Canadians switching banks more often as they chase better rates and easier apps
A new Environics study finds one in four Canadians opened banking services at a different institution in the past year. Consumers cite fees, rates and easier online banking.
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By Torontoer Staff
More Canadians are moving their money to new institutions, according to a large Environics Research study. About 24 per cent of respondents said they switched to a bank that was not their primary financial institution in the previous 12 months, the highest level in the 20 years the survey has run.
That behaviour is shifting the balance of power in retail banking. Fintechs, credit unions and smaller banks are attracting customers who once stuck with one of the Big Six, while established banks face pressure to prioritise keeping clients rather than simply recruiting new ones.
The data in plain terms
Environics surveyed 45,000 people in 2025. Overall, 57 per cent had opened a new bank account or banking product in the prior 12 months. Of those, 33 per cent stayed with their primary financial institution while 24 per cent moved to a different bank. That 24 per cent figure is up three points from 21 per cent in both 2021 and 2023.
The study notes a particular rise in Canadians opening new chequing accounts at competitors. Environics warns that chequing relationships tend to cascade into other accounts and services, making them a crucial battleground for customer loyalty.
In the 20 years we’ve been running this study, it’s the highest incidence ever of those switching a financial account; 24 per cent, or one in four Canadians, are choosing to go with a financial institution that is not their primary bank.
Heidi Wilson, vice-president, Environics Research financial services
Why people are moving
Price remains a key motivator, but convenience and service are also significant. Respondents cited better rates and lower fees, along with smoother online banking and a sense their business was appreciated. For many customers, a better app and straightforward digital tools are now as important as interest rates.
- Lower fees and better interest on savings and chequing accounts
- Easier online and mobile banking experiences
- Clear communication and perceived appreciation from their bank
- Promotions or incentives, though these are less decisive than service
- Simpler switching processes for chequing accounts
It is about what is going to work best for me.
Heidi Wilson, vice-president, Environics Research financial services
What this means for banks and customers
Banks have traditionally spent heavily on acquisition: sign-up bonuses, devices and limited-time offers. Environics argues a better long-term strategy is investment in retention, through improved digital tools, customer service and targeted offers for loyal clients.
The federal government is also pushing for change. The latest budget included measures aimed at increasing competition, including steps to cut fees and simplify switching chequing accounts. That regulatory nudge should make it easier for consumers to move core banking relationships.
Financial institutions spend millions each year luring in new customers. What are they offering their loyal customers who have been with them for years? This is something I expect will change in 2026 and ’27.
Heidi Wilson, vice-president, Environics Research financial services
How to decide whether to switch
If you are thinking about moving accounts, consider these practical steps. They will help you weigh potential savings against the hassle of switching and ensure you keep access to services you use regularly.
- Compare fees and rates across accounts you actually use, not headline promotions.
- Test the bank’s mobile app and online banking before you move major balances.
- Check whether automatic payments, direct deposits and linked accounts will transfer easily.
- Ask about loyalty rewards or long-term customer benefits at your current bank.
- Use government and bank switch tools to simplify moving a chequing account.
What to watch for next
With immigration levels lower than in recent years, banks must increasingly compete for existing customers rather than rely on a steady influx of new ones. Expect more targeted retention offers, improvements in mobile banking, and clearer switching paths over the next two years.
For consumers, the upshot is more leverage. If you feel rates, fees or service are not competitive, switching is now easier and more common. For banks, the message is clear: hold on to today’s customers by making everyday banking simpler and more rewarding.
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