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National Financial Literacy StrategyAdopter details
All adopters
Financial Consumer Agency of Canada (FCAC)
Financial Consumer Agency of Canada (FCAC) is an independent federal government agency responsible for protecting the rights and interests of consumers of financial products and services. It supervises federally regulated financial entities, such as banks, and strengthens the financial literacy of Canadians.
Organization type
- Government
Country
- Canada
Related priorities
This adopter has contributed to the following priorities and target outcomes of the National Financial Literacy Strategy:
Priority 1
Communicate in ways people understand
Target outcome 1.1- Target outcome 1.2
- Target outcome 1.3
Priority 2
Build and provide for diverse needs
- Target outcome 2.1
- Target outcome 2.2
- Target outcome 2.3
Priority 3
Support increased digital access and digital literacy
- Target outcome 3.2
- Target outcome 3.3
Priority 4
Enhance access to trustworthy and affordable financial help
- Target outcome 2
- Target outcome 4.1
- Target outcome 4.2
- Target outcome 4.3
Priority 5
Use behavioural design to simplify financial decisions
- Target outcome 5.3
Priority 6
Strengthen consumer protection measures
- Target outcome 6.1
- Target outcome 6.2
- Target outcome 6.3
2 out of every 3 Canadians in debt don’t seek professional advice.
2 out of every 3 Canadians in debt don’t seek professional advice.
Source: COVID-19 Financial Well-Being Survey
Almost 1 in 3 Canadians face challenges as a result of branch closures.
Source: Survey of Canadians' Use of Banking Products and Services
Canadians want to understand the impact of services on their credit score.
Source: Pilot Study: Buy Now, Pay Later Services in Canada, Survey of Canadians' Use of Banking Products and Services, Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Credit card sign-ups are better understood than rights to limit increases.
Source: Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Digital nudges can help consumers build savings.
Digital nudges can help consumers build savings.
Source: Canadian Financial Capability Survey, Canadian Internet Use Survey, Financial Well-Being Survey
Fewer than half of Canadians shop around for a credit card before applying.
Fewer than half of Canadians shop around for a credit card before applying.
Source: Canadian Financial Capability Survey
Homebuying costs are unclear to many.
Homebuying is often seen as a significant milestone, a dream come true for many. However, the journey to owning a home is fraught with challenges that can make the process daunting and stressful. One of the primary hurdles is finding the right property. With countless options available, each with its own set of pros and cons, prospective buyers must navigate a sea of choices to find a home that fits their needs, preferences, and budget.
Financial considerations add another layer of complexity. Securing a mortgage is not always straightforward, as it involves thorough scrutiny of one's financial health, credit score, and income stability. The process can be time-consuming and stressful, especially for first-time buyers who may not be familiar with the intricacies of mortgage applications and approvals.
The real estate market itself can be unpredictable. In a seller's market, competition among buyers can be fierce, leading to bidding wars that drive up prices. This can be particularly disheartening for buyers with limited budgets, as they may find themselves outbid on multiple properties. Additionally, market fluctuations can affect property values, making it difficult to determine the best time to buy.
Legal and administrative hurdles also pose significant challenges. The homebuying process involves a myriad of paperwork, including contracts, disclosures, and inspections. Each document requires careful review and understanding to avoid potential pitfalls. Missteps in this area can lead to costly mistakes or even legal disputes.
Unexpected costs are another common issue. Beyond the purchase price, buyers must consider expenses such as closing costs, property taxes, insurance, and potential repairs or renovations. These additional costs can strain a buyer's budget and add to the overall stress of the process.
Emotionally, homebuying can be taxing. The investment of time, money, and energy, coupled with the uncertainty and potential setbacks, can lead to anxiety and frustration. The emotional rollercoaster of finding a dream home, only to lose it to another buyer, can be particularly challenging.
Despite these obstacles, the reward of owning a home often outweighs the difficulties. The sense of stability, the freedom to personalize one's living space, and the potential for long-term financial benefits make the effort worthwhile. With careful planning, patience, and the right support, the dream of homeownership can become
Source: Canadian Financial Capability Survey, Mortgage Consumer Survey
Many Buy-Now-Pay-Later users don’t understand all aspects of the service.
Source: Pilot Study: Buy Now, Pay Later Services in Canada
Many Canadians do not understand their rights with respect to credit card protection insurance.
Source: Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Many Canadians with a disability have difficulty banking.
Source: Survey of Consumers' Awareness of their Financial Rights and Responsibilities, Survey on Savings for Persons with Disabilities
Most people don’t know when it’s financially beneficial to borrow money.
Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.Most people don’t know when it’s financially beneficial to borrow money.
Source: Canadian Financial Capability Survey
Most people prepare for retirement, but fewer than half of them know how much to save.
Most people prepare for retirement, but fewer than half of them know how much to save.
Source: Canadian Financial Capability Survey
Only half of Canadians know there is a government agency to protect financial consumers.
Source: Survey of Canadians' Use of Banking Products and Services
3% of Canadians were victims of a pyramid or Ponzi scheme.
Initiative: Canadian Financial Capability Survey
Adopter: Financial Consumer Agency of Canada (FCAC)
65% of QUBER users accepted and successfully completed a saving challenge, and of those, 80% continued with other saving goals.
Initiative: Canadian Financial Capability Survey
Adopter: Financial Consumer Agency of Canada (FCAC)
85% of those shopping for chequing accounts and 80% of those shopping for credit cards said the recommendations they received were appropriate.
Initiative: Mystery Shopping at Domestic Retail Banks
Adopter: Financial Consumer Agency of Canada (FCAC)
About 40% of Canadians compared credit cards from different companies before applying.
Initiative: Canadian Financial Capability Survey
Adopter: Financial Consumer Agency of Canada (FCAC)
About 40% of Canadians understand when it is financially beneficial to borrow money.
Initiative: Canadian Financial Capability Survey
Adopter: Financial Consumer Agency of Canada (FCAC)
About 70% of Canadians say they are financially preparing for retirement.
Initiative: Canadian Financial Capability Survey
Adopter: Financial Consumer Agency of Canada (FCAC)
About 75% of Canadians understand what lowers house mortgage costs.
Initiative: Canadian Financial Capability Survey
Adopter: Financial Consumer Agency of Canada (FCAC)
Among Canadians who have debt, 30% of them sought advice from financial professionals to help them manage debt.
Initiative: COVID-19 Financial Well-Being Survey
Adopter: Financial Consumer Agency of Canada (FCAC)
Awareness remains highest among consumers that a bank cannot issue a credit card without the client’s prior approval (78%, unchanged from 2019).
Initiative: Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Adopter: Financial Consumer Agency of Canada (FCAC)
Awareness remains highest among consumers that banks are required to provide easy-to-understand information on the cost of financial products and services they offer (81%, unchanged from 2019).
Initiative: Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Adopter: Financial Consumer Agency of Canada (FCAC)
Awareness remains lowest among consumers that credit card protection insurance does not always cover the outstanding balance on their card (32% are aware, which is not a statistically significant change since 2019).
Initiative: Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Adopter: Financial Consumer Agency of Canada (FCAC)
Consumers' understanding that a bank cannot increase their credit card limit without their approval has declined since 2019 (down 3 points to 57% versus 60%).
Initiative: Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Adopter: Financial Consumer Agency of Canada (FCAC)
Consumers' understanding that they do not have to agree to credit card protection when applying for a card has declined since 2019 (down 5 points to 64% versus 69%).
Initiative: Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Adopter: Financial Consumer Agency of Canada (FCAC)
Fewer than 10% of Canadians reported using a Buy-Now-Pay-Later service during 2021. Among them, about 10% found it difficult to understand the total cost of the service.
Initiative: Pilot Study: Buy Now, Pay Later Services in Canada
Adopter: Financial Consumer Agency of Canada (FCAC)
Fewer than 10% of Canadians reported using a Buy-Now-Pay-Later service during 2021. Among them, about 10% found it difficult to understand their payment schedule.
Initiative: Pilot Study: Buy Now, Pay Later Services in Canada
Adopter: Financial Consumer Agency of Canada (FCAC)
Fewer than 10% of Canadians reported using a Buy-Now-Pay-Later service during 2021. Among them, about 20% found it difficult to understand the penalties or interest charges for missed or partial payments.
Initiative: Pilot Study: Buy Now, Pay Later Services in Canada
Adopter: Financial Consumer Agency of Canada (FCAC)
Fewer than 10% of Canadians reported using a Buy-Now-Pay-Later service during 2021. Among them, about 35% found it difficult to understand how to resolve a potential dispute.
Initiative: Pilot Study: Buy Now, Pay Later Services in Canada
Adopter: Financial Consumer Agency of Canada (FCAC)
Fewer than 10% of Canadians reported using a Buy-Now-Pay-Later service during 2021. Among them, about 45% found it difficult to understand the impact of using the service on their credit score.
Initiative: Pilot Study: Buy Now, Pay Later Services in Canada
Adopter: Financial Consumer Agency of Canada (FCAC)
Fewer than 10% of Canadians reported using a Buy-Now-Pay-Later service during 2021. Among them, most used credit card, linked bank account, or online bill payment to make scheduled payments. However, about 10% found it difficult to understand how their payments would be made.
Initiative: Pilot Study: Buy Now, Pay Later Services in Canada
Adopter: Financial Consumer Agency of Canada (FCAC)
Fewer than 10% of Canadians reported using a Buy-Now-Pay-Later service during 2021. Most of them understood the amount of each scheduled payment.
Initiative: Pilot Study: Buy Now, Pay Later Services in Canada
Adopter: Financial Consumer Agency of Canada (FCAC)
Fewer than 50% of Canadians know how much money to save for retirement.
Initiative: Canadian Financial Capability Survey
Adopter: Financial Consumer Agency of Canada (FCAC)
From 2020 to 2021, 30% of Canadians faced challenges as a result of branch closures, including challenges that could potentially have been avoided if they had had means to manage their finances online (e.g., depositing cheques, accessing funds).
Initiative: Survey of Canadians' Use of Banking Products and Services
Adopter: Financial Consumer Agency of Canada (FCAC)
In 2021, one in five Canadians with a health condition said their condition made it difficult to deal with their bank.
Initiative: Survey of Consumers' Awareness of their Financial Rights and Responsibilities
Adopter: Financial Consumer Agency of Canada (FCAC)
Just over half of Canadians (55%) said they are aware the Government of Canada has a department or agency dedicated to protecting its financial consumers. Among the rest, approximately one-third (35%) did not know and 10% said no there is no such department or agency.
Initiative: Survey of Canadians' Use of Banking Products and Services
Adopter: Financial Consumer Agency of Canada (FCAC)
Of the Canadians who contacted their bank for pandemic-related financial assistance, 52% received it. However, 8% turned down the offer for various reasons, such as the cost, concern about damaging their credit score, and the effort involved.
Initiative: Survey of Canadians' Use of Banking Products and Services
Adopter: Financial Consumer Agency of Canada (FCAC)
Seniors (68%) were more likely than non-seniors (62%) to agree that bank employees have the knowledge and skills to help them identify signs of financial abuse, fraud, or scams.
Initiative: Survey on Banking of Canadians
Adopter: Financial Consumer Agency of Canada (FCAC)
FCAC recommended measures
These measures were created to support the goal of Strategy-Alignment.
Pilot Study: Buy Now, Pay Later Services in Canada
The Pilot Study: Buy Now, Pay Later Services in Canada is a survey from the Financial Consumer Agency of Canada. It aimed to broaden the Agency's understanding of the buy now, pay later market in Canada, from the perspective of Canadian consumers.
Survey of Consumers' Awareness of their Financial Rights and Responsibilities
The Survey of Consumers' Awareness of their Financial Rights and Responsibilities gathers evidence of certain financial rights and responsibilities, highlights potential gaps in consumers’ awareness of certain financial risks identified in the Financial Consumer Agency of Canada's industry review of bank sales practices, and assesses results against the baseline established in 2019.
Canadian Financial Capability Survey
The 2019 Canadian Financial Capability Survey is designed to shed light on Canadians’ knowledge, abilities and behaviours as they relate to making financial decisions. A key objective is to assess how Canadians are doing on indicators of financial well-being and inform ongoing efforts aimed at strengthening their financial literacy.
Mystery Shopping at Domestic Retail Banks
The goal of the mystery shopping project is to better understand how frontline bank employees sell financial products and services and how consumers experience the sales process.
Survey of Canadians' Use of Banking Products and Services
The Survey of Canadians’ Use of Banking Products and Services is designed to collect information during the pandemic about how Canadians are consuming financial products during the pandemic and to what extent they are accessing COVID-19-related financial assistance offered by the banks.
COVID-19 Financial Well-Being Survey
The COVID-19 Financial Well-Being Survey is a monthly survey designed to collect information during the pandemic about Canadians' day-to-day financial management and financial well-being.
Survey on Banking of Canadians
The Survey on Banking of Canadians assesses the banking experiences of older Canadians as well as to identify challenges and potential solutions.
Disclaimer
Disclaimer: The Financial Consumer Agency of Canada does not endorse, directly or indirectly, any adopters of the Measurement Plan, nor does it make any representations or warranties, express or implied, concerning the adopters' products or services or their fitness for a particular purpose.
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