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As Overall Inflation Concerns Ease, U.S. Bank Customers Turn Focus to Rising Energy Costs

The concern about inflation among bank customers in the United States is seemingly cooling but new worries about energy costs are bubbling up with each new summer heatwave.

The average utilization rate of electricity is on the rise and, as a result, the cost of summer season cooling is set to spike. That has customers worried that their energy bills will absorb any savings they might be seeing on consumer goods.

According to JD Power, the percentage of U.S. bank customers who are financially healthy[1] has remained steady and the overall level of concern regarding inflation has begun to fall, but customers in every financial category are at least somewhat worried about the size of their energy bill.

It’s a discouraging development for customers trying to dig out of the financial holes left by the last two years, as they try to discern how they can manage both their energy consumption and their budgets in the face of unrelenting weather.

Financial Health Largely Flat as Inflation Concerns Wane               

The number of customers who are financially healthy remains steady at 30%, while 45% fall into the vulnerable category.

 

The number of bank customers who say that the cost of goods is increasing faster than their income decreased to 69%, the lowest level this calendar year.

 

Energy Tensions Rise

Just as inflation concerns have started to subside, a new worry has emerged. Nearly one-third (32%) of customers are extremely worried their energy costs will rise this summer, and 85% are at least somewhat concerned. These fears are highest among vulnerable consumers.

 

What’s more, more than half (55%) of customers say they are making daily attempts to reduce their energy usage by lowering their consumption, a rate that is highest among stressed customers (65%) and those over the age of 40 (63%). Interestingly, even among financially healthy customers, 55% say they have made daily adjustments, showing the universality of these concerns.

 

Customers have also begun to get assistance to pay for their utilities. Overall, 13% say that they have received financial assistance from the government or other organizations. The rate is highest for customers that are overextended (20%) and under the age of 40 (17%).

 

Rising Financial Temperatures

It certainly appears that just as customers have begun to get a reprieve from inflation, energy costs are here to throw everyone a curveball. But the reality is that if it wasn’t energy costs, it would be holiday shopping or travel plans or any other cyclical cost. The truth is that the financial health of customers in the United States has just not recovered yet, and that puts increased pressure on banks to help their customers manage these challenges.

While many banks are well-positioned to come to the rescue with budgeting tools, assistance programs, and a host of other solutions that are available to their customers, those solutions will only help if customers are aware of them and trust the institutions from which they are coming. It’s incumbent on the banks to communicate with their customers and proactively offer personalized help that meets their unique financial needs.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in June 2024. 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.

Utility Customers Give Sunbelt States Low Marks for Water Quality as Concerns about Water Safety Persist

Utilities Intelligence Report

August 2024

Amid a seemingly non-stop barrage of safety alerts and growing concerns about contamination and supply shortages, Americans are using more water than ever before.

The combined water and sewer bill for a typical household in the United States has increased 54.8% since 2012, even as utility customers have serious reservations about the quality of the very water they’re consuming. According to JD Power data, 41% of customers say they do not feel the water provided by their local utility is safe to drink.

That’s created quite a quandary for local water utilities, as they wrestle with providing uninterrupted, high-quality service, while figuring out a way to effectively tamp down fears about water safety. Some water utilities are doing a much better job than others when it comes to customer perceptions of water quality.

Methodology

Each year, JD Power gathers feedback from customers of water utilities in its U.S. Water Utility Residential Customer Satisfaction Study. The study measures satisfaction among residential customers from 92 water utilities that deliver water to populations of at least 400,000.

For this report, JD Power drilled into the data of the 2024 U.S. Water Utility Residential Customer Satisfaction Study to further examine consumer perceptions about the quality of their water. Customers were asked to rate the quality of water in terms of taste, color, odor, hardness, and other factors on a scale of 1-10. 1 being unacceptable, 5 being average and 10 being outstanding. States are then ranked based on the percentage of customers that respond positively about their water from best and worst. This year’s study is based on the responses of 32,833 residential water utility customers and was conducted from June 2023 through March 2024.

Tap, Please

After tallying the results, Washington State took home the top spot with 84.5% of customers giving their water positive marks. This comes amid recent news that the state will move to tougher federal limits on PFAS chemicals.

 

Washington	84.5%
Kansas	81.4%
Hawaii	80.0%
Kentucky	79.3%
Massachusetts	79.3%
New York	78.7%
Connecticut	77.7%
Georgia	76.5%
Louisiana	76.5%
Virginia	75.1%

 

Kansas ranked second (81.4%) followed by Hawaii (80.0%).

Sunbelt Struggles

On the opposite end of the spectrum, Arizona ranked lowest among the 50 states with a 62.6% favorability score. Arizona is joined by four other Sunbelt states—New Mexico, Alabama, Nevada and California—on the list of worst performers.

California	69.8%
Texas	69.7%
Wisconsin	69.0%
Maryland	68.0%
Nevada	67.8%
Indiana	67.7%
Oklahoma	66.5%
Alabama	65.8%
New Mexico	65.2%
Arizona	62.6%

 

Trickle Down Satisfaction

What once felt like an issue confined to one region of the country, water safety is now a nationwide issue. However, despite rising levels of concern, many customers say that their water districts are not doing an effective job getting ahead of the problem. In fact, just 2% of residential water utility customers nationwide say they recall receiving any proactive communication from their utility about PFAS contamination and steps they are taking to address the issue.

For customers to truly feel like their utility is a partner in their family’s health, utilities must find a way to not just provide cleaner drinking water, but to effectively communicate the strides they are taking to ensure the quality of that water. By doing so, water districts around the country will likely see an increase in customer satisfaction and confidence.

Find out More

This Utilities Intelligence Report was authored by Ramah Vaughn, director of utilities intelligence at JD Power. Please contact us at the numbers below to connect with Mr. Vaughn 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]

VIDEO: Financial Services Intelligence Update — July 2024

 

The JD Power Financial Advisor Satisfaction Study provides crucial insights into what drives advisor contentment and retention, offering valuable guidance for wealth management firms. Tune in to the July 2024 Financial Services Intelligence Update with Kapil Vora and Miles Tullo to refine your advisor retention strategies and stay ahead in the industry.

Key Insights:

• Employee Advisors: Satisfaction has surged by 49 points this year, thanks to better compensation, advanced technology, and enhanced support systems.
• Independent Advisors: Satisfaction has declined by 15 points, primarily due to leadership issues. Only 46% of independent advisors feel their firm is heading in the right direction, a drop from 54% last year.

Important Takeaways:

• Attrition Trends: Advisors who signal they might leave often do. Conversely, those committed to staying are likely to remain, underscoring the need for early intervention and resolution of concerns.
• Culture and Leadership: Effective firm culture and leadership are critical for retention. Advisors planning to stay rate these factors much higher than those considering leaving. For less tenured advisors, professional development is also key.

 

Where can you find more insights like this?  

The JD Power Financial Advisor Satisfaction Study is a critical tool for understanding and improving the financial advisory industry. This annual study measures the satisfaction levels of financial advisors with their respective firms, focusing on key areas that directly impact advisor performance and retention. The study measures satisfaction based on six key dimensions: compensation, firm leadership and culture, operational support, products and marketing, professional development, and technology.

READ THE LATEST PRESS RELEASE

More About These Experts 

Kapil Vora is the Senior Director of Wealth Intelligence at JD Power. In this role, he is focused on equipping clients with data, analytics, and strategy to make them competitive with today’s investors and financial advisors. He leads research for Investor Satisfaction and Advisor Satisfaction studies.  

Miles Tullo is the managing director of the JD Power Financial Services team. He oversees the company’s consumer payments program, focusing on point-of-sale choice and non-credit card payment methods. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients.  

Summer Travel Demand Remains Strong, But Many Consumers Are Looking for Ways to Cut Costs

Hospitality Intelligence Report

August 2024

This summer, no one can stand in the way of Americans and their vacations.

Sounds like the tagline to a summer blockbuster, right? With the challenges many families have faced juggling rising costs and jam-packed work schedules, not to mention over-subscribed flights and sold-out hotels, the annual rite of the summer getaway has become an adventure in patience and careful planning.

To get a better sense of how consumers are managing the balance between their finances and their summer travel plans, JD Power surveyed more than 4,000 retail bank customers in the United States about their summer travel plans in May. Below are the key findings.

Hitting the Road                                                    

Nearly three-fourths (74%) of consumers surveyed say they are planning to travel this summer, although a large portion (30%) of them plan to stay close to home. Still, 37% say they plan travel to other areas in the United States and 7% plan to travel outside the U.S. This trend is consistent with data we are seeing across a wide range of JD Power hotel and air travel data. Those under age 40 are more likely than older consumers to have summer travel plans.

Vacation Budgets Shrink

While almost one-third (32%) of those planning summer travel will not make any changes to their usual travel plans this summer, most say they will be finding ways to cut costs.

Predictably, with airfares projected to increase between 3% and 7% in 2024, one third of those changing how they plan to travel say they plan to drive instead of fly this summer (33%). Other cost-cutting moves include changing their ultimate destination (46%), reducing the length of their trips (34%) and changing when they travel (27%).

Younger Travelers More Willing to Splurge

Additionally, only one in five summer travelers (19%) plan to use rewards or pay extra for added luxury on their trips. This proportion rises to 29% among summer travelers under the age of 40, who are far more willing to pay for upgrades compared to older travelers. For some, it seems there is still a willingness to err on the side of more extravagance versus less, perhaps due to continued post-pandemic attitudes of ‘you only live once.’  However, travelers’ willingness to change their plans shows that the industry optimism we’re observing for summer travel is of the cautious type.

Hospitality brands and vacation destinations would be wise to meet consumers where they are financially by tailoring their services to provide a great baseline experience, as opposed to focusing on upselling luxury upgrades. Travelers across every level of financial health will be hitting the road, this summer, and hospitality brands that meet or exceed those travelers’ expectations will earn significantly higher levels of customer satisfaction and brand advocacy.  

Find out More

This Hospitality Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in May 2024. It was authored by Andrea Stokes, hospitality intelligence practice lead at JD Power. Please contact us at the numbers below to connect with Ms. Stokes 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]

 

This month, we’re diving into the results of our flagship U.S. Credit Card Satisfaction Study. With insights from over 39,000 cardholders across 283 cards and 19 major issuers, this study reveals key trends shaping the credit card industry. Miles Tullo, Managing Director of Financial Services and John Cabell, Managing Director of Payments Intelligence, discuss the widening gap in satisfaction between revolvers and transactors. 

A Widening Divide

According to the results of the 2024 U.S. Credit Card Satisfaction Study, the satisfaction gap between credit card revolvers and transactors is wider than ever. “While there has always been a difference, this year we saw a dramatic shift,” John Cabell notes. Those who manage to stay financially healthy continue to enjoy their rewards cards and benefits. Meanwhile, those grappling with debt are facing increasing dissatisfaction as interest rates, fees, and account terms become more critical factors in their overall experience.

What Does This Mean for Issuers? 

The implications for credit card issuers are clear: financial health isn’t just a consumer issue; it’s a business imperative. As dissatisfaction grows among financially stressed cardholders, issuers must refine their strategies. Offering support that goes beyond standard customer service, particularly around managing interest charges and fees, can make all the difference. The focus should be on proactive financial health support, which has long been a gap in the credit card industry.

The Path Forward 

For issuers, this year’s results are a wake-up call: Consumer satisfaction is a moving target, and the credit card industry must continue to evolve to meet the changing needs of cardholders. The study highlights that satisfaction varies significantly depending on cardholder priorities:

• For Revolvers: Account terms, such as credit limits, interest rates, and fees, dominate as top concerns. With financial pressures mounting, these cardholders are more likely to feel the pinch of their credit card’s terms.
• For Transactors: Rewards remain a key driver of satisfaction. Interestingly, benefits like free FICO score tracking have seen a surge in both awareness and usage, helping to boost satisfaction among this group.

Get the complete breakdown of this year’s study by watching the full video.

Watch the Full Video

Where can you find more insights like this?  

The JD Power U.S. Credit Card Satisfaction Study is the most comprehensive and independent survey of credit cardholders available. Designed to help both consumers and issuers, it provides valuable insights into satisfaction ratings for the largest credit card brands. The study establishes a quality benchmark for personal card issuers and delivers a deep understanding of customers’ needs, expectations, and preferences at both the brand and product levels.

Read the press release

More About These Experts

John Cabell serves as the Senior Director of Banking and Payments Intelligence at JD Power, where he leads strategic direction and oversees the execution of our credit card studies. With over 25 years of experience in customer experience (CX) across the banking, payments, and mortgage industries, John brings deep expertise to his role. He holds an MBA from the Raymond A. Mason School of Business at William & Mary and a bachelor’s degree in Economics and French from the Virginia Military Institute.

Miles Tullo is Managing Director of Financial Services at JD Power. He oversees client engagement for the Financial Services Practice in North America and recently led the development and launch of the JD Power U.S. Consumer Payment Program. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients.  
 

Customers Growing More Optimistic about Potential of AI in Financial Services, But Skepticism Remains

Customers Growing More Optimistic about Potential of AI in Financial Services, But Skepticism Remains

It seems that financial services customers are technologically optimistic at heart.

While forecasts of artificial intelligence (AI) integrations often bring a gloom and doom, man vs. machine, dystopian dynamic, it seems that customers generally are encouraged at the prospect of further implementation of generative AI (GenAI) tools and solutions at their respective banks. To get a sense of just how optimistic they are, JD Power surveyed more than 2,000 financial services customers in the United States about their utilization and opinions of AI.

According to JD Power, 54% of all customers say they have used some version of a generative AI tool, and 32% say they have a complete understanding of AI. That level of comprehension and adoption has fueled a largely positive view of the technology, as 50% of customers are optimistic that AI will at least somewhat enhance their lives.

But an undercurrent of skepticism still exists, as customers can’t shake concerns about security, an increased risk of fraud, and loss of human support. The good news is that these fears provide financial institutions with a roadmap toward broader adoption for their AI solutions.

 AI Usage Rises, But Trust Issues Persist            

The use of AI chatbots among customers is on the rise. Overall, 54% of customers say they have used a GenAI tool. That level is significantly higher among national bank customers (66%) than regional banks (42%). Unsurprisingly, chatbot usage is higher among customers under the age of 40 (72%). 

When asked how confident customers feel about using AI chatbots for specific purposes, just 27% of customers said they trust AI for financial information and advice. When compared with other categories of advice, this ranks lower than travel information (37%), but slightly ahead of medical information (25%).

 

Understanding the Tech

Some of the above hesitation undoubtedly comes from a lack of understanding of how GenAI solutions work. Despite this tech becoming increasingly common, there is a widespread lack of comprehensive knowledge about GenAI. While most customers have used GenAI, just 32% of customers claim to possess a full understanding of AI solutions, a rate that is highest among those under 40 years old.

While customers are confident that AI tools will provide some added convenience, they are a lot more skeptical about the positive impacts to their financial situation. While 72% of customers agree or strongly agree that AI tools will provide easy, convenient self-service in the near future, only 42% believe AI will improve personal finances. The difference highlights an important gap for financial services firms to close.

Finding the Opportunity

Customers are most likely to be receptive to personalized alerts and recommendations that can help them, but many are wary of allowing AI to control the actions and the application of personal security measures.

Nearly two-thirds (62%) of bank customers say they would immediately try AI-driven personalized account alerts to help avoid service charges and fees, 44% would use automated phone voice assistants to resolve a customer service problem, and 42% would take personalized product recommendations from an AI agent.

Given the fact that customers are clearly open to AI tools, the onus is on financial institutions to communicate to their customers a clear understanding of how AI works and its benefits. These solutions can help customers and banks forge a symbiotic relationship to improve workflows and bolster personalized advice and alerts, but there must be buy-in from the customer to make that happen. By getting insights into how and when customers are most likely to use AI, banks can tailor their outreach accordingly. Those that do it well stand to win big with customers, both new and existing.  

Find out More

This Financial Services Intelligence Report is based on responses from 2,001 financial services customers nationwide and was fielded in April 2024. It was authored by Ila Ghosh, senior director of financial services intelligence at JD Power. Please contact us at the numbers below to connect with Ms. Ghosh 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]

As trust and transparency become paramount, servicers are surprisingly thriving amidst challenges, showcasing resilience in customer relationships. In this month’s update, JD Power, Bruce Gehrke, Senior Director of Lending Intelligence and Miles Tullo, Managing Director, discuss the latest insights from the Mortgage Origination Satisfaction Study and Mortgage Servicer Satisfaction Study. Here’s a breakdown of the key highlights:

Why Mortgage Originators Face a Satisfaction Slump
Borrower satisfaction with mortgage originators has dropped significantly in 2024, reversing last year’s positive trend. Only 42% of lenders are achieving higher satisfaction scores this year, down from 70% in 2023.

Key factors influencing borrower loyalty and advocacy include:

• Trust: Borrowers need to feel confident they got a good deal.
• Ease of the process: Simple, fast, and transparent processes resonate with borrowers.
• Competitive interest rates: While market factors dictate rates, customers expect lenders to remain competitive.

“At the end of the day, those interest rates matter, and a customer needs to believe and trust that their lender gave them a good deal,” says Bruce Gehrke.

Interestingly, digital tools—despite heavy investment—are not delivering the highest customer satisfaction. Traditional, human-centered service models continue to outperform digital-first approaches.

Mortgage Servicers Thrive Despite Rising Challenges
Mortgage servicers are seeing a notable increase in satisfaction, even among financially vulnerable customers. Trust plays a vital role, especially when servicers aim to retain customers for refinancing opportunities.

The top factors driving servicing satisfaction include:

• Minimal interactions: Customers prefer smooth experiences with few issues requiring service intervention.
• Transparency: Clear communication about fees and escrow accounts is crucial in building trust.
• Escrow management: Rising insurance premiums and property taxes put pressure on servicers to manage escrow accounts effectively.

How Declining Rates Will Reshape the Market
As elevated interest rates reduce transaction volumes, the mortgage market is undergoing rapid changes. However, as rates begin to decline:

• The refinance market may experience a resurgence, with direct-to-consumer models gaining the most traction.
• “Trade-up” borrowers—those who have been reluctant to sell due to low-interest mortgages—may re-enter the market.
   

Where can you find more insights like this?  
Stay up to date on the latest mortgage customer satisfaction insights with JD Power. Discover key trends and performance metrics in the Mortgage Origination Satisfaction Study and the Mortgage Servicer Satisfaction Study, covering the experiences of thousands of borrowers and homeowners. 

RecEIVE our Upcoming Press Releases

More About These Experts 
Bruce Gehrke is the Director of Lending Intelligence at JD Power, overseeing including the Mortgage Origination Satisfaction Study and Consumer Lending Satisfaction research. He develops client improvement strategies based on data analytics and has built consulting relationships with leading asset managers and mortgage lenders.

Miles Tullo is the managing director of the JD Power Financial Services team. He oversees the company’s consumer payments program, focusing on point-of-sale choice and non-credit card payment methods. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients.  

With AI-Powered Chatbots Coming to Customer Service, Are Mortgage Customers Ready? 

Lending Intelligence Report
October 2024

With AI-Powered Chatbots Coming to Customer Service, Are Mortgage Customers Ready? 

Artificial intelligence (AI) is here to stay. Three-fourths of business leaders say they are planning to escalate their AI investments, as they see its potential to redefine customer service and many other business functions. That includes the lending industry, in which AI-powered customer service has already started to establish a foothold and is poised to grow. Are customers ready for the future of AI-driven customer service?

This Lending Intelligence Report dives further into one aspect of the JD Power 2024 U.S. Mortgage Servicer Satisfaction Study. It highlights the prevailing sentiment and emerging trends in AI-powered customer service, and how that may change with the continued uptick in servicer adoption. 

AI Can Be a Problem-Solver

Arguably one of the biggest barriers to adoption of AI-powered customer service solutions is customers’ perception of online chat. Early iterations of chatbots left many customers feeling like they were simply wasting their time. But that may be changing.

Overall, 21% of mortgage servicing customers have experienced a problem in the past 12 months. Just 9% of those customers used online chat as their first point of contact. That pales in comparison with the 48% that called customer service, but customers from Generation Y¹  and Z are three times more likely to use online chat than older generations so this channel will become increasingly important.

The good news is that the majority of customers who use chat found it to be useful. Two-thirds (67%) of customers using chat said it was to try to solve a problem. Of that group, 83% of those said that their problem was resolved on that chat. Unsurprisingly, those who were able to solve their problem via chat had an overall customer satisfaction rating of 702 (on a 1,000-point scale) vs. 482 for those who could not solve their problem.  

An Opportunity for AI

Nearly three-fourths (73%) of customers who used chat say they interreacted with a live representative, while just 10% thought it was a chat bot, and 17% were not sure. Those who said they interacted with a human had a better experience than those who thought it was a machine on the other side. Further, 63% of chat users working with a human felt the chat rep used a script, while 37% did not. 

That’s important for a few reasons. Customer satisfaction for those who felt no script was used was 699, considerably higher than the average satisfaction score (636) among customers who thought a script was used. Nearly three-fourths (73%) of those customers who felt no script was used said that the process was extremely easy vs. 27% among those who felt a script was used. As AI evolves and becomes more widely adopted in the servicing industry, firms are going to need to keep a close eye on potential negative impacts to consumer perceptions. A key point for servicers to consider is that customers are usually fine with a technological improvement, provided it adds value.   

That poses a challenge to lenders: An investment in AI needs to represent a clear understanding of what the customer wants in terms of service and problem resolution, and how they interact with their customer service channels. Without that, customers may simply refuse to engage, leaving lenders on the hook for the time and resources spent on underutilized technology. Those who can thread this needle will see higher customer satisfaction scores, improved processes, and streamlined costs. 

Find out More

This Lending Intelligence Report is based on responses from the JD Power 2024 Mortgage Servicer Satisfaction Study, which included 11,565 responses and was fielded from May 2023 through February 2024. It is authored by Bruce Gehrke, Senior Director, Lending Intelligence. Please contact us at the numbers below to connect with Bruce 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 (1995-2006). Millennials (1982-1994) are a subset of Gen Y.

Security Breaches Take Centerstage as Bank Customers Worry About Data Privacy

Inflation isn’t the only stressor for bank customers in the United States. Data breaches have emerged as a big concern, and the National Public Data breach (NPD) is only bound to exacerbate those worries.

Nearly nine in 10 bank customers are worried about personal information data breaches. It’s an alarmingly high number, and it may be set to move even higher, as 44% of customers are currently aware of the NPD breach.

Banks can take heart in the fact that most customers who are aware of the breach did act to protect their identity, but they may be failing to properly educate their customers on their exposure risk. Just 50% of customers say they received an alert from their financial partner about their data being compromised.

Financial Health Stays Stagnant
        
The number of customers who are financially healthy  declined slightly to 31%, while 45% of bank customers fall into the vulnerable category.

The number of bank customers who say that the cost of goods is increasing faster than their income decreased slightly (67%). Notably, stressed customers did see an increase to 84%, from 82%.

Data Privacy Starts Becomes a Top Concern

While inflation worries have begun to dip, a new customer stressor has reared its head: data breaches. An alarming 88% of bank customers are worried about personal information data breaches—a fear that spans all financial health status and age. That is despite that only 44% are aware of the NPD breach that some estimates say may have affected up to as many as 2.9 billion people.

Among those aware of the breach, 61% acted swiftly to confirm whether they were personally affected. Healthier customers are more likely to have acted, but age does not appear to make a difference in response. Troublingly, though, only 50% of those aware say they received an alert from a financial institution.

The good news is that customers are checking their credit scores with greater regularity than their credit reports. Nearly half (48%) of all customers have checked their score in the past month, with the highest levels among older and financially health customers. 

Locking Down the Data

With inflation levels low enough to temporarily tamp down customer concerns about the cost of goods, data breaches have taken the mantle as a pressing issue. But banks do have it within their power to be key partners in helping customers avoid becoming victims of identity theft.

Customers—particularly those under the age of 40 and those in poor financial health—need guidance from informed partners on how they can help lock up their personal data. That includes offering the best advice on how to monitor their credit, the difference between the credit reports and scores, how to effectively freeze their credit, and what warning signs they should be looking for along the way. Financial partners that can engage by customers will likely establish vital bonds of trust and will benefit from more customer loyalty and higher levels of engagement.

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 2024. 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]
 

Inside the 2024 Small Business Banking Satisfaction Boom

With banking satisfaction among small business decision-makers reaching new heights, banks are capitalizing on fresh opportunities to support and grow their relationships with these important customers. In this episode of JD Power Monthly Intelligence Update, Paul McAdam, Senior Director of Banking and Payments Intelligence and Miles Tullo, Managing Director of Financial Services, share the latest insights from the JD Power 2024 Small Business Satisfaction Study and why satisfaction is trending up.

Small Business Sentiment: Their Banks

Paul McAdam explains, “Small businesses are feeling good, with a significant improvement in satisfaction for the second consecutive year. They’re especially appreciative of the increased client-centric, proactive, and personalized service they’re receiving.”

According to our recent study, small business satisfaction is on the upswing, driven by:

• Client-Centric Service: Banks are placing greater emphasis on personalized, proactive support.
• Improved Credit Access: Steady credit availability is empowering small business growth.
• High Retention Rates: Business owners are more likely to return for future services, a positive indicator of satisfaction.

Renewed Energy in Small Business Banking

There’s renewed interest in small business banking on both sides—banks and clients alike. Banks are increasingly looking at this line of business for growth, motivated by:

• Rise in New Startups: Post-pandemic, the rate of small business startups has remained robust.
• Dual Relationship Benefits: Small businesses often bring personal accounts with them, blending retail and business banking for deeper partnerships.

Top Performers in Small Business Banking

The 2024 U.S. Small Business Banking Satisfaction Study measures satisfaction based on seven key factors: trust, staff, convenience, account offerings, time and cost savings, digital channels, and issue resolution. The study reflects feedback from 6,976 small business owners or financial decision-makers using business banking services.

These banks are ranked the highest based on their Overall Satisfaction performance:

1. Capital One 
2. Chase
3. Regions Bank
4. Huntington
5. Bank of America

See the full rank chart here.

Building Lasting Relationships in Small Business Banking

While small business banking satisfaction is on the rise, there are still crucial areas for banks to address. Proactive communication is essential as businesses seek guidance on saving money and managing fees amidst rising costs. Relationship managers are increasingly important, with satisfaction levels rising this year, but digital tools are also vital for providing ongoing support. Curious about how banks can tackle these challenges and enhance the customer experience —watch the full video now.

Where can you find more insights like this?  

The JD Power Small Business Satisfaction Study evaluates small business owners’ satisfaction with leading financial institutions. It uncovers opportunities for banks to enhance their support for small businesses in today’s market and beyond. The insights from this study highlight which banks excel in managing small business relationships and the reasons for their success. This study is available in both the U.S. and Canada.

READ THE LATEST PRESS RELEASE – US

READ THE LATEST PRESS RELEASE – CA

 

More About These Experts 

Paul McAdam is a Senior Director of Banking and Payments Intelligence at JD Power. Clients rely on his expertise to gain a better understanding of how to improve the customer experience, with a particular emphasis on the regional banking segment. His research at JD Power has led dozens of research programs that have enabled leading U.S. banks and global financial technology companies to quantify market demand and measure customer experience.

Miles Tullo is the managing director of the JD Power Financial Services team. He oversees client engagement for the Financial Services Practice in North America and recently led the development and launch of the JD Power U.S. Consumer Point of Sale Payment Program. Drawing from over 20 years of experience in banking, payments, and mortgage lending, Miles brings valuable expertise to clients.