Canadians may pride themselves on their prudence, but that prudence comes with hidden costs: stagnant innovation, inflated service prices and high fees. From the shutdown of open banking to high phone bills and bank fees, our reluctance to fight back has become a silent tax. If we started voting with our dollars by changing where we shop and bank, we would create change. Until then our
remains our most cherished habit.
For example, our reluctance to change carriers has strengthened one of the most expensive telecommunications markets in the world.
of us who have used the same provider for more than five years, according to 2025 RBC Capital Markets data.
worldview.
Canadians avoid changing providers because porting a number can take days and few people want to deal with the hassle. Even so-called discount brands such as Fido, Koodo and Virgin Plus are owned by the Big Three providers: Rogers Communications Inc., Telus Corp. and BCE Inc.
With all the biggest competitors copying each other by offering expensive, unlimited data plans, customers assume the experience will be pretty much the same no matter where they go. Fear of service interruptions, loss of bundled discounts, or the belief that “good enough” service is normal all add to this inertia. The result is less challenge to the status quo and less incentive for carriers to innovate or cut costs.
Take eSIM. In Europe, you can buy an eSIM card with a 30-day validity for about $30. Telus, on the other hand, charges $18.
per day
roaming fees, which can cost more than $500 per month abroad. Canadians continue to overpay for wireless services because we don't demand better. Until we do this, the Big Three will continue to profit from our complacency.
Where our tariff plans are dominated by telecom companies,
dominate finances. Together they hold
more than 90 percent of deposits
According to the Canadian Antitrust Project. Most Canadians rarely switch:
of us saved
for over a decade, according to Ratehub surveys, and many of us are still using
the first account that our parents opened for us
.
This loyalty comes at a price. In the UK and USA
captured significant market share—32 percent and 42 percent, respectively, according to McKinsey & Co. In Canada only
use fintech. With so little pressure, the big banks are slow to innovate, charge more and pass the bills on to Canadians.
The result is billions out of our pockets. Canadian banks do
North Economics' 2024 report estimates revenues exceed those faced by customers in more competitive markets. This income typically comes from additional fees, which amount to about $250 per person per year, or the cost of two streaming subscriptions.
The matter doesn't end there. According to the Bank of Canada, Canadians hold about $480 billion in personal checking accounts, and most of that money is in accounts that earn nothing. Even if just a quarter of that amount was transferred to higher interest accounts offered by Neo Financial Technologies Inc. or EQ Bank, Canadians would collectively receive an additional $2.4 billion each year.
Risk aversion also stifles bold ideas.
in Canada.
provides consumers with real-time access to all of their financial accounts. This allows us to immediately and securely transfer our financial data when applying for a mortgage, credit card or loan, without having to fill out lengthy and cumbersome applications due to the need to access account balances, transaction history and more.
In markets where open banking has been adopted, customers access money faster, freely switch accounts to pay fewer fees and earn more interest, and this is pushing banks to compete while new fintech technologies flourish.
The Canadian federal government has promised to introduce open banking in 2024.
This means that we are the last G7 country to accept it. Latency matters. Without this, banks control who sees your financial profile, making it difficult to move.
How does this actually affect Canadians? Imagine you need a $20,000 loan and your bank is offering a five percent interest rate. Another lender would approve your three percent rate, but only if they could see your complete financial picture. Over five years, that two percentage point gap costs more than $2,100 in extra interest. Until open banking comes along, that money will stay in established institutions, not in your pocket.
Risk aversion may seem safe, but financially it is painful. Every year we save, every dollar we don't redirect, we pay for it. The cycle feeds itself. Incumbents maintain their dominance
when Canadians stick to the same suppliers
and challengers face higher barriers to growth.
Without sufficient customer change, new entrants will not be able to demonstrate the full benefits of lower prices, better service, or innovative products. The gap never seems large enough to justify the difficulty of transition, and the status quo remains.
If Canadians vote with their wallets by changing where they shop and bank, we will break this cycle. We create demand that increases scale, reduces costs, drives innovation and, most importantly, puts money back in our pockets. The only thing standing in the way is our complacency.
Andrew Chau is the CEO and co-founder of Neo Financial Technologies Inc.
