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  • A Personal Look at Why Young Canadians are Switching Financial Institutions

A Personal Look at Why Young Canadians are Switching Financial Institutions

A new wave of young Canadians are rethinking long‑standing banking habits, driven by rising fees, digital convenience, and a desire to make their money work harder. Leandrea Sanchez reveals some trending insights from our recent Switching Study.

Posted on:   Wednesday Mar 18th 2026

Article by:   Leandrea Sanchez

When you spend months studying why Canadians switch financial institutions, certain patterns begin to emerge. As part of the team behind the Canadian Financial Switching Study, we devote considerable time to examining the triggers that prompt consumers to leave their banks, the motivations that guide their choices of who might serve them better, and the behaviours that follow once they establish a new financial relationship. Over time, the data begins to tell a remarkably clear story about how Canadians are managing their money today. At some point during that process, however, I realized something unexpected: I was seeing my own experience reflected in the data.

For years, my banking relationship looked much like that of many Canadians my age. I had opened my first account with a neighbourhood bank while I was still a student. It was a simple, no-fee chequing account designed for students, and it met my needs perfectly at the time. The branch was nearby, the account was easy to manage, and like many young customers, I rarely questioned the arrangement.

Then I graduated.

Almost overnight, the account converted automatically into a standard chequing account, and monthly fees began appearing on my statement. At first, they did not seem particularly significant. A few dollars each month felt manageable, and it was easy to dismiss them as a routine cost of banking. But eventually, curiosity led me to take a closer look at what those fees actually amounted to over time. When I did the math, the realization was difficult to ignore: what had seemed like minor charges were quietly adding up to a meaningful expense. In that moment, one lesson became clear. Inertia, something that has long shaped consumer behaviour in Canadian banking can be surprisingly costly. So I made a decision that many Canadians are now beginning to make:

I switched.


Discovering How Easy Switching Has Become

When I began considering my options, I found myself drawn to the growing number of digital-first financial institutions offering low- or no-fee banking. Several established institutions have been operating digital first brands for years, including Tangerine, Simplii, and EQ bank. In fact, these digital banking arms collectively saw significant gains in switched accounts in 2025. At the same time, traditional banks have continued to expand their own digital capabilities, making it possible to manage nearly every aspect of banking online or through their mobile apps.

The more I thought about it, the more logical this choice seemed for me. I could not remember the last time I stepped into a branch, and practically all of my banking activity happens digitally. What ultimately stood out, however, was not simply the pricing. It was how effortless the entire process turned out to be. Whether through a digitally focused platform or a bank’s online onboarding experience, opening and setting up an account has become remarkably streamlined.

Within minutes, I was able to open a new account, verify my identity, transfer funds, and begin setting up direct deposits… all without leaving my home. The friction I had assumed would accompany switching banks simply did not exist. As it turns out, my experience was far from unique.

Data from the 2025 Switching Study shows that “easy online set up” ranked among the top three motivators for switching among young Canadians. In other words, the convenience I experienced personally is increasingly shaping the broader behaviour of an entire generation of customers.

For years, the perceived complexity of switching banks acted as a powerful barrier to change. Today, digital onboarding tools are steadily removing that barrier, allowing customers to move their financial relationships far more easily than before.


Rising Expectations Among Young Canadians

Our research suggests that this shift is not happening in isolation. Thousands of young Canadians are experiencing similar pressures and reconsidering how their financial institutions fit into their lives.

Rising account fees, new digital alternatives, and evolving expectations around service and convenience are prompting many younger consumers to reassess relationships that once seemed permanent. Rather than tolerating arrangements that no longer serve them well, they are increasingly willing to explore alternatives and act on them.

As researchers, we are continuing to track these changes closely. The Switching Study is collecting consumer data in March 2026, and we are eager to see how the next wave of results reflects these evolving behaviours.


A Generation Rethinking Its Finances

Working on the Switching Study has also prompted me to think more carefully about my own financial habits and our research indicates that many of my peers are doing the same. Young adulthood is a period defined by financial transition. Careers begin to take shape, student loans gradually come into focus, and long-term goals, such as purchasing a home or building meaningful savings start to feel more tangible. These milestones naturally lead many people to reassess how they manage their money.

One finding from the 2025 study stood out to me in particular: among young Canadians, Tax-Free Savings Accounts (TFSAs) were the product most frequently switched between financial institutions. That insight resonated strongly. A TFSA is not simply another account, it represents an opportunity to grow savings, invest for the future, and build financial security over time. The fact that so many young Canadians are actively seeking better options for these accounts suggests a growing level of engagement with long-term financial planning.

In my own case, the research prompted me to reconsider how I was using my money. I realized that leaving funds idle in a chequing account was not helping me reach any meaningful goals. Instead, those funds could be earning interest, invested in markets, or contributing to savings targets that matter to me. Again, the data confirmed that this perspective is widely shared.

of Gen Z switchers told us that they are trying to save more in 2025.

The Meaning of Switching for a New Generation

Taken together, these behaviours point to a broader shift in how younger Canadians approach financial institutions. For previous generations, banking relationships often developed slowly and remained largely unchanged over time. Accounts opened in early adulthood frequently remained in place for decades, supported by habit, convenience, and a perception that switching would be difficult. Today, that mindset is evolving.

Young Canadians are paying closer attention to the financial products they use and the value those products deliver. They are comparing options more actively, questioning fees that once went unnoticed, and seeking tools that help their money work harder for them. Most importantly, they are increasingly willing to act on those insights.

Switching financial institutions, in this context, is no longer just a transactional decision. For many young consumers, it represents something more meaningful: a financial reset. It is an opportunity to reconsider priorities, establish better savings habits, and align financial products with long-term goals. In many cases, it is also a moment of empowerment, an acknowledgement that managing money is not simply about maintaining accounts, but about making deliberate choices that shape the future.

And as the Switching Study continues to reveal, a growing number of Canadians are deciding that those choices are worth making.

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Leandrea Sanchez

Research Associate


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