Report highlights need for advice to navigate financial stress
Financial stress is becoming the new normal for many Canadians, as the cost of living and debt pushes almost half of bank customers (44%) into the ‘financially vulnerable’ category.
This is a sharp increase from 36% just five years ago, according to the newly released J.D. Power 2025 Canada Retail Banking Advice Satisfaction Study, which highlights how banks are having to rethink their role to meet customer needs.
With seven in ten bank customers worried about the cost of living - and over a third struggling just to manage housing costs - practical financial advice is in demand.
And the advice they need is not only the big stuff, such as retirement planning or long-term investing, the report reveals demand for help with the basics such as how to stay afloat, pay bills on time, reduce debt, and budget effectively.
Among the most interested in advice are newcomers to Canada (47%) along with affluent (32%) and young mass affluent customers (31%), but overall 26% of bank customers surveyed said they are “very interested” in receiving bank advice or guidance, up from 19% in 2021.
“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 J.D. 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.”
White added that banks that are attuned to their customers’ pain points and can provide relevant and frequent financial advice can benefit from a loyal customer base.
Encouragingly, many institutions appear to be getting the message and customer satisfaction with bank advice has improved, climbing to a score of 579 (on a 1,000-point scale), up 13 points from last year.
But there’s room for growth because, while nearly half of customers said they have received good advice from their bank, that number hasn’t moved in the latest survey - a red flag for institutions hoping to deepen engagement.
The report states that consistent and reassuring communication is key. Customers want to know their bank is there when and how they need it.
RBC continues to lead in satisfaction for a fifth straight year, followed by CIBC and Scotiabank.
“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,” concluded White.
