Canadians are happier at mid-size banks, like Tangerine and Simplii Financial, than they are at the Big Five banks, according to a new J.D. Power survey. There are some key reasons why Canadians are frustrated with the big banks: negative media coverage, how banks often shift blame to customers for mistakes, unexpected fees, and — crucially — how steep those fees can be. But even with all this frustration, big banks still have a chokehold on the Canadian banking landscape. Tangerine has around $40 billion in assets, but that’s just a tiny slice — about 4% — of CIBC’s size, the fourth-largest bank in Canada. Plus, the Big Six still hold about 63% of household financial wealth. But, the rise of alternative banks that have good customer satisfaction and go toe-to-toe with what the big banks offer could shake things up. As these smaller banks expand their services — like high-interest savings accounts, low fees, and mortgages — they're giving consumers more options and potentially changing the banking game.
