ETHNIHUB Study Says Newcomers Turn to Family for Financial Advice, Not Experts

ETHNIHUBTM Study Says Newcomers Turn to Family for Financial Advice, Not Experts

In a recent study by ETHNIHUBTM, the diverse audience intelligence platform, only 29% of newcomers seek the help of a professional financial adviser. And the reason why may be closely tied to culture.

The majority of new Canadians emigrate from China, India, and the Philippines. These are the three largest ethno-cultural groups in Canada. And they come from collectivist societies where people prioritize the interest of the group and not of the individual.

According to Hofstede Insights’ 6-D Model that provides an overview of the deep drivers of a country’s culture in comparison with other world cultures, China scored 20 and the Philippines 32 in INDIVIDUALISM. This index determines the degree of interdependence a society maintains among its members. Meanwhile, India has earned an intermediate score of 48, the highest among the three countries, which means that it has both collectivist and individualistic traits.

In a collectivist culture, the family takes precedence over people outside of this close circle. Banking and financial experts fall outside of this sphere and are essentially strangers to newcomers. 39% of newcomers seek the advice of family and friends when it comes to their finances. A financial decision significantly impacts their day-to-day lives and would not be entrusted to a “stranger.”

Even though financial advisors are considered experts and essentially know better, newcomers would defer to elder family members for sound advice on money matters.

On Choosing Their First Canadian Bank
Given this culturally driven disposition, it does not come as a surprise that among the newcomers polled 48% choose their first bank based on their family’s recommendation. Also, most newcomers live with the family when they first arrive in the country. According to the same study, 42% live with their extended family in a multi-generational household.
Often, relatives who came before them offer critical support in the areas of health, wellness, education, and emotional well-being. And even financial support when newcomers are just starting and have yet to secure employment to earn a steady income. And so, the opinion of these trusted and close contacts is highly valued.

Family versus Financial Experts
The findings of this ETHNIHUBTM study should serve as a gentle reminder to banking and financial institutions that when dealing with newcomer customers, the approach is not always cold, straightforward, and business-like. Perhaps the best way they can woo this segment is to make newcomers realize that they can trust financial advisers and that they always have their best interests in mind.

Remember too that they would not only be speaking to a nuclear family. For newcomers, the mantra “all for one, one for all ” applies. Older parents, uncles, aunts, even cousins have an opinion on the financial journey of the whole household.

Each member matters and is well-esteemed. So be warm, go up close, and personal. After all, that’s how one treats family right?

If you want to get more information on ETHNIHUBTM or learn how to connect with multicultural audiences, contact us.


What Do Newcomers Want From Their First Canadian Bank?

What Do Newcomers Want From Their First Canadian Bank?

In the next three years, Canada will welcome 1.2M immigrants from all over the world. The first thing on a newcomer’s checklist is to open an account with a Canadian bank. The sooner they start a relationship with the bank, the better. According to settlement organizations, opening a Canadian bank account should be done within the first two weeks of arrival. It’s necessary for managing money, building a credit history, and paying bills.

A recent study by ETHNIHUBTM, the diverse audience intelligence platform, shows us what newcomers want from their first Canadian bank.

Let’s dive in!

32% OF NEWCOMERS WANT ‘NO BANKING FEES’  
 17% wish for additional incentives
16% care about security and fraud protection

Newcomers are just starting to build their financial future in Canada. What they can save from not paying extra fees could be used for buying their basic needs. That’s why Canadian banks that offer a reprieve from paying bank fees are one of the things that newcomers seriously consider when choosing a bank.

39% SAYS ‘UNREASONABLE BANKING FEES’ TRIGGERED THEM TO SWITCH BANKS
 22% Bad Customer Service
21% Complicated Banking Requirements

How they are treated by their banks and complex processes are factors that make newcomers think of going to another Canadian bank. But unreasonable banking fees are the deal breaker.

87% OF NEWCOMERS ARE SAVING MONEY
Only 13% do not set aside money for savings.

Did you know? 39% of newcomers that were polled say that they’ve become thriftier and budget-conscious when they moved to Canada. Lack of employment opportunities, the large expense of settling in that includes paying for a home, buying furniture, etc., and managing a household with extended family members living under one roof, affect the financial well-being of newcomers.

With limited income and slowly dwindling savings, it’s no surprise that newcomers are tightening their belts. But it’s also worth noting that they still make savings a priority.

3 MOST POPULAR BANKS AMONG NEWCOMERS
1 TD Bank (Toronto-Dominion Bank)
2 RBC (Royal Bank of Canada)
3 CIBC (Canadian Imperial Bank of Commerce)

Among the Big 5, TD Bank comes out on top as the bank preferred by newcomers.


RBC Canadian Women Entrepreneur Awards

Filipino Canadian Woman Nominated for RBC Canadian Women Entrepreneur Awards

AV Communications (AVC) CEO Joycelyn David joins the ranks of visible minority women who are making their mark in Canada. A Filipino-Canadian, she has been recently nominated at the RBC Canadian Women Entrepreneur Awards. The prestigious national awards program celebrates the achievements of the most accomplished and impactful women in the country.

Over the last 29 years, the program has honoured over 190 women for demonstrating excellence across multiple sectors. And this year, David is making history by becoming one of only a handful of Filipino women who have landed a place in this coveted spotlight.

Born in Canada, Raised Filipino

Proud of her Filipino roots, David was the first of her family to be born in Canada after her parents emigrated from the Philippines in the 1970s. She grew up between Winnipeg and Edmonton, learning about her culture through the stories shared by her relatives. But learning the culture was not enough. David yearned to see another Filipino face right here in her home.

“I can still remember the first time I saw a Filipino in a TV commercial here in Canada,” David recalled. “It was a student recruitment spot, and they were inviting internationally trained students to enroll. I distinctly remember the ad and the feeling that ‘Ah… I can see myself, my sister, and my culture represented on TV. I was 25 years old at the time. Why has it taken so long for me to see myself reflected in the media this way?”

This question on her mind motivated David to champion the representation of black, indigenous, and people of colour (BIPOC) in mainstream media. Especially for the Filipino ethnic group that’s the third-largest in Canada. The Filipino population is expected to reach 1M by 2021, representing a 150% growth rate. They’re also the number one source of immigrants to Canada.

Rising to the Challenge 

With the rise of the Black Lives Matter movement, and call for representation for BIPOC, consumers are demanding diversity and authenticity. Multiculturalism is mainstream. This has been David’s battle cry since taking the reins at AVC in 2019. Aside from keeping its Filipino heritage alive, David is taking the 17-year-old agency to greater heights.

Today, the award-winning multicultural agency has expanded its business globally. Growing international brands and reaching multicultural audiences south of the border (USA), even as far as the Philippines and Mexico.

AVC is also expanding through partnerships and research and development with the launch of its insights platform ETHNIHUBTM  in October 2020. This project landed David a coveted spot in the Microsoft-backed Women in Cloud Accelerator.

Lead with Diversity. Invest in Multicultural.

David aims to push brands to revisit their brand and marketing campaigns and account for visible minorities in their communications. And though she has shattered Filipino stereotypes through her latest achievement, David knows her work has only just begun.

“It’s time for companies to walk the talk. If they truly embrace diversity and inclusion (D&I) it will be reflected in all aspects of their business, including marketing. When I began in this industry nearly 20 years ago, multicultural marketing budgets were often less than 5% of a campaign budget. It’s now 2021, and unfortunately, we haven’t moved the needle enough. I look forward to the day when a campaign brief LEADS with diversity and puts the right investment into multicultural audiences as well.”

If you would like to talk to Joycelyn about some of her current endeavors, future passion projects or how she can help you boost your brand in the multicultural space, drop her a message at linkedin.com/in/joycelyndavid/


2021 Multicultural Strategy Tip #5

2021 Multicultural Strategy Tip #5

How do you tap the 10M multicultural market this year? In this blog series, we give you five strategies that you can use as a guide when you formulate your marketing plans for the multicultural audience in 2021.


Food brand? Say hello to the halal market.

THE FACTS: Canadian Muslim population, who consume halal food, is projected to reach 2.7M by 2030 (6.6 % of total population). The halal market size is over 1B in Canada and is growing at a rapid rate of 10% over the last few years.

KFC, Popeyes, Mary Browns, Nando’s and many more mainstream brands have added halal options to their menus to increase their market share.

Loblaws and Maple Leaf Foods have their own halal product range (Sufra and Mina respectively) to meet the growing demand of halal audience.

Walmart and FreshCo have dedicated “halal” food sections at various locations.

Why do you need to consider this audience for your brand?

OUR TAKE: Halal product awareness and consumption is increasing at a rapid pace and majority of consumers have the financial power to spend. According to the Canadian Halal Meat Market Study funded by the Alberta Agriculture, Food & Rural Development (AAFRD) and Farming For The Future Farm Demo Project (FFF), the average Canadian Muslim household spends $1,623 on halal meat per year and consumes 5.6 meat servings per day. This trend will only grow from here so why wait?

To learn more about our multicultural strategies contact Shaharyar Irfan and Gideon Lin.


2021 Multicultural Strategy Tip #4

2021 Multicultural Strategy Tip #4

How do you tap the 10M multicultural market this year? In this blog series, we give you five strategies that you can use as a guide when you formulate your marketing plans for the multicultural audience in 2021.


Get people talking. Tap Emerging Ethnic Micro-influencers.

THE FACTS: Word of mouth is stronger among immigrants versus the mainstream audience.

50% of Chinese consumers use social platforms to gain product information while 40% do impulsive buying online after being influenced by KOLs.

Ethnic groups such as South Asians and Filipinos are hugely influenced by the opinions of trusted people in their community, especially when buying a high value item.

How can your brand be present in these online conversations?

OUR TAKE: Leverage the strong network of influencers to promote your brand among different ethnic audiences.

To learn more about our multicultural strategies, see tip #5 and contact Shaharyar Irfan and Gideon Lin.


2021 Multicultural Strategy Tip #3

2021 Multicultural Strategy Tip #3

How do you tap the 10M multicultural market this year? In this blog series, we give you five strategies that you can use as a guide when you formulate your marketing plans for the multicultural audience in 2021.


Mabuhay! Add Filipino Canadians to Your Acquisition Brief.

THE FACTS: The Filipino population is one of the fastest growing Asian populations in the country. By 2021, the Filipino population is expected to reach 1M, representing a 150% growth rate. They are the #1 source of immigrants to Canada.

How can your brand grow your customer base?

OUR TAKE: Consider adding Filipinos to your consumer acquisition strategy. This ethnic group has a significant spending power (average net worth is $446k higher than the general population $442k).

Filipino Canadians also have the lowest unemployment rate (5.9%) amongst newcomer segments and 60% of them have a college or university degree.

To learn more about our multicultural strategies, see tip #4 and contact Shaharyar Irfan and Gideon Lin.


2021 Multicultural Strategy Tip #2

2021 Multicultural Strategy Tip #2

How do you tap the 10M multicultural market this year? In this blog series, we give you five strategies that you can use as a guide when you formulate your marketing plans for the multicultural audience in 2021.


Get on WeChat and Weibo. Seriously.

THE FACTS: With over 1.6M Chinese Canadians, this audience is young (average age 38), affluent (23.2% of Chinese Canadians earn up to $150k in gross income per year versus 16.1% of all Canadians) and growing as the #2 source of new immigration and international students to Canada.

How can your brand connect to this audience?

OUR TAKE: Get your brand on WeChat and Weibo. Chinese audiences have strong preference to consume media in their native language, so brands need to step up and meet them on the app of their choice – WeChat and Weibo.

There are over 1M users on WeChat and over 0.6M monthly active users on Weibo in Canada. This group is socially very active and spends an average of 35+ hours a week on WeChat alone.

To learn more about our multicultural strategies, see tip #3 and contact Shaharyar Irfan and Gideon Lin.


2021 Multicultural Strategy Tip #1

2021 Multicultural Strategy Tip #1

How do you tap the 10M multicultural market this year? In this blog series, we give you five strategies that you can use as a guide when you formulate your marketing plans for the multicultural audience in 2021.


Be inclusive. Develop a Multicultural Marketing Model.

THE FACTS: Consumers are demanding diversity with the rise of Black Lives Matter movement and call for representation for black, indigenous, and people of colour (BIPOC).

How can your brand be more inclusive?

OUR TAKE: Start by building a multicultural marketing model. Connect to customers through a cultural lens – authentically. Language is part of this, but not entirely as many multicultural audiences are of mixed heritage or speak multiple languages. Look beyond the ethnic background and identify the right passion points and hotspots for your audience.

To learn more about our multicultural strategies, see tip #2 and contact Shaharyar Irfan and Gideon Lin.


AVC CEO Joycelyn David tells Narcity why multiculturalism is key to growing your Canadian business in 2021

AVC CEO Joycelyn David tells NARCITY why multiculturalism is key to growing your Canadian business 2021

From 2021 to 2023, Canada aims to bring 1.2 million immigrants to compensate for the shortfall in 2020, the year hit by a global pandemic.

With over a million new people entering Canada from different parts of the world, Canadian businesses need to start thinking about turning this diverse audience into new customers.

"The future is bright because the market has awoken to something we’ve known for 20 years, diversity is good for business."

— AVC CEO Joycelyn David shares in her interview with Narcity.

These newcomers are not the only source of growth. So are the diverse Canadians who are now living in the country. That is why multiculturalism is a key factor to consider when marketers formulate their growth strategy for 2021.

David reveals five ways on how Canadian businesses can successfully tap into the multicultural market. Read the full article, click here.

For Canadian brands who would like to dip their feet into multicultural marketing, start by chatting with the experts. Contact Shaharyar Irfan, or Gideon Lin.