Canadian banking is very different from other free market countries in the sense that all banks are federally chartered. While in the United States pretty much anyone with enough money and credit can open their own bank, in Canada there are only 5 major banks in the entire country. The term ‘major’ refers to their status as Tier 1 banks according to the Canadian government. These are: Royal Bank of Canada, TD Canada Trust, Scotiabank, Bank of Montreal (BMO) and CIBC.
In addition to the large banks each province has several smaller banks, credit unions and financial services companies that are also under the watch of the government. Some of these banks are subsidiaries of foreign banks, and some of them are foreign banks that are allowed to operate in Canada within specific limits. In Quebec, the largest of these is the Caisse Desjardins, a credit union with sizeable assets of its own. The Laurentian Bank, National Bank of Canada and the HSBC also have a good presence in the province.
Interacting with the Bank
Banking hours in Quebec are a popular topic when it comes time to complain about something. Many banks are only open for a short period during weekdays, usually between 10 am and 5 pm, although some close as early as 3 pm. Recently, a few banks have attempted to gain a competitive advantage by shifting or extending their hours to allow those who work from 9 to 5 to access their teller services.
Fortunately, banking services have evolved to the point where a visit to the teller is really only necessary for certain types of transactions. Most banking in Quebec can be done either online, or at an automatic teller machine. Both of these options are encouraged by banks, and much investment has been done into the banking network in order to seamlessly integrate these points of service. In fact, Canada has more ATM’s per capita than any other country in the world. In addition to withdrawing cash at an ATM, you can pay a paper or electronic bill, deposit cash or checks, transfer funds to other accounts and also manage your credit cards.
Online banking offers the same types of services, with a few extra goodies thrown in. You can choose to view all of your statements online, instead of getting them mailed to you every month, which saves on paper and clutter. You can also schedule regular transactions and manage your loans and lines of credit. Finally, you can download you transaction history from all of your accounts to money managing software on your home computer.
What is Interac ?
In addition to ATM’s, Canada has also widely adopted debit payment at the point of purchase. Using your ATM card issued by your bank, you can directly pay for almost anything in Quebec. This system is called Interac, and unlike a check card or American-style debit card, it is not issued by a credit card company. There are no separate statements to deal with, and the money is deducted directly from the account of your choosing. The downside to the Interac system is that it enables banks and third-party service providers to collect usage fees.
Welcome to New To Montreal ! If you are new here, you can learn more about Montreal in subscribing to the RSS feed or via E-mail. Thanks for visiting!
Was this article useful ?
