Governing for Trust: What Canadians are Telling Financial Regulators and Institutions Right Now

By Susan Sanei-Stamp

Canadian financial leaders often frame regulation as a trade-off between innovation and protection. Our recent data suggests Canadians do not see it that way. Instead, they are asking a more fundamental question: can the system keep up, while still keeping people safe?

The answer, at least for now, is a cautious and conditional “maybe.”

Protection is the public’s clear priority

Canadians are remarkably aligned on what they want from financial regulation. Most say regulators should prioritize consumer protection over encouraging innovation (82%), leaving only one in five advocating for innovation-led oversight (18%). This preference holds across demographic groups, including younger Canadians who are often assumed to be more innovation-forward.

This does not mean Canadians are anti-innovation. They are risk-aware. In an environment shaped by fraud headlines, crypto volatility, and rapid digitization, innovation is acceptable only when it is clearly governed. Protection is the price of permission.

Confidence exists, but it is fragile

Despite this strong mandate, most Canadians are not convinced regulators are keeping pace with digital and crypto innovation. Fewer than half say they are confident regulators are keeping up (43%), while a majority express doubt (57%). Even more telling is the depth of that confidence: only 4% say they are very confident.

This is not a rejection of regulatory authority, but it is a warning. Trust is present, but shallow. Canadians appear to be watching closely, reserving judgment, and waiting for proof that governance frameworks can adapt as quickly as the market does.

Trust is not evenly distributed

Regulatory confidence varies by life stage and lived experience. Younger Canadians aged 18 to 24 are the most confident cohort (54%), while confidence drops sharply among those aged 45 to 54 (34%). Seniors express the strongest protection-first stance, with 90% prioritizing consumer protection.

These differences matter. Mid-life Canadians often carry the greatest financial responsibility, from mortgages to retirement planning to supporting dependents. Their skepticism suggests that lived exposure to financial risk may be shaping expectations of regulation more than abstract debates about innovation.

BIPOC Canadians (53%) and those born outside Canada (51%) show higher confidence in regulators than White Canadians (40%) and those born in Canada (44%). Comparative experience may be influencing these perceptions, positioning Canada’s regulatory system as relatively strong, but that goodwill should not be taken for granted.

Communication gaps are compounding the challenge

At the same time, regulatory and institutional communication is not consistently cutting through. Canadians are somewhat divided on whether they have noticed increased communication regarding compliance or fraud protection from their bank or insurer in recent months (47% have vs. 53% have not).

In periods of rapid change, silence is rarely interpreted as stability. More often, it is read as inertia.

What this means for financial services leaders

Taken together, these findings point to a simple but demanding reality. Governance is no longer a backstage function. It is a public-facing capability that shapes trust, brand, and legitimacy.

Here are three actions to consider:

1. 1. Make protection visible, not just promised.
      Consumers want safeguards, but they also want evidence. Institutions and regulators should lead with concrete examples of oversight, enforcement, and risk mitigation rather than abstract commitments.
   2. Segment trust, not just customers.
      Expectations of regulation differ by age, experience, and vulnerability. Tailoring governance narratives for seniors, mid-life Canadians, and younger adults will be more effective than relying on a single broad message.
   3. Treat communication as a governance tool.
      Clear, proactive communication about how risks are being managed is no longer optional. It should be approached as a signal of competence and control, especially as new technologies reshape financial services.

Canadians are not asking regulators and institutions to slow down. They are asking them to govern forward. The organizations that respond with clarity, credibility, and consumer-first discipline will be the ones that earn trust in the next phase of financial innovation.