If you are looking for a respected and reliable banking system that is likely to withstand any major shock, you will not find many of them. However, Canada is a financial ecosystem you can rely on, and entrepreneurs from across the globe flock here to take advantage of top-notch corporate services. You can also choose Canada as the jurisdiction where your business is based: we highly recommend setting up a general or limited partnership in Ontario as the province offers really beneficial conditions. However, be sure to find sufficient information about the country in the sources you trust as you need to know quite a bit of nuances. Canada is worth it, though!
Banking System in Canada: Fundamentals
The banking sector in Canada is divided into five principal categories:
- Cooperative credit movement
- Securities dealers
- Life insurance
- Trust and lending companies
- Chartered banks
There are about 5,800 bank branches in Canada, and you will find more than 18,500 ATMs in the country.
Facts about Canadian banks:
- There are 40 banks in Canada that offer a full range of financial products and services to consumers, including investments, loans, credit cards, and bank accounts.
- The banking system in Canada is considered to be one of the most accessible ones in the world as 99% of the country’s adult population has an account.
- 31% of Canadians pay no fees for the financial services they receive.
- 87% of Canadians think that the banks provide enough confidentiality while dealing with their personal information.
- Canadian banks lent more than $255 million to small and medium businesses.
- Local banks provide services to about 3 million SMEs and self-employed people across the country.
Cybersecurity, technology, and fraud prevention in the Canadian banking sphere:
- Canadian banks have made considerable investments in the field of cybersecurity, and they now have a system that provides reliable protection from cyber threats to customers and their personal information.
- 90% of Canadians believe that the local banking system has become a lot more convenient thanks to the implementation of the latest technologies.
- Local banks continue investing in cutting-edge technologies to prevent heavy spending on crime and protect their customers from mortgage fraud, identity theft, credit/debit card fraud, or online threats.
- Canadian banks spend considerable amounts on financial technologies or partnering with fintech companies, which helps them provide state-of-the-industry services to their customers and improve internal financial operations.
- In the past decade, the 6 largest Canadian banks have spent about $100 million on technology, including security-related technologies.
- 88% of Canadians fully trust their bank in terms of digital banking services security.
In short, Canadian banks are well-regulated, well-capitalized, and well-managed financial institutions you can entrust your money and operations to. The probability of a Canadian bank going bankrupt is very low. However, even if it happens, the deposits in current/savings accounts will be protected up to 100,000 Canadian dollars if the bank is a member of CDIC (Canadian Deposit Insurance Corporation) within the banking system. CDIC (a Crown Corporation set up back in 1967) provides not only deposit insurance but also stability of the local financial system.
Top Banks in Canada
The Big Five refers to the five largest banks in the Canadian banking system. We will now take a look at several major financial institutions in the Canadian financial system ranked by their income. According to the feedback given by non-residents, they provide top-notch services and accounts.
TD Bank
- TD Bank (Toronto Dominion Bank) is the second bank in North America if we consider financial security.
- The bank has 11 million customers and accounts and operates 1,140 branches.
- Its income equals 36.4 billion dollars
- If you have a small business, you will be offered five corporate bank account plans with monthly fees varying from $19 to $125.
- If you want to set up a simple checking account for your business, you will be required to make a minimum deposit of $25, and you will also have to pay $10 on a monthly basis to keep it functional.
- TD Unlimited Business is the best account plan that offers unlimited transfers, withdrawals, and deposits.
- Customers who take advantage of an unlimited account plan pay no monthly fee if they use the bank’s financial services, such as TD Small Business Lending, TD Digital Express, or Merchant Solutions.
Royal Bank of Canada (RBC)
- There are 17 million customers and accounts served by the bank.
- The Royal Bank of Canada was established in 1864, and it has more than 1,300 branches – not just in Canada but also across the Caribbean and the United States.
- Its income reaches CAD 42.8 billion.
- Corporate customers can receive a Newcomer Package in Canada, which includes a cash reward for the business.
- The monthly fee payable for RBC business accounts ranges between $5 for a Digital Choice account package to $100 for an Ultimate Business account package.
- The institution provides convenient online banking that will help you easily manage your finances.
Scotiabank
- The Bank of Nova Scotia is based in Halifax. It operates in more than 55 countries, giving its customers simplified access to their funds.
- A corporate bank account is quite flexible, so it will help you save money: the commissions offered are differentiated. You will also have the right to make one free transaction for every 1,500 dollars you have in your account.
- The income of Scotiabank equals 25.3 billion dollars.
- If the company is based in the US, the bank provides an account in USD to help avoid currency conversion transactions and exchange rate fluctuations.
BMO (Bank of Montreal)
- The banking institution established back in 1817 serves about 12 million customers and has more than 1,400 branches.
- BMO’s income reaches $22.2 million.
- If you are looking for a flexible solution for your business, the Bank of Montreal is the right choice as it offers four plans that differ in fees, functions, and services available.
- For instance, if you choose a Mid-Tier Business Builder 2 plan, you will have to pay just $45 a month. No minimum balance is required, and you can make up to 70 transactions a month.
- The business account plan also entitles you to two electronic transfers, as many Moneris transactions as you need, and an unrestricted number of transfers to other accounts within the bank.
You can read about the fifth major bank on the Top 5 list, the Canadian Imperial Commercial Bank, by following the above link to the portal. You can also talk to portal experts to receive professional advice free of charge before you take advantage of the best solutions offered by the Canadian banking system.
