Fleeced: Canadians Versus Their Banks

by Andrew Spence

Infuriating customer service.

Chequing accounts that demand exorbitant fees.

Credit cards that charge outrageous rates of interest.

Mutual funds expenses that torpedo your investments.

Loans departments that refuse to support Canada’s small businesses.

These are just a few of the many ways chartered banks abuse their dominant position in the Canadian financial system. Canadians Versus Their Banks is a stunning exposé of the inner workings of our six major banks, demonstrating how they are set up to avoid competing with one another, squeeze their customers, evade risk, stifle innovation, and produce staggering profits that enrich bank executives and shareholders—all to the detriment of the broader Canadian economy.

With clarity and wit, Andrew Spence, a veteran financial services executive, excoriates not only the banks, but the regulators and politicians who refuse to stand up for consumers and initiate urgently needed reforms of Canada’s costly banking system.

Genres: Nonfiction

100 pages, Paperback

Published September 24, 2024

Reviews

[Martin · Rating 3 out of 5]

A lot of this went over my head because I was unable to focus adequately on the details presented.

The book does give a good overview of the Canadian Banking system, its success, flaws, and addresses changes to be made to better suit the needs of Canadians now and in the future.

[Nathaniel · Rating 3 out of 5]

Solid overview of how badly Canadians are exploited by the oligopoly that is our banking sector. Some of it is more common knowledge to well versed readers (mutual fund fees, high credit card interest rates, overdraft fees) but the difference in what we lend to small and medium sized businesses compared to other similar countries was somewhat shocking

-1 in 5 of independent business respondents in 2015 accessed bank loan or line of credit
- of 50% that applied for financing only 40 percent went to big banks
- spread of 2.48 percent interest between SMB and large corps in Canada vs 0.42 in the US
- return on equity domestically for TD is 36 and 42 percent (domestic personal and commercial) vs 14 and 14 percent in the us. BMO is 26 and 38 at home vs 9 and 17 in the US
- banks in control of the interac network and responsible for implementing a better settling network (so funds don't take days to transfer)

[Benjamin Pierce · Rating 3 out of 5]

A very short, information-dense book that critiques the inadequacies of Canada's banking system and its impact on consumers and overall productivity growth. It highlights the entrenched oligopoly of Canada's banks, which stifles competition and innovation. Consumers are hurt by excessive fees and a lack of modern, competitive services, while the broader economy suffers from overly conservative lending practices that choke off opportunities for small and medium-sized businesses -- those fortunate enough to secure any loans at all.

For readers already familiar with these systemic issues, the book may not offer much new insight. However, it provides satisfying confirmation of these frustrations and makes for an engaging read.

[Ben · Rating 5 out of 5]

Excellent book. I don't believe there was anything groundbreaking shared in this book, but the clarity that the history and numbers are laid out is excellent. Understanding how we got here, and understanding the rules of engagement is important. Helps us make educated decisions, and plan accordingly.

[Eli · Rating 3 out of 5]

I was looking for a more substantive critique and analysis than just " more competition". I appreciated the comparison to the US and analysis of 2008, but felt it was all a surface level.

[Michelle · Rating 5 out of 5]

I found this very compelling, but am open to critiques from bankers in my network!

[Johanne · Rating 4 out of 5]

Informative.

[Annina DeLuca · Rating 1 out of 5]

basically DNFed because i kept falling asleep - i also found most of this to be common sense/general knowledge

[Soroush · Rating 3 out of 5]

A blueprint for a good banking system (pro competition) in Canada by pinpointing its flaws.