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One-Third of U.S. Consumers are Working a Second Job or Side Hustle in the Hopes of Stabilizing their Finances

Banking and Payments Intelligence Report
September 2025

 

More than Half are Working Longer Hours than Six Months Ago

As the number of consumers in the United States classified as financially unhealthy¹ has remained flat, as measured by JD Power, many Americans are working harder to stabilize their finances.

Overall, 33% of consumers say they work either a second job or a “side hustle.” With an uncertain economic forecast and over half (68%) of consumers saying the cost of goods is growing faster than their incomes, more work and longer hours may become a fact of life.

Financial Health Steadies 

Overall consumer financial health levels were stable in August. The share of consumers who are either vulnerable, overextended or stressed, remained steady at 64%, unchanged from July.

The percentage of consumers who say the price of goods is rising faster than their income declined in August to 68%, down from 71% in July. Vulnerable (79%), overextended (56%) and stressed (81%) consumers all saw at least a 3 percentage-point decrease. That’s noteworthy because consumer prices are still rising, but at least for this month, consumers aren’t feeling as sharp of a sting. 

 

Side Hustles are Here to Stay

One-third (33%) of consumers report working a second job or maintaining a side hustle. The rate is highest among consumers under age 40 (45%) and those who are financially overextended (43%).

Earning extra income is the most common reason given (78%) for working an extra job or a side hustle, followed by paying off debt (29%), and saving toward a goal (28%).

More than half of respondents (53%) are working longer hours today than they were six months ago, and 17% of those are required to work longer by their employers. Financially overextended customers are the most likely to be working longer because of work demands, while those classified as financially vulnerable are putting in the additional hours to make ends meet.

What Role Should Banks Play in this Evolution?

As economic headwinds continue to swirl, it stands to reason that side hustles will become even more prevalent. Interestingly, more than half (54%) of consumers have gone through some form of major life experience in the last 12 months. These events range from moving to medical issues to divorce. And with many consumers lacking emergency savings funds, a second job or side hustle could soon become a necessity.

This is where banks can step in and play an important role. With consumers looking to make extra money to pay down debt or achieve a financial goal, banks can be valuable partners in prioritizing these goals and coming up with a plan on how to achieve them. With so many Americans working longer hours, there is likely a tipping point toward burnout, and if banks can help their customers put their second job or side hustle money to good use, it could help customers make the most of the money they have coming in.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in August 2025. 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]
Joe LaMuraglia, JD Power; East 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.

Financial Services Churn Data and Analytics Report October 2025

The following is based on data gathered through the JD Power Churn Data and Analytics 2025 third-quarter report. Review insights on this quarter’s results in the latest industry briefing: Customers are Opening New Accounts and Quietly Making them their Primary Relationships

View churn by account type: 

Checking Accounts, Savings Accounts, Investment Accounts

 

Checking Accounts 

Results collected from 4,158 consumer surveys conducted between 8/19/2025 and 9/30/2025. Respondents must have opened a new checking account within the previous 90 days to participate. ​

• Share of Account Openings shows the share of total accounts opened by a bank in the United States. The 10 banks that captured the largest share of new account openings during the measurement period are shown. A higher Share of Account Openings means the bank is winning more new customers relative to the market.​

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•  Conversion Rate shows the percentage of times a bank was selected when consumers seriously considered the bank for a new checking account. A higher conversion rate suggests the bank is more effective at turning consideration into action.

 

• Win Rate shows the percentage of times a bank was the winner when consumers opened a new checking account, compared to all situations where that bank was in play – whether as the new bank, the previous bank being closed, or the bank that was left open when the customer opened elsewhere. A higher win rate suggests stronger acquisition appeal and retention performance.

​

• Switching Flow shows the movement of customers from one bank to another when they open a new checking account. It identifies which competitor a bank loses customers to most – either through full switching (closing the old account) or partial switching (keeping the old account but adding a new one elsewhere).​

 

Savings Account

Results collected from 2,789 consumer surveys conducted between 8/19/2025 and 9/30/2025. Respondents must have opened a new savings account within the previous 90 days to participate.

• Share of Account Openings shows the share of total accounts opened by a bank in the United States. The 10 banks that captured the largest share of new account openings during the measurement period are shown. A higher Share of Account Openings means the bank is winning more new customers relative to the market.

   

• Conversion Rate shows the percentage of times a bank was selected when consumers seriously considered the bank for a new savings account. A higher conversion rate suggests the bank is more effective at turning consideration into action.

 

• Win Rate shows the percentage of times a bank was the winner when consumers opened a new savings account, compared to all situations where that bank was in play – whether as the new bank, the previous bank being closed, or the bank that was left open when the customer opened elsewhere. A higher win rate suggests stronger acquisition appeal and retention performance.

 

• Switching Flow shows the movement of customers from one bank to another when they open a new savings account. It identifies which competitor a bank loses customers to most – either through full switching (closing the old account) or partial switching (keeping the old account but adding a new one elsewhere).

 

Investment Accounts

Results collected from 939 consumer surveys conducted between 8/19/2025 and 9/30/2025. Respondents must have opened a new investment account within the previous 90 days to participate.
 

• Share of Account Openings shows the share of total accounts opened by a firm in the United States. The 11 firms that captured the largest share of new account openings during the measurement period are shown. A higher Share of Account Openings means the firm is winning more new customers relative to the market.
   

• Conversion Rate shows the percentage of times a firm was selected when consumers seriously considered the firm for a new investment account. A higher conversion rate suggests the firm is more effective at turning consideration into action.
   

• Win Rate shows the percentage of times a firm was the winner when consumers opened a new investment account, compared to all situations where that firm was in play – whether as the new firm, the previous firm being closed, or the firm that was left open when the customer opened elsewhere. A higher win rate suggests stronger acquisition appeal and retention performance.

 

About JD Power Churn Data Analytics

JD Power U.S. Financial Services Churn Data & Analytics is a syndicated benchmarking study profiling the actions and experiences of customers opening new financial products/accounts in the U.S. The study includes the following consumer account types: checking, credit card, savings/money market, individual investment, HELOC/HELoan, personal loan, auto loan, and retirement. The key metrics in this study track the opening and closing (“churn”) of customer financial accounts among institutions. 

Contact our team to get the full results. 

Make sure you are on the list to get the latest report as soon as it is published. 

Customers are Opening New Accounts and Quietly Making them their Primary Relationships

Chime gains ground in checking and savings accounts

Employees are “quiet quitting.” Daters are “ghosting.” Now, a similar behavioral shift is emerging in financial services: “soft switching.” This phenomenon describes banking, credit card, and investment customers who quietly move their primary accounts to other institutions. They don’t close accounts or formally sever ties; they simply redirect their activity elsewhere. Soft switching reflects a broader trend of disengagement without drama. It’s subtle, but its impact is significant. 

According to the new quarterly JD Power Financial Services Churn Data and Analytics report, which tracks customer attrition among the nation’s leading financial services providers, many customers are expanding their relationships with additional banking, credit card and investment account providers, rather than switching providers. Roughly half of new checking (52%) and investment (48%) accounts opened were additional accounts, and 65% of new credit cards opened were additional cards. 

While this phenomenon may not present as outright customer attrition, it is a harbinger of changing patterns of customer behavior that could hurt incumbent providers. In fact, many customers who open additional accounts are eventually making those accounts their primary. What’s more, it’s a non-traditional financial servicer – Chime – that is reaping the greatest benefit of this “soft switching” trend among banking customers. 

 

The Soft Switch

More than half of new checking accounts opened over the course of Q3 2025 were additional accounts, while 25% were replacement accounts and 23% were accounts opened by consumers who didn’t have a like account at the time they opened. Of the additional and replacement accounts opened, 72% were opened with a different bank than their previous account.

 

That 72% is noteworthy because, while customers won’t necessarily close their old account, many are treating the newly opened account as their primary. Half (54%) of additional and replacement checking accounts opened with a different firm become the primary account. 

 

Chime’s Market Share Emerges

As customers consider new accounts, they are also considering a new type of financial partner. Of the new checking accounts that were opened in Q3 2025, 13% were with Chime. That rate outpaced all other banks, including national brands like Chase (9%), Wells Fargo (7%), and Bank of America (7%). Furthermore, Chime ranked fourth in attracting high-deposit customers with an estimated $1,000+ in deposits in the first year (8%). Chime also accounted for 7% of new savings accounts opened and 3% of credit cards opened.

 

Share of Account Openings shows the share of total accounts opened by a bank in the United States. The 10 banks that captured the largest share of new account openings during the measurement period are shown.

Consumers opening checking accounts with Chime say the top reason they decided to open a new account was due to a promotional offer (26%). They are also more likely than other banking customers to not have had an existing checking account at the time they opened the new account (20%). They are primarily choosing Chime due to convenience (41%), good reputation (35%), low/no fees (34%), and promotional offers (32%). Those switching to Chime are primarily driven by poor service experiences with their incumbent banks (37%). Chime customers are significantly more likely than others to say they value the ability to send/receive money (58%), online/mobile bill pay (50%), and a digital wallet (49%) when shopping for a new checking account, highlighting the importance of integrated banking and payments capabilities.

 

 

Part of Chime’s success is a dominant conversion rate — the percentage of time the checking account was opened with the bank after being seriously considered. Overall, Chime has the highest conversion rate for customers that both considered opening checking (77%) and savings accounts (86%). Chime is not only earning new customers from traditional banks, but it is also claiming market share from its fellow alternative brands. In fact, both SoFi and Cash App lose more checking account customers to Chime than any other bank through either silent attrition or switching, making it clear that Chime is differentiating itself among its fellow disruptors.

 

 

Credit Card Caveats

Nearly two thirds (65%) of new credit cards opened in Q3 2025 were additional cards for the customer and 10% were replacement cards. Of the additional and replacement accounts opened, 80% were opened with a different issuer than the existing or previous card. However, just 21% of these new cards become the customer’s primary card. Still, the high rate of opting for a new issuer does suggest customers are actively seeking better offers or additional credit and are less loyal to their current issuer.

 

 

Most customers did not seriously consider multiple providers when opening a new credit card (79%). This suggests that customers are not shopping but instead going directly to their new issuer because the rewards, fees/rates, and sign-up offers meet their needs.

 

Investment Accounts – Another Soft Switching Hot Spot

Investment accounts are not immune from the soft switching trend. Overall, 48% of new investment accounts were additional accounts and 15% were replacement accounts, with 56% of these accounts being opened with a different provider than their previous account. And just like banking accounts, eventual attrition becomes a factor. Half (51%) of new additional or replacement investment accounts opened with a different provider eventually became the customer’s primary account. This indicates that customers may be consolidating assets or making significant changes when opening new investment accounts.

 

Customers opening new investment accounts did seem to favor more established, well-known brands, with Fidelity leading the way by capturing 13% of new accounts opened, followed by Charles Schwab (9%) and J.P. Morgan Wealth Management (7%). However, SoFi’s performance is noteworthy. Not only did SoFi account for 6% of new accounts opened, but the company boasts an 80% conversion rate.  

 

Attracting the Motivated Customer

With market headwinds creating a tenuous time for many customers in the U.S., banks, credit card issuers, and investment firms need to be aware of the soft switching phenomenon. Unlike traditional churn, soft switching occurs when customers quietly shift their activities to a new provider—without formally closing accounts or cutting ties. They simply open a new account and work with multiple providers concurrently.

For banks and issuers that want to stay ahead of the curve, the way customers are choosing to shop should inform a strategy. Chime’s conversion rate is a good indication that customers are going into their search knowing exactly what they’re looking for. By gleaning insights into what causes financial services customers to start looking, and ultimately open an account with a new provider, banks, issuers, and investment firms can attract a new crop of motivated clientele. 

 

Find out More

This Financial Services Intelligence Report is based on 84,019 responses collected as part of the JD Power Financial Services Churn Data and Analytics report between August and September 2025. It was authored by Miles Tullo, managing director, financial services intelligence at JD Power. Please contact us at the numbers below to connect with the team or to learn more about the underlying research.

 

Media Contacts

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

Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected]

 

What Makes a Great Retirement Plan App? JD Power’s 2025 Findings

In the latest episode of the JD Power Financial Services Intelligence Update, Mike Foy, managing director of Wealth Intelligence, and Jon Sundberg, director of Digital Solutions, joined Miles Tullo, managing director of Financial Services, to discuss insights from the 2025 U.S. Retirement Plan Digital Satisfaction Study.

The conversation revealed what separates top-performing digital retirement platforms from those falling behind and what plan providers can do to improve participant engagement, trust and satisfaction.

 

The 103-Point Experience Gap

According to the 2025 U.S. Retirement Plan Digital Satisfaction Study, there’s a 103-point difference between the best and worst digital experiences in the industry. Top-performing firms excel across every aspect of design, performance, tools, and content, but two factors stand out:

• Interactive Tools That Drive Engagement: Tools that help users visualize progress and take action on savings goals keep participants engaged, especially after “set it and forget it” enrollment processes.
• Mobile Experience That Feels Seamless: “We’ve seen firms like Bank of America really invest in unifying their mobile experience,” Foy said. “Features like the virtual assistant Erica and the Life Plan tool make it easier for customers to engage across multiple financial needs.”

 

Security: A Must-Have for Trust and Satisfaction

Security has become a major driver of satisfaction. The study found that when participants perceive security as “very effective,” overall satisfaction jumps by 52 points.

Leading firms are now designing security into the user experience, not around it. “We know security is vital. This is your customer’s information, their digital DNA,” Sundberg said. “They want to feel confident that their data is being protected, and design plays a big role in that perception.”

Key design elements can help build trust and improve satisfaction:

• Clean, professional login pages with recognizable options like “Remember Me.”
• Multi-factor authentication (MFA), now widely expected and even appreciated by users.
• Small touches such as padlock icons and clear, jargon-free messages that reassure users their data is safe.

Even younger users, who once resisted MFA, now welcome it, especially when it is combined with biometric authentication for faster and more seamless access.

 

The Missed Opportunity: Proactive Guidance

Despite progress in design and security, 61% of plan participants say digital tools fall short on proactive guidance.  “Proactive guidance means delivering relevant, personalized and timely information that helps participants make smarter financial decisions,” Foy said.

He explained that retirement planning doesn’t happen in isolation. Participants, especially younger ones, are also managing:

• Student loan debt
• Credit card balances
• Savings for major purchases like a first home

To help bridge the industry-wide gap in proactive guidance, many retirement plan providers are turning to artificial intelligence (AI) and predictive analytics to deliver more personalized digital experiences. “AI allows firms to use participant data to identify what messages and topics have resonated with others who share similar profiles,” Foy said. “It’s a huge differentiator in creating targeted, relevant content.”

Learn more about what makes a great retirement plan digital experience. 

The JD Power 2025 U.S. Retirement Plan Digital Satisfaction Study, now available in the press release linked below, measures how effectively retirement plan providers deliver digital experiences that build engagement, trust, and satisfaction across web and mobile platforms.

Stay informed on the latest research and insights by subscribing to the JD Power Monthly Intelligence Update.

Read the Press Release

View All Financial Services Intelligence Update Episodes.

U.S. Consumers Increasingly Turn to Non-Bank Sources for Financial Advice

The number of consumers in the United States classified as financially unhealthy^[1] increased to a four-month high in September, causing many to start seeking financial advice from an array of different sources—few of which are true financial professionals.

According to JD Power, 48% of consumers say they consult friends or family for financial advice or guidance. That’s a figure that dwarfs both the number of consumers who ask a financial advisor or planner (26%) or a bank or credit union representative (25%).

It’s not only friends and family that are getting a say in consumers finances. A surprisingly large number (21%) of consumers say they use social media for financial information, and 14% say they use artificial intelligence (AI) tools or chatbots. These numbers are even higher among consumers under the age of 40. 

 

Financial Health Slides 

Overall consumer financial health levels slid in September. The share of consumers who are either vulnerable, overextended or stressed, rose to 68%, up 4 percentage points from July. This marks the highest share of financially unhealthy consumers since May.

 

 

The percentage of consumers who say the price of goods is rising faster than their income held steady in September at 68%. Vulnerable (77%) and overextended (53%) consumers saw slight decreases. 

 

Consumers Turn to New Sources of Financial Intel

When it comes to seeking financial advice, friends or family are the most frequently cited source of financial information by a wide margin with 48% of consumers saying they typically seek financial advice from this group. That’s nearly double the proportion of those who seek advice from a financial advisor or planner (26%) or a bank or credit union representative (25%). One-in-five (21%) consumers say they seek advice from social media, and 14% say they consult artificial intelligence (AI) tools or chatbots.

 

 

When consumers under 40 were asked where they derive their financial advice from, the findings were even more striking. Over half (55%) of consumers under 40 said they ask friends or family, and just 21% say they ask a financial advisor or planner. Consumers under 40 seek advice from a bank or credit union representative at roughly the same rate (26%) as those over 40 (25%), but social media and AI is where we observe a pronounced shift. One-third (34%) of consumers under 40 go to social media for financial advice compared to 12% of consumers over 40. Meanwhile, 21% of consumers under 40 use AI for financial advice, while just 10% of those over 40 do the same.

 

 

A Paradigm Shift 

As consumers continue to grapple with their financial health, it’s clear that there is an emerging profile of customer within the younger demographic that banks need to understand and cater to. These younger consumers are open to taking financial advice from non-traditional sources, which could potentially weaken the connection between banks and their customers. At the same time, this shift presents a clear opportunity for banks to evolve and engage with these consumers in new and meaningful ways. Not only do banks need to earn trust within their existing clientele, they need to tailor a strategy to reach this new breed of consumer. By creating AI modeling tools or developing digital outreach strategies, banks can meet customers where they are seeking advice. Banks that can re-frame themselves in the eyes of consumers as a trusted source of great financial information, whether that’s from financial advisors, bank employees, or AI models, stand to gain significantly in both relevance and customer loyalty.

 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in September 2025. 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]

Joe LaMuraglia, JD Power; East 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.

 

Insurance Customers Keep an Open Mind on Artificial Intelligence, With Some Notable Exceptions

With each passing day, artificial intelligence (AI) is becoming more ingrained in all we do. From virtual assistants to image generators to chat bots, consumers in the United States are increasingly using AI, while growing more comfortable with it being a part of their daily life experiences. That includes their insurance experiences.

According to data collected by JD Power, insurance customers are keeping an open mind when it comes to AI’s role in their overall experience. However, while customers do have an open mind about it’s use that doesn’t mean there aren’t concerns about how insurance companies will use AI and more importantly who will truly benefit.    

AI Use Grows, Despite Belief Companies Benefit More 

The rate of AI utilization is growing but to whose benefit? 

When asked who will see the most gain from insurance companies integrating AI into their solutions, 68% of customers say they believe the insurance company gets most of or all the benefits, while 26% say the benefits are shared equally between the customer and the insurance company.  While consumers recognize the potential value of AI, it’s clear that they have serious doubts that investments in the technology are going to be made for altruistic reasons.

That’s not to say that consumers don’t recognize that they could benefit from insurers adopting more AI.  Customers are most comfortable with AI when it is used to automate routine aspects of their experience, such as sending automated claim status updates (24%), managing their billing (23%) and answering basic customer service questions (21%). In contrast, when it comes to important decisions there is a lot of concern of leaving it up to the computers.  Nearly half (47%) are somewhat or very uncomfortable with AI being used to process their claims, indicating a clear boundary between convenience and trust.

One-third (33%) of customers believe AI use in pricing insurance policies should be limited until companies can ensure it doesn’t introduce bias or violate ethical standards. Another 30% said AI should be limited to partial use that includes strong safeguards for fairness, explainability, and regulatory compliance. Just 15% of customers believe insurance companies should fully use AI to price their policies.

Selling the Benefit

As AI becomes a more integral part of customers’ daily lives, there appears to be growing acceptance of this technology making its way into their interactions with their insurance company. The difference, though, between customers’ willingness to use a virtual assistant and their hesitancy to accept AI in pricing their policy is that customers don’t immediately see a personal benefit in the latter that they do in the former. In fact, there is likely an inherent distrust in AI making an accurate read on underwriting decisions.

This should inform insurance companies’ strategies for further integration. Before doubling down on tech, companies need to peel back the curtain and explain the customer benefits to using AI in their decisioning. Insurers that can get that customer buy-in will have an easier time using AI to reshape their processes.

Find out More

This Insurance Intelligence Report is based on 2,099 responses from a market pulse survey conducted in mid-August . It was authored by Craig Martin, executive director, global insurance intelligence at JD Power. Please contact us at the numbers below to connect with the team or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]
Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected]

What is Customer Churn? How to Measure, Analyze, and Track Attrition

Churn is more than outright defection; it can also include silent attrition, where customers remain nominally active but reduce engagement, spending, or product adoption. 

High churn rates erode revenue, weaken loyalty, and limit growth potential. In highly competitive industries, such as financial services, insurance, and wireless service providers, churn reflects subtle shifts in customer behavior in shopping for rates, opening secondary accounts or moving business elsewhere. 

Accessing accurate churn analytics and benchmarking uncovers valuable insights to strengthen loyalty and improve performance. For example, “Insurers use LIST to understand which customer segments are defecting and to which insurers, on a regional basis, to inform targeted retention campaigns focused on retaining and winning back their most valuable customers, said Stephen Crewdson, managing director of insurance business intelligence at JD Power.

The same principle applies across industries: organizations that can accurately measure and interpret churn data are better positioned to strengthen loyalty, anticipate market shifts and improve overall performance.

 

How to Calculate Churn: 

Measuring churn starts with a simple calculation, but interpreting the results requires context. At its core, the customer churn rate shows the percentage of customers who stop doing business with a company over a given period.

The Churn Rate Formula is:

(Lost Customers / Total Customers at Start) * 100 = Churn Rate

 

Key Considerations When Measuring Churn:

• Define the time frame: Monthly, quarterly, or annual churn rates based on typical customer lifecycle and usage patterns.  
• Clarify what counts as churn: Determine if it includes silent attrition (reduced spending or dormant accounts) or only full customer loss?
• Account for acquisitions: Some businesses calculate net churn by factoring in new customers gained.
• Segment the data: Measuring churn by market, product, or demographic provides deeper insights than one topline figure.

Accurately measuring churn rate is the foundation for customer attrition analysis, benchmarking performance against peers, and building strategies to decrease churn over time.

 

How to Track Churn Effectively

1. Capture the Entire Market
   • True churn measurement requires visibility into all customer movement across the industry.  A market-wide view provides the competitive intelligence needed to benchmark churn against peers, identify where you’re losing ground and to who, and pinpoint opportunities to win customers back.
2. Access Timely Data
   • Churn is dynamic. Tracking in near real time ensures you see shifts in behavior as they happen, not months later, when it’s too late to act.
3. Combine Quantitative & Qualitative Insights
   • Numbers reveal the “what” (who left, where they went, how many).
   • Customer feedback reveals the “why” (reasons for attrition, perceptions, and loyalty drivers).
   • Together, they provide a more addressable picture of churn dynamics.
4. Tracking Churn across segments

• Pinpoint where churn poses the greatest risk, prioritize retention resources accordingly, and develop targeted strategies to protect their most valuable relationships.
• For example, losing a high customer lifetime value (CLV) customer in insurance has a bigger financial impact than losing a low CLV customer.

“Many brands measure their own churn rate but lack benchmarking data, so they don’t know if their rate is competitive or not, or if changes in their rate are due to a changing tide, said Miles Tullo, Managing Director, Financial Services Intelligence. JD Power provides benchmarking data so brands can compare their rates to specific competitors and the market average.”

 

Why Customer Churn and Attrition Matter

Customer churn goes beyond tracking who leaves. It is a direct indicator of revenue risk, competitive pressure, and shifting customer expectations.

Using churn data and analysis effectively improves business performance by:  

• Protecting Revenue and Lifetime Value: 

  Tracking customer attrition rate quantifies the direct impact on recurring revenue and CLV. Even small reductions in churn translate into significant financial gains over time.

• Safeguarding Brand Equity and Market Share

  High churn rates often signal declining brand perception. By analyzing why customers leave, leaders can address service gaps before they erode market share or damage reputation.

• Exposing Competitive Weaknesses

  Customer churn analysis highlights where product features, pricing, or service models fall short against competitors. These insights help organizations close gaps and win back share.

• Driving Segment-Level Growth

  Measuring churn by market, demographic, or even down to the zip code reveals patterns that enable precise, data-driven go-to-market (GTM) strategies and targeted retention campaigns.

• Building Loyalty and Retention Programs

  Accurate churn data forms the foundation for proactive retention strategies, from personalized outreach to loyalty programs, ensuring customers remain engaged and profitable.

 

Getting Started

Understanding and addressing churn requires more than internal data alone. JD Power draws on decades of experience, large-scale customer panels, and proven methodologies to provide a comprehensive, near real-time view of customer shopping and switching intent and behavior across the financial services and insurance industry. Become a subscriber to better track and understand how your organization compares to peers and identify patterns that may signal risk or opportunity for company growth. 

Holiday Spending Likely to Remain Flat

‘Tis the season for holiday shopping-themed economic indicators. Black Friday, Green Monday, and Cyber Tuesday are quickly approaching, and consumers in the United States are gearing up for their annual rite of retail passage. With that surge in consumer spending comes many insights into overall consumer financial health.

According to JD Power, the number of consumers in the United States classified as financially healthy^[1] increased in October, but many—no matter their financial status—are staying financially disciplined when it comes to their holiday shopping. In fact, 45% of all consumers say they expect to spend about the same amount as last year. To finance these purchases, most consumers expect their credit use to stay consistent with last year. 

Financial Health Improves 

The percentage of U.S. consumers categorized as financially healthy rose to 35% in October, up 3 percentage points from September. The share of consumers who are either vulnerable, overextended or stressed, fell to 65%, down 3 percentage points from September. This is a return to the levels we observed throughout the summer months.

 

The percentage of consumers who say the price of goods is rising faster than their income dropped slightly in October to 67%. The percentage of consumers classified as vulnerable (76%) and healthy (55%) saw slight decreases, while the number of stressed (83%) consumers ticked up 2 percentage points. 

 

 

Consumers Exercise Spending and Credit Discipline

Consumers are playing it safe this holiday season, no matter their financial status. When asked about their plans to spend this holiday season, 45% of all consumers say they expect to spend about the same amount as last year (up slightly from 40% from 2024). Consumers classified as healthy (57%) and overextended (50%) are most likely to say the same, showing that the restraint extends across the financial health continuum. 

One-third (31%) of consumers said they will spend less than last year (compared to 30% in 2024), while just 14% said they plan to spend more than last year (down from 19% in 2024). Interestingly, overextended consumers are among those most likely to say they plan to increase their spending (20%).

 

 

 

When asked how they plan to pay for their holiday spending, 32% said a debit card, 25% said on a credit card they pay off in full each month, and 17% said cash. This implies that consumers do have cash on hand to cover their holiday gifts.

 

For consumers who are using credit to pay for their holiday purchases, 61% said their use of credit is about the same as last year (up from 54% in 2024), while 16% said they are using more credit, loans or Buy Now Pay Later options (down from 19% in 2024). Notably, 23% of consumers under the age of 40 say they will use more credit this year, compared to just 12% of those over the age of 40.

Inflation Still a Factor

Most consumers (88%) say inflation will play at least a slight role in what they buy or how much they spend this season. One-third (33%) of vulnerable consumers and 30% of consumers under 40 say inflation will greatly affect their holiday purchases, while 39% of overextended consumers say it will moderately affect their spending.

 

When asked if they took advantage of any bank services (such as special savings accounts or savings buckets) to help plan for this year’s holiday spending, 23% say they did. That includes 39% of overextended consumers, 34% of consumers under 40, and 30% of healthy consumers. While 38% say they did not because these services would not help, another 35% say they did not, but they wish they had.

 

A Holiday Helper

Inflation has been persistently stuck at around 3% for the better part of two years and the overall financial health of the country has been plodding along without much variation. As consumers prepare to rack up more retail spending, there is an appetite for banks to step in and lend a helping hand. Given how consumers intend to shop, at a minimum, banks have the opportunity to help them set budgets, track spending, and achieve their holiday spending goals

With more than one-third of consumers regretting the fact that they didn’t take advantage of bank services to plan ahead for their holiday shopping, this presents a clear strategic path for banks. Forward-thinking banks need to use the holidays as an opening point for discussion and communicate to consumers about how they can help navigate this period with sound advice, budgeting tools and proper planning. 

 

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This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in October 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please use the contact information 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]

Joe LaMuraglia, JD Power; East 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.

Financial Health Plummets Amid the Holiday Season

Even in the best economic conditions, the holidays can create financial stress. But as consumers in the United States continue to feel the pinch of persistent inflation and high cost of consumer goods, a perfect storm of financial insecurity may be brewing.

According to JD Power, the number of consumers in the United States classified as financially healthy^[1] fell to 30%. The drop represents a 13-month low, as consumers show growing concern about not only how they’ll afford their holiday shopping, but also how to manage the cost of household necessities. 

Monthly utility bills are a focal point. More than 1-in-5 (22%) consumers do not feel they are financially equipped to handle their current utility bill, and 78% are worried about the cost of their utilities in the next 12 months. 

 

Financial Health Tumbles 

The percentage of U.S. consumers categorized as financially healthy dropped to 30% in November, down 4 percentage points from October. This is the lowest rate of financially healthy consumers in over a year. The share of consumers who are either vulnerable, overextended or stressed increased to 70%.

 

The percentage of consumers who say the price of goods is rising faster than their income rose to 69% in November. Notably, the percentage of financially healthy consumers who say the price of goods is rising faster than their income is now 58%, up 3 percentage points from November. 

 

Festival of (Expensive) Lights

That financial pinch isn’t just from trying to pile presents under the tree. In fact, as the data has indicated for years, consumer financial health has long been stuck in a malaise, vacillating between varying degrees of financial stress. And, as we’ve seen consumers trim back on travel, holiday shopping and more, their worries are now shifting to something more basic: utilities. 

Overall, 22% of consumers say they do not feel financially equipped to handle their current utility bills. This rate was highest among vulnerable consumers (39%) and consumers under the age of 40 (26%). 

 

When asked about the next year of utility bills, consumer sentiment turned increasingly negative. A majority (78%) of consumers say they are worried about the cost of their utility bills increasing in the next 12 months, with 25% of those being extremely worried. Once again, vulnerable consumers pace the field, as 84% say they are concerned, followed by 82% of stressed consumers, and 78% of consumers over the age of 40. 

 

 

 

A Time for Resolutions

The jury is still out whether this latest dip in financial health is the culmination of four years of struggle, or simply another monthly ebb in consumer sentiment. But with the primary indicators tracking downward amid increased anxiety around routine household expenditures, there is certainly reason for some concern.

As we continue to monitor through next month – when many of these holiday bills come due – consumer financial health will need be front-and-center in the minds of banks and financial institutions, utilities, retailers and more.

 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in November 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please use the contact information 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]

Joe LaMuraglia, JD Power; East 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.

Affordability, AI and Outages Top Issues Keeping U.S. Utility Leaders Up at Night in New Year: JD Power Utilities Outlook 2026

Utilities Intelligence Report
January 2026

 

Key Insights

• Midterm elections will fan flames of rate debate:  Average monthly residential electric utility costs have surged 34% since 2020, reaching $189 for the full year 2025—the highest annual average ever measured by JD Power. This will make an easy talking point for politicians running for midterm elections and a palpable pain point for customers who are struggling to pay their bills.
• Extreme weather and outages put spotlight on communication: More than half (55%) of utility customers nationwide experienced a power outage in 2025, putting increased pressure on utilities to deliver proactive communication before, during and after power restoration.
• Cannot afford to ignore technology: More customers than ever are turning to utility websites and apps as their first line of communication, yet nearly one-in-five (19%) encounter problems with slow or poorly organized websites and nearly one-third (28%) of utilities still do not offer mobile apps.

Executive Summary

The nation’s electric, gas and water utilities have their work cut out for them in 2026. A combination of record-high rates, widespread outages and evolving customer expectations for how to access important information and engage with service providers are challenging the status quo. In many cases, utilities have become high-profile consumer brands and that makes them subject to an increased level of public scrutiny, especially when things do not go as planned.

This Utilities Intelligence Report dives into key data points gathered from JD Power studies and proprietary market data to offer a data-driven perspective on the biggest issues confronting utilities as we head into 2026.

Affordability Now Frames Every Conversation

Monthly utility bills have come to occupy a significant share of consumers’ recurring household expenses, with the average monthly electricity bill reaching $189, the average monthly gas bill at $122 and the average monthly water bill hitting $101 through 2025. Electric bills in particular hit record highs in 2025, and customers are feeling the pain, with 22% indicating they are unable to pay their full bill or currently owe an outstanding amount to their utility.

These rising household costs have already become a major talking point for politicians running for midterm elections and will continue to make headlines following rate cases and key economic data releases. To counteract this negative attention, utilities will need to strengthen their affordability initiatives, proactively communicate upcoming rate changes with explanations for why changes are occurring, and expand assistance programs to support financially stressed customers. JD Power data shows that when utilities have strong brand appeal perceptions, 37% of their customers trust them to set fair rates. Meanwhile, when utility brand appeal is weak, only 10% of customers trust them to set fair rates. Utilities will need to highlight the steps they are taking to help customers manage affordability challenges in 2026.

Right or Wrong, More Customers Blame AI for High Electric Costs

Rising raw materials costs, natural disasters and increased demand are some of the reasons for the steady rise in residential electric utility bills over the past several months, but one culprit in particular has increasingly sparked customer ire: the rapid expansion of data centers to support AI. 

In fact, data centers in the United States accounted for 4%¹ of total power demand in 2025. While that is a marked increase over the past five years, it does not translate directly to higher rates at every local electric utility in the nation. Still, 16% of electric utility customers say they feel AI/data centers have played a role in increasing their utility bills in the past year. For the most part, electric utilities have not been communicating with their customers about the factors driving increased demand, but that needs to change. In the absence of proactive communication that clarifies data centers aren’t the sole reason for rising rates, speculation will continue to grow. 

Extreme Weather and Service Disruptions Create Sense of Urgency

Overall, 55% of utility customers nationwide say they have experienced a power outage in 2025. Of those outages, 47% were due to extreme weather such as a hurricane, ice or snowstorm, thunderstorm, wind or tornado or fire. These extreme weather events were so violent that 17% of customers who were affected by a natural disaster say they had to evacuate their homes. 

Customer satisfaction with residential electric utility providers is significantly higher when customers receive timely, accurate outage information. Utilities that proactively communicate about power outages earn satisfaction scores that are 52 points higher (on a 1,000-point scale), on average, than utilities that do not proactively communicate with their customers. Similarly, utilities that proactively reach out to their customers to share information about infrastructure investment and improvements being made to the grid have overall satisfaction scores that are 82 points higher than those that do not.

Utilities should enhance proactive communication strategies, invest in accurate outage maps and ensure customers receive timely alerts. Proactive, multi-channel communication (text, email, phone) will be essential for building trust and improving reliability perceptions, particularly in response to unpredictable events.

Digital Engagement and Self-Service Become Critical

More customers than ever are turning to utility websites and apps as their first line of communication when it comes to questions about billing, service disruptions and other customer service issues, yet nearly one-in-five (19%) encounter problems with slow or poorly organized websites and nearly one-third (28%) of utilities still do not offer mobile apps.

Among water utility customers, for example, just 20% say they have recently reached out to their utility via phone, while 37% say they have used an app or gone to their water utility’s website seeking information. Moreover, customers who use digital channels have overall satisfaction scores that are 43 points higher (on a 1,000-point scale) than those who use the phone.

As more customers continue to pursue digital means of problem resolution as their first line of communication, many utilities will need to strengthen their customer support technology to keep pace with rising expectations.

Find out More

This Utilities Intelligence Report is based on data and insights gathered across all JD Power Utilities Intelligence studies conducted during 2025. It was authored by Andrew Heath, vice president, Utilities and TMT Intelligence; Chris Oberle, managing director; John Hazen, managing director; and Mark Spalinger, director of Utilities Intelligence at JD Power.

Please contact us at the numbers below to connect with the team or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected] 
Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected] 

 

¹ Pew Research Center, “What we know about energy use at U.S. data centers amid the AI boom,” October, 24, 2025 https://www.pewresearch.org/short-reads/2025/10/24/what-we-know-about-energy-use-at-us-data-centers-amid-the-ai-boom/