Customer satisfaction scores rise at Canadian banks: JD Power

Canadians are giving their banks slightly higher marks this year. Overall customer satisfaction scores rise by three points (on a 1,000-point scale), largely driven by improvements among the big five banks, according to the JD Power 2026 Canada Retail Banking Satisfaction Study.

On the other hand, the annual report, now in its 21^st year, notes that younger customers’ intention to switch banks has reached a five-year high.

Moreover, the study highlights a growing competitive threat to the traditional big five banks. Specifically, fintechs are outperforming both big five and midsize banks across many of the factors that shape customer satisfaction. And they are attracting younger Canadians, including a disproportionate share of those who intend to switch their primary banking relationship in the next 12 months.

Potential rise in account switching rates

Among Gen Z and Gen Y customers of traditional retail banks, 17% say they probably or definitely will switch their primary bank in the next 12 months. This is the highest level recorded in five years.

Despite modest improvements in satisfaction among these younger customers, fees and competitive rates remain important vulnerabilities for traditional banks. Four of the five leading reasons younger customers would switch their primary bank relate to product offerings, including fees, interest rates and promotional offers.

“Younger customers can be satisfied with their bank and still leave if they see a better opportunity to save money elsewhere,” said Paul McAdam, senior director of banking and payments intelligence at JD Power.

“When household budgets are tight, a monthly banking fee becomes an expense worth reconsidering. Traditional banks cannot take the next generation’s loyalty for granted. They need to give younger Canadians a financial reason to choose them, through competitive rates, reasonable fees and clear evidence that their account delivers value.”

JD Power 2026 Canada Retail Banking Satisfaction Study – key takeaways

• AI remains a mystery to most bank customers: About one in ten (12%) customers of traditional retail banks completely understand how their bank uses AI, with the same proportion saying their bank completely communicates its use of the technology. Fewer than one in five (17%) are completely comfortable with their bank using AI, highlighting an opportunity for banks to better explain their role and customer benefits.
  
• Customers favour AI as a financial safeguard: Fraud prevention and data security lead customers’ preferences for how their bank could use AI (31%), followed by helping them avoid service charges (24%) and optimise rewards or benefits (20%). Interest in AI for personal financial advice is well below these priorities, at just 12%.
  
• Unrecognised account benefits are a missed opportunity: Just over half (52%) of customers of traditional retail banks completely understand their chequing account features and over one quarter (26%) do not know what benefits they receive. Making those benefits more visible could help banks demonstrate the value of their accounts, attract new customers and strengthen retention.
  

RBC, Tangerine again top JD Power study rankings

RBC ranks highest in customer satisfaction among the big five banks for a third consecutive year, with a score of 619. BMO and CIBC rank second in a tie, each with a score of 611. TD ranks fourth (610).

Separately, earlier this week RBC announced it had once again earned the most awards among Canada’s Big Five banks in the Ipsos Financial Service Excellence Awards, winning 10 of the 11 categories recognised by the programme. The Ipsos Customer Service Index (CSI) programme is now in its 39^th year. RBC is the only big five bank to be the sole Ipsos award recipient, recognised for Online Banking Excellence among the big five banks.

In the JD Power survey, Tangerine Bank ranks highest among midsize banks for a 15th consecutive year, with a score of 676. ATB Financial rank second with a score of 650.

The Canada Retail Banking Satisfaction Study measures customer satisfaction with Canada’s large and midsize banks. The scores reflect satisfaction among retail banking customers who consider one of the 10 banks to be their primary bank and have a chequing account with the bank. The study measures satisfaction across seven factors (in order of importance): trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.