The news: Canadian consumers are opening fewer new financial accounts YoY, and those who do are increasingly choosing providers outside their primary bank, per Environics Research's annual financial services survey.

Zooming in: The share of consumers who opened a new financial product fell from 57% in 2025 to 46% in 2026, while loyalty to traditional banks also declined. 

• Only 24% of those who opened an account did so with their existing institution, down from 33% a year earlier. 
• 35% of consumers who switched providers also changed their primary financial institution.
• The Big Five won 42% of new retail account relationships but accounted for 62% of customers who left, while digital-first institutions represented 26% of acquisitions and just 12% of losses.

Why it matters: The data highlights a dual challenge for big Canadian banks: a shrinking pool of new customers and fiercer competition for each one. This may stem from slower immigration, which is a typical source of account openings, per the Financial Post. Consumers are becoming more willing to diversify their financial relationships, turning to digital-first providers for specific products rather than relying on a single incumbent bank for all their financial needs.

Implications for major Canadian banks: The new competitive dynamic will change banks’ playbooks:

• Retention is as valuable as acquisition. Fewer new customers entering the market makes protecting existing relationships paramount to survival.
• Successful cross-sales are getting more difficult. Existing customers aren’t automatically choosing their primary bank for new products.
• Digital competitors have a bigger opening. As consumers increasingly choose digital-first providers for individual products, those providers gain a foothold they can use to capture more of the customer’s financial relationship over time.
• Passive growth strategies are no longer effective. Rather than relying on tailwinds like immigration to drive new account openings, banks must defend share by competing on digital experience, pricing, and personalized offers.

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