The study, based on feedback from over 14,000 retail banking customers, indicated that customer satisfaction for both large and mid-size banks improved by 8 and 7 points, respectively, since 2023.
This increase, however, reflects cautious optimism among Canadian consumers about the economy and their personal financial outlooks, according to a news release. Customer confidence in personal finances rose slightly from 5.68 to 5.78 on a 10-point scale, while their economic outlook improved from 4.84 to 5.02.
Jennifer White, senior director of banking and payments intelligence at J.D. Power, noted the positive shift but highlighted potential risks for banks. “The improvement in customer satisfaction is great news for the Canadian banking industry, but it’s important that the industry focuses on leveraging the momentum,” said White. She emphasized the need for banks to strengthen relationships with customers, especially as 63% of bank clients maintain deposits at multiple financial institutions.
Key drivers of satisfaction
The study found that trust plays a critical role in determining customer satisfaction. Small incidents that erode trust were highlighted in the report as significant in prompting customers to switch banks. These small incidents include unexpected fees, blaming the customer for an error, and media reports of poor banking practices, with 54% of customers citing unexpected fees as a leading cause of dissatisfaction.
The report also highlighted the importance of branch services, with nearly half of bank customers continuing to use both digital and in-person banking. However, only 10% of branch visitors experienced all four service-related best practices—being greeted by name, offered help with financial needs, introduced to additional services, and thanked for their business—resulting in a missed opportunity to further enhance customer satisfaction.
