TORONTO–(BUSINESS WIRE)–A total of 59% of retail bank customers in Canada are now considered financially distressed1 as rising household costs and record-high personal credit pressures have forced many to withdraw from their financial institutions. Inspired to seek guidance. According to the JD Power 2022 Canada Retail Banking Advice Satisfaction Study, SM, released today, 50% of bank customers expect their financial institutions to help them improve their financial situation.
“Financial institutions play a role as reliable sources of guidance and financial advice, especially in a challenging economic environment like the one we are in now,” he said. Jennifer White, Senior Director of Banking and Payments Intelligence at JD Power, “Despite the increasing importance of financial advice, many banks miss the mark by underdelivering when it matters most. Key performance indicators, such as B. Providing an in-depth review of clients’ financial conditions or providing suggestions to help clients stay on budget are accomplished in less than 50% of the time.”
The following are the key findings of the 2022 study:
- Targeted, personalized financial advice increases customer satisfaction through: Overall customer satisfaction increases by 229 points (on a 1,000-point scale) when customers are offered advice/guidance that they feel fully meets their needs. Banks manage to do this 53% of the time, and 72% of customers who seek advice from their bank do so.
- Financially weak bank customers: Using the data cited by the defendant on safety net elements such as spending/savings rates, creditworthiness and insurance coverage, JD Power creates a measure of customers’ financial health and places customers on a continuum from healthy to vulnerable. Only 47% of bank customers who seek advice fall into the financially strong category. The remaining 53% are classified as either vulnerable (28%), overwhelmed (15%) or stressed (10%).
- Advice is expected but not always received: Half (50%) of retail banking customers say they expect their financial institution to help them improve their financial health. The proportion of bank customers who say they remember two or more consultations at their bank is 56%, compared to 61% a year ago.
- Go forwardRetail bank customers are looking for advice and guidance. If two or more advisory instances are recalled by customers, overall satisfaction increases by 75 points. But a cookie-cutter approach won’t cut it. Advice and guidance should be tailored to each client and given to the right person at the right time. When advice is tailored to the specific needs of clients, satisfaction is even greater. Satisfaction rose to 667 when customers received personalized advice just once, compared to a low satisfaction (561) for customers who received advice on five or more topics that were not personalized.
BMO Bank of Montreal and RBC Royal Bank When it comes to customer satisfaction with private customer advice, One ranks highest with 599 points. CIBC (597) is in third place. The industry average is 592.
The 2022 Canada Retail Banking Advice Satisfaction Study includes responses from 2,351 retail customers of retail customers in Canada who received advice/guidance from their primary bank on relevant products and services or other financial needs in the past 12 months. The study was conducted in January-February 2022. In addition to ratings of banks’ financial advice, the study also provides benchmarking data from the Financial Health Assistance Index, which assesses the effectiveness of banks and credit card issuers in providing financial assistance to customers.
The top performing banks in the Banking Financial Health Support Index are (in alphabetical order): CIBC and RBC Royal Bank. The top-performing credit card providers in the Credit Card Financial Assistance Index are (in alphabetical order): CIBC, RBC Royal Bank and scotiabank,
For more information on the Canadian Retail Customer Satisfaction Study, visit
View online press release here
About the power of the Jedi
JD Power is a leading global provider of consumer insights, advisory services, and data and analytics. A pioneer in using big data, artificial intelligence (AI), and algorithmic modeling capabilities to understand consumer behavior, JD Power has been providing industry intelligence on customer interactions with brands and products for over 50 years. The world’s leading companies in key industries rely on JD Power for their customer-centric strategies.
JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business.
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1 JD Power measures the financial health of consumers as a metric by combining safety net elements such as their spending/savings rate, credit history and insurance coverage. Consumers are ranked from healthy to vulnerable using a rolling metric.