BC credit unions are first choice for Canada's small and medium-sized businesses
Countrywide, rival big banks gaining on RBC's No. 1 spot, CFIB says
BC credit unions comprise the biggest section of the market for the province’s small and medium-sized businesses, while elsewhere in Canada the Royal Bank is losing market share as business begin to shift to rival big banks and credit unions, according to a report from the Canadian Federation of Independent Businesses (CFIB).
Countrywide, the report found, the Royal Bank has the largest share of small and medium-sized businesses at 18.5 per cent, but lost 2.7 per cent of its customers between 2000 and 2015.
The largest beneficiary of RBC’s market loss was Scotiabank, which jumped 6.7 per cent to just under 18 per cent of total market share. TD Canada Trust also benefited, increasing its market share by 2.8 per cent to 11.5 per cent. CIBC had the least amount of market share, losing 3.5 per cent from 2000 to 2015, dropping to 9.8 per cent market share.
Aside from large national banks, regional banks were also well represented in the market share breakdown within their own provinces. Quebec-based Desjardins group, one of the largest associations of credit unions in North America, has 42.6 per cent of the total small and medium-size enterprise market in that province. Alberta Treasury Branches hold the largest market share in Alberta with 19.7 per cent.
In British Columbia, credit unions have the largest market share of business from small and medium-sized enterprises at 23 per cent.
Like BC, Saskatchewan and Manitoba small and medium-sized business depend greatly on credit unions for their banking needs. Credit unions’ market share makes up 39.2 per cent of the market within the two provinces.