While chequing and savings account services remain the foundation of customer relationships with their retail banks, a majority of customers also use their primary financial institution for additional services such as credit cards, investment products and insurance, according to a study released today by J.D. Power and Associates.

The study finds that a majority of retail bank customers use their primary financial institutions for additional services such as borrowing, investment and insurance provided through an affiliated financial institution.

Among customers of the “Big 5” banks, 76% also have a borrowing product with the financial institution where they hold their chequing or savings account, while 40% have investment products and 20% have insurance products.

Within the midsize bank segment, 69% of customers have a borrowing product in addition to their deposit account, while 27 percent have investment products and 16% have insurance products.

Now in its third year, the study examines customer satisfaction with the overall retail banking experience in two segments: the Big 5 retail banks and midsize retail banks. In both segments, customer satisfaction is measured across six factors (listed in order of importance): transaction experiences; account set-up and product offerings; facility; fees; account statements; and problem resolution. Overall satisfaction is measured on a 1,000-point scale.

TD Canada Trust ranks highest in overall customer satisfaction among Big 5 banks for a third consecutive year, achieving a score of 777. TD Canada Trust performs well across all six factors that drive satisfaction.

Among midsize retail banks, President’s Choice Financial ranks highest for a second consecutive year, with a score of 816. President’s Choice Financial performs particularly well in transaction experience, account set-up and product offerings, fees, and account statements.

The study also finds that the importance of the online banking channel has increased steadily. In 2008, the online channel represents 29% of overall satisfaction with the transaction experience, compared with only 19% in 2006.

The 2008 Canadian Retail Banking Customer Satisfaction Study is based on responses from 10,823 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 two periods in 2008, between March and April and between June and July.