coming to
Canada include seeking out a
better quality of life and a better future, opportunities to grow a
career in Canada, and reunify
families. Scotiabank's StartRight®
Program provides targeted support to newcomers, from
unlimited no-fee international money transfers and no-fee accounts
for the first year to qualified and inclusive expertise from
welcoming advisors across the country.
Based on the top 5 challenges of starting right in Canada, Scotiabank has the following general
banking advice for newcomers wanting to set themselves up for
success beyond the basics:
- Build up your financial literacy
The Canadian
financial and banking system is vastly different from other
countries. With a slew of new abbreviations and terminology to
learn, newcomers can be confused by a seemingly complicated system.
Newcomers interviewed identified concise and easy-to-digest
explanations of Canadian banking terms as a positive factor in
assisting them to become financially literate in Canada. Scotiabank's
StartRight® webpage has a selection of
articles that can help new Canadians understand all facets of
Canadian banking. Scotiabank advisors are also always on hand to
answer any questions or provide further explanations of banking
terminology in a variety of languages.
- Know how credit products work and how to start
building credit
A consistent source of frustration for
newcomers to Canada experience is
the roadblocks caused by a lack of Canadian credit score history.
The approval process to obtain a credit card and start building a
credit score can often be slow and cumbersome, with foreign workers
often required to have a pay stub before being approved.
Scotiabank's StartRight® program allows you to be
eligible for your first credit card with a limit of up to
$15,000, without providing a credit
history beforehand. This will help get you started on building your
credit score immediately upon arrival in Canada.
- Get access to online banking
Newcomers interviewed
highlighted the need for extra assistance on how to effectively use
and navigate banking tools such as the website and mobile app, make
e-transfers, and utilize the online investing tools. Scotiabank has
online tips to assist new customers in getting up to speed on
online banking.
- Look at the various credit card options that could be
available to you
Lack of eligibility for premium credit
cards was identified as another issue for newcomers to Canada. Despite having financial savings to
cover their spending on the card, the required documents and
immigration status meant that they were often limited to
entry-level credit cards with minimal credit limits that were
insufficient for initial expenses, especially for those arriving
with a family. Scotiabank has a wide range of credit cards for
newcomers, and a Scotiabank advisor can help you decide which one
is right for you.
- Beware of fraud
Newcomers to Canada are often looking for opportunities to
generate income but can find themselves susceptible to incidents of
fraud. It is important to be aware of how to recognize, reject and
report the most common types of scams. Phishing scams see
fraudsters impersonating government agencies, banks, communication
providers or other companies send text messages to potential
victims to lure them into providing personal or financial
information that can be used to commit financial crimes. Mail and
Loan scams offer the promise of a financial gain for an upfront fee
but once that fee is paid, no money is given.
At Scotiabank, giving back and supporting our communities has
been a focus for over 190 years. Through ScotiaRISE, the Bank's
10-year $500 million initiative to
promote economic resilience among disadvantaged groups, Scotiabank
is providing support to organizations that are working to make sure
new Canadians can feel at home faster. Scotiabank has partnered
with organizations like Pathways to Education, the Afghan Women's
Organization, TalentLift Canada, Windmill Microlending and
Jumpstart Refugee Talent, all of whom are working towards a
collective goal to help newcomers navigate their new social and
financial circumstances. ScotiaRISE has supported nearly 200
charities, deployed $26 million in
community investments globally in its first year, and continues to
invest in community initiatives that are making a difference.
Methodology
Insights came from both quantitative and qualitative
research. An online survey was conducted with 403 Newcomers
in Canada for less than 5 years in
December 2021 to early January 2022. Additionally, individual interviews
were conducted with Newcomers in late January to early February 2022, as well as three focus groups with
Financial Advisors dedicated to serving Newcomers to Canada consumers in Ontario and BC.
About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our
purpose: "for every future", we help our customers, their families
and their communities achieve success through a broad range of
advice, products and services, including personal and commercial
banking, wealth management and private banking, corporate and
investment banking, and capital markets. With a team of over 90,000
employees and assets of approximately $1.3 trillion (as
of April 30, 2022), Scotiabank trades on the Toronto Stock
Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For
more information, please
visit http://www.scotiabank.com and follow us on
Twitter @ScotiabankViews.
SOURCE Scotiabank