Prosper Canada shows how coordinated action could transform an overlooked market
Three million low-income Canadians are facing severe financial hardship but remain largely untouched by mainstream financial advice.
Wealth professionals who serve vulnerable populations address both a social need and a business opportunity.
Prosper Canada released a solutions framework this week that directly challenges the financial services industry to expand access to trustworthy, affordable financial help for Canadians living on low incomes.
The report, Closing the Divide: Solutions for Canada's Financial Help Gap, outlines specific actions that governments, financial firms, and community organizations must take to close a critical gap in Canada's financial ecosystem.
The data underscores the scale of the problem.
According to Prosper Canada, 61 percent of low-income Canadians—approximately 3.08m people—experience significant financial hardship.
Households in the bottom 20 percent by income are the only group whose average wages fell from 2023 to 2024, declining by 3.3 per cent. These households carry an average of $34,539 in negative savings.
Elizabeth Mulholland, CEO of Prosper Canada, described the lack of financial support for low-income Canadians as an industry-wide challenge.
She noted that those most in need are least likely to receive help and said Prosper Canada's report provides practical solutions for all sectors to better support struggling Canadians.
The framework recommends several actions for financial services firms:
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Establish internal teams with deep expertise in recognizing and serving underserved customers
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Enlist nonprofit organizations to help build employee understanding of low-income consumer needs
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Integrate education on how financial choices affect eligibility for federal and provincial income benefits and tax credits into professional certification programs
Co-operators, which funded the initiative, acknowledged the broader systemic challenge.
Shawna Peddle, associate vice-president of Sustainability at Co-operators, said the sector cannot address the gap alone.
She called for "a whole-of-society approach to cultivate an inclusive economy that grants individuals access to the right financial tools and advice."
She added that this would empower people to adapt to challenges and improve their wellbeing.
