Customer Satisfaction with Retail Banks in Canada Increases

Overall customer satisfaction with retail banks in Canada has improved from 2009, as Canadian banks have increased investment technology and customer service systems improvements following the global financial crisis, according to J.D. Power and Associates 2010 Canadian Retail Banking Customer Satisfaction Study.

Overall satisfaction with primary financial institutions has averaged 730 on a 1,000-point scale in 2010, up from 9 points from 721 in 2009. With that said, minimal exposure to the global financial crisis; many Canadian banks have reported strong quarterly earnings in 2010, and as such have increased their business expansion efforts; this includes investment in technology and customer service.

In order to maintain a competitive standing, Canadian banks have adopted new customer service standards and processes to improve customer experiences across all levels from in branch to online, which have resulted in the overall increase customer service.

Canadian banks have significantly expanded their business in wealth management, as we saw the introduction of the Tax Free Savings Accounts (TFSA). In 2010, there is 48% of customers that indicate they hold investment accounts at their primary financial institutions, compared to 36% in 2009. Additionally, customer satisfaction with investment accounts at their banks have improved, the rate of improvement being notably higher among the Big 5 banks.

The study examines customer satisfaction with their primary financial institutions in three segments; the Big 5 banks, mid-size banks and credit unions. In all segments, customer satisfaction is measured across six factors:

-       Account activities

-       Product offerings

-       Account information

-       Facility

-       Fees

-       Problem resolution

TD Canada Trust has ranked the highest in overall customer satisfaction among the Big 5 banks for the fifth consecutive year, achieving a score 748. TD Canada Trust performs very well in all six factors driving overall satisfaction.

It is great to see Canada’s banks getting recognized for their great customer service. Among the mid-size banks, President’s Choice Financial performs very well in five of the six factors.

The study found that although overall satisfaction has increased from 2009, loyalty intent among retail banking customers have decreased slightly in 2010.

This survey was based from 14,583 customer who have used primary financial institution for personal banking.

Are you satisfied with your customer service from your bank?