Interac Survey: Newcomers lose financial confidence after arrival in Canada
TORONTO, Nov. 12, 2024 /CNW/ – Newcomers are experiencing challenges with their financial confidence. A recent survey by Interac Corp. (Interac) reveals that starting a new life in Canada can cause a significant drop in financial confidence for newcomers. While a majority (61 per cent) of newcomers surveyed felt financially confident when first arriving here, that confidence fell (31 per cent) after contending with the economic challenges of settling in Canada. The Interac survey highlights newcomers are disproportionately affected by financial barriers, with over eight in 10 (85 per cent) reporting at least one such barrier impacts their financial security, compared to over half (58 per cent) of the general Canadian adult population polled. This disparity underscores the importance of providing targeted support and resources to help newcomers build their financial confidence and successfully navigate the Canadian financial system. Adding to the complexity, financial knowledge and practices from a newcomer’s home country often don’t readily translate to the Canadian context. “Newcomers are calling for tailored support, with 54 per cent believing that financial resources should be designed by newcomers,” said Lauren Mostowyk, Head, Integrated Marketing & Communications at Interac. “This is why we’ve focused on providing comprehensive support systems through our partnerships with Credit Canada and ACCES Employment. These collaborations provide mentorship from experienced newcomers and free access to a tailored blend of resources, so we can help empower newcomers to build a strong financial foundation. Practical tools such as online courses covering Canadian banking basics (81 per cent) and budgeting apps for local expenses (77 per cent) are highly sought after by survey respondents. To support the need of available resources, Interac sponsored Credit Canada’s Butterfly app to provide newcomers with free access to the app’s resources. This multilingual resource is intended to empower newcomers to take control of their finances, from budgeting basics to cost-of-living resources and real-time currency conversion. Created by newcomers, for newcomers, the Butterfly app equips new Canadians with the knowledge and confidence to build financial success in Canada. In addition to practical resources, mentorship plays a vital role in newcomer integration, proving significantly more prevalent among newcomers (51 per cent of respondents have had a mentor) than the general Canadian population (31 per cent). For newcomers, mentors have been said to provide invaluable support in navigating language barriers (89 per cent), understanding Canadian currency (86 per cent), and avoiding financial scams (83 per cent). Mentors who have personally navigated the newcomer journey are crucial as one-third of newcomers feel current financial resources don’t reflect their realities, and over half find their needs evolve over time. ACCES Employment is dedicated to tailored mentorship opportunities and has worked with Interac for over five years to scale programming and reach more newcomers. “ACCES Employment serves as an important resource to support newcomers navigating the Canadian job market and re-establish their financial confidence. We empower newcomers to overcome employment barriers, build strong professional networks, and achieve lasting career success in Canada. Our partnership with Interac has been instrumental in expanding our programs and services for newcomer job seekers, including connecting newcomers with experienced mentors,” said Allison Pond, President & CEO, ACCES Employment. About the Interac research An online nationwide survey was conducted by Discover among 1,459 respondents, age 18 years and older. The sample was comprised of a core sample of 1,000 Canadian adults (representative of the Canadian adult population according to the most recent Statistics Canada census data), plus an oversample to result in a subgroup total of 500 newcomers/new Canadians (defined as those who immigrated to Canada after age 18 and have lived in Canada for less than 10 years). The survey was fielded in English and French from October 10 to October 23, 2024. To learn more, visit In The Know.
