Overall customer satisfaction with retail banks in Canada has remained stable in 2009, according to the J.D. Power and Associates 2009 Canadian Retail Banking Customer Satisfaction Study released Thursday.

Overall satisfaction with primary financial institutions averages 747 on a 1,000-point scale in 2009-up three points from 2008. The report notes that Canadian banks are widely considered to have been less affected by the global financial crisis than banks in other countries. A separate report from J.D. Power and Associates found overall customer satisfaction with retail banks in the United States has declined in the past two years.

“Among retail bank customers in Canada, satisfaction, loyalty and commitment to their primary financial institutions have remained largely unaffected during these volatile times,” said Lubo Li, senior director of research at J.D. Power and Associates. “However, the needs and preferences of bank customers are changing, and banks will need to evolve with them in order to meet or surpass their expectations.”

The study finds that bank customers increasingly prefer online banking to banking through other channels. Overall, the percentage of customers who indicate that they prefer to bank online has increased steadily during the past two years from 58% in 2007 to 64 percent in 2009. In 2009, 70% of customers of mid-size banks-which typically have fewer branch locations-indicate a preference for online banking.

The report suggests banks need to improve the experience of clients when they visit bank branches. For example, during customer visits to bank branches, financial institutions have an opportunity to promote additional products and services through in-person interaction with financial advisors at the branch. However, the study finds that only one-third of bank customers overall say they have a designated financial advisor at the branch. Among newer customers, who have been with their primary financial institution for five years or less, this figure decreases to one-fourth.

“It is critical for banks to develop relationships with customers early on so that they can be guided to appropriate and more advanced products as their assets grow,” said Li.

Now in its fourth year, the study examines customer satisfaction with their primary financial institutions in two segments: the Big 5 retail banks and mid-size retail banks. In both segments, customer satisfaction is measured across six factors (listed in order of importance): transaction experiences; account set-up and offerings; convenience/facility; fees; account information; and problem resolution.

TD Canada Trust ranks highest in overall customer satisfaction among Big 5 banks for a fourth consecutive year, achieving a score of 759. Following TD Canada Trust in the segment rankings are Bank of Nova Scotia (739) and RBC Royal Bank (737).

Among mid-size retail banks, President’s Choice Financial ranks highest for a third consecutive year, with a score of 806.

The 2009 study is based on responses from 12,555 customers who use a primary financial institution for personal banking. The study includes the largest financial institutions-banks and credit unions-in Canada, and was fielded in March and June 2009.

IE