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Brand Perceptions of Canadian Financial Service Institutions - Canada - May 2015

Published By :

Mintel

Published Date : May 2015

Category :

Banking

No. of Pages : 89 Pages

Although there is a common perception that all banks are the same, a more in-depth look beneath the surface reveals distinct brand characteristics with some major players succeeding in projecting a more innovative and friendly brand image.
Table of Content

Introduction

Methodology
Abbreviations

Executive Summary

Market factors
Overall negative impact of lower oil prices on the Canadian economy
Outlook on the real estate and housing market
Household debt in Canada
Population count and growth in Canada
Companies, brands and innovation
The consumer
Big five banks have a brand awareness level of 90% or more
Figure 1: Level of brand interaction with the major financial brands, February 2015
TD rated friendly and innovative; RBC perceived as traditional
Figure 2: Brand personalities of financial institutions, February 2015
Value for money ranks as the top choice factor
Figure 3: Choice factors when selecting main FI (rank #1), February 2015
Younger Canadians more positive towards the big banks; LGBTs have a much more positive view about credit unions
Figure 4: Attitudes towards financial institutions, February 2015
What we think

Issues and Insights

Designing innovative strategies to highlight distinctive brand attributes
The facts
The implications
Insurance companies – How increasing brand awareness and reputation will pay dividends in the marketplace
The facts
The implications
Bank size and the Canadian consumer
The facts
The implications
Brand influencers – Building a brand’s personality in the minds of consumers
The facts
The implications

Trend Application

Trend: Locavore
Trend: Experience is all
Trend: Access All Areas

Market Factors

Key points
Economic overview
Overall negative impact of lower oil prices on the Canadian economy
Figure 5: Canada’s GDP, by quarter, Q4 2008-Q4 2014
Figure 6: Household disposable incomes and savings in Canada, by quarter, Q4 2008-Q4 2014
Figure 7: Canada’s unemployment rate, by gender, 2008-15
Impact of Interest rates, inflation and exchange rates
Figure 8: Inflation rates in Canada (%), 2004-14
Bank of Canada cuts interest rate to 1% in January 2015
Figure 9: Canada bank rate by month, 2005-15
Outlook on the real estate and housing market
Consumer Confidence
Figure 10: Consumer Confidence Index, monthly, January 2008-February 2015
Household debt in Canada
Demographic overview
Population count and growth in Canada
Figure 11: Share of population of Canada, by territory/province, 2015 (projected)
Minority groups account for less than 20% of Canada’s population
Figure 12: Estimated population of Canada, by ethnicity, 2011
Canada’s population is expected to age in the coming years
Figure 13: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
Figure 14: Projected trends in the age structure of the Canada population, 2014-19

Strengths and Weaknesses

Strengths
Weaknesses

Who’s Innovating?

Key points
New RBC location replaces cashier's counter with work stations and touchscreens
TD’s new concept ‘Green Branch’
Tangerine Bank’s biometric tools for mobile banking
RBC and Nymi
TD’s #MakeTodayMatter Campaign

Social Media Kred Scores

Key points
Figure 15: Kred scores of selected financial institutions, April 15, 2015

Companies and Products

Bank of Montreal (BMO)
Overview and company information
Recent activity
Manulife
Overview and company information
Recent activity and innovation
TD Financial Group
Overview and company information
Recent activity
RBC
Overview and company information
Recent activity
Scotiabank
Overview and company information
Recent activity
Desjardins
Overview and company information
Recent activity and innovation

Brand Communication and Promotion

Key points
Belair direct is the most active direct mailer
Figure 16: Direct acquisition mail in financial services (credit cards, insurance, investments and banking), April 2014 to April 2015
Select brand promotional campaigns
Ontario credit unions seek to boost awareness with a high profile joint marketing campaign
Manulife’s Are You Ready?
TD says thanks in a special way
Select campaigns from Mintel Comperemedia
Tangerine’s “Refer 3 Friends and earn $250” campaign
RBC’s $50 banking statement challenge to prove not all banks are the same

The Consumer – Brand Awareness and Usage

Key points
Summary of brand awareness and interaction
Figure 17: Level of brand interaction with the major financial brands, February 2015
‘Big five’ banks have a brand awareness level of 90% or more
Figure 18: Brand awareness of major financial brands, February 2015
Almost half of Canadians have/or had a product with TD, RBC and CAA
Figure 19: Product usage of major financial brands, February 2015

The Consumer – Importance of Factors in Brand Perception

Key points
Trust is the most influential factor
Figure 20: Most important factors associated with financial institutions (ranked #1), February 2015
Competitive fees as important as trust to younger consumers
Figure 21: Significant differences in importance of factors by age, February 2015
Higher income earners are relatively more influenced by competitive interest rates
Figure 22: Importance of competitive interest rates by income levels, February 2015

The Consumer – Brand Personalities

Key points
TD rated as friendly and innovative; RBC perceived as traditional
Figure 23: Brand personalities of financial institutions (% of respondents who chose the adjectives), February 2015

The Consumer- Choice Factors When Selecting Main FI

Key points
Value for money ranks as the top choice factor
Figure 24: Choice factors when selecting main FI (rank #1), February 2015
Figure 25: Choice factors when selecting main FI (% who ranked factor among top five), February 2015
Convenient branch locations and previous experience rank highly for older females
Figure 26: Choice factors when selecting main FI (rank #1) by age and gender (significant differences), February 2015

The Consumer – Attitudes towards Financial Institutions

Key points
Summary of attitudes
Figure 27: Attitudes towards financial institutions, February 2015
Younger Canadians more positive towards the big banks and more open to product consolidation
Figure 28: Attitudes relating to consolidation and size, February 2015
LGBTs have a much more positive view about credit unions and small local banks
Figure 29: Attitudes about credit unions and virtual banks, February 2015
Males more likely to prefer insurance companies for wealth management
Figure 30: Attitudes about insurance companies and financial advice, February 2015

The Consumer – Chinese Canadians and Their Brand Perceptions

Key points
Overall brand awareness levels are similar to the general population but specific differences exist
Figure 31: Comparison of brand awareness: Chinese Canadians versus overall population, February 2015
Chinese Canadians are much more positive about the big banks
Figure 32: Attitudes towards financial institutions: Chinese Canadians versus overall population
Brand reputation more important and convenient, branch locations less important
Figure 33: Choice factors when choosing main FI, Chinese Canadians versus overall population, February 2015

The Consumer – Target Groups

Key points
Three target groups
Figure 34: Target groups, February 2015
Credit union lovers (25%)
Bank lovers (34%)
Passive observers (42%)

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