The agency said in a review, released Friday, that while many bank fees seem relatively small on an individual basis, they can add up over time, and in some cases, the full fee structure is embedded in a transaction, making it less visible to the consumer.
“Our banks are very well established and very solid, and they really are focused on their customers … We would really like them to play an active role in reducing fees and ensuring that consumers are well served by the banking community,” Shereen Benzvy Miller, FCAC commissioner, said in an interview.
What types of bank fees are there?
Bank fees can stem from a variety of activities including everyday transactions, account maintenance, ATM access, non-sufficient funds, overdraft and foreign exchange.
The review outlined some ways in which banking fees can be difficult for consumers to see or expect.
Firstly, when multiple fees are applied to a single transaction, consumers pay higher costs. Secondly, foreign exchange and cross-border debit fees are typically embedded in transaction costs, making the amount consumers pay less clear. Lastly, fees based on usage can make it more challenging to predict costs, especially if consumers have difficulty tracking the number of transactions they make.
“We would benefit greatly from better consumer information, not just generally about fees and not just at the beginning of your relationship with that product or service or institution, but throughout the life of your usage and on a regular basis,” Benzvy Miller said.
Who is disproportionately affected by bank fees?
The review says certain customers may be disproportionately affected by the cumulative cost of fees, particularly those with lower incomes, less savings or who have a greater reliance on daily banking.
In the 2025 federal budget, Ottawa said it would work with the banks to bring more transparency to fees for sending money abroad. It also asked the FCAC to prepare a report on the structure, level and transparency of fees charged by banks.
The FCAC is a government agency that monitors trends and issues affecting financial consumers and conducts research to help inform policy decisions.
Anthony Ostler, chief executive of the Canadian Bankers Association, said Canadians trust banks to provide them with financial services and advice as they navigate key life moments.
“When money is put in a bank in Canada, deposits are insured and the bank is overseen by regulators who ensure Canadians are treated fairly and their money is secure,” Ostlersaid in a statement.
“The Canadian Bankers Association and its members remain committed to supporting Canadians and Canadian businesses, delivering practical financial support either in-person or through digital channels and contributing to a strong and sustainable Canadian economy.”
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