Which Canadian banks are best for customer satisfaction?

A new study by J.D. Power has revealed which Canadian banks offer the greatest levels of customer satisfaction – and highlighted the country’s ongoing financial literacy issues.

Royal Bank of Canada was the clear winner in terms of customer satisfaction with retail banking advice, garnering a score of 603. Bank of Montreal came in at a close second with a score of 583, versus the industry average of 572.

The report, which polled more than 2,000 retail bank customers nationwide in March, also found that only 42% of Canadians pass a basic financial literacy test, while only 39% are at least financially healthy.

This has pushed expert resources such as industry professionals and financial institutions to the forefront of customer education. Fully 74% of retail bank clients who have received advice from their respective banks act on the information.

And Canadians certainly appreciate such assistance: The study found that overall customer satisfaction surges by 235 points out of 1,000 when they are offered advice that best fits their needs at the moment.

Read more: Ipsos reveals significant source of anxiety among Canadian households

Clients also said that their needs are best met when advice is provided through a face-to-face transaction with a licensed representative (69%), a branch representative (63%) or a loan/mortgage specialist (59%).

This is despite only 19% of retail bank customers saying that they are “very interested” in receiving such guidance. Another 26% admitted that they are “not at all interested” in receiving advice from their bank.

“Delivering targeted, personalized financial advice is a win-win for retail banks and their customers because it increases utilization of services and improves customer satisfaction along the way,” said Paul McAdam, senior director of banking intelligence at J.D. Power.