Even though he had been banking with several major lenders for decades, his frustrations grew to a fever pitch at one point involving one of his registered accounts. He finally decided to pull the trigger and switched to fintech as his main bank.
Canada’s banking regulator has been fine-tuning its banking licensing framework, making it easier for microfinance companies and provincial unions to enter the government’s financial system and compete with the Big Six. It also gives consumers greater choice when it comes to who they want to bank with.
Choose the bank that suits your needs
But consumers shouldn’t just switch banks on a whim, says Natasha Macmillan, senior director of everyday banking at Ratehub.ca. They should first think about what their needs are.
For example, fintech may be the best fit if someone wants a high savings rate, low bank fees and no need for a brick and mortar branch. A credit union can be very attractive to those looking for personal services, community involvement, and low bank fees, Macmillan suggests.
However, some people still prefer the brick and mortar experience and access to the wider range of services that can be provided by a Big Six lender.
When considering switching to a small bank, Macmillan suggests comparing key factors, such as checking account offerings, availability of cash for purchases and ATM withdrawals, and its savings interest rates. Other things to look for are mobile app accessibility, cybersecurity features and deposit protection with Canada Deposit Insurance Corp., which protects consumers’ savings up to $100,000 if a member bank fails.
Bank credibility is beginning to weaken
Environics’ 2026 Canadian Financial Switching Study, which surveyed more than 42,000 Canadians in seven cities, found 22% of respondents switched to another bank in the past 12 months, compared to 24% in 2025.
Traditionally, most growth for existing banks comes from existing customers acquiring another product, such as a new credit card, savings account, investment account, mortgage, or line of credit, said Heidi Wilson, vice president of financial services at Environics Research.
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“The most humbling thing this year is ‘stay loyal and open another account’,” she said. “It suggests that the benefit of auto sales of incumbency may not be as strong as it used to be,” Wilson said. “Existing customers may be more willing to comparison shop, split the wallet, or try another provider.”
Certified financial planner Nick Hearne said promotional offers often entice people to set up new accounts or switch banks, which shouldn’t be the main reason. “You want to separate the short-term promise from the ongoing relationship,” she said.
Hearne said it’s important to consider your relationship with the bank. “Investors should understand both what they are paying and what they are getting in return, whether that is portfolio management, financial planning, tax planning, retirement planning or ongoing advice,” he said. “The key question is whether the advice and services provided justify the cost,” he added.
Switching accounts should be done in stages, once you know your decision.
First, make sure the new account is fully set up and active, says Hearne. Then transfer cash or pension deposits, government deposits, and any tax benefits from the Canada Revenue Agency, as well as pre-approved loan payments. Looking at previous bank statements can also help identify unusual payments, such as annual subscriptions, insurance, and property tax payments.
“Then maybe you want to leave that old account open for one or two billing cycles to make sure you’re not missing anything before closing that old account,” Hearne said. “The goal is not to change quickly. The goal is to change cleanly.”
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