Customer experience can make or break a bank’s relationship with its customers. It’s no longer just about offering competitive products or services.
According to FICO’s 2024 Bank Customer Experience Survey, 90% of Canadians prioritize customer experience as much as, or even more than, the banking products and services themselves. This shift in consumer expectations underscores the growing importance of delivering personalized, seamless, and satisfying interactions.
For banks looking to stay competitive in Canada’s highly loyal yet evolving market, understanding these insights and adapting accordingly is essential. Here’s how Canadian banks can leverage customer experience as a pillar for growth and loyalty in the modern era.
What Canadian Customers Expect
The survey found that 90% of Canadians consider customer experience equally or more important than the products and services their bank offers. This finding highlights how much value consumers place on ease of access, quality interactions, and support tailored to their needs.
Personalization Matters More Than Ever
Gone are the days when one-size-fits-all banking solutions were sufficient. Over three-fourths of survey respondents emphasized the importance of receiving personalized offers and experiences. Whether through tailored mortgage solutions, credit card rewards matched to spending habits, or messages acknowledging life milestones, personalization fosters deeper loyalty and trust.
Consistency in Communication Builds Trust
Positive communication stands out as a strong point in Canadian banking. With 68% of Canadians satisfied with their bank’s methods of communication, it’s clear that consistent, transparent outreach resonates well with consumers. However, there’s still room for improvement, as 7.4% expressed dissatisfaction, signaling opportunities to refine engagement strategies further.
The Canadian Loyalty Factor
Canada boasts one of the most loyal banking consumer bases in the world. FICO’s findings reveal that 95% of Canadians have a designated primary financial institution, even though many also hold secondary accounts. What’s even more impressive? 69% of Canadians haven’t switched their primary bank in the past decade, with this figure rising to 98% among customers aged 65 and over.
While this suggests stability for banks, it’s important to note that this loyalty can erode quickly if customer experience falters. Poor customer experiences were cited as the primary reason for switching banks by 41% of respondents.
For banks, the message is clear—loyalty must be earned and upheld through exceptional service.
The Role of Digital Transformation
Although brick-and-mortar bank branches remain popular, digital banking services are steadily gaining traction across all age groups. Customers are increasingly valuing tools like mobile apps, online portals, and chatbots to complete transactions and seek help on demand.
Canadian banks need to focus on digital transformation by expanding their suite of digital offerings while improving user experiences across these platforms. Offering secure, easy-to-use, and responsive tools will allow banks to cater to tech-savvy customers while maintaining the quality of service tied to their legacy brand reputation.
A Blueprint for Success in the Canadian Market
Prioritize Personalization in Offerings
Banks should leverage data analytics to understand their customers’ needs better. Whether someone is saving for their first home, starting a business, or preparing for retirement, tailored financial solutions can make all the difference.
Strengthen Digital Infrastructure
Adopt cutting-edge tools that are intuitive, reliable, and secure. Make it easier for customers to handle everyday transactions, connect with advisors, or apply for products via digital channels.
Proactively Address Customer Pain Points
From enhancing wait times at branches to resolving issues in real time through chat support, resolving friction in the customer journey should be non-negotiable. Regular feedback surveys can also help identify areas for improvement.
Maintain Transparent Communication
Whether communicating an upcoming policy change or promoting new services, transparency adds immense value. Clear and proactive communication strengthens consumer confidence, resulting in higher retention rates.
The Future of Banking in Canada
Banking in Canada is evolving, but customer-centricity remains a constant priority. Understanding customer expectations around personalization, digital transformation, and seamless experiences will help financial institutions thrive in a competitive market.
