FREE

Indigenous Communities and Canadian Financial Institutions: More Work Can Be Done Toward Economic Reconciliation

DBRS Morningstar published a commentary titled “Indigenous Communities and Canadian Financial Institutions: More Work Can Be Done Toward Economic Reconciliation.” Following the discovery of numerous unmarked graves at former residential school sites across Canada in 2021, there has been an increased focus on efforts toward truth and reconciliation with the Indigenous community across the country. While education and awareness of the tragedies that the Indigenous community has faced throughout history are very important, it is also essential to understand that there are still many obstacles and barriers that the community faces to this day.

Key highlights include the following:
-- Canadian banks and credit unions can bridge some of the gaps in providing basic financial services to the Indigenous community.
-- The Indigenous population in Canada is younger and growing faster than Canada's non-Indigenous population, creating opportunities for financial institutions to broaden their customer bases.

“When it comes to access to basic financial services, there are several systemic challenges that many Indigenous people face, including lack of access to bank branches, lack of reliable and affordable internet access in some communities, and legislation that has deterred many mainstream financial institutions from lending to the Indigenous community; however, there are also opportunities for Canada's financial institutions to build strong relationships with this underserved community and work toward economic reconciliation,” said Cheryl Saldanha, Assistant Vice President, Global Financial Institutions Group.