News Releases

TORONTO, June 23, 2009 – BMO Bank of Montreal announced today that it is launching BMO SmartSteps, a program specifically designed to help Canadians save more money during a period of increasing financial stress.

The Bank also released a report that shows while an overwhelming number of Canadians polled need immediate help with their day-to-day money management, only one in five believe their bank has been effective in helping them.

Frank Techar, President and CEO, Personal and Commercial Banking, BMO Financial Group, said Canadians have issued “a wake up call” and BMO is determined to play a lead role in meeting the challenge as BMO SmartSteps is introduced to customers.

“It's essential that banks become more accountable in helping people save and manage their day-to-day finances, and we have made a commitment to act now,” said Techar. “BMO SmartSteps delivers a straightforward approach that can add up to real savings for customers through reduced fees, lower interest costs and less money that goes towards taxes.”

BMO SmartSteps provides customers with five essential banking tips they can do on the spot as part of their visit to a branch:

• Generate automatic monthly savings
• Minimize banking fees
• Take years off of mortgage payments and become debt-free quicker
• Start saving tax-free
• Automate money transfers to avoid extra fees.

“All it takes to start saving is a 20 minute conversation with one of our experts in a branch,” said Barb Budarick, Vice President, BMO Bank of Montreal. “For example, homeowners can save tens of thousands of dollars simply by switching their monthly mortgage payment to bi-weekly payments.

“Our research shows that the banking industry has not done a good job of proactively working with customers on identifying ways to optimize day-to-day finances. We are making a commitment that our employees will help identify immediate savings for our customers before they leave a branch.”

A survey conducted by Harris/Decima reveals the Canadians polled are stressed about the economy and are looking for ways to save more money:

• 79 per cent of respondents need immediate help with their day-to-day money management
• Only one in five respondents believe their bank has been effective in helping them manage their day-to-day money
• Only two per cent of respondents have learned the most about managing their daily finances from their bank; the majority get most of their information from someone else.

In the report, respondents said they are only saving approximately half of what they wish they could be saving every month and regret not taking action sooner:

• In light of the economic downturn, the majority of those polled (57 per cent) say they would have done something differently six months ago.
• A total of 56 per cent would have spent less money or actively saved more.

“We want to avoid customers looking back and wishing they had done something differently,” added Budarick. “BMO SmartSteps is designed to provide easy banking tips that Canadians can act on right away.”

For more information about BMO SmartSteps, visit your local branch or go to www.bmo.com/smartsteps.

The Harris/Decima online poll was conducted from May 25 to June 2, 2009 and is based on a sample of 1,057 married/common-law Canadians between the ages of 25-40 years, who have a minimum household income of $60,000, and at least share in their household's financial decisions.

Harris/Decima Report Reveals Regional Differences

• For those needing immediate help with day-to-day money matters, the sentiment is strongest in Ontario (82 per cent), compared to the Prairies (74 per cent).
• The impact of the economy on stress levels is reported more in Ontario (59 per cent), British Columbia (57 per cent), and the Prairies (52 per cent), while the lowest is in Atlantic Canada (36 per cent).
• Quebeckers (58 per cent) are more likely than Ontarians (47 per cent) to rate themselves as “average” when it comes to their ability to save money.
• Respondents from Atlantic Canada (60 per cent) and Ontario (58 per cent) are more likely than Quebeckers (45 per cent) to have overdraft projection on their account.
• Atlantic Canadians are more likely to have discussed with their bank ways to reduce service fees (46 per cent) than those from Ontario (35 per cent) and the Prairies (33 per cent).

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BMO's Frank Techar, President and CEO, Personal and Commercial Banking, launches BMO SmartSteps. The program, offered at all BMO branches, provides five easy banking tips that can put more money back in the customer's pocket.