TD is top for customer satisfaction among Canada’s Big Five according to the JD Power Canada Retail Banking Satisfaction Study. In the process, TD knocks RBC, winner for the past three years, off top spot.
This year, RBC ranks second ahead of Bank of Montreal, CIBC and Scotiabank.
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Now in its 14th year, the report measures customer satisfaction in two segments: the Big Five, and Midsize Banks.
For ten successive years up to RBC’s wins in 2016-2018 TD ranked top among the Big Five.
Among midsize banks, Tangerine ranks highest by a wide margin, for an eighth consecutive year. In second place is ATB Financial ahead of Desjardins and National Bank of Canada.
Simplii Financial, HSBC Canada and Laurentian, in that order, round off the midsize rankings.
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By GlobalDataThe survey reports a number of positives for Canadian lenders with customer satisfaction scores up on last year.
JD Power Canada: scores rise but younger customers less satisfied
Overall satisfaction with Canada’s retail banks increases to 785 from 782 (on a 1,000-point scale) in 2019.
On the other hand, satisfaction among customers under age 40 declines to 777 from 780.
Meantime, satisfaction among customers aged 40 and older increases to 792 from 785. A five-point satisfaction difference between the two age segments in 2018 has grown to a 15-point difference in 2019.
The decline among customers under age 40 spans every factor. The biggest declines are in: in-person bank branch service (-14); problem resolution (-13 points); automated phone service (-13).
Live phone service and assisted online service both fall by 10 points.
Satisfaction declines are smaller in automatic banking machines, online and mobile banking service.
The number of digital-centric retail banking customers increases 6 percentage points. Meantime, the number of branch-dependent customers declines 6 percentage points.
JD Power Canada: younger customers three times more likely to switch
According to the study, younger customers are three times more likely to switch banks than older customers. During the past year, 9% of bank customers under the age of 40 say they have switched banks. This compares to only 3% of those age 40 and older.
The findings highlight a key battleground for banks,” says Paul McAdam, Senior Director of Banking Intelligence at JD Power.
“Younger and digital-centric customers are vital to future business growth. But younger customers are more likely to receive inconsistent service levels. Banks have invested heavily in convenience, in digitising transactions and in making products easier to use.
“Service quality, however, is not keeping pace in omni-channel interactions. Banks that don’t address the gaps in service expectations are at an increased risk of client departures.”
JD Power Canada: scores out of 1,000
This year’s final results are again very close. TD scores 789 just ahead of RBC with 784, BMO 782, CIBC 776 and Scotia 767.
In the mid-size survey, Scotiabank’s Tangerine is a clear winner (827) with ATB 815 and Desjardins 803.
“We’re delighted to receive this recognition from our customers,” says Teri Currie, Group Head, Canadian Personal Banking TD.
“We are more focused than ever on what matters most to our customers.”
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