financial services among new canadians · an overseas bank account with rbc, td, cibc, bmo,...

Financial Services among New CanadiansAn Environics Syndicated Study

Sample Slides forThe Investment Report

2015 Chinese Report – Copyright Environics Research Group 2015

2

60%

36%

36%

83%

54%

75%

44%

78%

76%

72%

31%

42%

34%

41%

40%

26%

12%

34%

29%

37%

18%

Residential mortgage for your home of residence

Personal (unsecured) line of credit

Personal loan (car loan, etc.)

Student line of credit

Home equity (secured) line of credit

Residential mortgage for your investment

properties

We don't use any of these products/don't borrow

any money

2015 2014 2013

Financial Products and Services Used

QE1B. Please identify which, if any, borrowing or credit products and services your household currently uses.

/ : Significantly higher/lower than 2014 study, at 95% confidence level

Base: All Chinese Respondents –2013 (582), 2014 (503), and 2015 (512)


3

Financial Goals

B1. Below is a list of possible financial goals. For each, please indicate if it is one of your financial goals for the next 5 years

Financial Goals (for the next 5 years):

50%

83%

36%

38%

59%

82%

73%

46%

77%

53%

41%

60%

34%

54%

57%

75%

53%

43%

None/DK/NA

Saving to move back to homeland

Saving for a wedding

Saving to send money back to homeland

Saving for a baby

Saving for your own education

Starting/owning a business

Saving or paying off home renovation

Saving for expenses related to aging parents

Paying down debts other than a mortgage

Saving for your children's education

Paying down mortgage

Saving in the event of illness or death in your family

Saving to buy a home

Buying or leasing a car

Saving for retirement

Having enough money to cover your daily expenses

Saving for a major purchase other than a home or car

Base Size: All Chinese newcomers n=512

Data table dives into tenure, ethnicity and

region to follow in actual report


4

58%

34%

34%

48%

46%

54%

54%

47%

42%

46%

56%

56%

33%

51%

44%

None

I am willing to pay for advice regarding my financial investments.

I trust that financial services firms are looking out for my best interests.

I don't have a good understanding of the finance options available to me when purchasing

a car.

I prefer to use a variety of different financial institutions.

I prefer to spread my financial dealings across several financial advisors who are specialists

in different areas.

I don’t take the time I should to manage my finances.

I find investing and personal finance interesting and know quite a lot about it.

When it comes to getting financial advice, I would rather deal with someone with the same

cultural background as me.

I always look for new offers and check that I’m getting the best deal from my advisor.

I put my majority of savings in the saving accounts or other guaranteed/low risk investments

I consider real estate a simple and effective way to invest my money.

I prefer to pay up front when I buy things so I don’t worry paying back credit debt.

I prefer to use a credit card that offers a reward like travel, merchandise, cash back etc.

I almost always pay off the full balance owing on my credit card.

Approaches to Finances and Investment

B2. People have different approaches to finances and investment. Below are some statements describing some of these approaches.

Please use the scale below to tell us how well each statement describes you:

How well does each statement describe you? (Top 2 Box):





5


QE1A. Please indicate what financial products or services you and your household currently have? By household, we mean you or any

other member of your household.

Please indicate what financial products or services you and your

household currently have:

19%

75%

43%

71%

52%

72%

26%

20%

62%

31%

69%

38%

60%

48%

26%

78%

16%

Offshore assets

RRIFs

An overseas bank account with RBC, TD, CIBC, BMO, Scotiabank or HSBC

Business accounts

Bonds

Cash holdings or treasury bills

Individually held stocks

Overdraft protection

Online brokerage

Safety deposit box

RESPs

Guaranteed Investment Certificates (GICs)

Mutual funds

RRSPs

TFSA

Savings account

Chequing account





6

$359,800 $330,700

$429,400

$297,900 $262,500

$191,400

$297,500 $315,500 $323,800

$219,000

$266,000

TOTAL 0-3 yrs 4-10 yrs 11+ yrs Ontario B.C. Quebec Prairies 18-35 36-55 56+

Registered Investment Balance

QE1D. Think of all the financial products and service you just specified. Can you select the range that best reflects the amount you and

your family currently have in each of following category? Your best estimate is fine.

TENURE PROVINCE AGE

Base Size (219) (59*) (56*) (104) (87) (60*) (32*) (40*) (80) (132) (7*)

Base Size: All Chinese newcomers with mortgage

Amount in Registered Investments (mean):

*Caution: Low base size

$386,900

$468,900

$345,600

$260,800 $269,300

$195,000$219,200

$390,700$417,400

$230,300

$422,700

$298,000

TOTAL MainlandChina

HongKong Other <45k 45k-<100k 100k+ TD RBC CIBC BMO Scotia

Base Size (219) (136) (54*) (29*) (45*) (88) (56*) (63*) (41*) (31*) (42*) (11*)

MAIN FINANCIAL INSTITUTIONINCOMESOURCE COUNTRY


7


QE1B. Please identify which, if any, borrowing or credit products and services your household currently uses.

Non-Registered Investments by Tenure:

20% 21%

19%20%

26%

33%

15%

24%

16%

20% 22%

16%

37% 34%

40%

0-3 Years 4-10 Years 11+ Years

Mutual Funds

GICs, term deposits etc.


Bonds

Cash holdings or t-bills

Base Size: All Chinese newcomers; 0-3yr=152, 4-10yr=103, 11+yr=257


8

$29,300

$59,000

$45,200

$71,700

$57,400

$91,000 $86,500

$31,800

$86,500

$30,200

$18,100

TOTAL 0-3 yrs 4-10 yrs 11+ yrs Ontario B.C. Quebec Prairies 18-35 36-55 56+

Non-Registered Investment Balance

QE1D. Think of all the financial products and service you just specified. Can you select the range that best reflects the amount you and

your family currently have in each of following category? Your best estimate is fine.

TENURE PROVINCE AGE

Base Size (255) (66*) (54*) (135) (80) (75) (55*) (45*) (115) (127) (13*)

Base Size: All Chinese newcomers with lending products

Amount in Non-Registered Investments (mean):


$114,000 $112,300

$95,200

$18,900

$110,900

$70,200

$50,100

$130,400

$112,800

$37,500

$145,600

$39,600

TOTAL MainlandChina

HongKong Other <45k 45k-<100k 100k+ TD RBC CIBC BMO Scotia

Base Size (255) (151) (62*) (42*) (78) (92) (44*) (71*) (50*) (32*) (37*) (16*)

MAIN FINANCIAL INSTITUTIONINCOMESOURCE COUNTRY


9

12%12%

19%

20%

11%

15%

12%

17%

10%

0-3 Years 4-10 Years 11+ Years

Online Brokerage

Overseas account

Offshore Assets


QE1A. Please indicate what financial products or services you and your household currently have? By household, we mean you or any

other member of your household.

Other Products:

Base Size: All Chinese newcomers; 0-3yr=152, 4-10yr=103, 11+yr=257


10

Financial Products and Services Not Used

QE10. Below are some financial products and services that you currently do not have/use. Would you consider using any of them in the

next 12 months or so? What about in the next 5 years?

Consideration of using products:

20%

25%

15%

25%

5%

24%

17%

26%

10%

18%

22%

11%

15%

22%

12%

39%

47%

46%

21%

46%

45%

50%

47%

31%

17%

15%

10%

29%

25%

7%

12%

7%

12%

17%

25%

9%

30%

22%

20%

25%

12%

28%

13%

12%

22%

27%

22%

15%

23%

12%

65%

65%

56%

50%

88%

64%

76%

62%

73%

57%

69%

59%

63%

58%

63%

49%

25%

41%

67%

32%

28%

28%

38%

46%

71%

Offshore assets (financial assets invested outside of Canada)

Student line of credit

Relationship manager or financial advisor/planner

Business accounts

An overseas bank account

Home equity (secured) line of credit

Cash holdings or treasury bills

Bonds

Residential mortgage for your investment properties

Online brokerage

Personal (unsecured) line of credit

Residential mortgage for your home of residence

RRIFs (Registered Retirement Income Fund)

Personal loan (car loan, etc.)

RESPs (Registered Education Savings Plan)

Overdraft protection

GIC's, term deposits or insurance company certificates

Safety deposit box

Mutual funds


RRSPs (Registered Retirement Savings Plan)

TFSA (Tax Free Savings Account)

Savings account

Chequing account

Credit card

In the next 12 months In the next 2-5 years Would not consider




11

Financial Planner/Advisor Usage

QE4A. Which of the following types of companies do you use for managing your finances?

Which of the following best describes how you invest?

39%

25%

47%

8%

29%

33%

19%

15%

Other

Private banking/private counsel organizations

Discount brokerages/direct investing companies

Full service investment companies/brokers

Insurance companies

Financial advice/planning companies

Banks and you have an advisor/planner assigned to you

Banks but you do not have an advisor/planner assigned

to you





12

Financial Planner/Advisor Usage

QE4B. Thinking back when choosing a financial advisor or institution to use for managing your investments, what did you do to help you

decide?

Choosing a financial advisor or institution:

33%

16%

27%

8%

19%

28%

9%

22%

8%

18%

29%

32%

40%

22%

24%

31%

29%

20%

17%

Other

Went with the Financial Institution that had a specific investment product

Attended seminars

Went with the Financial Institution that had the best online Direct Investing platform

I prefer to work with multiple institutions/advisors

Interviewed various advisors and chose one that’s a good match for my objectives

I prefer to manage my own investments online and chose the Financial Institution with…

Searched for an advisor who could speak my language

Knew the advisor

Went with the Financial Institution that had the most competitive fees

I chose a financial advisor that I’d like to work with first

Conducted online research - Newspapers and magazines

Conducted online research - Financial institutions’ websites

Conducted online research - General interest websites

Net: Researched Online

Listened to a recommendation from my bank manager

Relied on the reputation of the advisor/financial institution

I simply chose to work with a bank that I used without much thinking

Listened to a recommendation by a family member or friend

Base Size: All Chinese newcomers who use the service of a financial planner/advisor n=244




13

Language of Financial Planner/Advisor

QE7. Does your financial planner/financial advisor, or the person you deal with most often if you use more than one, speak your native

language?

Does your financial planner/financial advisor speak your native

language?

No

12%

Yes

88%

Base Size: All Chinese newcomers who use the service of a financial planner/advisor = 244

TENURE PROVINCE

TOTAL 0 - 3Years 4 - 10Years 11+Years Ontario BC QC Prairies

(A) (B) (C) (D) (E) (F) (G) (H)

Base 244 68* 42* 134 85 77 32* 50*

Yes

No

SOURCE COUNTRY AGETOTAL Main.Chinese HongKong Other 18-35 36-55 56+

(A) (I) (J) (K) (L) (M) (N)Base 244 128 72* 44* 97 127 20*

Yes

No

MAIN FI HOUSEHOLD INCOMETOTAL TD RBC CIBC BMO Scotia HSBC <$45K $45K-

<$100K

$100K+

(A) (O) (P) (Q) (R) (S) (V) (W) (X) (Y)Base 244 56* 47* 35* 41* 16* 22* 59* 101 47*

Yes

No



14

The Newcomer Report

TENURE QUOTAS:

0-1 year – 200

2 years – 200

3 years – 200

4-5 years – 200

6-10 years – 200

ETHNICITY QUOTAS:

South Asian – 250

Chinese – 250

Filipino – 250

Other – 250

REGIONAL QUOTAS:

Ontario – 300

Quebec – 300

British Columbia – 300

Alberta, Manitoba &

Saskatchewan – 300

With a focus on the total past 10-year newcomer market and paying specific attention to past

1-year new arrivals and first Canadian bank account opening dynamics, Environics Research

Group will conduct an online survey with a total of 1,000 recent immigrants who landed in

Canada no more than 10 years ago.

INVESTMENT: $55,000


15

The Chinese and South Asian Canadians Report

With a focus on the two largest cultural groups in Canada and the ability to deep dive by

tenure, region and other subgroups of interest (e.g. Cantonese vs. Mandarin speaking

Chinese), Environics Research Group will conduct an online survey with a total of 1,000

recent immigrants (500 each for Chinese and South Asian).

TENURE QUOTAS:

0-3 years – 150

4-10 years – 100

11+ years – 250

REGIONAL QUOTAS:

Ontario – 150


Quebec – 150

Alberta – 150

INVESTMENT: $55,000


16

The Lending Report

TENURE QUOTAS:

0-1 year – 200

2 years – 200

3 years – 200

4-5 years – 200

6-10 years – 200

11+ years - 500

ETHNICITY QUOTAS:

South Asian –500

Chinese –500

Filipino – 250

Other – 250

REGIONAL QUOTAS:

Ontario – 500

Quebec – 300


Alberta, Manitoba &


With a focus on lending products – including attitudes towards borrowing and product usage

behaviours – and the ability to deep dive by tenure, ethnicity and region, Environics

Research Group will conduct an online survey with a total of 1,500 immigrants.

INVESTMENT: $35,000


17

The Investment Report

TENURE QUOTAS:

0-1 year – 200

2 years – 200

3 years – 200

4-5 years – 200

6-10 years – 200

11+ years - 500

ETHNICITY QUOTAS:

South Asian –500

Chinese –500

Filipino – 250

Other – 250

REGIONAL QUOTAS:

Ontario – 500

Quebec – 300


Alberta, Manitoba &


With a focus on investment products – including attitudes towards investment and product

usage behaviours – and the ability to deep dive by tenure, ethnicity and region, Environics

Research Group will conduct an online survey with a total of 1,500 immigrants.

INVESTMENT: $35,000

Contact:

Bernice Cheung

VP, Cultural Markets

[email protected]

Tel: 416.969.2841

Mobile: 416.844.6396

http://environicsresearch.com/insights/newcomer-study/

Environics Research Group

33 Bloor Street East, Suite 900

Toronto, Ontario M4W 3H1

financial services among new canadians · an overseas bank account with rbc, td, cibc, bmo,...

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