New findings from the JD Power 2025 U.S. Direct Banking Satisfaction Study reveal how direct banks are shaping the future of banking by delivering more than just competitive rates. Paul McAdam, Senior Director of Banking and Payments Intelligence at JD Power, breaks down what’s driving satisfaction—and where direct banks still have work to do.
Growth Beyond Rates: Checking Satisfaction Rises
While savings satisfaction has taken a hit due to falling interest rates, checking satisfaction among direct bank customers is on the rise. What’s behind the upward trend?
“Customers are feeling like their direct bank checking accounts are helping them grow their money,” McAdam explained. “Not through interest, but through credit access, budgeting tools, and insights into their creditworthiness.”
These features go beyond the basics, supporting customers in managing their financial lives more holistically. As a result, customers are engaging more and reporting higher satisfaction with their checking relationships.
Savings Satisfaction Slips Amid Lower Deposit Rates
In contrast, satisfaction with savings accounts is declining. Interest rates have dropped, and customers are noticing.
But declining rates aren’t the only issue.
“We’re also seeing more frustration with website usability,” McAdam noted. “Navigation, login ease, and general user experience are falling short for some brands.”
With many customers accessing their savings accounts through digital platforms, a smooth experience is critical. Poor digital performance is now a differentiator and not in a good way.
Younger Customers Are More Engaged—And More Satisfied
Direct banks are gaining traction with younger customers, especially in the checking space. While the overall profile of a direct bank customer looks similar to a traditional bank customer, subtle differences are emerging.
“Younger customers are gravitating toward checking products, while older customers are more likely to hold savings accounts with direct banks and larger balances,” said McAdam.
This year, satisfaction rose among younger generations, thanks largely to their use of tools that support credit management and financial education. In contrast, older customers, particularly Gen X and Boomers, saw their satisfaction decline, driven primarily by lower interest rates.
Big Brands, Big Competition
Direct banks are no longer niche players. Leading the way are powerhouse brands like Charles Schwab and American Express—both of which topped the checking satisfaction rankings this year.
“These customers are serious about their relationships,” McAdam said. “They typically hold three or more accounts with their direct bank provider.”
The implication for traditional banks is clear: competition is intensifying, and digital-first players are quickly earning customer loyalty.
When Products Are Equal, Service Matters Most
Despite similar product offerings across brands, customer service remains a key differentiator, especially when something goes wrong.
“Direct bank customers don’t experience a lot of issues,” McAdam noted. “But when they do, service quality really matters. The lower-ranked brands are falling short on resolving problems and delivering strong phone support.”
This is a red flag for providers: product parity means that customer service quality can make or break the overall experience.
What’s Next for Direct Banking?
The 2025 study makes it clear that continued success in the direct banking space hinges on a few critical areas:
- Double down on value-added tools like credit tracking, budgeting, and expense management to keep younger customers engaged.
- Improve digital usability, especially on the savings side, where outdated platforms are dragging down satisfaction.
- Don’t overlook service—strong customer support is still one of the most powerful drivers of satisfaction and loyalty.
As direct banks continue to expand their footprint, delivering seamless and supportive experiences across digital and service channels will be the key to staying ahead.
Read the full findings in the JD Power 2025 U.S. Direct Banking Satisfaction Study press release.