FCAC mystery shopping report shows banks need to do more to ensure positive outcomes for all consumers

News release

May 26, 2022

Ottawa, Ontario

Today, the Financial Consumer Agency of Canada (FCAC) released the results of a mystery shopping exercise conducted at Canada’s 6 largest banks. 

FCAC protects financial consumers by supervising the compliance of federally regulated financial entities, such as banks, with their legislative obligations, codes of conduct and public commitments, and by strengthening the financial literacy of Canadians. As part of its mandate, FCAC regularly examines industry practices that impact consumers of financial products and services.  

FCAC’s mystery shopping exercise took place between October and December 2019. The main objective was to better understand how front-line bank employees sell financial products and services and how consumers experience the sales process. 

The mystery shopping exercise followed FCAC’s 2018 Domestic Bank Retail Sales Practices Review, which found that a sharp focus on sales was increasing the risk of banks placing sales ahead of the interests of customers. 

Key findings of FCAC’s mystery shopping exercise

A clear majority (74%) of shoppers described their overall experience as positive. At the same time, a notable percentage of shoppers who reported a positive experience also recorded a concerning sales experience. For example, even though they still rated their overall experience as positive, mystery shoppers reported encounters where:  

  • an inappropriate product was recommended 
  • information provided was not clear and simple, or was considered misleading 
  • pressure was exerted 
  • the employee did not seem knowledgeable or well-trained  

New and enhanced consumer protections come-into-force on June 30 

To address the issues raised by FCAC in its review of bank sales practices, the Government of Canada adopted legislation in 2018 to strengthen FCAC’s mandate and powers, and to introduce new and enhanced protections for Canadians when dealing with banks through a new Financial Consumer Protection Framework (the Framework) in the Bank Act

The Framework will require banks to further empower and protect their customers. It includes new obligations on banks to:  

  • strengthen their complaint-handling procedures so their customers get their issues resolved faster 
  • offer and sell products or services to their customers that are appropriate for them based on their financial needs and circumstances
  • provide their customers with new disclosures about their day-to-day banking to help them make informed and timely decisions about their finances 

Many of the concerns raised in FCAC’s mystery shopping exercise will be addressed through the new obligation on banks to offer and sell products and services to their customers that are appropriate.  

FCAC will supervise the compliance of banks with the new and enhanced consumer protections in the Framework.  

Good financial outcomes for all Canadians  

Mystery shoppers who self-identified as visible minorities, Indigenous persons and students had more concerning experiences than other shoppers. FCAC’s National Financial Literacy Strategy emphasizes the need for an evolution of the financial ecosystem to be more accessible, inclusive and effective for all Canadians. It places the onus on the financial ecosystem, in which the financial industry plays an important role, to address barriers that can prevent vulnerable groups from achieving good financial outcomes.  

For example, the National Strategy calls on the financial ecosystem to reduce barriers that prevent people from accessing, understanding, and using appropriate financial products, services, and information. To reduce barriers, the National Strategy advises the financial ecosystem to communicate in ways people understand, build and provide for diverse needs, and support increased digital access and literacy. 


The Financial Consumer Agency of Canada is there to protect consumers of financial products and services, but this is also a responsibility shared by the financial industry. The mystery shopping exercise revealed sales experiences that raise concerns for FCAC. We expect banks to focus on the areas for improvement that have been identified as they implement Canada’s new Financial Consumer Protection Framework and ensure they consider the needs and abilities of consumers, including those in vulnerable circumstances. 

— Judith Robertson, Commissioner, Financial Consumer Agency of Canada 

Quick facts

  • Mystery shopping is a form of consumer market research where individuals pose as customers and use semi-scripted scenarios to interact with employees (in this case, at bank branches). The shoppers are trained to record their observations about their encounters objectively, providing qualitative and quantitative data.  

  • 74% of shoppers described their overall experience as positive. However, even though they still rated their experience as positive, 32% of chequing account shoppers and 45% of credit card shoppers reported that bank employees recommended an inappropriate product.   

  • A total of 712 different shops were conducted at Canada’s 6 largest banks: Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and Toronto-Dominion Bank.

  • Banks involved in the exercise will be provided information on their individual performance. FCAC will continue to monitor these important areas for improvement through its ongoing supervision of banks.  

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Financial Consumer Agency of Canada  

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