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At PlanOffers Canada we try to compare various financial services & financial service providers, so you don't have to, unless you want to. We save you time. We might even save you money. You be the judge on all that. (We are not a financial services company, but we do write about those topics.) Financial services is a very broad topic, so let's start with mentioning that there is a company named Borrowell Inc. They are a Canadian company. They have a website called Borrowell.com, which can help you with a whole bunch of 'financial' stuff, to help you take control of your finances including such topics as: free credit score; rent advantage (use your rent payment history to count on your credit history); credit builder; credit cards; personal loans; mortgages; banking; insurance; and they also have a Blog for your reading pleasure, as do we.
What are financial services? In Canada, financial services companies seem to include banks, insurance companies, pension funds, mortgage companies, loan companies, and other companies than offer 'banking services'. There is most likely a better legal definition out there, but this is accurate enough to give most people a general idea of what is included.
Financial services are finance-related services that businesses provide to clients. In Canada, the best example of financial services relates to the country’s large banks. The World Economic Forum ranked Canada’s large banks as the safest on the planet following the 2008 financial crisis. Financial services firms comprise one of the country’s largest business sectors. In 2019, they accounted for $3.2 billion of the $15.9 billion raised by diversified companies listed on the Toronto Stock Exchange (TSX). Toronto, which is widely viewed as Canada’s financial center, is also growing in importance on the international stage. The city added 60,000 new jobs to the sector between 2012 and 2018 alone. According to the Conference Board of Canada, one out of every 12 jobs in the Toronto area is financial services related. In all, the industry accounted for 12.9% of the city’s economy in 2018, second only to public services.
Financial services in Canada include a wide range of services, including personal and commercial banking, wealth management, investment banking, and insurance. The country’s large banks offer a variety of financial services to consumers, including checking and savings accounts, credit cards, mortgages, loans, and investment products. They also offer a variety of financial services to businesses, including cash management, financing, and investment banking.
Wealth management is another important financial service in Canada. Wealth management firms offer a variety of services to high net worth individuals, including investment management, financial planning, and estate planning. These firms help clients manage their wealth and plan for the future.
Investment banking is another important financial service in Canada. Investment banks help companies raise capital by underwriting and selling securities. They also provide a variety of other services to companies, including mergers and acquisitions, restructuring, and financial advisory services.
Insurance is another important financial service in Canada. Insurance companies offer a variety of insurance products to consumers, including life insurance, health insurance, auto insurance, and home insurance. They also offer a variety of insurance products to businesses, including liability insurance, property insurance, and workers’ compensation insurance.
In addition to the large banks, there are many other financial services providers in Canada. These providers offer a variety of financial services to consumers and businesses, including credit unions, trust companies, and investment firms. Credit unions are member-owned financial cooperatives that offer a variety of financial services to their members. Trust companies offer a variety of financial services, including estate planning, trust administration, and investment management. Investment firms offer a variety of investment products and services to consumers and businesses, including mutual funds, exchange-traded funds (ETFs), and portfolio management services.
Financial services in Canada include a wide range of services, including personal and commercial banking, wealth management, investment banking, and insurance. The country’s large banks offer a variety of financial services to consumers and businesses, including checking and savings accounts, credit cards, mortgages, loans, and investment products. Wealth management firms offer a variety of services to high net worth individuals, including investment management, financial planning, and estate planning. Investment banks help companies raise capital by underwriting and selling securities. Insurance companies offer a variety of insurance products to consumers and businesses. There are also many other financial services providers in Canada, including credit unions, trust companies, and investment firms. By understanding the different types of financial services available in Canada, consumers and businesses can make informed decisions about their finances and plan for the future.
In Canada banks are Federally regulated. The banking system that we have in Canada works well. It is strong and stable. Our banks tend to be national in scope, and are often referred to as 'the big five', though there are more than five banks in Canada. The five largest banks in Canada are: the Royal Bank of Canada (RBC); the Toronto-Dominion Bank (TD); Bank of Nova Scotia (Scotiabank); Bank of Montreal (BMO): Canadian Imperial Bank of Commerce (CIBC).
The sixth is frequently considered to be the National Bank of Canada (some people would argue that word 'national' was not intended to refer to Canada, but rather to Quebec, where is is known in French as 'Banque Nationale') and tends to have most of its bank branches. The Laurentian Bank of Canada is another less well known Canadian bank, which tends to focus its opations inside the Province of Quebec. Canadian Western Bank (CWB), is a smaller Canadian bank, based in Westen Canada, but it has a big vision. CWB is part of the CWB Financial Group. Many Canadian banks have a presence in parts of the USA, and some have a presence in other countries as well.
BMO or if you prefer, the Bank of Montreal, based in Toronto, is Canada's oldest bank. It has been doing very well. Over the years BMO expanded into the USA, having an American head-office in Chicago. Seems it has recently picked up Bank of The West, in the USA, gaining a huge number of bank branches and customers. BMO seems to be doing very well for itself!
One interesting wrinkle in the Canadian 'banking system' is the Alberta Treasury Branch, which as the name might suggest, is actually a 'branch' of the Province of Alberta's Treasury. These days is it commonly known as ATB Financial, and it mostly operates within Alberta. So ATB Financial looks like a bank, it walks like a bank, it sounds like a bank, but it is not actually (far as we know) a 'bank', though according to its website (we looked), it does offer 'personal banking' and 'business banking'.
Another interesting player in Canada's banking system is Canadian Tire Bank, 'the financial services arm of Canadian Tire Corporation, Ltd'. It is also unusual to note on their website, the statement that 'Canadian Tire Deposit Products are not currently available in Quebec.' They do however seem to offer most of the usual things banks tend to offer, including: Guaranteed Investment Certificates (GICs); Tax-Free Savings Account (TFSAs); Credit Card Services; and of course bank accounts. Their main focus seems to be on offering Triangle速 credit cards. One must assume that there is a lot of pofit to be had in credit cards. (Our best advice on the topic of cerdit cards, is to pay off your balance in full each month, to avoid interest charges.)
In addition, Canada's financial system includes credit unions, mortgage companies, and loan companies. In the Province of Quebec, the credit union movement tends to be branded as 'Movement Desjardins' (which literally translates in English to 'the Garden Movement', but is best thought of as a 'Credit Union Movement', as that makes more sense in the English language, and is a 'better' translation). It is also known as 'Caisse Populaire', which best translates in English as "Credit Union'. Some foreign banks also have a (well regulated) presence in Canada. More to follow. :)
Canada’s banking sector is home to more than thirty Schedule 1, or domestically owned banks. But the ones that get the most attention are the Big Five. Technically, both “Big Five” and “Big Six” are right, so whether you’re a fiver or a sixer, there’s no shame being doled out here. But if you’re curious about why the two terms exist, we’ve got you covered.
The Big Five are the five largest banks in Canada. How these banks stack up against each other can fluctuate based on how they’re being ranked — by earnings, total assets, or market capitalization — but the Big Five tend to dwarf all other Canadian banks in every major category. The members of the group haven’t changed for decades. Here are the Big Five banks ranked in terms of net revenue at the end of 2022:
One thing you’ll notice is that each of the Big Five has a major national presence. That can’t be said for the institution that gets included in the Big Six. The Big Six includes National Bank of Canada, which focuses primarily on servicing Quebec and New Brunswick. Despite being a regional player, National Bank is technically the country’s sixth-largest bank. But, while it does rake in billions in annual revenue, those earnings are a fraction of what any of the Big Five generate. Including National Bank in a discussion of Canada’s biggest banks is accurate, but it’s also a nod to the idea that a bank doesn’t need to be headquartered in Toronto to be taken seriously. (National Bank’s home base is Montreal.)
Here’s a brief overview of each of the Big Five banks:
Royal Bank of Canada (RBC) Royal Bank of Canada is the largest bank in Canada by market capitalization. It offers a wide range of financial services, including personal and commercial banking, wealth management, and investment banking. RBC has a major presence in Canada and the United States, as well as operations in 40 other countries.
Toronto-Dominion Bank (TD) Toronto-Dominion Bank is the second-largest bank in Canada by market capitalization. It offers a wide range of financial services, including personal and commercial banking, wealth management, and investment banking. TD has a major presence in Canada and the United States, as well as operations in 15 other countries.
Bank of Nova Scotia (Scotiabank) Bank of Nova Scotia is the third-largest bank in Canada by market capitalization. It offers a wide range of financial services, including personal and commercial banking, wealth management, and investment banking. Scotiabank has a major presence in Canada and Latin America, as well as operations in the United States and Asia.
Bank of Montreal (BMO) Bank of Montreal is the fourth-largest bank in Canada by market capitalization. It offers a wide range of financial services, including personal and commercial banking, wealth management, and investment banking. BMO has a major presence in Canada and the United States, as well as operations in Europe and Asia.
Canadian Imperial Bank of Commerce (CIBC) Canadian Imperial Bank of Commerce is the fifth-largest bank in Canada by market capitalization. It offers a wide range of financial services, including personal and commercial banking, wealth management, and investment banking. CIBC has a major presence in Canada and the United States, as well as operations in the Caribbean and Asia.
In conclusion, the Big Five banks in Canada are Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC). These banks dominate the Canadian banking sector and offer a wide range of financial services to consumers. While National Bank of Canada is technically the country’s sixth-largest bank, it is not included in the Big Five. Each of the Big Five banks has a major national presence and offers a wide range of financial services to consumers in Canada and around the world.