Insight Into Canada's Banking Industry: Canadian Banking Statistics

It's no secret that Canadians have a love-hate relationship with their banks. On the one hand, we rely on them for everything from everyday transactions to mortgages and loans. On the other hand, we often feel like we're getting ripped off by those pesky bank fees.

Did you know that more than 99% of Canadians have a bank account with a financial institution? Or that the top five banks in Canada hold over six trillion dollars in assets under management?

Canada's Banking Industry Statistics for 2025 - Editor’s Choice

• The banking system in Canada constitutes approximately 3.5% of Canada’s GDP. 
• Canadian banks employ more than 300,000 people.
• 90% of Canadians say that banking has become more convenient due to the deployment of new technologies.
• 65% of Canadians used mobile app banking in the last year.
• In 2024, there were 5,656 bank branches across Canada.

The “Big Five” banks dominate the Canadian banking sector. 

(RBC Global Asset Management)

It’s not a secret that the “Big Five” banks in Canada hold most of the market shares in the financial sector, but only when you put it in perspective does it show you just how much they hold in assets compared to the rest. 

• Total assets of Royal Bank of Canada (RBC) - 2 trillion Canadian dollars in 2023.
• Total assets of Toronto-Dominion Bank (TD Bank) - 1.95 trillion Canadian dollars in 2023.
• Total assets of Bank of Montreal (BMO) - 1.29 trillion Canadian dollars in 2023.
• Total assets of Bank of Nova Scotia (Scotiabank) - 1.41 trillion Canadian dollars in 2023.
• Total assets of Canadian Imperial Bank of Commerce (CIBC) - 975 billion Canadian dollars in 2023.

You’ll also hear mention of the “Big Six,” and we’ll use it here as well. It includes the “Big Five” plus the National Bank of Canada, which can be considered a regional player at best but is still bigger than most. 

Royal Bank of Canada is the 8th largest bank in the world by market capitalization. 

(Statista)

Market capitalization, often known as stock market value, is the entire worth of a publicly traded company's issued shares.

JPMorgan Chase, with a market capitalization of approximately $678.98 billion in 2024, is the largest bank by market capitalization. Bank of America is the only one close to it, with around $340.25 billion. 

The list includes several Chinese and US banks before it reaches 8th place, where Royal Bank of Canada resides with approximately $170.65 billion.

The banking system in Canada constitutes approximately 3.5% of Canada’s GDP. 

(Canadian Bankers Association)

The banking system in Canada is exceptionally sound and efficient. In addition, the country has a well-developed infrastructure, which supports the smooth functioning of the banking system.

The sector comprises more than 80 banks, which can be further broken down into four categories: foreign bank subsidiaries, domestic banks, foreign bank branches, and foreign lending branches.

Taxes paid in 2023 by the six largest Canadian banks amounted to $15 billion. 

(Canadian Bankers Association)

It’s not true that banks only take money from people, even if it sometimes seems so, especially with some banks charging ridiculous fees for pretty much anything. They also, just like anyone else, have to pay taxes, and they also pay dividends to their shareholders. 

The majority of Canadians own shares in Canadian banks, either directly or indirectly, via pension and mutual funds such as the Canada Pension Plan. In 2023, Canadian banks paid out approximately $28 billion in dividends alone.

Canadian banks employed more than 300,000 people in 2024.

(Canadian Bankers Association)

In addition to paying taxes, dividends, and directly contributing to GDP, banks employ many people. In fact, banks are among Canada’s largest employers. They also employ over 130,000 people in other countries, and in 2023, these banks have paid an estimated $30 billion in benefits and wages.

Women made up 54.5% of the workforce in the six major Canadian banks in 2024.

(Canadian Bankers Association)

In 1995, Canada implemented the Employment Equity Act, which promotes equal opportunity in the workforce. The Act aims to ensure that everyone has an equal opportunity to compete for jobs and advance in their careers, regardless of race, national or ethnic origin, religion, sex, age, mental or physical disability.

Since its implementation, there has been a steady increase in the number of women and visible minorities in the Canadian banking industry.

Banks in Canada service over 3 million self-employed, small, and medium-sized enterprises.

(Canadian Bankers Association)

Self-employed individuals and small and medium-sized businesses are the backbone of any economy, responsible for creating jobs and driving growth. As of 2024, 8 million people in Canada were employed by small-sized businesses. But running a business is not always easy. That's why banks in Canada offer a wide range of products and services to help small businesses succeed. 

Banks offer a variety of products, such as lines of credit and short-term lending options, which can be used for various purposes such as inventory, equipment, or day-to-day operating expenses. Loan acceptance rates for small and medium-sized firms are higher than 90.8% in 2024, and banks have granted more than $286 billion in loans this year.

From March 2020 to February 2021, the six largest Canadian banks waived $4.9 million in small business account fees.

(Canadian Bankers Association)

The pandemic was one of the toughest challenges Canada’s economy has faced recently, and Canadian banks stepped up to support their clients. 

Banks worked with the government and Business Development Bank of Canada to offer a series of lending offers and services that helped mitigate some business pandemic-related financial issues. This includes Canada's Emergency Business Account program, which offered over 895,000 loans, amounting to over $48.9 billion in credit.

In addition to waiving fees, banks have implemented easing measures for existing loans in deferrals and term extensions, but what about regular people?

Between March 2020 and February 2021, the six largest banks waived $112 million in fees for personal bank account holders.

(Canadian Bankers Association)

The average person wasn’t left to fend for themselves during the pandemic. The Canadian banking sector also stepped in with fee waving, deferrals, and loan term extensions. Deferrals provided relief to 800,000 Canadians, amounting to a total of $5.5 billion. 

Banks also slashed credit card rates and implemented low minimum payments on credit cards and existing lines of credit. Several banks went a step further by lowering interest rates for those who decided to postpone credit card payments.

Now it remains to be seen if the Canadian banks will do the same if inflation continues to grow and if the recession lingers. 

Between 2019 and 2024, the commercial banking sector in Canada grew by 9.2% each year on average.

(IBISWorld)

The market size of commercial banking in Canada in 2024 was estimated to be approximately $441.4 billion. Several factors affect rapid the growth of commercial banking in Canada, including the overnight rate, which the Bank of Canada sets, and aggregate household debt. 

The overnight rate affects how much interest banks can charge on loans. The higher the overnight rate, the higher the interest rates will be. This, in turn, affects how much revenue banks generate from interest on loans. 

Aggregate household debt reflects an economy's demand for personal and consumer borrowing. Banks make more money through interest and origination fees when there is a high demand for such loans. The total amount of household debt is likely to rise in 2025, creating more room for growth.

The vast majority of Canadians have faith in their financial institutions - 86% believe their banks will provide secure digital banking services, and 87% think banks will protect their personal information.

(Canadian Bankers Association)

Canadians have good reason to trust their banks; they have a long history of providing secure and reliable services. Clients can feel confident that their personal information is protected and that their transactions will be processed securely.

Banks have been working hard to ensure that their digital banking services are secure and convenient for customers. They have invested heavily in security systems and processes and have implemented new technologies to ensure that their online and mobile banking platforms are safe and easy to use.

In fact, the six largest banks in Canada have invested around $120 billion in technology and security measures over the previous decade.

The majority (90%) of Canadians feel that banking has become more convenient due to the deployment of new technologies.

(Canadian Bankers Association)

Every day, more and more Canadians use digital services provided by their banks. While 89% said they had used internet banking in the previous year, 49% said it was their preferred banking method.

However, even with the increase in digital banking services, 57% of Canadians say they still visit a physical bank branch at least once a year, with 90% being satisfied with in-person banking. The most common reasons for visiting a branch were to deposit or withdraw cash, speak with a banker about a problem, and establish or close an account.

When it comes to ABMs, the most popular services used were checking account balances, transferring money between accounts, and paying bills. The least popular digital banking services were making investments, applying for a loan or credit card, and opening an account.

About 65% of Canadians used mobile app banking in the last year. 

(Canadian Bankers Association)

This banking method is especially popular among the Gen Z and Millennial generations. This is to be expected given that Millennials account for 33% of Canadian online buyers. 

There are several reasons for the growing popularity of mobile banking. First and foremost, it is convenient. Customers can bank from anywhere at any time. They can also use their mobile devices to track their spending, set up budgets, and manage their finances. 

Another reason people are turning to mobile banking is security. Mobile banking apps use state-of-the-art security features to protect customers' information. They also provide fraud monitoring and detection services. 

Finally, mobile banking apps offer a wide range of features and capabilities. Customers can use them to transfer money, pay bills, deposit cheques, and more.  

Customers are satisfied with both online and app-based banking experiences, with satisfaction levels of 93% and 80%, respectively.

(Canadian Bankers Association)

Not only are Canadians satisfied with digital banking, but an increasing number of them are doing most of their banking digitally. In fact, 78% of Canadians say they use online (49%) and mobile (29%) banking.

In 2022, there were 5,656 bank branches across Canada. 

(Statista)

The decrease in the number of bank branches has been steady since 2014. The decline of in-branch banking can be attributed to a variety of factors, including the increasing technological convenience of online banking. While the traditional brick-and-mortar banking model is changing, banks are still an important part of the Canadian economy.

Canadians had access to approximately 64,000 automated banking machines in 2024.

(Canadian Bankers Association)

ABMs are a convenient way to conduct your banking transactions, and overall satisfaction with this technology is high. 

Moreover, 20% of Canadians surveyed expected to increase their usage of ABM withdrawals and deposits in the next five years, whereas 16% expected to decrease their reliance on ABMs as other tech-driven alternatives emerge.

Ultimately, with the overall satisfaction of 92% and high usage of ABM banking in Canada, we can safely assume they won’t be going away soon. 

In 2020, more than 476 million transactions are recorded at bank-owned ABMs in Canada.

(Canadian Bankers Association)

Besides ABM transactions, the six largest banks recorded 598 million online banking transactions and 784 million mobile banking transactions.

The big six banks hold 73% of the total residential mortgage debt.

(Canada Mortgage and Housing Corporation)

The banking system in Canada can be seen as a potential financial risk. This could be especially evident if any of the "big six" banks faced financial difficulties. For example, if one of the banks had to sell its mortgages at a discount, the other banks could be forced to do the same, which would reduce the value of all mortgages. This could lead to a credit crunch and a slowdown in the housing market.

The government has introduced some measures to reduce the risks associated with these banks, such as the requirement that they hold more capital. However, it is still important for borrowers to be aware of the risks involved in borrowing from any one of these institutions.

Residential mortgage debt makes up 74% of all household debt in Canada.

(Canadian Bankers Association)

The Canadian banking system is one of the most stable in the world. Despite the high household debt, Canadians are very careful when it comes to borrowing and only borrow when they are certain they can repay the debt - only 0.19% of mortgages are in arrears as of May 2024. 

Purchasing a home can be a great way to increase your net income, but you need to be able to pay off your mortgage in order to keep it. The average price of a single-family home in Montreal, one of Canada's most populous and popular cities to live in, is over $600,000, which may be out of reach for many people.

In five years, 36% of customers expect to use an alternative currency.

(Canadian Bankers Association)

With the rise of digital payment methods, it's no surprise that cryptocurrencies are becoming more popular. A recent poll found that 56% of Canadians would consider using a private cryptocurrency, such as Bitcoin or Ethereum. The main reason cited was convenience (64%).

Conclusion

So, what does this all mean for the average Canadian? 

It means that, overall, the Canadian banking sector is in good shape. We have a healthy mix of large and small institutions, and both are doing well in terms of profitability. The fact that Canadians continue to invest money in their banking system (and especially mortgages) speaks to our faith in the industry.