Breaking Barriers: Unlocking Innovative Credit Access For Immigrants  

Written by Sifat Yusuf, WES Mariam Assefa Fund Program Manager; Cristina Lara-Agudelo, WES Investments Platform Manager; and Subaita Rahman, WES Communications & Public Policy Specialist

The New Power Labs team presenting their research in Toronto on May 5, 2025, pictured with Fund Program Manager Sifat Yusuf. 

With immigrants making up 23 percent of Canada’s population—and expected to reach nearly one-third by 2041—the financial integration of newcomers remains a national priority. Immigration drives 75 percent of Canada’s population growth and contributes significantly to economic development, with immigrants owning 32 percent of businesses because of their insufficient credit history, newcomers often have difficulty accessing financial services, affecting their ability to secure leases, mortgages, educational loans, and more.  

Access to capital, especially in the form of loans and mortgages, is essential to newcomers’ financial stability and economic integration, yet it remains overlooked by financial institutions and significantly understudied. A new report by New Power Labs, “From Barriers to Breakthroughs: Innovation in Credit Risk Assessment for Immigrants in Canada”, funded by the WES Mariam Assefa Fund, explores newcomers’ ability to establish credit history and access financial resources in Canada. The findings focus on understanding how financial institutions assess newcomer credit risk, systemic barriers that newcomers face, and importantly, creative ways that funders, impact investors, banks, and the non-profit sector can support inclusive credit access and financial services specifically for newcomers. 

“Our research revealed that the complexities of credit access are often overlooked in studies about newcomers. Yet credit quietly shapes almost every aspect of daily life, from buying essentials to securing housing or launching a business. Despite its profound impact, credit rarely receives the focused attention given to language or employment in newcomer support and integration efforts. It’s time to change that.” 

—Narinder Dhami, New Power Labs Co-Founder 

Read the full report.  

Key Takeaways on Advancing Inclusive Credit Access 

Many newcomers face significant challenges navigating a new financial system, compounded by limited Canadian credit history and gaps in financial knowledge. Traditional credit models frequently misclassify newcomers as high-risk, while many financial institutions often lack flexible credit options and are inconsistent between branches, further exacerbating accessibility issues. Newcomers can access resources through financial literacy programs and community networks, but sometimes these services fall short—programs often can’t address immediate settlement needs or offer personalized guidance, and community networks may have outdated or incorrect financial information.  

New Power Labs’ study provides practical recommendations and opportunities to enable newcomer credit access. For example, the study calls on banks and lenders to adopt alternative credit assessment methods and expand tailored credit offerings, while governments are urged to fund culturally relevant financial education programs and promote the use of non-traditional credit data. In addition, the study encourages settlement agencies and immigrant-serving organizations to collaborate more closely with financial coaches, banks, and community networks to provide culturally sensitive financial literacy programs and develop user-friendly tools tailored to newcomers.  

Importantly, philanthropic funders can potentially catalyze lasting, transformative change at the root of the issue by funding credit-building programs that have a cultural focus, supporting alternative credit assessment pilots, and advocating inclusive financial policies through grants. Investors are also encouraged to invest in fintech startups and financial products designed for newcomers, partner with community lenders that prioritize serving traditionally underserved or overlooked populations, and support products and systems that address structural gaps in newcomer financing. 

Driving Newcomer Financial Inclusion: Examples from WES and the Fund 

Through strategic trust-based grantmaking and investments, WES is championing alternative credit models and inclusive financial products that address systemic barriers and unlock economic opportunity for newcomers across Canada. WES’ catalytic investment portfolio provides flexible, patient, risk-tolerant capital to companies, enabling bold experimentation in financial inclusion. 

In 2022, WES invested in Woveo, a fintech startup addressing the financial needs of underserved communities, particularly immigrants, by using alternative data to expand access to credit and savings tools. By enabling a group savings platform to serve as a foundation for credit access, the company’s culturally relevant approach to credit building helps newcomers establish creditworthiness and improve long-term financial stability.  

Later in 2024, WES deepened its commitment to inclusive finance by investing in Windmill Microlending’s Cost-Plus Program. This program offers newcomers low-interest loans of up to $15,000 to support accreditation, training, and career development. Offering fixed monthly payments and structured to be Islamic finance-friendly, the program ensures broader accessibility to clients who face challenges with traditional loan products.  

The Fund is also committed to supporting initiatives that promote entrepreneurship and worker ownership. In 2023, Solid State, a BC-based grantee partner applying the concept of solidarity economics to form worker cooperatives primarily among those of racialized migrant backgrounds, used funding to provide non-extractive community-based financing to entrepreneurs. This helped the Cleaning Co-Op, a business led by racialized newcomer women, unlock $170,000 in capital to support the growth of their business. Additionally, in 2024 the Fund provided funding to Jumpstart Refugee Talent (in a co-funding partnership with Definity Foundation and Rally Assets) to support the design and launch of the Refugee Impact Fund, an alternative access to seed capital to refugee entrepreneurs to launch their own businesses by 2026. 

New Power Labs’ research highlights the need for newcomer credit access and culturally relevant financial education programs to ensure that immigrants have access to financial services and products and to further advance inclusive economies. With the help of our partners, we are committed to unlocking economic opportunity and ensuring that newcomers have the tools they need to create a prosperous future. 

For more information on New Power Labs’ research and, watch their recent webinar which includes insights from Fund Program Manager Sifat Yusuf.