Younger Canadians are eyeing fintechs as fees and rates loosen their loyalty to traditional banks
Canadians are slightly happier with their banks this year, but the gain hides a loyalty problem that could reshape where younger borrowers take their business.
Overall customer satisfaction rose 3 points on a 1,000-point scale, lifted mainly by the Big 5 banks, according to the JD Power 2026 Canada Retail Banking Satisfaction Study.
However, fintechs – newer online banks – outscored both the Big 5 and midsize banks on many factors that drive satisfaction, and they are drawing a disproportionate share of younger Canadians planning to move their primary banking relationship.
Among Gen Z and Gen Y customers of traditional retail banks, 17% said they probably or definitely will switch primary banks within 12 months, a five-year high.
Four of the five leading reasons involve product offerings such as fees, interest rates and promotions.
“Younger customers can be satisfied with their bank and still leave if they see a better opportunity to save money elsewhere,” said Paul McAdam, senior director of banking and payments intelligence at JD Power.
“When household budgets are tight, a monthly banking fee becomes an expense worth reconsidering.”
RBC ranked highest among the Big 5 for a third straight year at 619. BMO and CIBC tied for second at 611, with TD close behind in fourth at 610.
Among midsize banks, Tangerine Bank took the top spot for a 15th consecutive year at 676, followed by ATB Financial at 650.
Why are younger bank customers ready to leave?
The findings echo an Equifax Canada survey showing most mortgage holders would consider switching lenders at renewal. Tracy Valko, founder of AIMI Mortgage Collective, described the financial strain behind that restlessness at MortgageFest Canada in Toronto in September.
“One out of two Canadians are $200 away from not meeting their financial obligations every month. And that’s profound. We never had this before. And they need that empathy – to see as a mortgage broker that you care about that,” she said.
The Office of the Superintendent of Financial Institutions (OSFI) says frontier AI is among the fastest-growing threats facing lenders, warning that advanced models can help adversaries identify and exploit vulnerabilities at greater speed and scale. https://t.co/B9plArK6ju
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 12, 2026
What the bank switching trend means for mortgage brokers
A client willing to leave a bank over a monthly fee is a client willing to shop at renewal. Valko, who joined MortgageFest Canada’s Day 1 panel on the path forward for brokers, said winning that client takes more than price.
“As an industry, we got away from where it was about transactions and how many deals you did. Now it’s about focusing on that financial plan and strategy for that client, building that long-term financial relationship. So you look like a true expert and not just a rate agent.”
Prakash Bector, vice-president of national sales and distribution at EQ Bank, sees the opening.
"It's just staying focused on what we have in our control. So from a broker standpoint, it's those consistent outreaches to clients, leveraging your database, building new referral sources," she said during the mortgage event.
“As challenging as the market is, there’s immense opportunity for brokers. I think brokers’ share will continue to grow. A lot of clients need sound advice right now – they’re struggling, they don’t know what’s going to happen next. And this is where brokers play a critical role.”
Technology is part of that pitch, though not as advice. Fraud prevention and data security topped customers’ preferred uses of bank AI at 31%, against 12% for personal financial advice, a useful signal for brokers weighing how mortgage professionals can keep up with AI.
JD Power surveyed 14,038 retail banking customers in two waves during 2026.
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