Framework targets systemic barriers, trust issues and access gaps facing low-income Canadians
A deeper look into Prosper Canada’s Closing the Divide report reveals a far more complex (and entrenched) financial help gap than headline figures suggest, with structural shortcomings spanning access, trust, service design, and coordination across sectors.
While earlier findings highlighted that more than three million low-income Canadians lack access to appropriate financial help, the full report underscores that the issue is not a shortage of financial products, but a failure to deliver advice and support in ways that are accessible, relevant, and trusted.
At the core of the gap is a systemic mismatch between mainstream financial services and the lived realities of financially vulnerable households. Existing offerings are frequently unaffordable, difficult to navigate, or not designed with low-income users in mind—leaving critical needs unmet.
Eight essential services missing for many Canadians
The report identifies eight core categories of financial help required to build long-term financial stability. These include budgeting support, debt management, financial planning, and assistance accessing benefits and tax filing.
However, access to these services remains inconsistent. More comprehensive forms of advice, such as holistic financial planning, are often out of reach, even when basic services are available through financial institutions.
A key issue flagged is that many providers lack the tools, training, or incentives to tailor services for lower-income clients. As a result, advice is often perceived as generic or product-driven, further eroding engagement.
The report highlights that trust plays a critical role in access. Many low-income Canadians are less likely to engage with financial professionals, particularly when services fail to reflect their circumstances or when past experiences have been negative.
This dynamic contributes to widespread underutilization of available supports. Roughly one in five low-income Canadians miss out on key tax credits and benefits—often because they do not file taxes or attempt to navigate complex systems on their own.
Broader economic conditions are compounding the issue. Rising costs, declining wages among the lowest-income households, and increasing debt burdens are intensifying financial stress, with 61% of low-income Canadians now experiencing significant hardship.
Barriers extend beyond affordability
The report emphasizes that financial exclusion is not solely about cost. Geographic, digital, and mobility barriers also limit access, particularly for rural and remote populations, seniors, and people with disabilities.
Canada’s persistent digital divide, alongside declining trust in institutions and rising fraud concerns, is further complicating efforts to deliver effective support.
At the same time, certain groups - including Indigenous communities, newcomers, and racialized populations - face overlapping systemic challenges that require culturally appropriate and tailored solutions.
Rather than isolated fixes, the report calls for a coordinated, cross-sector response involving governments, financial institutions, and community organizations.
Governments are positioned to lead through policy alignment, data tracking, and national strategies, while financial institutions are encouraged to adapt services and deepen engagement with underserved clients. Community organizations, meanwhile, are identified as essential delivery channels due to their trusted relationships and ability to provide tailored support.
The framework outlines several priority actions, including expanding free or low-cost financial planning, integrating benefit access into frontline services, improving tax filing participation, and establishing national collaboration tables to align efforts.
"The report highlights a deeply concerning gap that affects the financial security of people in Canada and the strength of our communities," said Jessica Fisher, Associate Vice-President, Citizenship at Co-operators. "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. There is an urgent need to expand access to community-based financial support services and improve the availability of government benefits. By acting now and working together, we can build a future where every Canadian has the support and resources they need to thrive."
"Our research in Closing the Divide highlights a significant societal issue that disproportionately affects underserved communities," said Elizabeth Mulholland, CEO, Prosper Canada. "This comprehensive solution framework, developed with Co-operators, provides a clear approach for governments, financial institutions, and community organizations to work together. By addressing these barriers and fostering collaboration, we can help ensure every person in Canada has equitable access to the financial tools and support crucial for their well-being and a more financially resilient future."
Beyond advice: building a more inclusive system
Ultimately, the report argues that closing the financial help gap will require a fundamental shift in how financial support is designed and delivered in Canada.
Rather than focusing solely on individual financial behaviours, it calls for systemic change—removing structural barriers, embedding support into existing services, and scaling community-based models that meet people where they are.
The goal, it concludes, is a more inclusive financial ecosystem—one that ensures all Canadians, regardless of income or circumstance, can access the tools and guidance needed to build lasting financial well-being.
