With recent reductions to Canada’s permanent and temporary immigration targets, some of the enthusiasm around the newcomer opportunity has waned. However, credit unions should not overlook the ongoing potential that immigrant communities – including newcomers, established immigrants, and their children – continue to represent. Even with lower federal targets, these communities remain among the fastest-growing consumer segments in Canada, contributing significantly to the country’s younger population.

For credit unions, this presents both a challenge and an opportunity. As the member base of many credit unions continues to age, attracting younger, diverse members will be essential for long-term sustainability. Yet, credit unions have historically struggled to engage immigrant communities as effectively as the Big Five banks. Competing in this space requires more than just offering basic banking services – it demands a nuanced understanding of financial behaviors, regional demographic trends, and culturally relevant engagement strategies.

At the same time, the competitive landscape is evolving. While major banks continue to dominate the newcomer market, fintechs and digital-first providers are gaining traction by offering innovative, tech-driven solutions tailored to the needs of these communities. To succeed in this space, credit unions must adapt their strategies, leveraging their community focus, personalized service, and cooperative values to differentiate themselves. This issue of Marketsmarts provides credit union leaders with insights into the market opportunity related to new Canadians and their broader cultural communities, how competitors are approaching these segments, and key strategies for growing market share within them. Through targeted efforts, credit unions can position themselves as trusted financial partners and secure long-term growth.

^{Tags: New Canadians, Newcomers, Diaspora, Big Five Banks, BMO, TD, RBC, CIBC, Scotiabank, Fintechs, Beacon, Manzil, Zolve, Aria Savings, Community Savings, AnXin}