For years, Canadian financial institutions have invested heavily in digital transformation. Mobile apps are stronger. Self-serve is widespread. AI is no longer just experimental.
And yet, customer experience in banking remains fragile.
Recent, reputable sector reporting shows that while Canada’s largest retail banks continue to deliver scale and stability, mid-size institutions are gaining ground on experience. Customers are increasingly rewarding simpler, more responsive models. This reflects a sustained shift towards agility, clearer value, and fewer friction points.
What does this mean for leaders today? Digital maturity is becoming table stakes. Differentiation depends on how experiences feel when customers need clarity, help, or reassurance.
Satisfaction exists, but it is not secure
Overall satisfaction levels suggest competence, but is that enough to safeguard loyalty, especially against disruptors?
Just 33% of customers say they are very satisfied with their primary financial institution. That is not failure, but it is far from a strong foundation for long-term trust.
At the other end of the spectrum, dissatisfaction is low but meaningful: 3% report being very dissatisfied, which may sound marginal until you consider the scale of retail banking in Canada. At a population level, that translates into millions of frustrated moments that institutions rarely see until customers leave.
The middle is the risk zone in customer experience. Customers who are “satisfied enough” are also the most open to switching when expectations are not met. It’s important to recognize that high net satisfaction can coexist with latent churn. “Good enough” is not a defensible CX.
Loyalty signals are weak where it matters most
Intent to stay is not the same as emotional commitment.
Only 5% of customers say they are very likely to switch financial institutions, but this headline masks a more concerning reality. One-in-four (24%), overall, says they are likely to switch any FI relationship in 2026 based on customer experience issues. This places them firmly in a persuadable, at-risk segment.
What is important to note is that digital parity has raised customers’ expectations. They no longer compare banks to other banks. They compare it to the best experiences they have elsewhere. Amazon’s clarity on pricing and delivery. Apple’s service-recovery when something fails.
Once customers experience what is possible, it becomes difficult to settle for less.
Trust is the anchor, and it is under pressure
When customers are asked what most influences their satisfaction with their financial institution, trust dominates.
Within our data, trust-related factors outweigh digital tools and product features by a wide margin, cited by ~3x as many respondents as technology alone. Importantly, trust shows up through human service, not abstract promises. Forty-two percent point to human service as a key contributor to satisfaction.
In verbatim feedback, customers repeatedly link trust to clarity, not reassurance. They want to understand what is happening, why it is happening, and what their options are. Trust is built in moments of explanation. Note, silence, jargon, or deflection erode it quickly.
Fees are not just a cost issue. They are a fairness issue.
Fees emerge as one of the most emotionally charged factors of satisfaction.
Customers rarely describe fees simply as “too high.” They describe them as unexpected, poorly explained, or misaligned with perceived value. This distinction is critical. Customers will tolerate cost when they understand it. What damages trust is feeling surprised or misled. Other sectors have shown that proactive explanation and plain-language framing can materially change how cost is perceived.
Financial institutions operate under margin pressure, and fees are not going away.
But how fees are framed, explained, and justified is a CX decision, not just a pricing one. Transparency can be a competitive advantage, reinforcing fairness even when fees remain.
Speed and service recovery define modern CX.
Customers are increasingly judging their financial institution not by how often things go right, but by what happens when something goes wrong. Our qualitative data consistently point to service quality and speed as defining moments. Delays, handoffs, and unresolved issues leave a deeper impression than smooth everyday transactions.
This is where many institutions still struggle. Digital journeys are often polished while service recovery journeys remain uneven.
