Neil George relied on the services of a Big Six bank for his financial needs for more than a decade before deciding to try out an alternative lender a few years ago.
The 30-year-old project manager was “triggered” to make the change because of the fees he had to pay to maintain his account every month and the lack of interest being earned.
“Why would I need to hold $6,000 in my chequing account just to not pay a monthly fee? I wasn’t earning any interest either. That's insane,” he said.
Today, George relies on Vancouver City Savings Credit Union and Wealthsimple Inc. for his banking and investment needs, and he’s part of a growing trend toward using financial firms other than the Big Six.
The number of consumers opening primary chequing accounts in branchless or online-only banks has increased to 21 per cent in 2025 from 11 per cent in 2022, according to consulting firm Oliver Wyman LLC.
The trend is particularly noticeable among younger Canadians, with millennials and gen-Zers switching financial institutions at twice the rate of older customers in the past four years, according to J.D. Power.
Another survey by Abacus Data said 25 per cent of those aged between 18 and 44 expressed an interest in switching their financial organizations by 2026, compared to five per cent of people aged above 60 and 15 per cent of those between 45 and 59.
Can alternative banks realistically compete with the Big Six in the future? The Financial Post’s Naimul Karim explores this possibility.
