Rising financial stress driving Canadians to their banks for advice: JD Power
First off, the positives. Canadian consumers' confidence in their banks' ability to provide financial advice is on the rise. JD Power reports that banks seem prepared to meet demand as customer satisfaction with the financial advice they are getting from their bank has improved from 2024. Overall satisfaction is 579 (on a 1,000-point scale), 13 points higher than a year ago. Key drivers of this improvement include the frequency, quality and relevancy of the advice, as well as the level of concern financial institutions show for their customers' needs.
But less positive is the impact of cost-of-living challenges, inflation, and personal debt. It means that more Canadians are struggling to stay financially afloat. Specifically, 44% are now considered financially vulnerable, up from 36% just five years ago, according to the JD Power 2025 Canada Retail Banking Advice Satisfaction Study.
Moreover, the report notes that this worsening financial health is changing the nature of the advice Canadians seek from their banks.
Customers are increasingly turning to their financial institutions for support with short-term, everyday challenges, Examples include paying bills, managing credit, and sticking to a budget rather than long-term planning.
Appetite for bank advice is growing: More than one-quarter (26%) of bank customers say they are 'very interested' in receiving bank advice or guidance, up from 19% in 2021. Interest in bank advice is particularly strong among immigrants who have lived in Canada less than two years (47%), as well as among affluent customers (32%) and young mass affluent customers (31%).
Shift in advice focus: While investment- and retirement-related advice continue to be the most sought-after topics, the study reveals a shift in customer priorities since 2021. Interest in advice addressing immediate needs such as ways to pay bills on time has increased 4 percentage points and borrowing/credit-related guidance has increased 2 percentage points. In contrast, demand for investment- and retirement-focused advice has declined 7 percentage points and 4 percentage points, respectively.
Advice recall stalls: Although 49% of customers say their bank has done a good job of making their interactions memorable, the trend has plateaued this year. This signals a need to find more effective engagement strategies. The study shows that strong marketing communications that affirm and reassure customers that the bank is there for them when needed (on demand) is the preferred approach.
RBC ranks highest in customer satisfaction for a fifth consecutive year, with a score of 595. CIBC (590) ranks second and Scotiabank (580) ranks third.
The Canada Retail Banking Advice Satisfaction Study includes responses of 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. It measures customer satisfaction with retail bank advice/guidance based on performance in five core dimensions on a poor-to-perfect rating scale. Individual dimensions measured are (in order of importance): clarity of advice; concern for customer needs; relevancy; quality; and frequency of advice.
In addition to bank financial advice ratings, the study also provides financial health support index benchmarking data that evaluates the proficiency of banks and credit card issuers in delivering financial health support to customers and includes such services as helping customers make better financial decisions or helping them meet savings, creditworthiness or budgeting goals.
Top-performing credit card providers in the credit card financial support index are (in alphabetical order): Desjardins, RBC, Scotiabank and TD.
'The eroding financial health of customers and their fear that economic conditions may worsen are driving customers—especially younger ones with growing deposits—to seek financial advice from their retail bank at an accelerated pace,' said Jennifer White, senior director for banking and payments intelligence at JD Power.
'This combination presents a golden opportunity for retail banks to rise to the challenge and offer services and advice that go beyond the transactional. Customers are shifting their focus from longer-term goals such as investment and retirement planning to more immediate concerns like paying bills, reducing debt and sticking to a budget. Banks that are attuned to their customers' pain points and can provide relevant and frequent financial advice will be positioned to benefit from a loyal customer base.'
"Rising financial stress driving Canadians to their banks for advice: JD Power" was originally created and published by Retail Banker International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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