Newcomers to Canada and the Financial Confidence Gap: What Banks & Insurers Need to Know

For banks and insurers, serving newcomers isn’t just about opening an account or purchasing coverage—it’s about building confidence. Newcomers to Canada are eager to engage, but they face real challenges understanding financial systems and trusting advice. That lack of confidence directly impacts participation in saving, investing, and protecting their families. Recent research highlights just how wide this gap is, and why financial institutions need to act now.

Banking for Newcomers to Canada: The Confidence Gap at a Glance

According to TD Bank’s Canada Newcomers 2025 survey, newcomers report higher financial anxiety than the general population. More than three in four (76%) worry about making a financial mistake, compared with 68% of the general population. They’re also less familiar with Canada’s financial systems: 38% say they have little or no understanding of banking basics and 51% say the same about investing. This uncertainty doesn’t just affect newcomers; it also reduces engagement with core financial products, delaying key decisions on saving, investing, and protection. Programs specifically designed for newcomers to Canada can bridge the gap and accelerate confidence.

This combination of financial stress, limited knowledge, and reluctance to ask for help shows that while newcomers are eager to engage, they face a steep learning curve. For banks in Canada, the message is clear: without proactive, culturally aware support, trust can erode at the very first interaction.

Insurance Lens: Confidence and Coverage Gaps

A companion survey from Securian Canada revealed that newcomers face an even deeper confidence gap when it comes to insurance. Fewer than half (49%) feel confident navigating their options, and only 9% describe themselves as “very confident.” Many worry about being misled (42%) or cite the cost and complexity of advice (33%) as barriers.

Coverage is another area of concern. One in five newcomers report having no insurance at all, and nearly 60% are underinsured. That includes a quarter without health or dental coverage and 40% of employed newcomers lacking disability insurance. For families, these gaps can translate into medical bills or lost wages without any safety net.

But newcomers do bring clear expectations about how they want to engage. More than half (53%) prefer to buy insurance online, and many express interest in tools for claims (39%), personalized recommendations (36%), and 24/7 support (36%). This digital-first mindset creates both a challenge and an opportunity: Providers that deliver seamless online experiences will gain loyalty, while those that lag risk losing relevance.

Why This Matters

The takeaway from both surveys is clear: confidence drives participation. When newcomers to Canada feel uncertain about banking or insurance, they hold back from saving, investing, and protecting themselves. But when institutions step in with clear guidance, trust-building support, and accessible tools, confidence grows—and so does economic participation. For banks and insurers, that gap represents an opportunity to build lasting trust and loyalty by focusing on three priorities:

• Clarity: Plain-language, in-language resources that demystify banking, investing, and coverage basics. For example, a short multilingual video explaining credit scores can help newcomers avoid costly mistakes.
• Trust: Transparent advice and easy access to human help when customers need it. This might mean offering dedicated newcomer advisors or contact-center lines in multiple languages.
• Growth: Confident customers not only make better financial decisions, they also contribute more fully to Canada’s long-term economic growth.

Closing the Confidence Gap

Newcomers don’t just need products, they need confidence. That confidence comes from being able to understand their options, get guidance they can trust, and manage their finances in ways that fit their lives. For banks and insurers, that means:

• Support in multiple languages—whether in branches, over the phone, or online.
• Financial literacy resources that explain banking, investing, and insurance in plain, accessible language.
• Digital-first tools that make it simple to manage accounts, file claims, or ask questions anytime.

At TransPerfect, we help financial institutions make this happen. Through multilingual content, seamless onboarding, and customer support, we partner with banks and insurers to build trust, remove barriers, and empower newcomers to thrive.

Learn how we can help you close the confidence gap for your customers.