There is an old, unwritten rule, that goes a little something like this “Don’t talk about your finances with anyone”. Some quotes like this are timeless but I think that this one has run its course. Canadian debt is becoming a serious problem that definitely requires more attention.

Financial education is something that should be widely accepted and embraced by all. According to CBC news, Millennial debt has shown a 12.3% increase since 2018 and sits around $515.9 billion dollars. To make matters even more concerning, its younger counterpart, Gen-X is hovering around $767.4 billion.

Now, this statistic does not happen to consider if this is “good debt” or “bad debt”, which we will cover later, but is still cause for concern. We must start asking ourselves serious questions about how we are spending our money, where we should we invest our money, and pursue a new standard that allows for more openness about our financial situations.

Canadian Debt: Good debt versus bad debt

When we hear the word debt, usually the worst comes to mind. What if I were to tell you that debt can be broken down into two categories: good and bad? A survey with over 8000 respondents, conducted by our team at Caddle, indicated that 54% of our members are only slightly familiar with the concept of bad debt. That being said, let’s analyze the differences.

Good Debt

This form of debt involves taking out a loan or refinancing a property in order to use the equity to invest into something that will ultimately generate income. Good debt includes, but is not limited too, investing in your education, opening a small business, or real estate and homeownership. This type debt is two-fold because as you are making the payments for your loan you are developing a relationship with your financial institution and therefore, increasing the likelihood of getting a larger loan in the future.

Bad Debt

Bad debt is when you borrow money in order to purchase a product or service that will decrease in value instantaneously or over time. Some examples of bad debt include cars, jewellery, clothing, consumables, and credit cards. Not only is the product or service that you have purchased going to decrease immediately, but you will also have to pay interest on the amount spent.

Canadian Debt: Credit Card Debt

With Canadian’s debt statistics on an upward trajectory, it’s important to identify some of the key contributors. With low interest rates, low unemployment, and rising wages, it is uncommon for us to be experiencing this particular issue. The most common culprit when it comes to bad debt is the credit card. Average non-mortgage debt per Canadian citizen is predicted to hit $31,000 by the start of 2020.

Consequently, we are also seeing increases in Canadians carrying credit card balances, in the amount of $4,465 on average. Now, depending on your existing credit card provider you may be able to leverage the benefits and mitigate the risks. Most credit cards come with some sort of rewards incentive to differentiate themselves from the competition. You can make the most out of these rewards if you are diligent and pay your owing balance by the end of each billing cycle. Some of the common credit card benefits include:

• Cash back
• Travel rewards
• No annual fee
• Purchase insurance
• Travel insurance

If you are not aware of your credit card rewards system, go check right now! Most companies incentivize certain purchases such as gas, grocery, or pharmaceutical.

Canadian Debt: Saving Money

Saving is one of the those concepts that sounds and looks easy, but never works out the way you planned. For me, I decided to look back at one of my most recent financial statements and see what I am spending money on. I had over 5 different monthly subscriptions! Why am I paying for Crave, Netflix, and Amazon video? Whether it is our skin care products, coffee, food, streaming services, or web services, we often don’t realize how complacent we become with our spending habits. Let’s dive deeper and look at what Caddle members had to say about savings.

Canadian Debt: Recommendations

Debt is something that can be conquered if you are willing to invest your time and become a diligent record keeper. It is important to utilize the available assets and never be afraid to ask questions. Often, people are intimidated by advisors and have preconceived notions about the amount of money required to begin saving and get out of debt. As someone who is currently working in the financial industry no amount is too little to begin saving. There is no better time than now to evaluate your financial future. Get started by using some of the tips provided below:

• Use the Caddle app to earn cash back and save on your monthly expenses, obviously 😉
• Use financial apps like Mylo in order to save the additional change on every purchase
• Talk to your financial advisor or do some window shopping (make sure you are getting the best services on the market)
• Ask questions about your credit card and rewards programs (check out this list: best credit card Canada)
• Look into debt consolidation if you owe money to multiple institutions
• Open a High Interest Savings Account (HISA), Tax Free Savings Account (TFSA), and a Registered Retirement Savings Plan (RRSP)

Good luck with your savings and remember to answer those surveys to help create awareness about topics that interest you. They can help promote product changes and influence brands to provide you with more of the services you desire. 

More About Caddle

Thanks for reading our blog post! If this is your first time on our webpage you may be wondering who we are and what we do?

Caddle is a data insights company that has a passion for understanding market trends. This information is then translated to the market industry leaders for the benefit of understanding the buying behaviours of their consumers. We keep our finger on the pulse of Canadians with over 8000 daily survey respondents and 300,000 monthly app users. Contact us for more information and resources. 

Fintech: Online Banking Adoption Rate

Online banking has seen tremendous growth and success in the Canadian market with an approximate 50% penetration rate. These numbers are constantly climbing and we could expect higher rates every year as the services become more user-friendly.

Online banking awareness is at an all-time high with 96% of people stating that they have at least heard about the services that are provided such as e-transfer, paying bills, depositing cheques and more.

Fintech can act as an extension for the existing physical spaces. For example, you could complete simple, mundane tasks online while using the available in-branch services to make more complex decisions

That being said, with the banking industry still shifting its focus from brick and mortar operations to digital servicing, it’s important to us at Caddle to determine what suggestions you would make to optimize this technology. 

We got to hear from you!

Some of you still may be wondering, what is Fintech? It’s a combination of “Finance & Technology”. Fintech includes a variety of different services including:

• Insurance
• Transaction delivery
• Peer to peer lending
• Loans
• Digital wallets
• Online banking

So how does Caddle fit in? Caddle is a data insights company that has a passion for understanding market trends which can be translated to the market industry leaders for the benefit of understanding the buying behaviors of their consumers.

We took a look at what our members had to say about Fintech. With an average of about 8000 survey respondents approximately 80% of respondents were female, 50% were Millennials, and 40% were from Ontario. We hope that using this sample size we can garner a better understanding of Fintech and help provide the best insights.

Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services.

Based on the results we determined that our members are not supporters of this new technology for three major reasons. 

1. Digital banking awareness
2. The banking app experience
3. The New Digital Wallet

1) Fintech: Digital Banking Awareness

We conducted a digital bank survey that was focused on determining our member’s awareness and preferences when it comes to conducting their finances online. For this particular survey, we are talking about banks that are solely online with no available storefronts.

We found that more than half of our members were familiar with digital banking. That being said, 54% did not use digital banks and the next best option was Tangerine. All those Toronto Raptors commercials are paying off!

What is interesting is that digital banks have a multitude of advantages that traditional banks don’t. For example, they can offer you higher interest rates and lower banking fees because they have cheaper operating costs than brick and mortar locations.

Fintech: Why not make the switch?

If people are willing to sacrifice earning more money there must be some underlying issues. Banks have invested plenty of money into targeting Millennials and onboarding them to digital platforms.

What is causing people to be so skeptical?

This could be a result of respondents feeling neutral when it comes to their personal info and data being safe with digital banks. Does that mean you heard about the Capital One security breach?

Members simply had no interest when it comes to switching to a digital bank. This could be a result of banks failing to address your concerns:

• Where do I deposit my cash?
• How do I talk to a real person?
• What type of insurance coverage do I get? 

2) Fintech: The Banking App Experience

The findings from the banking app experience survey helped us identified that only 34% of members had a “good” experience when conducting transactions online. This includes them logging on a few times a week to check the status of their accounts.

Members were comfortable completing simple transactions such as:

• Transferring money (e-transfer)
• Paying bills
• Checking account balances

Fintech: Online Banking Stops Here

The previous results were anticipated but when asked if members conducted any other activities like communicating with advisors, applying for loans or mortgages, or opening accounts, the majority said they don’t complete any activities.

This is important because it is evident that members are not comfortable making certain decisions using online platforms whether or not it is an issue of privacy, lack of financial guidance, or inaccessibility.

3) Fintech: The New Digital Wallet

How many of you carry cash? Probably not often right? What if I told you now you don’t have to carry your wallet. The future is here, all you have to do is tap your phone to make a purchase! (ie: apple pay)

To be honest, it’s an interesting experience and there are valid points made from each side of the spectrum.

67% of you said that you don’t currently use a digital wallet.

Here are the following reasons why our members are skeptical about making the leap to digital wallets:

• Safety and security. Members disagreed with the following statement, ‘my personal information and money is safe with digital wallets’.
• Over half of the respondents were Millennial’s (1978-1996). A large portion of these members are not digital natives.
• There is a lack of awareness and perceived functionality.
• Digital wallets are a relatively new concept (less than 10 years). This technology is still in the early adoption stage.
• Out of the respondents that did use digital wallets they preferred Apple Pay.

Fintech: Digital Transactions Experience Steady Increase

According to a study completed by Payments Canada, they found that “in 2016, the number of contactless transactions increased significantly, to almost 2.1 billion transactions worth $67.1 billion.

This represents an 81% and a 78% increase over 2015, in both volume and value terms (respectively).”

At Caddle, we feel that the lack of presence and usage of digital wallets lies in the hands of the organizations. There is just simply a lack of education and promotion surrounding the benefits associated with this technology.

Hotspot shield also conducted a survey and found similar results.

“A strikingly small 12 percent had ever used any of the applications at all. Of those who had used the technology, PayPal was the runaway favorite, while second-place Google Wallet had been used by only 8 percent of the survey subjects”.

Consequently, our respondents displayed minimal interest in converting their handheld wallets to be linked to their mobile devices.

What’s that old saying? If it ain’t broke, don’t fix it?

The Saftey Guide

For those of you that are going to be cashing in those Caddle earnings and saving more money by shopping online, we have a safety guide just for you. Get your pen and paper ready. Whether or not you will be browsing Amazon or taking advantage of Cyber Monday/Black Friday, this guide will protect your money!

• Review your bank statements (every month) 
• Don’t make purchases on PUBLIC wifi 
• Secure your home wifi 
• Use two-factor authentication (2 passwords for your banking)
• Change the password for your email/bank after the holidays
• Don’t share your PIN(s) with anyone
• Look for spelling errors or inconsistencies on websites 
• Use 3rd party sources (PayPal) to secure your funds

In Canada alone, there were over 1.2 million in compromised funds last holiday shopping season with a total of 1179 victims. 

Now that you have got some good tips and tricks we want to hear from you! Check out our daily surveys on the Caddle app and share some of your insights using this link. Whats are some of the holiday gifts that you will be purchasing? Are you going to be shopping online or in-store? We want to hear it first!

Thanks for reading! Follow us on social media and register online to have access to more blogs and surveys.

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Caddle named to 2019 Startup 50

Canadian Business unveils 2019 list of Canada’s Top New Growth Companies

ST. CATHARINES, Ont. (September 12, 2019) – Nearly five years after it launched, St. Catharines-based mobile app and research firm Caddle has earned a coveted spot on the 2019 Startup 50 ranking of Canada’s Top New Growth Companies.

Canadian Business and Maclean’s today ranked Caddle No. 35 on the annual list. Serving as a companion list to the longstanding Growth 500 ranking of Canada’s Fastest-Growing Companies and produced by Canada’s premier business and current affairs media brands, the Startup 50 ranks younger companies on two-year revenue growth. Startup 50 winners are profiled in a special print issue of Canadian Business published with Maclean’s magazine and online at CanadianBusiness.com.

Caddle made the 2019 Startup 50 list with two-year revenue growth of 517%.

“The 2019 Startup 50 winners suggest the future of Canadian entrepreneurship is extremely bright. They have brought new offerings to market, created indelible brands and disrupted established business models—all in an extremely short period of time,” says Beth Fraser, Startup 50 and Growth 500 program manager. “Any aspiring entrepreneur should look to their stories for inspiration.”

Since opening its doors in 2015, Caddle has experienced rapid growth in the number of consumers tapping into its app to earn cash and save money on groceries, eating out and shopping by answering surveys, watching ads, uploading receipts, and writing reviews. Companies such as Nestle, PepsiCo., and P&G are a few major brands that have enlisted the company’s help to better understand and reach consumers.

Caddle CEO Ransom Hawley says being named to the 2019 Startup 50 list is a testament to the young company’s drive to succeed in a highly competitive digital marketplace by offering consumers and clients the tools they need for better engagement.

“We’re thrilled to be recognized among some of the fastest growing startups in the country,” he says. “We’re passionate about what we do and everyone on the team has put in a tremendous amount of work to make sure we have a top-quality product, so it’s very rewarding to see that effort paying off.”

Find more information about Caddle at getcaddle.com, on LinkedIn or Twitter at @CaddleCanada.

About the Startup 50

Ranking Canada’s Top New Growth Companies by two-year revenue growth, the Startup 50 profiles the fastest-growing startups in the country. It is a companion list to the Growth 500 ranking of Canada’s Fastest-Growing Companies, which has, for over 30 years, been Canada’s most respected and influential ranking of entrepreneurial achievement. Both the Startup 50 and Growth 500 are published in a special issue of Canadian Business published with Maclean’s magazine and at CanadianBusiness.com. For more information on the ranking visit Growth500.ca or CanadianBusiness.com.

About Canadian Business

Founded in 1928, Canadian Business is the longest-serving and most-trusted business publication in the country. It is the country’s premier media brand for executives and senior business leaders. It fuels the success of Canada’s business elite with a focus on the things that matter most: leadership, innovation, business strategy and management tactics. Learn more at CanadianBusiness.com.

The Caddle Difference

Caddle helps companies like PepsiCo, Domino’s, and Deloitte make better decisions, faster. Caddle is a mobile-first insights marketplace that rewards consumers for engaging with brands on a transparent and privacy-first environment. In return, companies get access to insights and data faster and more cost-effectively than any other platform in Canada.

For more information, please visit getcaddle.com.

Caddle Announces New Nielsen Partnership

We are pleased to announce our inaugural membership as a featured partner in the Nielsen Connected Partner Program in Canada.  The Nielsen Connected Partner program will allow clients and approved Connected Partners to spend less time on data management and data alignment and more time focused on garnering value from Connected Partner insights.

Connected Partner Program

Grounded in Nielsen data, the Connected Partner Program will allow Connected Partners and clients to bridge their insights through a mutual data source and integrate Connected Partner tools and technology into existing workflows. The result is a solution that will enrich the capabilities and insights for both clients and Connected Partners, with every interaction.

“Caddle is thrilled to be named a Nielsen Connected Partner. As Nielsen is an industry leader, it was an obvious next step for our business to join this initiative,” says Ransom Hawley, CEO of Caddle.

Caddle is an innovative research company, providing consumer insights through our Mobile Focus Group platform.  By leveraging our joint assets, we’ll be able to collaborate on innovative solutions, ultimately, offering better data solutions and insights for our clients.

Testing Ideas

Caddle allows you to test your ideas in real-time through a mobile consumer research platform that offers users cash-back to connect with your products and services through polls, ads, social media and rich e-coupons. In return you will gain powerful consumer insights that can be used to increase distribution, convert consumer that purchase competitors, and improve targeting & measurement of programmatic advertising.

Through the Connected Partner Program, Nielsen’s data will be integrated to provide a more comprehensive view of your most valuable consumers and their category.

Looking for more information on the Neilsen Connected Partner Program? Looking for more information about Caddle?