Experts say collaboration across sectors is needed
A new analysis highlights what it describes as a persistent gap in access to financial support for underserved Canadians, calling for coordinated action across government, financial institutions, and community organisations to address barriers affecting people with low incomes, according to Prosper Canada and Co-operators Group Limited.
The findings are outlined in Prosper Canada’s report Closing the Divide: Solutions for Canada’s Financial Help Gap, which received research funding from Co-operators. The report estimates that more than 3 million people in Canada are experiencing financial hardship and face limited access to affordable financial advice, planning services, and benefits assistance.
It identifies systemic barriers that prevent many individuals from using available supports, including cost, lack of trust in mainstream providers, and services that are not tailored to their circumstances. On average, people with low incomes are reported to carry $34,539 in debt, while an estimated 20% miss out on key tax benefits, often due to challenges with filing systems or limited awareness of available credits.
The report proposes a range of solutions, including expanding free or low-cost financial planning services, introducing automatic tax filing, strengthening community-based financial help services, and conducting accessibility audits of existing systems. It argues that such measures could improve uptake of government benefits and reduce financial vulnerability among underserved groups.
Jessica Fisher, associate vice-president for citizenship at Co-operators Group Limited, said the findings point to an urgent need for expanded support structures. “Millions of people with low-income lack access to trusted financial help and advice tailored to their needs, threatening financial security at a community level,” Fisher said in a statement. She added that collaboration is essential to improving access to services and long-term financial stability.
The report also stresses that no single sector can resolve the issue alone, urging a “united front” involving public and private stakeholders. It suggests that coordinated efforts are needed to improve service delivery and close gaps in financial inclusion.
Elizabeth Mulholland, chief executive officer of Prosper Canada, said the framework offers a practical roadmap for action. “This comprehensive solution framework… provides a clear approach for governments, financial institutions, and community organizations to work together,” Mulholland said.
Co-operators, a financial services co-operative with more than $79 billion in assets under administration, said the findings align with its focus on financial security and community development.
