TD Canada Trust ranks highest among the Big 5 Canadian retail banks, and President’s Choice Financial ranks highest among mid-size retail banks in satisfying customers in Canada, according to the J.D. Power and Associates 2007 Canadian Retail Banking Customer Satisfaction Study released today.

The study, now in its second year, examines customer satisfaction with their overall banking experience. In both segments — the Big 5 Retail Banks and Mid-Size Retail Banks — customer satisfaction is measured across six factors (listed in order of importance): transaction experiences; facility; account setup/product offerings; account statements; fees; and problem resolution.

Among the Big 5 Canadian banks, TD Canada Trust ranks highest in overall customer satisfaction for a second consecutive year, achieving a score of 775 on a 1,000-point scale and performing particularly well in five of the six factors: account setup and product offerings; account statements; facility; transaction experiences; and problem resolution.

President’s Choice Financial ranks highest among mid-size retail banks with a score of 830 and performs particularly well in transaction experience; account setup and product offerings; account statements; and fees.

The study finds that convenient services and innovative banking practices differentiate the highest-ranked banks in each segment from their competition. In particular, customers say that convenience – in terms of locations and hours – and no-fee banking are important reasons for choosing their respective banks.

For example, 61 per cent of TD Canada Trust customers say that convenience is “extremely important” in their decision to choose the bank, compared with 46 per cent of customers overall.

“Rather than operating only during traditional banking hours, TD Canada Trust offers extended weekday and weekend hours, which is innovative in the banking industry,” said Charles Schade, senior director of research at J.D. Power and Associates.

A large percentage of President’s Choice Financial customers are attracted by its no-fee banking. Seventy-eight per cent of President’s Choice Financial customers say that free services were the main reason for selecting the bank.

“President’s Choice Financial has managed to eliminate fees while still offering a full range of banking services that adequately serve – and even delight – its customers,” said Schade.

The study also finds that banks that succeed in delighting their retail banking customers may benefit from increased loyalty when these customers shop for other financial services. Approximately 80% of retail banking customers report holding credit products from the same financial group with which they bank.

“Retail banking is a very personal experience for Canadians, who, in general, are in contact with their accounts more than 20 times each month,” says Schade. “Each transaction provides an opportunity to delight customers or, conversely, to lose confidence in their financial institution’s ability to handle money. Those financial institutions that manage to delight their customers stand a greater chance of extending their relationship beyond the branch.”

The 2007 study includes the largest financial institutions — banks and credit unions — in Canada, and is based on responses from 11,325 customers who use a primary financial institution for personal banking. The study was fielded in February and July 2007.