Banking fees can be hard to see and compare, FCAC review finds

A Review of Banking Fees in Canada, released today by the Financial Consumer Agency of Canada (FCAC), found that the way some banking fees are structured can make costs harder to understand and compare, with implications for affordability and competition.

A Review of Banking Fees in Canada (the Review), released today by the Financial Consumer Agency of Canada (FCAC), found that the way some banking fees are structured can make costs harder to understand and compare, with implications for affordability and competition.

The Review highlights several ways banking fees can be difficult for consumers to see or anticipate:

Individually, these fees may appear relatively small, but the Review found that they can add up over time. Without a clear picture of the fees they are paying based on their actual usage, consumers may find it harder to assess the total cost of banking.

The Review identified opportunities to improve fee transparency and provide more personalized information about fees paid over time. This would make it easier for consumers to compare products and services.

FCAC’s findings provide evidence to inform broader policy discussions on transparency, comparability, switching and competition, including the potential benefits of consumer-driven banking.

“Canadians should be able to clearly understand what they are paying for banking services. When fees make the full cost harder to see, it affects both affordability and competition. More transparency makes it easier for consumers to compare options and save money, and financial institutions have stronger incentives to compete for their business.”