New report finds convenience, innovation and trust behind 84 per cent approval rating of banks in Canada
July 5, 2016
The Canadian Bankers Association (CBA) today released a new report from Abacus Data which found that 84 per cent of Canadians have a positive view of the banking industry, and that number jumps to a 93 per cent approval rating when people are asked about their own bank.
The report, based on public opinion research conducted for the CBA by Abacus Data, shows that by wide margins, people give banks positive marks for being stable and secure, introducing convenient technologies, being accountable and trustworthy, helping people make wise money choices and making a useful contribution to the Canadian economy.
“Canadians have strong, positive feelings about their banks, driven by the belief that their banks are stable, secure and trustworthy,” said Terry Campbell, president of the CBA. “Banks work hard to provide good value, and new and innovative banking and payment options, while at the same time ensuring that their systems are secure and that customers are protected. In the highly-competitive business of financial services, meeting customers’ needs is crucial to success.”
Canadians appreciate the value, security and convenience of banking
The report looks at a number of measures, including the value for money that Canadians say they get from the service providers that they deal with on a regular basis.
– 79 per cent of Canadians believe they get good value for the bank service fees that they pay, which exceeds other household service industries (including Internet, cell phone, cable and electricity providers) by more than 10 percentage points.
– 30 per cent of Canadians pay no banking service fees at all because they have a no-fee account for seniors, students, youth or new Canadians; they maintain a minimum monthly account balance; or they choose a no-fee electronic banking package. Another 45 per cent of Canadians pay $15 or less per month to do their banking.
– 65 per cent of Canadians do almost all of their banking using non-branch options, including online and mobile banking. Ninety-three per cent of Canadians feel good about their relationship with their bank, which speaks to the sense of appreciation Canadians have for convenience as well as confidence in the security of banks’ online and mobile banking services.
Trust and reliability
The value Canadians are getting is much more than just the services they receive but also comes from the strength of the industry. Canadians give their banks good marks for trust and reliability:
– 87 per cent of Canadians believe our banks are stable and secure
– 80 per cent believe that banks do a good job of protecting their privacy
– 75 per cent say that banking technologies improve the convenience of banking
– 70 per cent believe that banks are honest and trustworthy in their dealings with customers
– Nearly two-thirds (59 per cent) say that profitable banks mean more jobs, better pension plan returns and a healthier economy
Canadians believe there is good choice and competition
Canadians feel they enjoy ample choice in banking services and see healthy competition among banks and other financial service providers for their business:
– With more than 40 banks in Canada offering products and services to retail customers, 89 per cent think there is enough choice in banking
– 17 per cent of Canadians have switched financial institutions in the past three years, and 79 per cent said it was easy to do
– Consumers know that they can shop around to find the bank and the banking package at a price that meets their needs. Fifty-seven per cent report having switched the kind of account they have with their bank to reduce their service fees, and 32 per cent have switched banks to save money.
The survey was conducted by Abacus Data for the CBA. The findings are based on telephone interviews with a randomly selected, nationally representative sample of 1000 adult Canadians, 18 years of age or older, and are accurate within +/- 3.1 percentage points, 19 times out of 20. Respondents were interviewed between December 16 and December 29, 2015.
About the Canadian Bankers Association
The Canadian Bankers Association works on behalf of 59 domestic banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 280,000 employees. The CBA advocates for effective public policies that contribute to a sound, successful banking system that benefits Canadians and Canada’s economy. The Association also promotes financial literacy to help Canadians make informed financial decisions and works with banks and law enforcement to help protect customers against financial crime and promote fraud awareness. www.cba.ca.
For more information:
Canadian Bankers Association
Tel: (416) 362-6093, ext. 338
Cell: (416) 918-2777