Canadian Retail Banks Face Untapped Opportunity in Financial Advice, J.D. Power Finds
Scotiabank Ranks Highest in Retail Banking Advice Satisfaction
- Customer satisfaction with retail bank advice declines year over year: Overall customer satisfaction with the advice provided by a primary retail bank decreases 2 points to 789 (on a 1,000-point scale) in 2019 vs. 2018, and younger customers (under age 40) are slightly less-satisfied with bank-derived advice than their older counterparts. This stands in stark contrast to the results of the J.D. Power 2019 U.S. Retail Banking Advice StudySM which saw overall satisfaction scores increase by 15 points, driven largely by younger customers.
- Digital advice in focus: A majority of bank customers (57%) say their preferred means of receiving advice is digital content (interactive tools, articles, videos) delivered through a bank website or mobile app. However, just 10% of bank customers say they have received their most recent advice in this manner.
- Investment-related advice resonates most: Among the most common types of advice retail bank customers seek are investment-related advice (49%); quick tips to help improve their financial situation (44%); retirement-related advice (44%); advice to help keep track of spending and household budgets (34%); and in-depth view of personal financial situation (32%).
- Advice satisfaction directly linked to trust, retention and advocacy: Among retail bank customers who are highly satisfied with the advice provided by their institution, (overall advice satisfaction score of 850 or higher), 86% say they “definitely will” reuse their bank for another product; 76% are identified as Net Promoters®; and 49% say they have opened a new account based on the advice received.
- Advice often delivered during new account opening, and transparency is critical: When new accounts are opened, transparency about customer benefits and fees is critical. Overall satisfaction with the account opening process increases 155 points when benefits and features are explained completely and 126 points when fees are clearly explained. Approximately one-third of the time, consumers in Canada leave the account-opening experience with less than a complete understanding of product features, benefits and fees.
Study RankingsScotiabank ranks highest in customer satisfaction with retail banking advice with a score of 806. RBC Royal Bank ranks second with a score of 803 and BMO Bank of Montreal ranks third with a score of 792. The 2019 Canada Retail Banking Advice Study surveyed 1,451 retail bank customers in Canada who received any advice/guidance from their primary bank regarding relevant products and services or other financial needs in the past 12 months. The study also surveyed 1,291 retail bank customers in the Canada who opened a new account within the past 12 months. It was fielded in October 2018. For more information about the Canada Retail Banking Advice Study, visit https://www.jdpower.com/business/resource/canada-banking-advice-satisfaction-study. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe. Media Relations Contacts
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