It may seem obvious that Canadians would jump ship from their current banks if they knew they could save money, but RateSupermarket.ca crunched the numbers and discovered just how much savings would be required for the vast majority to make the switch.
A recent survey by the mortgage comparison site found that 84 per cent of consumers would consider switching banks if they could save an average of $644.43; good news for brokers who have often battled with the consumer loyalty when competing for mortgage business.
“Canadians highly value trust and convenience when managing their money,” says Penelope Graham, Editor at RateSupermarket.ca. “It is perhaps the perception that they have history with their primary lender that makes them hesitant to shop around for the best products from multiple banks - a practice that is proven to save consumers money.”
The survey also found that 53 per cent of Canadians have been with their current institution for over ten years; however, 27 per cent said they “didn’t know” if their bank’s products and services were satisfactory.
The survey also found that:
- Canadians identify their “main bank” as where they do their chequing, with 91 per cent holding an account at their primary bank.
- 74 per cent also hold a savings account with their primary bank.
- 61 per cent of Canadians have a credit card with their main bank, with 30% of those holding more than one.
- 34 per cent of Canadians reported choosing their main credit card because it is offered by their primary bank, rather than a sign-up incentive or promotional offer.
- Despite this, 37 per cent said they weren’t sure if their primary credit card offers the best everyday value.
- 61 per cent of respondents consider switching banks to be a hassle.
- 72 per cent would consider it if it meant saving $200 or more, and 22 per cent said they’d need to save over $1,000 to switch their banking