Client satisfaction scores tick up among banks: J.D. Power survey

CANADIANS are slightly upping their customer satisfaction rankings for the country’s biggest banks, according to the J.D. Power survey, which says the higher scores are mainly driven by improvements in the Big Five banks.

Overall satisfaction rose 11 points on a 1,000-point scale to an overall customer satisfaction score among the Big Five banks for a third consecutive year, with a score of 619. TD Bank came in fourth with a score of 610.

Among midsize banks, Tangerine scored highest, with a score of 715, beating out last year’s score of 676.

The survey points to a growing threat from digital-only banks, which are performing Big Five lenders and midsize banks across certain key factors.

The survey found 17 per cent of Gen Z consumers say they sometimes or will eventually switch their primary lender in the next 12 months, which marks the highest level of potential switchers among younger customers, fees and competitive rates were found to be the top reasons for considering a switch.

“Younger customers can be satisfied with their bank and still leave if they see a better opportunity to save money elsewhere,” said Jennifer White, senior director of banking and payments intelligence at J.D. Power, in a news release.

When household budgets are tight, a monthly banking becomes an expense worth reconsidering. Traditional banks may not meet the next generation’s loyalty for granted.”

The use of AI among lenders was seen to be unclear to most customers, with 60 per cent saying they couldn’t tell if their bank customers indicating they understand how their lender uses AI.

Meanwhile, fear of prevention and data privacy remain top concerns. Customers prefer their bank to use AI to prevent fraud rather than to survey results were taken from responses across Canada from more than 10,000 retail banking customers and mid-sized lenders. Responses were taken between January and February as well as from July to August.

— The Canadian Press

“Younger customers can be satisfied with their bank and still leave if they see a better opportunity to save money elsewhere”

— Paul McAdam, senior director of banking and payments intelligence at J.D. Power