Canada has not experienced a bank failure since 1996—22 years ago. While that is great news, it also means that many people may not think about the consequences for their savings, if their financial institution were to fail. This poses a challenge for CDIC: how to inform Canadians about the automatic CDIC protection that exists for an event they don’t think will happen?
Awareness of CDIC and deposit protection had declined to about 47% in 2016. In 2017, CDIC set an ambitious goal: to increase public awareness of CDIC and our deposit insurance program to 60%–65% by 2020. Research has shown that public awareness of CDIC deposit protection helps mitigate the risk of bank runs and maintain stability of the financial system.
Doubling efforts to increase public awareness
Since the strategy launched last year, awareness has been rising (3% higher in June 2018 than one year earlier) and is likely to be bolstered by a new two-track approach beginning this fall. Using the tagline “We Protect Your Money,” CDIC recently launched a new advertising campaign at the same time as new requirements kick in for CDIC member institutions to promote awareness of deposit protection.
With an integrated mix of TV advertising, digital, print and social media content, CDIC’s ad campaign will reach Canadians of all demographic profiles to urge them to look for CDIC’s new purple lock logo wherever they bank or invest.
And since member institutions are the most important source of information for their clients—on site physically and on line—CDIC has introduced new requirements for member institutions to display CDIC information, including more prominently on their websites, electronic banking platforms and at ATMs. These new measures are set out in the Deposit Insurance Information By-law and came into effect on September 29, 2018.
Early results are promising. Not only is awareness up, visits to CDIC’s website that link from member institutions have risen sharply, as more Canadians check to find out more about their deposit protection.