Financial Wellness
Canadians who might be lower on the digital curve need help in strengthening their digital literacy, which has become an important component of overall financial wellness. istock.com
Through ordinary and extraordinary times: Canada’s banks are guiding Canadians on the path to financial wellness
The coronavirus pandemic put the key concept of “financial wellness” sharply into focus for many Canadians and for the financial institutions that support them. The shockwaves that disrupted public health quickly spread to economic disruption, and for many Canadians, the result was at least some degree of financial hardship and eroded confidence in their ability to manage their finances.
Banks in Canada quickly took on a central role in managing the financial impacts of the COVID-19 crisis – for the country as a whole and by offering tailored supports and services for their customers. They worked with the federal government to ensure the rapid and secure delivery of emergency supports. Further, they provided one-on-one services and resources to customers who needed guidance, many urgently, on how to cushion the economic blow of the pandemic and build a bridge to recovery.
“Canada’s banks have for decades been committed to supporting the financial well-being of their customers,” says Mathieu Labrèche, director, media strategy, with the Canadian Bankers Association (CBA).
“Banks recognize their responsibility to help individuals and small businesses financially succeed at every step – to stand by them through ordinary and extraordinary times, through expected and unexpected changes in their financial lives,” says Mr. Labrèche.
“The pandemic was certainly ‘extraordinary’ – the most urgent challenge our country has faced in recent memory. It amplified the financial stresses that many Canadians were already facing, the types of challenges that banks help Canadians manage every day.”
Building a bridge to recovery included providing hundreds of thousands of customers with flexible payment plans for their mortgages and other forms of credit. More than 800,000 homeowners were supported under the banking sector’s mortgage-relief program, and case-by-case support is continuing as the country moves to economic recovery.
“Whatever it is, the way you tell your story online can make all the difference.”
Promoting financial wellness by bolstering financial skills and confidence
Canada’s banks have several programs, resources and tools designed to help Canadians strengthen their financial knowledge, skills and confidence. The goal is to foster better “financial literacy,” the foundation for achieving financial goals, acquiring resilience to deal with setbacks, and ultimately, to reach a state of financial wellness.
Millions of Canadians turn to banks every day for financial services and advice, with 99 per cent of Canadian adults having an account with a banking institution. “This is where banks’ financial literacy work begins – in their daily interactions with their clients,” says Mr. Labrèche.
The CBA also delivers two notable programs aimed at fostering financial literacy and well-being: Your Money Students and Your Money Seniors. Through the student program, bank employees volunteer to share financial knowledge about budgeting, saving, responsible use of credit and fraud prevention in visits to classrooms of students in grades 10 to 12. Your Money Students was launched in 1990, and over that time, volunteers have delivered more than 8,600 seminars to almost 260,000 students in high school classrooms across Canada.
In 2014, the CBA launched Your Money Seniors, through which volunteers deliver seminars to older adults in community settings, such as public libraries or retirement homes.
“The program provides older Canadians with crucial information on how to protect themselves against financial abuse, how to make the most of their retirement income, and how to protect their sensitive information online,” Mr. Labrèche explains.
“Banks recognize their responsibility to help individuals and small
businesses financially succeed at every step – to stand by them.”
Digital literacy and fraud prevention also keys to financial wellness
While the digitalization of society pre-dates the pandemic, it has certainly accelerated it. As more people rely on connected devices and online services, strengthening digital literacy and detecting online fraud become more important than ever.
“Canadians who might be lower on the digital curve need help in strengthening their digital literacy, which has become an important component of overall financial wellness,” he says. “The CBA and banks actively provide information and education to help customers feel more comfortable online and use safe online practices.”
Canadian banks have invested in key security upgrades to bolster cyber defences. The country’s six largest banks have invested more than $100-billion in technology over the last decade; a significant portion of that strengthens their cyber security. At the same time, in an increasingly connected world, digital fraud prevention is a shared responsibility, says Mr. Labrèche.
“That is why the banks are accelerating their digital literacy education and why they actively share information on common scams and frauds. Some Canadians still need help understanding that simple steps can make a big difference in protecting their personal and financial information online.”
To view the full report as it appeared in The Globe's print edition: Financial Wellness