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Webinar: The Battle for Deposits, Digital and Relevancy: What Midsize Banks need to know.

The Battle for Deposits, Digital and Relevancy: What Midsize Banks need to know.

Data-Driven Strategies for Content Delivery & Development from 4U & JD Power

 

JD Power is hosting a webinar dedicated to addressing specific areas that midsize banks must quickly address. Jennifer White, Senior Director of Banking Intelligence, will share exclusive insights from the recently released 2023 U.S. Retail Banking Satisfaction Study.

Missed the 2023 U.S. Retail Banking Satisfaction Study Press Release? You can read it here: https://www.jdpower.com/business/press-releases/2023-us-retail-banking-satisfaction-study

Here’s what you’ll learn:

• Demonstrating your value proposition as customers’ financial health becomes fragile.
• Prioritizing digital delivery channels that most impact satisfaction and new product openings.
• “Top Five” ways to personalize your customers’ experiences.
• Strengthen online and in-branch communication to cement long-term relevancy.

 

Click to watch the webinar now.

https://hub.jdpower.com/us-fs-msrb-rbs-recap-webinar-april-202

Americans Want Inflation Assistance, Social Responsibility from their Banks

Banking and Payments Intelligence Report
September 2022

Americans Want Inflation Assistance, Social Responsibility from their Banks

Americans have hit a brick wall in the form of inflation, according to the latest JD Power data. Nearly three-fourths (72%) of Americans now say that the cost of goods is increasing faster than their income. That’s up 2% since June, which was also an all-time high.

In addition, the share of retail bank customers currently classified as financially healthy[1] has dropped to an all-time low of just 30%, while the proportion of those falling into the financially vulnerable category has risen 6 percentage points to 45%.

While this economic shift has forced Americans to become more discerning about how and where they spend their money, it also has caused them to focus more closely on who is managing their money. Americans want assistance climbing out of the hole that inflation helped to dig, but they also want that help to come from socially responsible financial institutions.

Inflation Ratchets Up the Pressure

Inflation is still at the forefront of Americans’ minds, and it has caused overall consumer sentiment to plummet. Banking customers reported a dramatic increase in stress over their financial situation and decreasing levels of confidence that they would be able to manage it.

 

The share of financially unhealthy customers has reached a new high, with 45% of Americans considered to be vulnerable, 13 to be stressed and 11% to be overextended. That leaves just 30% of Americans classified as financially healthy.

 

Searching for Answers

As the country braces for what many economists call a recession, one-third of customers are waiting for a lifeline from their banks. In fact, 81% of customers said that bank support is important to help them manage living with high inflation. That includes 91% of overextended customers.

Asked whether banks have reached out with information on how to handle inflation, 31% said they received some form of communication. Another 31% said they had not received any information from their bank, but wish they had – seemingly a missed opportunity for banks to build a valuable relationship with their customers.

ESG Becomes a Priority

Retail banks’ track records on environmental, social and governance issues—by now, well-known by its shorthand (ESG)—have also come under greater scrutiny as bank customers navigate this turbulent economic cycle.

One in five Americans (20%) said they have left their bank because of their corporate social governance policies, and 16% have said the same about their credit card issuer.

 

While ESG initiatives may not be the determining factor for most, there has clearly been a shift in how banking customers view their financial institutions. Americans no longer want their banks to have a passive role in their finances, nor do they want to be tied to corporations that are disengaged from their communities. And that creates a huge opportunity.

Rising to the Occasion

If banks are going to play a role in helping their customers confront the growing challenges Americans face in this economy, they’ll need to understand what their customers value. Reaching out with pertinent debt-management information—even if it’s not acted on by the customer—or making sure they communicate a strong social agenda, can be just as important as a new product offering or fintech innovation. As Americans find their footing, they’ll remember the institutions that made the right impression in a trying time. It’s up to banks to put their best foot forward right now.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in July 2022. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

Are Americans Adjusting to Inflation?

Banking and Payments Intelligence Report
October 2022

Are Americans Adjusting to Inflation?

Inflation isn’t going away anytime soon. But according to the latest JD Power data, some signals suggest that Americans are getting a better handle on how to manage their finances in the face of challenging economic conditions.

According to the data, the share of American banking customers now classified as financially healthy[1] increased four percentage points, this month, the largest increase in nearly a year. What’s more, number of customers that said the cost of goods increased faster than their income fell for the first time since we began tracking the metric in March 2022.

While the improvement is modest—and a significant majority of American consumers are still experiencing financial difficulties—supporting data suggest that many Americans are starting to change their spending habits to adapt to rising prices.

Financial Health Improves Slightly

Although it is still too early to call it a rebound, some key indicators of financial health are starting to show month-to-month improvement. Notably, 34% of U.S. bank customers are now classified as financially healthy, up four percentage points from July.

 

Meanwhile, the percentage of banking customers who said the price of goods is increasing faster than their income, decreased one percentage point to 71% in August.  

 

Spending, Budgeting, and Saving Strategies Evolve

Americans also seem to be adjusting their spending to mitigate the stress caused by inflation. Currently, 86% of consumers say they are taking action to manage inflation in their lives today with steps such as increased budgeting, buying fewer items to stay on budget and increasing savings to safe for future services. For example, in October 2021, 12% of bank customers told JD Power that they do not have a budget. In August, that number fell to just 8%.

The biggest changes in consumer spending behaviors are focused on dining options and discretionary spending on items such as clothing.

 

While Americans are reining in spending, it seems that they are backing off some of the emergency measures they took over the summer.  The number of Americans that reduced their savings to pay for immediate expenses decreased month over month, as did the percentage of those that experienced increased need for credit to pay for immediate needs.

 

Banks to the Rescue?

While banking customers try to navigate this financial landscape, banks are still slow to offer solutions that are making a meaningful difference. One-fourth (25%) of customers wish they received information from their bank about strategies and tool to manage inflation, save in a recession or pay down debt in a recession.

When asked what banks could do to make products compelling enough to use, Americans were quick to mention rewards, such as cash back, higher-yield rates and discounted fees (34%). Also, 13% said they would like to be emailed a link explaining benefits of such a tool, and 8% want to be walked through their options at a local branch.

 

Guiding to the Light

While the overall outlook on American financial health is still far from optimistic, the behavioral changes we are seeing in the data suggest many Americans are starting to adapt to the current inflationary environment.

For as long as that challenging economic environment persists, banks have an opportunity to make meaningful inroads in their relationships with their customers. Now more than ever, customers are looking to their financial institutions for guidance, and are receptive to programs banks have long been after customers to adopt. Handled properly, the current economic downturn could present an opportunity for banks to earn goodwill and advocacy by helping customers address their pain points.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in August 2022. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

[1]  JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

Investor Confidence Plunges, but Majority Plans to Stay the Course

Wealth Intelligence Report
October 2022

 

Investor Confidence Plunges, but Majority Plans to Stay the Course

With the S&P 500 down more than 23% through the end of September 2022, inflation up 8.2% during the same period and a looming recession, investors are starting to lose confidence in their ability to manage their overall financial lives.

According to the JD Power U.S. Investor Confidence Index, which tracks quarterly investor sentiment among U.S. consumers aged 18 and older with at least $100,000 in investable assets, investor confidence has fallen 37 points to 596 (on a 1,000-point scale) in Q3 2022. Despite the decline, 89% of investors say they plan to maintain or increase investment accounts over the next three months.

 

Inflation Rears its Head

The biggest single factor contributing to the quarterly decline in investor confidence is growing concern with the ability to keep up with inflation. Overall, just 27% of investors say they are highly confident in their ability to keep up with inflation. That’s down from 35% in the Q22022 Investor Confidence Index.

Across all affluence segments, ranging from investors with $100,000 in investable assets to those with $1 million or more, keeping up with inflation scored significantly lower than factors such as capital preservation, planning for major purchases or preparing for retirement.

 

Digging deeper into investor demographics, female investors have significantly lower Investor Confidence Index scores than men (553 vs. 628, respectively) and younger investors in the Generation Z[1] and Millennial segments show notably higher levels of confidence than members of Generation X and Baby Boomers.

 

 

Staying the Course on Future Investment Plans

While the percentage of investors who say they will increase their investments during the next three months has dropped to 28% today from 34% in the Q2Investor Confidence Index, the majority of investors are staying resilient. Across all demographic groups, 89% of investors say they plan to maintain or increase their short-term investment. Similarly, 71% say they feel better or the same about where they are financially versus a year ago.

 

 

Weighing the Role of the Advisor

While investor confidence has declined sharply this quarter, that decline is less pronounced among full-service investors (i.e. those who work with a dedicated financial advisor in their primary relationship). The average overall investor confidence score for investors with full-service advisors is 622. That number falls to 589 among those working with robo-advised accounts and 572 among self-service investors.

 

Find out More

This Wealth Intelligence Report is based on responses from 1,929 U.S. consumers aged 18 and older with at least $100,000 in investable assets. It was fielded from September 12-September 26, 2022. It was authored by Michael Foy, senior director and head of wealth intelligence at JD Power. Please contact us at the numbers below to connect with Mr. Foy or to learn more about the underlying research.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

[1] JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

As U.S. Households Now Subscribe to More Streaming Services than Ever, Customer Satisfaction Starts to Decline

TMT Intelligence Report
October 2022

As U.S. Households Now Subscribe to More Streaming Services than Ever, Customer Satisfaction Starts to Decline

• Viewers increased their number of subscriptions, with 60% having at least four services. However, the average monthly household spend stays consistent at $54 in July 2022 vs. $55 in June 2021.
• Overall satisfaction with streaming services is declining, particularly across content quality and subscription cost, which declined the most in July 2022 from June 2021 (-0.41 and -0.38, respectively).
• Netflix remains the largest and most popular brand among survey respondents. More than twice as many customers (39%) chose Netflix than the next most popular services, Amazon Prime Video (14%) and Hulu (14%).
• Streaming problems decreased, with 80% of viewers reporting no issues.

Streaming services may be heading into tougher times. Not only is the competition fierce and cost of acquiring and producing content high; subscribers may be nearing their limit with how many subscriptions they carry and what they spend. To gain more insight into the state of the market, JD Power conducted a fourth installment of its streaming pulse survey in July 2022. It consists of responses from 1,287 U.S. adults who shared their viewing preferences, usability challenges and plans for using these subscription-based services. Following are the key findings.

Streaming Subscriptions May Have Peaked

As the world gradually returns to normal, loosened public health restrictions have allowed many of the hardest-hit sectors – such as live sports and entertainment, dining, and travel – to meet or exceed pre-pandemic levels of activity.

However, quarantine viewing habits persist, with customers in the United States subscribing to more streaming services than ever before.

In fact, 60% of streaming households now subscribe to four or more streaming services, up from 57% in June 2021.

Despite this growth, subscription fatigue is gaining ground. More than three-fourths (82%) of streamers expect to maintain their current lineup and make no changes to their services during the next 30 days. Only 9% plan to add a new service.

Interestingly, an increase in the number of streaming subscriptions did not lead to higher overall reported costs.

In fact, the average reported monthly household spend on all streaming services has remained relatively consistent at $54 in July 2022 vs. $55 in June 2021.

This consistency is likely due to the bundles and affordable add-ons offered by streaming services¹. For example, consumers can purchase the Disney bundle, which includes Hulu, Disney+ and ESPN+, for $13.99 a month. The package saves $11 a month compared with buying each service individually.

Customers can also save on subscription costs by taking advantage of numerous discounts and free trials. In addition to the deals offered by streaming providers themselves, wireless carriers, internet providers, big box retailers, and device manufacturers have all promoted lengthy free streaming trials to entice consumers. Verizon, T-Mobile, Cricket Wireless, Xfinity, Roku, Google Chromecast, and Walmart are just a few of the brands incorporating streaming into other products and services.

The cost plateau will be short-lived, however, as price hikes have recently been announced by multiple providers. Last month, the Walt Disney Company announced rate increases² for each of its streaming services:

• ESPN+ jumped almost 43% in late August, going from $6.99 a month to $9.99 a month.
• Hulu’s new (and significantly higher) rate goes into effect in October. The ad-free premium plan will increase to $14.99 a month from $2 a month, while the ad-supported option will rise to $7.99 a month from $6.99 a month.
• The Disney+ ad-free plan will increase 38% in December, rising to $10.99 a month from $7.99 a month. The new ad-supported tier will also launch in December at $7.99 a month.

Additionally, next summer’s merger of HBO Max and Discovery+ will likely result in a new—and more expensive—pricing structure. During the recent Goldman Sachs Communacopia Tech Conference³, Warner Bros. Discovery CFO Gunnar Wiedenfels claimed that the company’s two most popular streaming services are “fundamentally underpriced.” Currently, the ad-free version of HBO Max is $14.99 a month and $9.99 a month with ads, while Discovery+ is $6.99 a month without ads and $4.99 a month with ads.

Groceries vs. Game of Thrones

Even as inflation problems persist and consumers spend less on non-essentials, media executives are confident that subscribers will see the value in their premium, original content.

Disney CEO Bob Chapek recently stated⁴ that increasing prices “even in big chunks” will not diminish its value to the consumer and that “churn implications” will be “negligible.”

Across the board, streaming providers are investing heavily in epic prequels, award-winning series returns, blockbuster movies and live sports to keep subscribers engaged and minimize churn rates.
For example, the first season of Amazon’s highly anticipated series, “The Lord of the Rings: The Rings of Power,” is estimated to have cost $715 million, making it the most expensive TV show of all time.

This costly, content-driven customer acquisition and retention strategy may create lifts in net subscriber counts, but satisfaction with streaming services declined in July 2022 from June 2021, most notably across content quality (-0.41) and subscription cost (-0.38).

Despite only declining slightly to 4.86 in July 2022 from 5.03 in June 2021, Overall Satisfaction is the lowest since this survey’s inception. Additionally, fewer respondents considered their streaming service to be “perfect” (10% in July 2022 vs. 15% in June 2021.)

To stand out from the competition, brands might prioritize further developing an intuitive, dependable user experience that marries premium content with ease of navigation, personalized recommendations, and cross-platform reliability. It’s been said that “people make promoters, but defects make detractors;” obsessively lowering the number of streaming problems experienced reduces a common impetus for shopping other streaming services.

With subscription rates rising—and streaming satisfaction declining across the board—focusing on delivering a delightful user experience is the best way for providers to retain loyalty and drive growth. 

This is especially true in the churn zone – the initial stages of a subscription when customers have exhausted the content library and are most likely to drop a provider. Customers who have been with their streaming provider for less than one month are most likely to indicate they are planning to drop a streaming provider within the next 30 days (19% vs. 10% for the total industry).

Netflix Is Synonymous with Streaming

Netflix is the streaming provider respondents don’t want to live without.

Despite suffering at the hands of Wall Street and subscriber counts in the first half of 2022, Netflix is still a favorite among the public. When asked to choose only one streaming service, more than twice as many customers surveyed would choose Netflix (39%) than the next most popular selections, Amazon Prime Video (14%) and Hulu (14%).

Simply put, the streaming giant has become a staple in most households. Over 90% of customers that have at least four streaming services will have Netflix.

Competition Advances on Netflix

Chrissy (Netflix), wake up! The record-breaking success of Stranger Things 4, which debuted May 27, helped Netflix maintain its market share, but competition is advancing.

Despite a slight dip from June 2021 (and a loss of nearly 1 million subscribers in Q2 2022⁵), Netflix remains the largest brand with 82% of respondents saying they subscribe, followed by Amazon Prime (67%), Hulu (60%) and Disney+ (55%).

The top three streaming providers all saw market share decrease from June 2021. Disney+ was the only streaming service among the top four to show gains and is quickly closing the gap.

Heavy Streaming Subsides

Unsurprisingly, a return to normalcy during the past year has led to a decrease in heavy streaming.

The heaviest time streaming is spent among the Live TV Streaming providers, with YouTube TV and DirecTV Stream capturing the most extensive streaming durations (12.4 weekly hours and 9.8 weekly hours, respectively).

Heavier streaming time has its disadvantages, however, as YouTube TV viewers struggle the most with problems while streaming. Amazon, Disney+ and Hulu provide the most trouble-free viewership experience.

Overall, streaming problems are substantially decreasing. 80% of streamers indicate having no issues while streaming in July 2022. This is the lowest incidence of problems since fielding began.

 

Source 1: https://www.cnbc.com/2022/10/04/dont-expect-cable-tv-like-package-for-streaming-bundles.html 

Source 2: https://www.cnbc.com/2022/08/10/disney-raises-price-on-ad-free-disney-38percent-as-part-of-new-pricing-structure.html  

Source 3: https://seekingalpha.com/article/4540787-warner-bros-discovery-inc-wbd-goldman-sachs-communacopia-technology-conference-2022

Source 4: https://seekingalpha.com/article/4541086-walt-disney-company-dis-goldman-sachs-communacopia-technology-conference-2022-transcript

Source 5: https://ir.netflix.net/investor-news-and-events/investor-events/event-details/2022/Netflix-Second-Quarter-2022-Earnings-Interview/default.aspx

 

Find out More

This TMT Intelligence Report is based on responses from 1,287 U.S. adults who shared their viewing preferences, usability challenges and plans for using these subscription-based services. It was authored by Ian Greenblatt, managing director of TMT intelligence, and Carl Lepper, senior director of TMT intelligence. Please contact us at the numbers below to connect with Mr. Greenblatt and Mr. Lepper or to learn more about the underlying research.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

Problems with Electric Utility Customer Satisfaction Put Strain on Rate Case Approvals

Utilities Intelligence Report
October 2022

 

Problems with Electric Utility Customer Satisfaction Put Strain on Rate Case Approvals

It’s not a great time to be running a regulated utility. A perfect storm of inflation, high interest rates, cuts in energy production and constantly growing compliance requirements have conspired to crimp profitability nationwide.

That leaves the C-suite and boards of directors of utilities companies in the unenviable position of having to navigate the next several years of strategic capital expenditures and expansion plans against the headwind’s uncertain forecasts and an economy on the brink.

Fortunately, there is a way to mitigate this volatility: customer satisfaction. For decades, JD Power and S&P Global Ratings have examined the relationship between customer satisfaction and financial metrics, such as profitability and credit ratings, and found that higher levels of customer satisfaction continue to be associated with higher return on equity (ROE), which is the amount of profit, or financial return, utilities return to shareholders after paying off debt and expenses.

Connecting the Dots Between Customer Satisfaction and Return on Equity

Our data has consistently shown that an investment in customer satisfaction will yield dividends in the form of higher rates and increased profitability. By grouping regulated electric utilities into quartiles based on customer satisfaction, that has continued to be the case. Higher levels of customer satisfaction one year prior to a rate case are associated with higher ROE.

In terms of concrete dollars and cents, it’s a significant difference. A 10-point improvement (on a 1,000-point scale) in the overall satisfaction index score increases ROE between .02% and .04%. That means that if a utility were requesting a rate change on an equity base of $1 billion, it would translate into an increase of $200,000 to $400,000 for every 10-point increase in the overall satisfaction index score.

Macro Market Creates Headwinds

It is important to note, however, that despite the positive correlation between higher levels of customer satisfaction and improved ROE, average overall ROE has been trending down for the past seven years. In fact, for the period between 2001 and 2014, the average ROE for all electric utilities was 10.4%. Today, that number is down to just 9.4%.

All told, there were a total of 55 rate case decisions in 2021, which is consistent with historical average amount of activity.

 

Gap Between Requested and Approved Rate Increases

Also consistent with historical findings, all regulated electric utilities receive a lower approved rate increase than requested. However, utilities in the upper quartiles of customer satisfaction performance continue to receive rate increases that are closer to their actual request compared with lower quartile utilities.

Utilities in the bottom quartile receive an approval rate that is on average $2 million to $8 million lower than utilities in the upper quartiles, which is consistent with historical findings.  On average, utilities in the upper quartiles of customer satisfaction ratings received an approved rate increase that represented roughly 63% of what they initially requested  while those in the lower quartiles received an approved rate increase that was just 42% of their original request.

Satisfaction Drives Profits

A primary driver and key performance indicator for all companies is profit. JD Power research continues to show a positive relationship between electric utilities’ customer satisfaction performance and reported profit margin.

Electric utilities in the top quartile of customer satisfaction tend to report profit margins that are on average 3%-4% higher than utilities in the three lower quartiles.

 

The Delicate Balance

There’s no escaping the inevitability of rate changes. Navigating that simple truth has become an art form for utilities, and in this type of evolving landscape, it’s something they’ll have to be vigilant about managing.

It’s not an easy task, and customer satisfaction is the lynchpin to the entire process. From service to communication, excelling at every facet of the customer experience will be necessary to prevent any potential blowback to rate changes. The stakes are high, but the rewards are worth the effort. The utilities that can navigate the delicate balance between improved customer satisfaction and a difficult market environment will see huge benefits in not only satisfaction scores, but profitability as well.

Methodology

This Utilities Intelligence Report is based on responses from customers of large and midsize utilities regarding their experiences with their utility in six key factors: power quality and reliability; price; billing and payment; communications; corporate citizenship; and customer care. The relative importance of each factor in relation to overall customer satisfaction with a utility’s performance is derived using JD Power proprietary index methodology.

These derived importance weights are then applied to customer ratings, and utility company customer satisfaction performance is then based on aggregating the weighted ratings into an overall satisfaction index score that ranges from 100 to 1,000 points.

National rate case information for 2015 to 2021 was gathered from Regulatory Research Associates’ database of regulator requests and outcomes, which is delivered through S&P Capital IQ Pro. This data included the outcomes of 310 rate cases from 2015-2021 in which the state commission established a new ROE.

 

Find out More

The report was authored by Mark Spalinger, director of utilities intelligence at JD Power. Please contact us at the numbers below to connect with Mr. Spalinger or to learn more about the underlying research.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

2022 Insurance E-Gift Card Offer

The 2022 Insurance E-Gift Card Offer (the “Offer”) commences at 12:00:01 Eastern Time (“ET”) on 11/28/2022 and ends at 11:59:59 PM ET on 1/8/2023, or whenever the 280th e-gift card is claimed, /whichever is sooner (the “Promotion Period”). Offer is open to individuals who are legal residents of the 50 United States (including the District of Columbia), who at time of entry: i) are age 18 or older; ii) provide a U.S.-based mobile phone number with a traditional phone carrier that will accept text messages; iii) qualify and complete the 2023 Automotive Claims Survey (collectively referred to herein as a “Participant”). Void where prohibited by law. Offer is subject to all federal, state and local laws and regulations.

Participants qualify to receive a digital $10 e-gift card (“Card”), while supplies last, when you: 1) access the survey by using the website link provided on the solicitation you received; 2) submit your validly completed survey during the Promotion Period; and 3) your responses are verified by JD Power (the “Sponsor”). Limit: one (1) Card per Participant. The Sponsor reserves the right not to award a Card if determines, in its sole discretion, that the Participant engaged in improper activity. No responsibility is assumed for lost, misdirected, incomplete, inaccurate or illegible email or inability to retain your coupon code for direct redemption. All correspondence received for and from this Offer becomes the property of the Sponsor.

Cards will be awarded on survey completion via text message.  Sponsor is not responsible for any Card that is misdirected or stolen or Claim Codes that are not retained or applied properly and will have no further obligations to the Participant. Any Card that is not properly applied to an account (e.g., Starbucks, Amazon, etc.) or a Claim Code that is not retained accurately by participant will not be awarded. No substitution permitted, however, the Sponsor reserves the right to substitute the Card with another prize of comparable value, at its sole discretion. Card may not be redeemed for cash and are subject to the terms and conditions associated with its redemption instructions as determined by vendor. Any sales taxes or expenses above the value of the Card will be the sole responsibility of each Participant. No cash refund for any unused portion of a Card will be given.

In the event the Sponsor is prevented from continuing with the Offer by any event beyond their control, including, but not limited to, fire, flood, epidemic, earthquake, explosion, labor dispute or strike, act of God or public enemy, communications or equipment failure, utility or service interruptions, riot or civil disturbance, terrorist threat or activity, war (declared or undeclared) or any federal state or local government law, order, or regulation, order of any court or jurisdiction, or other cause not reasonably within its control (each a “Force Majeure” event or occurrence), the Sponsor shall have the right to modify, suspend or terminate the Offer. Sponsor reserves the right to modify, suspend or terminate the Offer without notice or by posting a notice on its website, in its sole and absolute discretion, including, but not limited to, if in its sole and absolute discretion, it is determined that the Offer is technically impaired or corrupted or that fraud or technical problems, failures or malfunctions or any Force Majeure event(s) has destroyed or severely undermined or impaired the integrity and/or feasibility of Offer.

Officers, directors, employees, agents and representatives of the Sponsor and its parent company, subsidiaries, affiliates, advertising and promotion agencies, retailers, distributors (collectively, the “Released Parties”), and their immediate family members and/or those living in the same household of each are not eligible to participate. By participating in the Offer, each Participant agrees to release and hold harmless the Released Parties from all claims, liability or damage caused or claimed to be caused, in whole or in part, directly or indirectly, in connection with participation in the Offer, and/or acceptance and use of the Card, the substitution of any product in accordance with these Terms & Conditions or the administration of the Offer. Except where prohibited by law, as a condition of participating in the Offer, Participants agrees that (i) any and all disputes and causes of action arising out of or connected with this Offer shall be resolved individually, without resort to any form of class action, and exclusively by final and binding arbitration under the rules of the American Arbitration Association and held at the AAA regional office nearest the Participant; (ii) the Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings at such arbitration; and (iii) judgment upon such arbitration award may be entered in any court having jurisdiction. Under no circumstances will Participant be permitted to obtain awards for, and Participant hereby waives all rights to claim, punitive, incidental or consequential damages, or any other damages, including attorneys’ fees, other than Participant’s actual out-of-pocket expenses (if any), and Participant further waives all rights to have damages multiplied or increased.  All issues and questions concerning the construction, validity, interpretation and enforceability of these Terms & Conditions, or the rights and obligations of the Participant and/or Sponsor in connection with this Offer, shall be governed by, and construed in accordance with, the substantive laws of the State of New York, USA without regard to New York choice of law rules.

SPONSOR: JD Power, 30870 Russell Ranch Road, Suite 300, Westlake Village, CA 91362.

 

2023 Property Claims E-Gift Card Offer

The 2023 Property Claims E-Gift Card Offer (the “Offer”) commences at 12:00:01 Eastern Time (“ET”) on 11/28/2022 and ends at 11:59:59 PM ET on 1/8/2023, or whenever the 280th e-gift card is claimed, /whichever is sooner (the “Promotion Period”). Offer is open to individuals who are legal residents of the 50 United States (including the District of Columbia), who at time of entry: i) are age 18 or older; ii) provide a U.S.-based mobile phone number with a traditional phone carrier that will accept text messages; iii) qualify and complete the 2023 Automotive Claims Survey (collectively referred to herein as a “Participant”). Void where prohibited by law. Offer is subject to all federal, state and local laws and regulations.

Participants qualify to receive a digital $10 e-gift card (“Card”), while supplies last, when you: 1) access the survey by using the website link provided on the solicitation you received; 2) submit your validly completed survey during the Promotion Period; and 3) your responses are verified by JD Power (the “Sponsor”). Limit: one (1) Card per Participant. The Sponsor reserves the right not to award a Card if determines, in its sole discretion, that the Participant engaged in improper activity. No responsibility is assumed for lost, misdirected, incomplete, inaccurate or illegible email or inability to retain your coupon code for direct redemption. All correspondence received for and from this Offer becomes the property of the Sponsor.

Cards will be awarded on survey completion via text message.  Sponsor is not responsible for any Card that is misdirected or stolen or Claim Codes that are not retained or applied properly and will have no further obligations to the Participant. Any Card that is not properly applied to an account (e.g., Starbucks, Amazon, etc.) or a Claim Code that is not retained accurately by participant will not be awarded. No substitution permitted, however, the Sponsor reserves the right to substitute the Card with another prize of comparable value, at its sole discretion. Card may not be redeemed for cash and are subject to the terms and conditions associated with its redemption instructions as determined by vendor. Any sales taxes or expenses above the value of the Card will be the sole responsibility of each Participant. No cash refund for any unused portion of a Card will be given.

In the event the Sponsor is prevented from continuing with the Offer by any event beyond their control, including, but not limited to, fire, flood, epidemic, earthquake, explosion, labor dispute or strike, act of God or public enemy, communications or equipment failure, utility or service interruptions, riot or civil disturbance, terrorist threat or activity, war (declared or undeclared) or any federal state or local government law, order, or regulation, order of any court or jurisdiction, or other cause not reasonably within its control (each a “Force Majeure” event or occurrence), the Sponsor shall have the right to modify, suspend or terminate the Offer. Sponsor reserves the right to modify, suspend or terminate the Offer without notice or by posting a notice on its website, in its sole and absolute discretion, including, but not limited to, if in its sole and absolute discretion, it is determined that the Offer is technically impaired or corrupted or that fraud or technical problems, failures or malfunctions or any Force Majeure event(s) has destroyed or severely undermined or impaired the integrity and/or feasibility of Offer.

Officers, directors, employees, agents and representatives of the Sponsor and its parent company, subsidiaries, affiliates, advertising and promotion agencies, retailers, distributors (collectively, the “Released Parties”), and their immediate family members and/or those living in the same household of each are not eligible to participate. By participating in the Offer, each Participant agrees to release and hold harmless the Released Parties from all claims, liability or damage caused or claimed to be caused, in whole or in part, directly or indirectly, in connection with participation in the Offer, and/or acceptance and use of the Card, the substitution of any product in accordance with these Terms & Conditions or the administration of the Offer. Except where prohibited by law, as a condition of participating in the Offer, Participants agrees that (i) any and all disputes and causes of action arising out of or connected with this Offer shall be resolved individually, without resort to any form of class action, and exclusively by final and binding arbitration under the rules of the American Arbitration Association and held at the AAA regional office nearest the Participant; (ii) the Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings at such arbitration; and (iii) judgment upon such arbitration award may be entered in any court having jurisdiction. Under no circumstances will Participant be permitted to obtain awards for, and Participant hereby waives all rights to claim, punitive, incidental or consequential damages, or any other damages, including attorneys’ fees, other than Participant’s actual out-of-pocket expenses (if any), and Participant further waives all rights to have damages multiplied or increased.  All issues and questions concerning the construction, validity, interpretation and enforceability of these Terms & Conditions, or the rights and obligations of the Participant and/or Sponsor in connection with this Offer, shall be governed by, and construed in accordance with, the substantive laws of the State of New York, USA without regard to New York choice of law rules.

SPONSOR: JD Power, 30870 Russell Ranch Road, Suite 300, Westlake Village, CA 91362.

Whether We’re in a Recession or One is Looming, Americans Send Mixed Signals about their Financial Health

Banking and Payments Intelligence Report
December 2022

 

Whether We’re in a Recession or One is Looming, Americans Send Mixed Signals about their Financial Health

Is a recession coming or has it already begun? Regardless of the varying viewpoints of forecasters, every economic indicator seems to point toward one sobering reality: A recession is in store for 2023.

Against that gloomy backdrop, Americans are sending mixed signals about how they are preparing to weather the coming storm, according to the latest JD Power data.

While there has been modest improvement in the number of Americans that are financially healthy[1] since the middle of the summer, more than two-thirds (68%) of all banking customers indicate that the price of goods continues to exceed their income. And still, almost half (45%) of Americans age 40 and older say they have not taken steps to change their financial situation, a sign that many Americans might not be ready for what’s to come.

The Slow Road Back to Even

While there has been monthly variation throughout the year, the number of Americans that are financially healthy has stabilized. Overall, 38% of Americans are financially healthy compared with 39% in October 2021, and 39% are vulnerable which is unchanged since a year ago.

Those data points represent a significant climb back from July, when just 30% of Americans were healthy and 45% were vulnerable. And while the numbers are encouraging, banking customers may not be out of the woods quite yet. When asked about inflation, bank customers in America say it is causing roughly the same amount of stress and they feel only slightly more empowered in their ability to combat it since the summer months.

 

Under-40 Population Begins to Prepare

One segment of the U.S. banking customer population seems to be preparing for a recession: younger Americans under age 40. When customers were asking how they were dealing with inflation, 40% of all respondents said they had reviewed what they are spending their money on; 19% had revised their existing budget; and 18% had made a list of all their debts.  

Interestingly, 16% of customers under the age of 40 said they had set up a new budget, compared with 5% of those over 40, a possible indicator that younger Americans—who are more likely to be first-time homebuyers, carry credit card balances and have less job stability—are more concerned with a coming recession. What’s more, just 21% of Americans under 40 have not taken any steps to combat inflation in the past 30 days compared with 45% of Americans over 40.

The Fraud Fallout

Beyond general economic worries, one issue that most banking customers can commiserate about is fraudulent activity and the overall security of their accounts. More than half (58%) of all customers have either personally or had a close family member experience fraud. Roughly one-fourth (22%) have experienced some form of peer-to-peer (P2P) fraud.

Unfortunately, it’s the customers that can least afford the stress that comes fraud that are most likely to fall victim to such schemes. Unhealthy customers, particularly the vulnerable population, seems to fall victim to fraudulent activity more frequently than other financial health segment customer.

Navigating the Uncertain Future

Americans have tried to beat back inflation all year, with varying degrees of success. But with more economic uncertainty looming, some heavy lifting will likely be required in the very near future. Some banking customers are preparing to do just that, but with many economists predicting a slowdown that could last years, financial institutions will have to be proactive with their customer assistance programs.

Americans can ill-afford to be caught off guard right now, whether that’s in the form of layoffs at their jobs or fraudulent charges on their debit cards. Banks will have to clearly communicate both the pitfalls that customers may encounter in the coming months and the ways they can help customers navigate around them. Being that bridge to better times could result in coveted customer loyalty.

 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in September-October 2022. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

[1]  JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

Talent Management Trends and a Focus on the Future

Many financial advisory firms are rethinking their talent management strategies, with a focus on serving a more diverse and dynamic set of future clients.

 

By Bailey McCann

 

When it comes to talent management, financial advisory firms are facing a number of challenges.

To begin with, the advisory workforce skews older than many other professions, and many of the most successful professionals are nearing retirement age and considering an exit plan. Meanwhile, during the pandemic, those in the early or middle stages of their career got used to a new level of autonomy and flexibility that may not remain the norm.

Attracting new talent to the field is also difficult, and few collegiate programs are dedicated to financial planning and proactively bring new people into the field. Taken together, these factors are requiring financial advisory firms to rethink talent management in order to attract and retain talent—as is the pressing need to improve the diversity of the adviser industry workforce.

Future-Proofing
As PLANADVISER recently reported, JD Power’s “2022 U.S. Financial Advisor Satisfaction Study” shows that adviser attrition risk has increased this year across all categories, with 15% of advisers at wirehouse firms and 7% of independent advisers now categorized as “at risk” of leaving their firms in the next two years.

Read the full article on planadviser.com>>