Inflation makes holidays hard for small businesses
While inflation has cooled somewhat, with Bank of Canada (BoC) interest rates dropping as a result, its impacts are still being felt by small businesses and their customers across Canada. A new report from Constant Contact indicates 90% of Canadian small businesses surveyed have been impacted by inflation, and 56% of Canadian consumers have decreased their spending at small businesses this year due to inflationary pressure. "Small businesses are incredibly resilient, but as they head into a holiday season filled with uncertainty, they must get proactive in their marketing to ensure success," said Sarah Joran, chief marketing officer at Constant Contact. "Our study shows that despite inflation, shoppers still want to support small businesses, so the SMBs (small and medium-sized business) who thrive will be the ones who start their holiday marketing early, streamline their work with automations and engage customers consistently throughout the season." Just over a third of small businesses said they feel the most pressure to drive revenue for their businesses in Q4.
While inflation has cooled somewhat, with Bank of Canada (BoC) interest rates dropping as a result, its impacts are still being felt by small businesses and their customers across Canada. A new report from Constant Contact indicates 90% of Canadian small businesses surveyed have been impacted by inflation, and 56% of Canadian consumers have decreased their spending at small businesses this year due to inflationary pressure. "Small businesses are incredibly resilient, but as they head into a holiday season filled with uncertainty, they must get proactive in their marketing to ensure success," said Sarah Joran, chief marketing officer at Constant Contact. "Our study shows that despite inflation, shoppers still want to support small businesses, so the SMBs (small and medium-sized business) who thrive will be the ones who start their holiday marketing early, streamline their work with automations and engage customers consistently throughout the season." Just over a third of small businesses said they feel the most pressure to drive revenue for their businesses in Q4.
One third of Canadians manage their finances well
World Financial Group (WFG) has released its latest Financial IQ study to coincide with Life Insurance Awareness Month. The biggest reveal of the study is that only 37% of the Canadians surveyed are confident they manage their finances well enough to lead to security in the future — down from 39% the year prior. "The goal of WFG independent agents is to guide individuals and families in achieving financial security. Currently Canadians are anxious about their future and financial situation," said Rick Williams, president of World Financial Group Insurance Agency of Canada Inc. "Life Insurance Awareness Month is a great time to educate the lower and middle-market communities about the many available life insurance solutions and financial options," Williams added.
World Financial Group (WFG) has released its latest Financial IQ study to coincide with Life Insurance Awareness Month. The biggest reveal of the study is that only 37% of the Canadians surveyed are confident they manage their finances well enough to lead to security in the future — down from 39% the year prior. "The goal of WFG independent agents is to guide individuals and families in achieving financial security. Currently Canadians are anxious about their future and financial situation," said Rick Williams, president of World Financial Group Insurance Agency of Canada Inc. "Life Insurance Awareness Month is a great time to educate the lower and middle-market communities about the many available life insurance solutions and financial options," Williams added.
Canadian salary increases to surpass inflation
As the Canadian labour market continues to work itself out in a post-pandemic world, especially with the subsequent inflation that has impacted many Canadians and their quality of life, there seems to be some glimmers of hope for the future. The national average base salary increase for 2025 is projected at 3.6%, according to Eckler’s third annual survey — although, this is below 2024’s actual increase of 3.8%. "As inflationary pressures dissipate, planned salary increases are moderating more slowly; resulting in larger real compensation increases for employees," said Anand Parsan, national compensation practice leader at Eckler. "We are beginning to see a reversion to pre-pandemic norms." However, Eckler’s predictions don’t include planned salary freezes.
As the Canadian labour market continues to work itself out in a post-pandemic world, especially with the subsequent inflation that has impacted many Canadians and their quality of life, there seems to be some glimmers of hope for the future. The national average base salary increase for 2025 is projected at 3.6%, according to Eckler’s third annual survey — although, this is below 2024’s actual increase of 3.8%. "As inflationary pressures dissipate, planned salary increases are moderating more slowly; resulting in larger real compensation increases for employees," said Anand Parsan, national compensation practice leader at Eckler. "We are beginning to see a reversion to pre-pandemic norms." However, Eckler’s predictions don’t include planned salary freezes.
Canada businesses' pay fraud higher than consumers
As technology becomes more sophisticated, the opportunity for bad actors to exploit these advancements and defraud both Canadian businesses and the general population increases significantly. One in five (20%) of Canadian businesses have experienced payment fraud in the last six months — however, that number drops to 13% for consumers. This is according to a new study from Payments Canada. "Addressing fraud risks is a central focus for the payment ecosystem. It requires a multifaceted approach that leverages technology, system innovations, evolving regulations and education through continued industry collaboration," said Donna Kinoshita, chief payment officer at Payments Canada. "Looking to the future, biometrics, multi-factor authentication, confirmation of payee systems, AI learning for fraud detection, centralised fraud systems, in addition to enhanced reporting and data sharing, are just some of the cross-industry innovations and initiatives that will play a role in helping protect Canadian businesses and consumers." The most common types of fraud were: impersonator fraud, originating from a phone call, text message or email that appears to be from a trusted business source (25%), intercepted business e-Transfers (22%) and credit card fraud (20%).
As technology becomes more sophisticated, the opportunity for bad actors to exploit these advancements and defraud both Canadian businesses and the general population increases significantly. One in five (20%) of Canadian businesses have experienced payment fraud in the last six months — however, that number drops to 13% for consumers. This is according to a new study from Payments Canada. "Addressing fraud risks is a central focus for the payment ecosystem. It requires a multifaceted approach that leverages technology, system innovations, evolving regulations and education through continued industry collaboration," said Donna Kinoshita, chief payment officer at Payments Canada. "Looking to the future, biometrics, multi-factor authentication, confirmation of payee systems, AI learning for fraud detection, centralised fraud systems, in addition to enhanced reporting and data sharing, are just some of the cross-industry innovations and initiatives that will play a role in helping protect Canadian businesses and consumers." The most common types of fraud were: impersonator fraud, originating from a phone call, text message or email that appears to be from a trusted business source (25%), intercepted business e-Transfers (22%) and credit card fraud (20%).
5 pros and 6 cons to recent mortgage changes
Are you sitting on the sidelines waiting for real estate prices to soften? After the recent federal government announcement, you’d better buckle up. Finance Minister Chrystia Freeland announced some major changes to mortgage rules in Canada. According to Freeland, these changes — billed as the “most significant mortgage reforms in decades” — are part of the federal government’s initiative to make housing more affordable (and, potentially, secure some love from the Canadian public). These reforms include: Increase in the mortgage insurance cap: The limit on insured mortgages was raised from $1 million to $1.5 million, allowing more home buyers to qualify for mortgages with less than 20% down payment. (Re-)Introduction of 30-year mortgages: First-time home buyers and purchasers of newly built homes can now opt for a 30-year mortgage, a move designed to make monthly payments more affordable. Easier mortgage renewals: Insured mortgage holders can switch lenders at renewal without undergoing another mortgage stress test, promoting competition among lenders and helping homeowners secure lower interest rates. These recent changes prompted a mixed reaction from housing experts, with some praising these initiatives for allowing first-time home buyers easier access to a limited housing supply. Others were critical, stating that the reforms were the equivalent of a bandaid solution to a systemic problem. To help, here’s an overview of how these mortgage changes will impact Canadians in 2024 and moving into 2025.
Are you sitting on the sidelines waiting for real estate prices to soften? After the recent federal government announcement, you’d better buckle up. Finance Minister Chrystia Freeland announced some major changes to mortgage rules in Canada. According to Freeland, these changes — billed as the “most significant mortgage reforms in decades” — are part of the federal government’s initiative to make housing more affordable (and, potentially, secure some love from the Canadian public). These reforms include: Increase in the mortgage insurance cap: The limit on insured mortgages was raised from $1 million to $1.5 million, allowing more home buyers to qualify for mortgages with less than 20% down payment. (Re-)Introduction of 30-year mortgages: First-time home buyers and purchasers of newly built homes can now opt for a 30-year mortgage, a move designed to make monthly payments more affordable. Easier mortgage renewals: Insured mortgage holders can switch lenders at renewal without undergoing another mortgage stress test, promoting competition among lenders and helping homeowners secure lower interest rates. These recent changes prompted a mixed reaction from housing experts, with some praising these initiatives for allowing first-time home buyers easier access to a limited housing supply. Others were critical, stating that the reforms were the equivalent of a bandaid solution to a systemic problem. To help, here’s an overview of how these mortgage changes will impact Canadians in 2024 and moving into 2025.
Warren Buffett is buying a Canadian P&C firm
Morningstar strategist Greggory Warren was right: The Canadian stock that Warren Buffett is purchasing is the P&C insurance firm Chubb. The Canadian stock that caught the attention of legendary value investor Warren Buffett was finally revealed. Morningstar strategist Greggory Warren was correct in his prediction—with the Berkshire Hathaway (NYSE:BRK-A) chairman buying shares in the Canadian property and casualty insurance firm Chubb (NYSE:CB). While the stock price for Chubb (NYSE:CB) already rose, with word of Buffett's interest circulating among trading circles for half a year, there are similar P&C insurance firms that investors could consider.
Morningstar strategist Greggory Warren was right: The Canadian stock that Warren Buffett is purchasing is the P&C insurance firm Chubb. The Canadian stock that caught the attention of legendary value investor Warren Buffett was finally revealed. Morningstar strategist Greggory Warren was correct in his prediction—with the Berkshire Hathaway (NYSE:BRK-A) chairman buying shares in the Canadian property and casualty insurance firm Chubb (NYSE:CB). While the stock price for Chubb (NYSE:CB) already rose, with word of Buffett's interest circulating among trading circles for half a year, there are similar P&C insurance firms that investors could consider.
Canada's pension plan sells commercial real estate
What would you do if you had a dollar to spare? For Boston Properties, one of America's largest publicly traded real estate developers, that $1 investment was used to buy a stake in a Manhattan office building — specifically, the Canada Pension Plan Investment Board’s (CPPIB) 29% share of 360 Park Ave. S in New York City. CPPIB selling its holding in one of North America’s most expensive cities — likely at a loss — has sent ripples through the commercial real estate (CRE) industry, which was already struggling with hybrid and remote work, high interest rates and record levels of office vacancies in Canada and the United States. CPPIB’s decision to unload the property could have lasting impacts on CRE, Canadians with pensions and investors.
What would you do if you had a dollar to spare? For Boston Properties, one of America's largest publicly traded real estate developers, that $1 investment was used to buy a stake in a Manhattan office building — specifically, the Canada Pension Plan Investment Board’s (CPPIB) 29% share of 360 Park Ave. S in New York City. CPPIB selling its holding in one of North America’s most expensive cities — likely at a loss — has sent ripples through the commercial real estate (CRE) industry, which was already struggling with hybrid and remote work, high interest rates and record levels of office vacancies in Canada and the United States. CPPIB’s decision to unload the property could have lasting impacts on CRE, Canadians with pensions and investors.
Canadian SMEs least sure about AI: survey finds
While AI is touted as the new frontier in the business realm — not all business owners are smitten by its automated potential. Case in point, the second edition of a Peninsula Group survey of Canada, New Zealand, Australia, Ireland and the UK on the opportunities and concerns of AI in the workplace, which found that, despite a 50% year-over-year increase, only one in 10 SMEs say they are regularly using AI in their workplace. Almost half of those surveyed report concerns about the security risks posed by AI, a 60% increase from 2023. "While many can see the benefits of AI, there are still significant concerns around security, productivity, and intellectual property that need to be addressed before we will see widespread implementation across businesses. With online security and data protection being a top priority for most employers, this is not a big surprise,” Alan Price, Peninsula’s chief operations officer, said. "All employers are looking for ways to speed up processes, improve productivity and, ultimately, increase profits. With costs continuing to rise globally, it's not surprising to see 1 in 4 small business owners believe that AI will probably reduce the number of people they employ at some point." For the second year running, Canadians are the most cautious among the countries surveyed, with only 23% of employers believing AI has the power to positively transform the workplace. Another 53% are either fearful of the unknown, unsure about negative elements or believe that AI will be highly detrimental to the workplace.
While AI is touted as the new frontier in the business realm — not all business owners are smitten by its automated potential. Case in point, the second edition of a Peninsula Group survey of Canada, New Zealand, Australia, Ireland and the UK on the opportunities and concerns of AI in the workplace, which found that, despite a 50% year-over-year increase, only one in 10 SMEs say they are regularly using AI in their workplace. Almost half of those surveyed report concerns about the security risks posed by AI, a 60% increase from 2023. "While many can see the benefits of AI, there are still significant concerns around security, productivity, and intellectual property that need to be addressed before we will see widespread implementation across businesses. With online security and data protection being a top priority for most employers, this is not a big surprise,” Alan Price, Peninsula’s chief operations officer, said. "All employers are looking for ways to speed up processes, improve productivity and, ultimately, increase profits. With costs continuing to rise globally, it's not surprising to see 1 in 4 small business owners believe that AI will probably reduce the number of people they employ at some point." For the second year running, Canadians are the most cautious among the countries surveyed, with only 23% of employers believing AI has the power to positively transform the workplace. Another 53% are either fearful of the unknown, unsure about negative elements or believe that AI will be highly detrimental to the workplace.
Canadian government streamlining eSIN process
The Canadian government has made significant improvements to its SIN application process – namely that it can now be done online. Clients can apply for their SIN from the comfort of their homes and receive it within five business days, when an online application is completed with all the required documents. "The Government of Canada must keep up with the needs and expectations of Canadians when they seek access to government services. By listening to Canadians, Service Canada Officers and newcomers, we are implementing new, digital solutions and meeting Canadians where they are in their communities, identifying where they can be best served,” Terry Beech, Minister of Citizens’ Services, said. “Accessing services should not be a mystery novel, but rather a seamless customer service experience that respects Canadians and their valuable time. That is what we are making a reality with initiatives like eSIN." The previous processing standard was 10 days.
The Canadian government has made significant improvements to its SIN application process – namely that it can now be done online. Clients can apply for their SIN from the comfort of their homes and receive it within five business days, when an online application is completed with all the required documents. "The Government of Canada must keep up with the needs and expectations of Canadians when they seek access to government services. By listening to Canadians, Service Canada Officers and newcomers, we are implementing new, digital solutions and meeting Canadians where they are in their communities, identifying where they can be best served,” Terry Beech, Minister of Citizens’ Services, said. “Accessing services should not be a mystery novel, but rather a seamless customer service experience that respects Canadians and their valuable time. That is what we are making a reality with initiatives like eSIN." The previous processing standard was 10 days.
Canadians are avoiding a summer of overspending
While the summer zeitgeist is generally informed by an insatiable search for wanderlust, almost eight in 10 Canadians (77%) are making changes to their summer spending habits in response to the rising cost of living, according to a new poll by CIBC. Canadians are actively looking for ways to save on summer activities — for some, this may involve looking for opportunities to travel without blowing their budget. "Canadians have been pragmatic and resourceful as they've embraced a savings mentality in order to navigate a challenging economic landscape," said Carissa Lucreziano, CIBC’s vice-president of financial planning and advice. "Many are still concerned inflation will impact their summer fun despite their best efforts to not overspend." In stark contrast to the carefree abandon of summertime endeavours, most Canadians (64%) reveal that they are embracing a savings mindset this season.
While the summer zeitgeist is generally informed by an insatiable search for wanderlust, almost eight in 10 Canadians (77%) are making changes to their summer spending habits in response to the rising cost of living, according to a new poll by CIBC. Canadians are actively looking for ways to save on summer activities — for some, this may involve looking for opportunities to travel without blowing their budget. "Canadians have been pragmatic and resourceful as they've embraced a savings mentality in order to navigate a challenging economic landscape," said Carissa Lucreziano, CIBC’s vice-president of financial planning and advice. "Many are still concerned inflation will impact their summer fun despite their best efforts to not overspend." In stark contrast to the carefree abandon of summertime endeavours, most Canadians (64%) reveal that they are embracing a savings mindset this season.
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