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Category: Banking|Financial ServicesUnited States

  • 2023 U.S. National Banking Satisfaction Study

    Customers More Satisfied with National Banks, Yet Leave for Better Interest Rates, JD Power Finds

    2023-12-12

    jillian.breska

    TROY, Mich.: 14 Dec. 2023 — Although overall satisfaction with national banks slightly improved 5 points (on a 1,000-point scale) to 653 in 2023 from 648 in 2022, higher deposit interest rates at other financial institutions are driving customers to investment/wealth management and internet-only financial services providers, according to the JD Power 2023 U.S. National Banking Satisfaction Study,SM released today. Among the growing proportion of national bank customers with secondary deposit accounts, those with a secondary account at an investment/wealth management or internet-only financial company increased 6 percentage points to 50% in 2023.

    “Deposit interest rates surely matter, but there are steps large banks can take to help minimize the deposit flow to secondary providers,” said Paul McAdam, senior director of banking and payments intelligence at JD Power. “Customers want banks to help them grow their money and save them time. Banks that ensure the banking process is easy for their customers, such as having an intuitive and easy-to-use mobile app, understandable credit cards and seamless processes for opening new accounts, are more likely to retain deposits, particularly among customers who have balances greater than $10,000.”

    Study Ranking

    Capital One ranks highest in overall satisfaction for a fourth consecutive year, with a score of 706. Chase (674) ranks second and TD Bank (661) ranks third.

    The study, now in its seventh year, provides a comprehensive view of the customer experience across retail bank product lines for nine national banks in the United States. It evaluates bank customer experience across seven factors: trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.

    The study defines a national bank as a U.S. bank holding company with domestic deposits exceeding $300 billion and at least 200 branches. The study is based on responses from 12,938 retail banking customers and was fielded in August-September 2023.

    For more information about the JD Power U.S. National Banking Satisfaction Study, visit https://www.jdpower.com/business/financial-services/national-bank-satisfaction-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

     

  • 2023 U.S. Small Business Banking Satisfaction Study

    Small Business Banking Customer Satisfaction Surges as Digital and In-Person Support Channels Improve, JD Power Finds

    2023-10-24

    jillian.breska

    TROY, Mich.: 26 Oct. 2023 — Small business owners are more optimistic about the future than they were a year ago, with slightly more than half (54%) saying their business is financially healthy, but inflation is still having a negative effect. According to the JD Power 2023 U.S. Small Business Banking Satisfaction Study,SM released today, banks are doing a better job of helping small businesses navigate this complicated set of market conditions with improved digital tools and more supportive telephone service and small business relationship managers.

    “Small business owners say that banks have reduced friction in digital and telephone banking services, while improving the courtesy and knowledge of branch staff and relationship managers,” said Paul McAdam, senior director of banking and payments intelligence at JD Power. “These improvements are paying off in the form of increased utilization of bank advice and significantly higher overall satisfaction and advocacy scores among small business customers. Banks can continue this positive momentum by blending digital services and human support with generative AI-driven technologies to improve personalization and customer engagement.”

    Following are some key findings of the 2023 study:

    • Live phone and digital support channels drive satisfaction: Overall satisfaction with live phone-based support increases this year as small businesses find it easier to get the help they want on the phone. Satisfaction with digital channels, including website and mobile, increases for speed; visual appeal; ease of navigation; clarity of information provided; and the range of services available.
    • Relationship managers influence banking experience: Another big factor influencing small business banking customer satisfaction is the role of the relationship manager. Overall satisfaction with small business relationship managers has increased this year due to improved responsiveness; more frequent communication; and a growing perception that relationship managers are partners who help the company grow.
    • Advice plays critical role in navigating uncertain economic environment: More businesses than ever are receptive to receiving financial advice from their bank. Currently, 57% of small business customers are receiving such advice. Three pragmatic forms of advice sought by small businesses include advice on how to avoid fees; spending and savings guidance; and guidance to help the business improve its credit score/creditworthiness.
    • Sole proprietors present engagement challenge for banks: Sole proprietors is the only category not to improve in customer satisfaction in this year’s study. Satisfaction is lower among this segment of small business owners for problem resolution and owners in this segment are also less likely to use bank-provided spending and savings guidance and digital services such as spending analysis, budget tools and cash flow projections.

    Study Ranking

    Capital One ranks highest nationally in small business banking customer satisfaction with a score of 723. U.S. Bank (713) ranks second and Chase (711) ranks third.

    The 2023 U.S. Small Business Banking Satisfaction Study measures satisfaction across seven factors (in order of importance): level of trust; people; allowing me to bank how and when I want; account offerings; helping me save time or money; digital channels; and resolving problems or complaints. The study includes responses from 7,104 owners of—or financial decision-makers at—small businesses that use business banking services. The study was fielded from May through August 2023.

    For more information about the U.S. Small Business Banking Satisfaction Study, visit https://www.jdpower.com/resource/us-small-business-banking-satisfaction-study.

    About JD Power
    JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

     

  • 2023 U.S. Retail Banking Satisfaction Study

    U.S. Retail Bank Customers: Stressed and Looking to Their Bank for Help, JD Power Finds

    2023-03-29

    jillian.breska

    TROY, Mich.: 30 March 2023 — Persistent inflation and an uneasy economy have rattled retail bank customers in the United States. According to the JD Power 2023 U.S. Retail Banking Satisfaction Study,SM released today, the percentage of customers with $10,000 or more in primary bank deposit balances has declined 16 percentage points in the past year, while the percentage of customers categorized as financially unhealthy1 has increased 9 percentage points. This shift is causing more customers to reallocate their funds in the hunt for higher interest rates or better savings programs, upping the ante for banks to deliver personalized advice and guidance.

    “It’s an incredibly tenuous time for both bank customers and financial institutions, and the need for trust between these two parties has never been more pronounced,” said Jennifer White, senior director of banking and payments intelligence at JD Power. “Although our study was conducted prior to the recent high-profile bank crisis, the difficult economic conditions that contributed to the Silicon Valley Bank and Signature Bank failures have been building for quite some time. For banks to attain high marks in satisfaction and build the enduring loyalty that comes with it, customers need to feel supported through tough economic times. They need to be able to conduct their business with ease and feel like their funds are safe and secure.”

    Following are some key findings of the 2023 study:

    • Bank customers struggling but advice and guidance lacking: Overall customer financial health has declined 9 percentage points year over year and advice has been hard to come by, as just 21% say they received advice or guidance in the past year. However, banks that have effectively guided their customers have reaped the rewards. Customers who have received advice/guidance in the past 12 months are significantly more likely to have opened a new account with their primary bank, and the rate of new account openings grows even higher when the advice completely meets customer needs. Nearly half (47%) of those who received effective advice opened a new account.
    • Urgency grows on fees, fairness and fraud: Since the 2022 study, more customers say they’ve experienced fees and fraud. The number of customers who were charged a fee in the past year has grown 5 percentage points while reports of problems related to fraud have increased 3 percentage points among customers experiencing problems. Customers facing these issues were more likely to be under age 40, categorized as financially unhealthy and have less than $10,000 in deposits. Banks that demonstrate fairness relative to fees and fraud gain an advantage. When customers receive communications on how to avoid fees, overall satisfaction scores increase 166 points (on a 1,000-point scale) and trust scores are 172 points higher. Additionally, alerts regarding suspicious account activity are the most common way that customers say their bank can show that they care about their customers’ financial well-being.
    • Money on the move: The proportion of retail bank customers with more than $10,000 in deposit balances at their primary bank has declined to 28% from 44% a year ago, while the proportion with less than $1,000 in deposit balances has surged to 30% from 17% year over year. What’s more, 30% of primary bank customers have shifted, on average, 37% of their deposits to a secondary financial provider.
    • Back to branches: Overall branch usage has grown to just below pre-pandemic (2017-2019) levels, and branch visits are expected to continue at this pace. Nearly three-fourths (72%) of customers this year say they plan to use their bank’s branches at the same rate in the coming year, and 38% of customers describe branches as essential. Of note, customers under age 40 are more likely to say they expect to see their branch visits increase in the next 12 months (21%) than are customers over age 40 (12%).

    The study measures customer satisfaction with retail banks in 15 geographic regions. Highest-ranking banks and scores, by region, are as follows:

    California: U.S. Bank (667) (for a third consecutive year)

    Florida: Chase (686)

    Illinois: Wintrust Community Bank (708) (for a second consecutive year)

    Lower Midwest Region: BancFirst (697)

    Mid-Atlantic Region: Chase (697)

    New England Region: Bangor Savings Bank (723) (for a sixth consecutive year)

    North Central Region: Huntington (696)

    Northwest Region: Columbia Bank2 (688)

    New York Tri-State Region: Liberty Bank (718)

    Pennsylvania: Huntington (694)

    South Central Region: Bank of America (689) and Capital One (689) in a tie

    Southeast Region: Synovus Bank (702)

    Southwest Region: FirstBank (691) (for a third consecutive year)

    Texas: Frost (728) (for a 14th consecutive year)

    Upper Midwest: Chase (661) (for a third consecutive year)

    The U.S. Retail Banking Satisfaction Study, now in its 18th year, measures satisfaction across seven factors (in order of importance): trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.

    The 2023 study is based on responses from 101,400 retail bank customers of the largest banks in the United States regarding their experiences with their retail bank. It was fielded from January 2022 through January 2023. National banks are defined as banks with more than $300 billion in domestic deposits; regional banks are those with $65 billion-$299 billion in domestic deposits; and midsize banks are those with 45-100 branches nationally and at least 20 branches within a respective region.

    For more information about the U.S. Retail Banking Satisfaction Study, visit https://www.jdpower.com/business/retail-banking-study-1

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1JD 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.

    2As of March 20, 2023, Columbia Bank accounts and services have transitioned to Umpqua Bank.

     

  • 2023 U.S. Merchant Services Satisfaction Study

    Inflation Drives Down Small Business Satisfaction with Merchant Services as Cost and Fee Concerns Mount, JD Power Finds

    2023-01-31

    TROY, Mich.: 2 Feb. 2023 — Yes, there’s a lot of frustration when credit card readers do not respond to a customer’s dips, taps and swipes—or require a reset halfway through a transaction. According to the JD Power 2023 U.S. Merchant Services Satisfaction Study,SM released today, the small business owners who are fighting inflation and the significant costs and fees associated with those credit card readers have experienced sudden declines in customer satisfaction this year. The decline is driven by a combination of a tough economy, cost of service and chronic customer support difficulties with payment processing technology.

    “It’s tough out there for small businesses right now,” said John Cabell, managing director of payments intelligence at JD Power. “Nearly two-thirds—66%—of small business owners say inflation is having a ‘severe impact’ or ‘major impact’ on their businesses this year, and many are still fighting supply chain issues and challenges related to the COVID-19 pandemic. Accordingly, the costs and fees associated with payment processing solutions are driving significant declines in customer satisfaction among small business owners. Now is the time when merchant services providers really need to prove their value to small businesses by offering proactive service and support to address inflationary concerns and high-quality technology that works every time.”

    Following are key findings of the 2023 study:

    • Overall satisfaction falls, driven by cost and fees: Overall small business satisfaction with merchant services providers is 853 (on a 1,000-point scale), down 6 points from 2022. The decline is driven largely by lower satisfaction with cost of service, which accounts for 30% of the overall satisfaction score. On a bright note, businesses that use in-person mobile devices have faster account funding and significantly higher cost of service satisfaction than in 2022.
    • Technical issues plague end-user customers: According to small businesses, fewer than half (43%) of transactions are always completed without assistance when retail customers are using their credit or debit cards to pay for goods. Even in ecommerce transactions in which a physical credit card is not present, just 47% of transactions are always completed without some type of retail customer assistance. Most frequently cited problems include card being declined; tap/dip/swipe issues; frozen screens; and receipt malfunctions.
    • Restaurants and very-small businesses feeling the pain: The biggest declines in overall customer satisfaction with merchant services providers are in the restaurant industry and among small businesses with less than $1 million in annual revenue. Restaurant and food industry businesses in this segment tend to be smaller and say they receive less support from their merchant services provider when it comes to understanding payment processing and fee structure. They also have lower satisfaction with cost of service for in-person payment methods than with takeout/delivery ecommerce platforms.
    • Top customer service channels: Small businesses have higher levels of satisfaction and faster problem resolution when using mobile apps, video conferencing and merchant services provider websites than when they use email, phone calls to account representatives or interactive voice response (IVR).
       

    Study Ranking

    Bank of America ranks highest in merchant services satisfaction for a second consecutive year with a score of 886. Square (873) ranks second and PaySafe (867) ranks third.

    The overall satisfaction results of FIS, Fiserv, Global Payments, North American Bancard and PayPal reflect their corporate results, meaning they include the results of various sub-brands (e.g., Braintree, Clover, EPX, Heartland, Worldpay and others) that operate under the respective corporate brand names. Two of the banks in the study­—PNC Merchant Services and Wells Fargo Merchant Services—partner with Fiserv to provide merchant services to their small business clients. Fiserv also manages direct, standalone merchant services businesses that are distinct from these bank relationships.

    The 2023 U.S. Merchant Services Satisfaction Study is based on responses from 4,825 small business customers of merchant services providers. The study was fielded from September through November 2022.

    For more information about the U.S. Merchant Services Satisfaction Study, visit https://www.jdpower.com/business/merchant-services-satisfaction-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

     

  • 2022 U.S. Retail Banking Advice Satisfaction Study

    Retail Banks Miss the Mark on Financial Advice as Customer Expectations Grow, JD Power Finds

    2022-06-22

    crescent.seward

    TROY, Mich.: 23 June 2022 — Facing a toxic combination of rising household costs, a looming recession and record levels of debt, fully 59% of retail bank customers say they expect their financial institutions to help them improve their financial health. The problem is, according to the JD Power 2022 U.S. Retail Banking Advice Satisfaction Study,SM released today, very few banks are delivering on that expectation. In fact, overall customer satisfaction with the advice and guidance provided by national and regional banks is notably 30 points lower (on a 1,000-point scale) than a year ago.

    “The past few years have been tough on consumers in general, and many of the financial pressures they face may not subside all that quickly,” said Jennifer White, senior director for banking and payments intelligence at JD Power. “The data make it crystal clear: retail bank customers want guidance, but many aren’t receiving it. The tools banks have at their disposal aren’t always being used or, when they are, they are not used effectively. Neither banks nor their customers benefit from this dynamic. If banks don’t begin to make more progress in making advice content resonate, they could be facing significant attrition risk.”

    Following are key findings of the 2022 study:

    • Less frequent, lower quality guidance contributes to seismic drop: Overall satisfaction with the advice and guidance provided by retail banks has fallen to 601, down a significant 30 points from 2021. The downward movement can be seen across all attributes of satisfaction, but the largest declines are in customer perceptions of the frequency of advice/guidance about financial products and/or financial needs and quality of advice/guidance. All of this occurs despite the view from retail bank customers that financial firms should be helping them improve their financial situation, evident across different age groups and personal financial health categories.
    • Less advice recalled: Many banks may be trying to meet their customers’ advice needs yet recall of specific advice content is down. Nearly two-thirds (63%) of customers this year say they received advice two or more times in categories including financial planning; investment and retirement; savings, tips and information; or banking services. This is down from 70% a year ago. Advice related to saving and tips and information declines the most compared with 2021. The only category of advice not to see a decline is borrowing and housing.
    • Bank customers feeling financially vulnerable: Using respondent-cited data on spending/savings ratio, credit worthiness and safety-net items such as insurance coverage, JD Power creates a measure of customer financial health, placing customers on a continuum from healthy to vulnerable. Just 47% of bank consumers who have received advice fall into the financially healthy category. The remaining 53% are categorized as either vulnerable (28%), overextended (16%) or stressed (9%).
    • Moving forward: Retail bank customers want advice and guidance. When two or more instances of advice are recalled by customers, overall satisfaction increases 52 points. But a cookie-cutter approach will not suffice. Advice and guidance must be personalized to the specific customer, delivered to the right person at the right time. When advice is tailored to meet customers’ specific needs, satisfaction is even higher. Customers who receive advice just once that is personalized have higher satisfaction (697) than those who receive advice on five or more topics that is not personalized (583).

     

    Study Ranking
    Capital One     ranks highest in customer satisfaction with retail banking advice with a score of 629. Citibank (620) ranks second and Bank of America (618) ranks third.

    The 2022 U.S. Retail Banking Advice Satisfaction Study includes responses of 5,177 retail bank customers in the United States who received any advice/guidance from their primary bank regarding relevant products and services or other financial needs in the past 12 months. The study was fielded in January-February 2022. In addition to bank financial advice ratings, the study also provides financial health support index benchmarking data evaluating banks’ and credit card issuers’ proficiency in delivering financial support to customers.

    Top-performing banks in the banking financial health support index are (in alphabetical order): Bank of America, Capital One, Chase, Huntington and U.S. Bank. Top-performing credit card providers in the credit card financial support index are (in alphabetical order): American Express, Bank of America, Discover, Fifth Third Bank, PNC and U.S. Bank.

    For more information about the U.S. Retail Banking Advice Satisfaction Study, visit
    https://www.jdpower.com/business/financial-services/us-retail-banking-advice-satisfaction-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

     

  • 2022 U.S. Banking and Credit Card Mobile App Satisfaction Studies

    Customer Satisfaction with Bank and Credit Card Digital Experience Declines, JD Power Finds

    2022-06-01

    crescent.seward

    TROY, Mich.: 2 June 2022 — Many retail bank and credit card customers are financially stressed, and they want their bank and credit card providers to recognize that and help them manage their finances accordingly via their websites and mobile apps. However, when it comes to delivering that level of personalization through high-touch digital channels, most banks and credit card providers are missing the mark. According to a series of recent studies of bank and credit card mobile app and online users, released today by JD Power, overall satisfaction with most digital channels has declined as usage has increased.

    The studies—JD Power 2022 U.S. Banking Mobile App Satisfaction Study,SM 2022 U.S. Online Banking Satisfaction Study,SM 2022 U.S. Credit Card Mobile App Satisfaction StudySM and 2022 U.S. Online Credit Card Satisfaction StudySM—track overall customer satisfaction with banking and credit card providers’ digital offerings.

    “We’re seeing a lot of volatility in customer satisfaction scores in the digital banking and credit card space driven by a combination of heightened customer expectations for what a digital experience should look like,” said Jennifer White, senior consultant for banking and payment intelligence at JD Power. “Based on their experiences with other consumer apps and websites that anticipate their needs and offer a highly personalized customer experience, bank and credit card customers are expecting more from their digital solutions. The tough economic climate has amped up the urgency of those expectations.”

    Following are some key findings of the 2022 studies:

    • Overall satisfaction declines across nearly all segments: While satisfaction increases slightly (+5 points on a 1,000-point scale) for national bank websites, satisfaction declines among national bank mobile apps; credit card mobile apps; credit card websites; and regional bank mobile apps and websites. Satisfaction declines the most for national banking apps, by 17 points.
    • Financial health[1] becomes a serious issue: In less than one year, the percentage of consumers defined as “financially healthy” has dropped 10 percentage points to 43% from 53%. Meanwhile, the percentage of consumers identified as “financially vulnerable” has increased to 32% from 25%. Overall retail banking customer satisfaction scores are 113 points lower, on average,  among financially vulnerable customers than among financially healthy customers.
    • Digital solutions missing the mark on personalization: Among retail bank customers who visit their bank’s branch, 73% say they have a personal relationship with that bank. Among those who primarily use the bank’s digital channels, that percentage falls to 53%.
    • Spending and budgeting tools have positive effect on customer satisfaction: One bright spot in the studies: digital spending analysis and budgeting tools are associated with a significant increase in customer satisfaction across all segments. However, utilization of these tools remains flat with just 27-38% of bank and credit card customers currently using them.

    Study Rankings

    Capital One ranks highest in banking mobile app satisfaction among national banks, with a score of 868. Chase (855) ranks second and Wells Fargo (846) ranks third.

    Capital One ranks highest in online banking satisfaction among national banks, with a score of 861. Chase (858) ranks second and Bank of America (852) ranks third.

    Discover ranks highest in credit card mobile app satisfaction, with a score of 876. Capital One (875) ranks second and Bank of America (868) ranks third.

    Discover ranks highest in online credit card satisfaction, with a score of 864. Bank of America (853) ranks second, while American Express (851) Capital One (851) and Chase (851) rank third in a tie.

    Huntington ranks highest in banking mobile app satisfaction among regional banks, with a score of 868. Santander (855) ranks second and Fifth Third Bank (848) ranks third.

    Regions Bank ranks highest in online banking satisfaction among regional banks, with a score of 880. Fifth Third Bank (849) ranks second and Huntington (839) ranks third.

    The 2022 U.S. Banking Mobile App Satisfaction, U.S. Online Banking Satisfaction, U.S. Credit Card Mobile App Satisfaction and U.S. Online Credit Card Satisfaction studies measure overall satisfaction with banking and credit card digital channels based on four factors: navigation; speed; visual appeal; and information/content. The studies are based on responses from 16,132 retail bank and credit card customers nationwide and were fielded from February through April 2022.

    To learn more about these studies, visit https://www.jdpower.com/business/resource/us-banking-and-us-credit-card-mobile-app-satisfaction-studies.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

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

     

  • 2022 U.S. Direct Banking Satisfaction Study

    Established Direct Banking Brands Flex Their Digital Banking Muscle, According to JD Power

    2022-05-11

    crescent.seward

    Direct banks—those branchless, digital alternatives to traditional retail banks—continue to grow in popularity. But instead of replacing incumbents, the new model has given many established financial brands an opportunity to shine with new customers. According to the JD Power 2022 U.S. Direct Banking Satisfaction Study,SM released today, forging personal relationships through digital channels and delivering superior customer service have helped brands such as Charles Schwab, Discover and American Express become direct banking powerhouses.

    “Today, 27% of banking customers in America use an online-only bank,” said Paul McAdam, senior director of banking and payments intelligence at JD Power. “As so much of our lives continue to shift to digitally based providers, direct banks have been in prime position to gain market share and mindshare by delivering around-the-clock access, along with products that have attractive fee structures and interest rates. Increasingly, we’re seeing the top-performing brands get the personalization formula right by helping customers reduce banking fees and grow their money, and by showing that they’re available to help customers in challenging financial times.”

    Following are some key findings of the 2022 study:

    • Big financial brands get the direct bank formula right: Among direct banking customers, satisfaction with their checking and savings accounts is high. A large majority of checking and savings customers (88%) say their direct bank is easy to do business with and 85% say their accounts do not have hidden fees. Only 6% of checking and savings customers say their direct bank does not put the customer’s interests first. Big brands American Express, Charles Schwab Bank, Discover Bank, Ally Bank and Capital One are tightly clustered at the top of the rank charts.
    • Customer service matters: Although direct banks have always been prized for their easy-to-access, self-service nature, customer service (via phone and online chat/email) is a key driver of customer satisfaction. Among checking and savings customers, 59% say they have never had a problem or complaint with their direct bank. Among customers who experienced a problem/complaint in the past 12 months, 83% say it was convenient to reach customer service and 88% say their most recent problem was resolved.
    • Supporting customers in tough economic times: The key performance indicator with the greatest influence on overall direct bank customer satisfaction is the customer perception that their bank completely supports them in challenging times. When direct banks meet that criteria, satisfaction among checking account customers rises 204 points (on a 1,000-point scale) and satisfaction among savings account customers rises 186 points.
    • Neobanks gain traction with fee-sensitive customers, but satisfaction varies: Neobanks—those online-only banking providers without federal banking charters—continue to gain customers who tend to be younger, less financially secure and more sensitive to banking fees. Overall, neobanks lag direct banks across most key factors evaluated in the study. However, the areas in which neobanks outperform direct banks are related to personalization and providing innovative technology.

    Study Rankings

    Charles Schwab Bank (715) and Discover Bank (715) rank highest in overall satisfaction in a tie among checking providers. Ally Bank (709) ranks third. The segment average is 701.

    American Express ranks highest in overall satisfaction among savings providers with a score of 718. Discover Bank (717) ranks second and Charles Schwab Bank (713) ranks third. The segment average is 704.

    The U.S. Direct Banking Satisfaction Study, now in its sixth year, was redesigned for 2022. The study measures overall satisfaction with direct bank and neobank checking and/or savings/money market products based on seven factors (in alphabetical order): customer service; ease of moving money; helps grow money; level of trust; managing account via mobile app; managing account via website; and reduce banking fees. The study defines direct banks as online/branchless institutions with federal banking charters, with either the Federal Reserve Board, the Office of the Comptroller of the Currency (OCC) or the Federal Deposit Insurance Corporation (FDIC) as their primary regulator.

    To learn more about the U.S. Direct Banking Satisfaction Study, visit
    https://www.jdpower.com/business/resource/us-direct-banking-satisfaction-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

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