J.D. Power’s “Retail Banking Advice Satisfaction Study” finds consumers rely on banks as trusted sources of guidance in a challenging economy
A recent Canadian banking satisfaction study sheds new light on consumer challenges in the post-COVID era and the essential services and support banking is best positioned to provide. The 2022 Canada Retail Banking Advice Satisfaction Study by J.D. Power finds that half of customers “expect their financial institutions to help them improve their financial health.” As 59% of Canadian bank customers currently consider themselves “financially unhealthy,” this advice is even more critical as consumers continue emerging from a pandemic economy.
“The role financial institutions play as trusted sources of guidance and financial advice cannot be overstated, particularly in a challenging economic environment like the one we’re in now,” says Jennifer White, senior director for banking and payments intelligence at J.D. Power. Instead of consultations rising during troubled times, however, the proportion of banks providing this kind of counsel two or more times annually actually decreased five points year-over-year – at 56% in 2022 versus 61% in the prior year.
To help ensure banks are answering the consumer call, J.D. Power recommends some core areas of counsel, including a financial check-up and budget planning. “Key performance indicators, such as providing an in-depth review of customers’ financial situations or providing tips to help customers stay on budget, are met less than 50% of the time” according to the company’s Jennifer White. Especially at a time when consumers report they feel financially vulnerable, J.D. Power recommends “targeted, personalized financial advice.”
Not only will customized guidance help – since 72% of customers who receive advice from their banks act on it – banks will also benefit. The company finds that “overall customer satisfaction increases 229 points (on a 1,000-point scale) when customers are offered guidance that they say completely meets their needs.” Service and solutions targeted to consumer need will help banks mean more. “Customers are craving personalized advice and guidance through the current economic uncertainty,” according to Insider Intelligence’s analysis.
But how do customers define a “personalized” banking experience that meets their needs? The leaders in the report’s highest-ranking positions provide some insights to help. In the survey, two of the biggest banks BMO and RBC land in a tie for first place in customer satisfaction and advice. For their part, BMO provides a robust roadmap of resources for businesses and consumers and numerous options for individualized support. Easy-to-navigate, curated and current, their channels include relevant advice on budgeting, borrowing, saving and investing.
More information about the Canada Retail Banking Advice Satisfaction Study is available at J.D. Power. For continuing coverage of North American banking, stay tuned to Believe in Banking’s continuing coverage of the industry’s top trends and topics. For insights on best practices in financial services including customer and brand experience, contact the banking and credit union experts at Adrenaline at info@adrenalinex.com.