TORONTO — A recent report by J.D. Power reveals that the gap in customer satisfaction between Canada's Big Five banks and midsized lenders is increasing. The survey highlights a decline in satisfaction levels among the larger banks, while smaller banks have seen an improvement in customer experiences.

The report indicates that satisfaction with Canada's Big Five banks has dropped by seven points compared to the previous year, resulting in an average score of 604 on a 1,000-point scale. In contrast, midsized banks have shown a positive trend, with their satisfaction ratings increasing by five points to reach an average of 649. This indicates a growing preference and trust towards the services provided by smaller financial institutions.

Royal Bank continues to hold the top position in customer satisfaction among the Big Five for the second consecutive year, demonstrating its ability to maintain a loyal client base despite the overall decline in satisfaction metrics. On the other hand, Tangerine Bank stands out as the leader among midsized lenders, having achieved the highest satisfaction score for the 14th year in a row. This consistent performance suggests that Tangerine Bank has successfully catered to the needs and expectations of its customer base.

According to Paul McAdam, who serves as the senior director of banking and payments intelligence at J.D. Power, the findings of this report underscore a notable trend: while the largest banks in Canada still dominate the consumer market, their customer satisfaction levels are declining. This decline could be attributed to various factors, including customer perceptions of service quality and responsiveness. In contrast, midsized banks have excelled in key areas such as ease of use and personalization of services, which are increasingly important for consumers today.

The report serves as a critical reminder of the shifting dynamics in the Canadian banking sector, where customer expectations are constantly evolving. As consumers seek more personalized experiences and efficient services, midsized banks appear to be capitalizing on these demands, thereby gaining a competitive edge over their larger counterparts. The findings in this report highlight a potential challenge for the Big Five banks, which may need to reassess their strategies in order to enhance customer satisfaction and loyalty in a rapidly changing market.

This analysis reflects a snapshot of the banking landscape in Canada as of October 16, 2025, emphasizing the growing influence of customer satisfaction on the competitive positioning of banks. Companies involved in this sector, including Royal Bank and Tangerine Bank, must remain vigilant in understanding their customers' evolving needs to maintain and improve their standing in the market.