Consumer Pulse Q1 2022

As the Canadian economy reopens and pre-pandemic norms are returning, consumers appeared to feel positive about their personal finances coming through this disruption — but did share concerns for long-term impacts of things like inflation. The latest Consumer Pulse survey showed the majority of Canadians felt their finances are the same or better than planned. This may be partially due to government subsidies supporting households throughout the pandemic, as well as lender debt relief. However, consumer outlook regarding the next 12 months was tainted — as concerns over inflation and affordability grow, and many are less positive about their personal finances going forward. 

Consumers were willing to spend slightly more on discretionary items, but the number of those still holding back was quite high. Reasons for this included uncertainty around future economic shocks resulting from inflation or higher interest rates, and simply still adjusting to a new normal. Similarly, some consumers were willing to wait to get additional credit — this was typically found in higher risk tiers as these consumers were less confident they’d get approved. 

As the credit economy continues to push digital acceleration, more consumers are monitoring their credit scores to protect against fraud and gain access to additional credit. Similarly, Canadian consumers are becoming more willing to share personal data (like income or bank data) if it helps in their application for a credit product. As alternative lending sources continue to grow, this type of information may become more important from a lender perspective. It could also serve from a financial inclusion perspective as more data will allow for better decisions — opening up new forms of credit like BNPL or POS to consumers who may not have traditionally qualified.