Banks Miss Opportunities with Mass Affluent Newcomers to Canada

Marlborough, Massachusetts, UNITED STATES

TORONTO, Dec. 05, 2018 (GLOBE NEWSWIRE) -- DALBAR Inc. announced the release of its 2018 Newcomers to Canada: Retail Branch Experience study. A follow-up to an earlier 2014 Newcomers study, this year’s study was undertaken to identify trends and best practices in retail branch experiences for Newcomers to Canada with mass affluent backgrounds. Seven Canadian banks were tested, BMO, CIBC, RBC, Scotiabank, TD, HSBC, and National Bank. Newcomers were required to open a chequing account and apply for a credit card, two important banking products to own upon arriving in Canada. DALBAR found no clear winners amongst the seven banks. Similar to the previous study, bank representatives remained reactive to Newcomers’ service needs. Key trends observed:

1) Only 45% of representatives attempted to assess the net worth of the Newcomers
2) Only 17% proactively discussed mortgages with mass affluent Newcomers
3) Only 26% of representatives shared information on investments (term deposits, mutual funds)

The study also points out the missed opportunities by bank representatives to better understand the evolving needs of mass affluent Newcomers. “Mass affluent Newcomers have a unique set of needs that can often be overlooked. Asking a few simple questions upfront can change the direction and engagement level of the conversation altogether,” said Anita Lo, Vice President, Canada at DALBAR. The 2018 Newcomers to Canada: Retail Branch Experience study confirms that while Newcomers are a valuable asset to the Canadian economy, the banks can do a better job at tailoring the service experience to their evolving needs.

DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, DALBAR has earned the recognition for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of a superior standard of care in the financial community.

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