J.D. Power Reports: Updated J.D. Power Study Provides New Perspective on Key
Drivers of Satisfaction for Canadian Retail Banking Customers
TD Canada Trust, for a Ninth Consecutive Year, and Tangerine, for a Third
Consecutive Year, Each Rank Highest in Customer Satisfaction with Retail Banks
in Canada in Their Respective Segments
TORONTO -- August 5, 2014
Satisfaction among Canadian retail banking customers is driven by the full
range of banking products they have with their primary bank, their
interactions with the bank, personal and self-service, the convenience of the
bank’s facilities and communication from the bank. Preventing problems and
helping customers when they do experience a problem also play a major role in
how customers perceive their bank’s performance, according to the J.D. Power
2014 Canadian Retail Banking Customer Satisfaction Study^SM released today.
The study, now in its ninth year, was redesigned in 2014 to better capture
customer satisfaction within the Canadian market. The study continues to
measure customer satisfaction with retail banks in three segments: Big 5
Banks, Midsize Banks and Credit Unions. In all segments, customer satisfaction
is measured in seven factors: products, personal service, self-service,
facilities, communication, financial advisor and problem resolution.
The study finds that when banks communicate clearly with customers regarding
their accounts, problem incidence decreases dramatically. For example,
checking account problem incidence amongst customers who say they “completely”
understand their fees (11 per cent) is significantly lower than amongst
customers who say they do not understand at all (18 per cent).
“The redesigned study shows what is important to retail banking customers as
well as the importance of fully explaining the full range of banking products
available to consumers at their primary bank,” said Jim Miller, senior
director of the banking practice at J.D. Power. “The full range of products
customers have with their bank, their personal interactions with bank
representatives and the ease of conducting their business using technology all
play an instrumental role in customer satisfaction. Highly satisfied customers
are more than twice as likely to say they will definitely reuse the bank for
future financial needs and recommend the bank, compared to customers with
medium satisfaction. Highly satisfied customers are also less likely to switch
banks and hold more products and balances with their bank.”
ADDITIONAL KEY FINDINGS
*Overall customer satisfaction in the Big 5 Banks segment averages 749 (on
a 1,000-point scale); the Midsize Banks segment average is 766^1.
*Customer satisfaction with products—including chequing accounts, savings
accounts, credit cards and loans customers have with their primary
bank—determines 26 per cent of overall satisfaction.
*Customer satisfaction with personal service—in-person and contact centre
representatives, both on the phone and through email and online
chat—determines 19 per cent of overall satisfaction, which is the same
percentage as self-service—ABM, mobile banking, online and automated phone
*Customers continue to value the convenience of branches and ABMs, as
facility determines 16 per cent of overall satisfaction scores.
*Communication determines 12 per cent of overall satisfaction. Effective
communication with customers helps drive better understanding and can
increase overall satisfaction.
*Financial advisor and problem resolution determine the remaining 8 per
cent of overall satisfaction (5 per cent and 3 per cent, respectively).
“Banks need to balance the personal relationship customers have long expected
with the increased desire of customers to conduct more of their business when,
where and how they want using technology. Bank branches are not going to
disappear any time soon, but banks must continue to invest in self-service
channels, such as mobile banking to meet the evolving preferences of their
customers,” said Miller.
TD Canada Trust ranks highest in overall customer satisfaction among Big 5
Banks for a ninth consecutive year, achieving a score of 763. TD Canada Trust
performs well in all seven factors, particularly in facilities.
Among Midsize Banks, Tangerine, formerly known as ING Direct Canada, ranks
highest in overall customer satisfaction with a score of 836 for a third
consecutive year. Tangerine performs particularly well in products, personal
service, self-service, and communication.
Overall Customer Satisfaction Index Scores J.D. Power.com Power Circle
(Based on a 1,000-point scale) For Consumers
Big 5 Bank Segment
TD Canada Trust 763 5
RBC Royal Bank 752 4
Big 5 Banks Segment Average 749 3
BMO Bank of Montreal 744 3
Scotiabank 738 2
CIBC 735 2
Midsize Bank Segment
Tangerine 836 5
PCF (President's Choice Financial) 782 4
Manulife Bank 771 3
Midsize Banks Segment Average 766 3
National Bank of Canada 756 3
Laurentian Bank of Canada 734 2
ATB Financial 730 2
HSBC Bank Canada 719 2
Note: Included in the study but not ranked due to small or insufficient sample
size is Alterna Bank
Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest
The 2014 Canadian Retail Banking Customer Satisfaction Study is based on
responses from more than 17,000 customers who use a primary financial
institution for personal banking. The study includes the largest financial
institutions—banks and credit unions^2—in Canada and was fielded May 2014
through June 2014.
About J.D. Power and Advertising/Promotional Rules
About McGraw Hill Financial www.mhfi.com
^1 Rankings are not provided for credit unions, as they do not meet market
share requirements for the study.
Media Relations Contacts
Cohn & Wolfe
Beth Daniher, 647-259-3279
John Tews, 248-312-4119
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