Fintech threat grows as younger Canadians weigh leaving big banks
The study surveyed 14,038 retail banking customers across two waves, fielded in January–February 2026 and July–August 2026 and while the numbers look stable on the surface, the challenge lies in who is staying and who is reconsidering.
A generation shopping around
Among Gen Z and Gen Y customers of traditional retail banks – generations JD Power defines as those born between 1977 and 2008 – 17 per cent said they probably or definitely plan to switch their primary bank within the next 12 months.
That is the highest such figure recorded in five years. Four of the five leading reasons those younger customers cited for considering a switch relate directly to product economics: fees, interest rates, and promotional offers from competitors.
“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. Traditional banks cannot take the next generation’s loyalty for granted. They need to give younger Canadians a financial reason to choose them, through competitive rates, reasonable fees and clear evidence that their account delivers value.”
For financial advisors and wealth managers in Canada, this dynamic carries real implications. A client base increasingly split between traditional banks and digital-first alternatives creates a more fragmented financial picture that advisors may need to navigate more actively in terms of account consolidation, cash management, and referral relationships.
