Financial Insecurity Begins to Affect Credit Card Customers in Canada, J.D. Power Finds
With Canada credit cardholders' average balance now totaling $2,1211 and a majority (52%) of them classified as financially unhealthy,2 financial stress has become a critical component of the credit card customer experience. According to the J.D. Power 2023 Canada Credit Card Satisfaction Study,SM released today, slightly more than one-third (34%) of credit cardholders currently carry revolving debt and, as the overall financial health of cardholders deteriorates, customer satisfaction with rewards programs and other perks designed to build loyalty are suffering.
"While cardholders in Canada are not carrying as much revolving debt as their counterparts in the United States, they are in a similarly difficult situation when it comes to financial health, and that presents some big challenges and opportunities for card issuers," said John Cabell, managing director of payments intelligence at J.D. Power. "With the majority of cardholders in Canada struggling financially, it's become more important than ever for issuers to promote tools and resources to help customers manage their finances and get the most from their cards when it comes to rewards and benefits."
Following are some key findings of the 2023 study:
American Express ranks highest in customer satisfaction among credit card issuers, with a score of 620. Tangerine Bank (610) ranks second and PC Financial (606) ranks third.
Desjardins Bonus Visa ranks highest in customer satisfaction among credit cards with no annual fee, with a score of 641. Tangerine Money-Back Credit Card (617) ranks second and PC World Elite Mastercard (612) ranks third.
Desjardins Cash Back World Elite Mastercard ranks highest in customer satisfaction among credit cards with an annual fee, with a score of 655. Scotia Momentum Visa Infinite Card (591) ranks second and TD Cash Back Visa Infinite Card (580) ranks third.
See the rank chart for each segment at http://www.jdpower.com/pr-id/20230114.
The Canada Credit Card Satisfaction Study was redesigned for 2023. It measures cardholder satisfaction with their primary credit card issuer and performance in seven factors critical to the customer experience (in alphabetical order): account management; benefits; customer service; new account; rewards earning; rewards redeeming; and terms. The study was fielded in June-July 2023 and includes responses from 10,466 cardholders who used a major credit card in the past three months.
For more information about the Canada Credit Card Satisfaction Study, visit https://canada.jdpower.com/financial-services/canada-credit-card-satisfaction-study.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business.
About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info
1 Equifax, "Increased Cost of Living and Mounting Debt Cause Major Concerns for Canadians," November 1, 2022 https://www.consumer.equifax.ca/about-equifax/press-releases/-/blogs/increased-cost-of-living-and-mounting-debt-cause-major-concerns-for-canadians/
GenAI is Real: Now What?
MSP Expo #TECHSUPERSHOW Networking LIVE Party
Finding the Balance with AI for Better Employee Engagement