CCUA will be meeting with the Competition Bureau to discuss the role of credit unions in SME financing, competitive dynamics between credit unions and other lenders, legislative and regulatory frameworks affecting credit union participation, and regional differences in market structure, access to financing, and competitive conditions.  

The meeting is part of the Bureau’s market study to evaluate the state of competition in the financing sector for small and medium-sized enterprises (SMEs) and explore how competition can be improved for the benefit of SMEs and the “challenger financial institutions” that support them. The Bureau defines a “challenger financial institution” as a newer or smaller financial institution that competes with established financial institutions by providing innovative products or services, often leveraging digital platforms and technology.  

To support CCUA's discussion with the Bureau, we are seeking feedback on the questions below. Please submit your responses to these questions to Sabena Sandhu by February 10.  

1. How does competition work in lending to SMEs? 
   • Which lenders (e.g., banks, crown corporations, fintechs) are the biggest competitors in your jurisdiction? 
   • How do lenders in your jurisdiction compete on price (e.g., interest rate and fees) and non-price terms (repayment flexibility), and what is the impact of digital services compared to those delivered in person? 
   • What is the impact of government programs on competition in SME lending, and how do the different circumstances that borrowers face shape their experience accessing financing? 

2. What barriers to entry and expansion do lenders to SMEs face, and how can they be reduced? 
   • From a regulatory perspective, what steps can policymakers take to make it easier for your credit union to compete more effectively? 

3. How can SMEs’ ability to switch lenders be improved? 
   • How easy is it for SMEs to compare loan offers across key terms (e.g., rate, duration) and bundled services (e.g., business accounts or insurance), limiting SMEs' ability to switch?
   • How do switching costs (e.g., exit fees, penalties, borrower time, etc.) and the effectiveness of third-party platforms (e.g., loan marketplaces and brokers) factor into making switching easier for the borrower? 

The Bureau is aiming to publish its final report in the Fall of 2026, which will include recommendations to the government on how to improve competition.