Higher interest rates, inflationary pressure and mounting debt continue to weigh on the wallets of bank customers in Canada, with 28% of them feeling worse off financially than they were a year ago.
This financial reality, coupled with unexpected or unexplained banking fees and unsatisfactory customer experiences, have significantly driven down overall satisfaction with banks, according to the J.D. Power 2023 Canada Retail Banking Satisfaction Study, released today.
Overall, customer satisfaction among Canada’s largest banks (Big 5) has declined 10 points (on a 1,000-point scale) year over year to 603 and has declined 7 points to 637 among mid-size banks.
“Customers are under increasing economic stress and express a declining feeling that banks are addressing their concerns and financial challenges,” said Paul McAdam, senior director of banking and payments intelligence at J.D. Power.
“Customers want banks to communicate how to avoid paying fees; provide advice on how to build savings and reduce debt; and resolve problems efficiently—especially when it comes to tackling fraud on a chequing account. The financial institutions that rank highest are those that effectively communicated about fees, fraud and savings; that provided tools and information about budgeting and debt reduction; and addressed security and fraud problems in a timely manner.”
BMO Bank of Montreal ranked highest in satisfaction among Big 5 Banks with a score of 612. RBC Royal Bank (610) placed second and CIBC (604) ranked third.
Tangerine Bank ranked highest among midsize banks for a 12th consecutive year, with a score of 684. Simplii Financial (650) placed second and ATB Financial (638) ranked third.
Check out the complete report and rank charts here.