TD Canada Trust and President's Choice Financial Rank Highest in Customer
Satisfaction with Retail Banks in Canada
TORONTO, Aug. 13 /CNW/ - Overall customer satisfaction with retail banks
in Canada has remained stable in 2009, reflecting the relative strength of
Canadian banks in the face of economic turmoil that has negatively affected
financial institutions across the globe, according to the J.D. Power and
Associates 2009 Canadian Retail Banking Customer Satisfaction Study(SM)
Overall satisfaction with primary financial institutions averages 747 on
a 1,000-point scale in 2009-up three points from 2008. Due to their minimal
exposure to sub-prime lending, Canadian banks are widely considered to have
been less affected by the global financial crisis than banks in other
countries. For example, according to the J.D. Power and Associates Retail
Banking Satisfaction Study for the U.S. market, overall customer satisfaction
with retail banks in the United States has declined in the past two years.
"Among retail bank customers in Canada, satisfaction, loyalty and
commitment to their primary financial institutions have remained largely
unaffected during these volatile times," said Lubo Li, senior director of
research at J.D. Power and Associates. "However, the needs and preferences of
bank customers are changing, and banks will need to evolve with them in order
to meet or surpass their expectations."
The study finds that bank customers increasingly prefer online banking to
banking through other channels. Overall, the percentage of customers who
indicate that they prefer to bank online has increased steadily during the
past two years from 58 percent in 2007 to 64 percent in 2009. In 2009, 70
percent of customers of mid-size banks-which typically have fewer branch
locations-indicate a preference for online banking.
"Through online banking, financial institutions are doing a good job of
meeting customer needs for convenience and speed," said Li. "Similarly, each
of the other service channels provide opportunities for banks to meet specific
customer needs and preferences, and it is particularly important for banks to
leverage the relative strengths of each channel. By doing so, banks may build
their reputation for providing the right products at the right times in the
ways that best suit their customers."
For example, during customer visits to bank branches, financial
institutions have an opportunity to promote additional products and services
through in-person interaction with financial advisors at the branch. However,
the study finds that only one-third of bank customers overall say they have a
designated financial advisor at the branch. Among newer customers, who have
been with their primary financial institution for five years or less, this
figure decreases to one-fourth.
"It is critical for banks to develop relationships with customers early
on so that they can be guided to appropriate and more advanced products as
their assets grow," said Li.
Now in its fourth year, the study examines customer satisfaction with
their primary financial institutions in two segments: the Big 5 retail banks
and mid-size retail banks. In both segments, customer satisfaction is measured
across six factors (listed in order of importance): transaction experiences;
account set-up and offerings; convenience/facility; fees; account information;
and problem resolution.
TD Canada Trust ranks highest in overall customer satisfaction among Big
5 banks for a fourth consecutive year, achieving a score of 759. Following TD
Canada Trust in the segment rankings are Scotiabank (739) and RBC Royal Bank
Among mid-size retail banks, President's Choice Financial ranks highest
for a third consecutive year, with a score of 806. President's Choice
Financial performs particularly well in four of six factors: transaction
experiences; account set-up and offerings; fees; and account information.
The 2009 Canadian Retail Banking Customer Satisfaction Study is based on
responses from 12,555 customers who use a primary financial institution for
personal banking. The study includes the largest financial institutions-banks
and credit unions-in Canada, and was fielded in March and June 2009.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement, Web
intelligence and customer satisfaction. The company's quality and satisfaction
measurements are based on responses from millions of consumers annually. J.D.
Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading
global information services provider meeting worldwide needs in the financial
services, education and business information markets through leading brands
such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power
and Associates. The Corporation has more than 280 offices in 40 countries.
Sales in 2008 were $6.4 billion. Additional information is available at
No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
NOTE: ranking chart available upon request.
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