Survey reveals key financial barriers newcomers face and the need for targeted support
Newcomers to Canada face significant challenges in building financial confidence, according to a recent survey by Interac Corp.
While 61 percent of newcomers initially felt financially confident upon arrival, this confidence decreased to 31 percent as they encountered economic barriers in Canada.
These financial difficulties underscore the need for resources tailored to newcomers’ specific needs to ease their transition into the Canadian financial system.
The survey by Interac reveals that financial barriers disproportionately impact newcomers, with 85 percent reporting at least one barrier affecting their financial security.
This figure contrasts with 58 percent among the general Canadian adult population, highlighting the importance of targeted support.
Financial practices and knowledge from a newcomer's home country do not always translate smoothly into the Canadian context, adding further challenges to adapting financially.
Interac’s head of Integrated Marketing and Communications, Lauren Mostowyk, explained that newcomers seek financial support designed by those with similar experiences, with 54 percent calling for resources crafted by fellow newcomers.
“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.”
To address this need, Interac sponsored Credit Canada’s Butterfly app, a multilingual platform offering newcomers access to budgeting basics, cost-of-living tools, and real-time currency conversion.
Practical resources such as online courses on Canadian banking (81 percent) and budgeting apps for local expenses (77 percent) are highly valued among newcomers surveyed.
The Butterfly app, designed by newcomers, aims to equip recent arrivals with tools to manage their finances effectively and build confidence in the Canadian economy.
Mentorship also plays a crucial role in easing newcomers' integration, as shown by 51 percent of respondents who report having mentors, compared to 31 percent of the general population.
Newcomers view mentors as invaluable for overcoming language barriers (89 percent), understanding Canadian currency (86 percent), and avoiding financial scams (83 percent).
Many newcomers feel that traditional resources do not adequately reflect their evolving financial realities, making the support of mentors who understand their journey particularly valuable.
ACCES Employment, which has partnered with Interac for over five years, provides mentorship programs specifically for newcomers, helping them develop professional networks and career success in Canada.
“ACCES Employment serves as an important resource to support newcomers navigating the Canadian job market and re-establish their financial confidence,” said Allison Pond, president, and CEO of ACCES Employment.
“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.”
