High Overall Bank Satisfaction Masks Younger Canadians' Shift to Fintechs
RBC Royal Bank and Tangerine Bank Rank Highest for Customer Satisfaction in Respective Segments
Younger customers' intention to switch banks reaches a five-year high
Customers favour AI for fraud prevention over personal financial advice
One quarter of traditional bank customers do not know their account benefits
TORONTO, October 15, 2026--Canadians are giving their banks slightly higher marks this year, with overall customer satisfaction rising 3 points (on a 1,000-point scale), largely driven by improvements among the Big 5 banks, according to the JD Power 2026 Canada Retail Banking Satisfaction Study,SM released today. However, this improvement masks a growing competitive threat. The newer online banks, also known as fintechs, outperform both Big 5 and midsize banks across many of the factors that shape customer satisfaction and are attracting younger Canadians, including a disproportionate share of those who intend to switch their primary banking relationship in the next 12 months.
Among Gen Z1 and Gen Y customers of traditional retail banks, 17% say they probably or definitely will switch their primary bank in the next 12 months, the highest level recorded in five years. Despite modest improvements in satisfaction among these younger customers, fees and competitive rates remain important vulnerabilities for traditional banks. Four of the five leading reasons younger customers would switch their primary bank relate to product offerings, including fees, interest rates and promotional offers.
"Younger customers can be satisfied with their bank and still leave if they see a better opportunity to save money elsewhere," said Paul McAdam, senior director of banking and payments intelligence at JD Power. "When household budgets are tight, a monthly banking fee becomes an expense worth reconsidering. Traditional banks cannot take the next generation's loyalty for granted. They need to give younger Canadians a financial reason to choose them, through competitive rates, reasonable fees and clear evidence that their account delivers value."
Following are some key findings of the 2026 study:
AI remains a mystery to most bank customers: About one in ten (12%) customers of traditional retail banks completely understand how their bank uses AI, with the same proportion saying their bank completely communicates its use of the technology. Fewer than one in five (17%) are completely comfortable with their bank using AI, highlighting an opportunity for banks to better explain their role and customer benefits.
Customers favour AI as a financial safeguard: Fraud prevention and data security lead customers' preferences for how their bank could use AI (31%), followed by helping them avoid service charges (24%) and optimize rewards or benefits (20%). Interest in AI for personal financial advice is well below these priorities, at just 12%.
Unrecognized account benefits are a missed opportunity: Just over half (52%) of customers of traditional retail banks completely understand their chequing account features and over one quarter (26%) do not know what benefits they receive. Making those benefits more visible could help banks demonstrate the value of their accounts, attract new customers and strengthen retention.