Mobile Banking in Canada Grows Rapidly as Satisfaction with Personal Service Drops

The Canadian Retail Banking Satisfaction Study, now in its 12th year, measures customer satisfaction with retail banks in two segments: Big 5 Banks1 and Midsize Banks.

Canadian retail banks have continued to assert their leadership in mobile banking, showing steady increases in mobile adoption and mobile customer satisfaction, but is that focus coming at the expense of other banking channels? Mobile banking is one of two areas in which satisfaction has increased year over year, according to the J.D. Power 2017 Canadian Retail Banking Satisfaction Study,SM released today in conjunction with the J.D. Power 2017 Canadian Banking App Satisfaction StudySM.

The Canadian Retail Banking Satisfaction Study, now in its 12th year, measures customer satisfaction with retail banks in two segments: Big 5 Banks1 and Midsize Banks. In both segments, customer satisfaction is measured in seven factors (listed in order of importance): product; self-service; personal service; facilities; communication; financial advisor; and problem resolution. The inaugural Canadian Banking App Satisfaction Study measures overall satisfaction with mobile banking applications based on five factors (in order of importance): ease of navigation; appearance; availability of key information; range of services; and clarity of information. Satisfaction is calculated on a 1,000-point scale.

“Canadian retail banks have been pioneers in their embrace of the mobile channel and their development of mobile apps that really resonate with customers, but success in retail banking today requires a multi-channel approach,” said Bob Neuhaus, financial services consultant at J.D. Power. “The majority of retail bank customers are what we call channel omnivores, meaning they frequent several different touch points with their banks. Banks need to maintain focus on the traditional foundations of the banking experience, while still working to satisfy the increasing demand for digital channel interactions.”

Following are key findings of the 2017 studies:

• Canadian banks mastering mobile: Mobile banking usage among customers has nearly doubled over the past three years, with 43% of Canadian retail bank customers now using mobile banking. Satisfaction with the mobile channel has also improved, with a mobile satisfaction index score of 807 points, making it the most satisfying method of interaction amongst all channels measured in the study.
• Need to look beyond mobile: More than half (58%) of customers have used four or more interaction channels in the past year. Meanwhile, customer satisfaction declines in 2017 for most channels, including website (-1 point); branch (-10); assisted online (-11); call centre (-13); and automated phone (-15). Overall retail bank satisfaction declines to 759 points from 763 in 2016.
• Benefits of getting the basics right: Overall satisfaction scores are 83 points higher among customers who were greeted at the branch entrance and 63 points higher among those whose teller addressed them by name, yet just 60% of customers say they were greeted at the door and just 47% say they were addressed by name. Likewise, only 19% of customers are aware of personalized ABM preference settings at their bank, despite usage of those features being associated with high overall satisfaction scores.
• Certain changes can negatively affect trust: Banks can harm the level of trust that is established with their customers when they make changes to agreed-upon terms of financial accounts and products. The introduction of new fees is associated with a 50-point decrease in overall satisfaction, while changing the amount of existing fees is associated with a 45-point decrease. Changes to interest rates cause overall satisfaction scores to fall 31 points.

Study Rankings

RBC Royal Bank ranks highest in overall customer satisfaction for a second consecutive year among Big 5 Banks, achieving a score of 760. RBC Royal Bank performs well in all seven factors, most notably in product. TD Canada Trust ranks second with a score of 759.

Among Midsize Banks, Tangerine ranks highest in overall customer satisfaction for a sixth consecutive year, with a score of 820. Tangerine performs particularly well in product; personal service; self-service; and communication. President’s Choice Financial ranks second with a score of 801.

Among banking apps, RBC Royal Bank ranks highest in overall satisfaction with a score of 840. Scotiabank ranks second with a score of 835.

The 2017 Canadian Retail Banking Satisfaction Study is based on responses from more than 13,000 customers who use a primary financial institution for personal banking. The study includes the largest financial institutions in Canada and was fielded in March-April 2017. The 2017 Canadian Banking App Satisfaction Study is based on responses from more than 1,600 retail bank customers throughout Canada. It was fielded in April-May 2017.