Customers favour midsize banks for ease and personalization as loyalty to Big 5 banks weakens
A widening gap in customer satisfaction is emerging between Canada’s Big 5 banks and their midsize competitors, with midsize banks now outpacing the largest institutions in key areas such as ease of use and personalization.
According to the newly released JD Power 2025 Canada Retail Banking Satisfaction StudySM, customer satisfaction with the Big 5 banks has fallen by 7 points to 604 on a 1,000-point scale, while midsize banks have seen satisfaction rise by 5 points to 649.
This divide is evident across all major factors measured in the study, underscoring a shift in the retail banking landscape.
Midsize banks are outperforming the Big 5 in several high-impact experiences.
More customers of midsize banks report that it is easy to review recent transactions (55 percent vs 43 percent), deposit cheques (50 percent vs 40 percent), and receive information tailored to their needs (78 percent vs 65 percent).
These advantages in usability and personalization are contributing directly to higher satisfaction scores.
Paul McAdam, senior director of banking and payments intelligence at JD Power, says that although satisfaction with Big 5 banks is “trending downward,” they continue to “hold the lion’s share of the consumer market” due to factors like branch convenience and clear communication.
He adds that midsize banks are now outperforming the Big 5 in areas that matter most to customers, especially when it comes to “ease of use and personalization.”
Despite these challenges, the Big 5 banks continue to lead in market share and maintain strengths in branch convenience and communication.
However, the study also highlights that both segments have improved in resolving customer complaints, with satisfaction in problem resolution rising 19 points among midsize banks and 13 points among the Big 5.
Not all trends are positive. Satisfaction with new account openings has declined for both groups, dropping 17 points for Big 5 banks and 7 points for midsize banks.
Customers cited issues with the knowledge and helpfulness of representatives and the clarity of product information.
Customer loyalty is also showing signs of strain.
The percentage of customers switching their primary banking relationship rose to 7 percent—up from 6 percent over the previous three years.
The leading reasons for switching remain poor service experience, excessive or high fees, and attractive promotional offers from competitors.
In terms of rankings, RBC leads the Big 5 banks in customer satisfaction for a second consecutive year, scoring 611, followed by CIBC (607) and BMO (606).
Tangerine Bank continues its dominance among midsize banks, ranking highest for a 14th consecutive year with a score of 683.
Now in its 20th year, the Canada Retail Banking Satisfaction Study measures satisfaction across seven factors: trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.
The 2025 study is based on responses from 14,399 retail banking customers, fielded in January-February and July-August 2025.
