Canadians want more advice from banks on inflation, recession

How Canadians feel about banks amid inflation Many customers say they would like their banks to do more to guide them through the current climate of high inflation and interest rates.

A new report on Canadian banks finds that inflation, rising interest rates, and economic uncertainty are weighing on customers, and many would like more advice from their banks on how to deal with those issues.

“Different banks have different strengths and not one bank is best for every customer. Some are more digitally oriented while some are more human-oriented so I think it really depends a lot on the customer,” Jim Miller, executive managing director of banking and payments intelligence at J.D. Power, told CTV News Toronto.

The J.D. Power 2022 Canada Retail Banking Satisfaction Survey used a 1,000-point scale to rate the banks. In first place was RBC with 629 points, followed by CIBC with 615 points, Bank of Montreal with 610 points, TD Canada Trust with 606 points, and Scotiabank with 599 points.

The survey also found that earlier this year, between January and March, 50 per cent of bank customers said they “feel financially healthy," but later in the year, between July and August, that number dropped to 38 per cent.

At a time when Canadians are facing fears of a recession, only 32 per cent of customers said they feel their bank supports them in challenging times.

“Canadian banks have not kept pace with the changing economic conditions, nor the shifting needs and expectations of their customers, at least when it comes to communicating,” said Miller.

Many also said they would like advice on how to manage inflation, save for a recession, and pay down debt.

As banks continue to make billions of dollars each year, some customers said they would appreciate better customer service and voiced concerns about wait times when calling the bank.

However, when customers made contact, 87 per cent said they were provided easy-to-understand interactions by the bank’s phone representative.

“It’s a little tougher to get a hold of a representative on the phone, but when you do, they usually do a good job in solving the customer’s problems," Miller said.

The survey also took a look at midsize banks and gave top marks to Tangerine, a digital online bank that has no physical branches.

"It's not for everybody, but if you don't need a branch they offer great rates, great products and their service is really strong," Miller said.

Banks have different products and services, so if you're not happy with yours it might be time to look around and see what other banks have to offer.