Category: Consumer Lending|Financial ServicesUnited States

Consumer Loan Satisfaction Stagnant as Financial Health of Customers Declines, JD Power Finds

2025-05-14

jillian.breska

TROY, Mich.: 15 May 2025 — In a volatile economic environment in which customer satisfaction with most lending products such as mortgages and automotive loans is surging, overall customer satisfaction with personal loans is largely flat. According to the JD Power 2025 U.S. Consumer Lending Satisfaction Study,^SM released today, this stagnant performance highlights the industry’s failure to move beyond basic transactions to address the unique and changing needs of today’s personal loan customers—many of whom have seen their financial health deteriorate considerably during the past year.¹

“The primary purpose of a consumer loan is to be a financial management tool, to help solve challenges customers are having with revolving credit card debt or unforeseen expenses,” said Bruce Gehrke, senior director of wealth and lending intelligence at JD Power. “So, when we see that customer satisfaction with these products is stagnating at a time when the financial health of the average customer is declining sharply, it raises questions about whether or not consumer loans are really hitting the mark for what customers need right now.”

Following are some key findings of the 2025 study:

• Satisfaction flat as financial health deteriorates: Overall customer satisfaction with personal loans is 704 (on a 1,000-point scale), up 2 points from the 2024 study. Meanwhile, just 25% of personal loan customers are classified as financially healthy this year, down from 27% in 2024 and 33% in 2023. During that same period, the percentage of customers identified as financially vulnerable has increased to 47%, up from 45% in 2024 and 40% in 2023.
• Data security is critical for delivering high satisfaction: On average, overall customer trust scores 203 points higher when personal loan customers perceive that their lender has a secure lending process that protects their personal information.
• Proactive fee communication reduces problems: Of personal loan customers who experienced a problem, 28% cited an unexpected fee, making it the most commonly cited problem. When fee information is disclosed after the loan approval, the incidence of unexpected fees surges to 43%. Similarly, overall satisfaction scores are highest (753) when fees are disclosed prior to an application and lowest (701) when they are disclosed after approval.

Study Ranking

American Express ranks highest among personal loan lenders in overall customer satisfaction for a third consecutive year, with a score of 768. Citi (751) ranks second and Discover (734) ranks third.

The U.S. Consumer Lending Satisfaction Study measures overall customer satisfaction based on performance in seven core dimensions on a poor-to-perfect rating scale. Individual dimensions measured are (in order of importance): loan met borrowing needs; level of trust; experience obtaining loan; makes it easy to do business with; people; digital channels; and kept informed about loan. The study is based on responses from 5,802 personal loan customers and was fielded from March 2024 through March 2025.

For more information about the U.S. Consumer Lending Satisfaction Study, visit https://www.jdpower.com/business/consumer-lending-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 55 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.

 

Digital Engagement Paramount to Customer Satisfaction, Reducing Cost to Serve, JD Power Finds

2023-11-08

jillian.breska

TROY, Mich.: 9 Nov. 2023 — With macroeconomic conditions continuing to make it difficult for auto lenders to maintain or increase profitability, all eyes have turned to digital channels as the most cost-effective and efficient means to do so. According to the JD Power 2023 U.S. Consumer Financing Satisfaction Study,^SM released today, customers who are digitally engaged have significantly higher levels of overall satisfaction, greater Net Promoter Scores^®1 and have a lower cost to serve than customers using traditional channels to manage their accounts.

“In a challenging market, lenders’ focus turns to cost containment and reduction,” said Patrick Roosenberg, senior director of automotive finance intelligence at JD Power. “The key is to transition the traditional customer experience to a digital relationship. Customers who use their lender’s mobile apps, website and signup for alerts to manage their account are significantly more satisfied and have a lower cost to serve. It’s a win-win situation for both the lender and their customer.”

Following are key findings of the 2023 study:

• Digital engagement is key to customer advocacy: Auto loan brand advocates, or promoters, are 37% more likely to view billing statements via their lender’s app; 38% more likely to pay their bill digitally; 59% more likely to receive digital account alerts; and 48% more likely to contact customer care via the lender’s app than brand detractors.
• Data security among top concerns for digital customers: Ensuring that personal information is protected is paramount for lenders looking to build digital engagement. One of the major barriers to digital adoption among auto loan customers is that their personal data is secure.
• Paying bills digitally drives customer satisfaction: Customers who make their auto loan payments via their lender’s mobile app have an average overall satisfaction score of 876 (on 1,000-point scale), which is 66 points higher than customers who pay via check.

Study Rankings

BMW Financial Services ranks highest in customer satisfaction among luxury brands, with a score of 876. Lexus Financial Services (875) ranks second and Chase Automotive Finance (870) ranks third.

Capital One Auto Finance ranks highest among mass market, with a score of 877. Ford Credit (867) ranks second and NMAC (865) ranks third.

The U.S. Consumer Financing Satisfaction Study measures overall auto financing customer satisfaction in five factors (listed alphabetically): account management and communication; application/approval process; billing and payment process; customer orientation process; and customer service experience. The study was fielded in July-August 2023 and is based on responses from 11,012 customers who financed a new or used vehicle through a loan or lease within the past three years.

For more information about the U.S. Consumer Financing Satisfaction Study, visit https://www.jdpower.com/business/resource/us-consumer-financing-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

¹Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Customer Satisfaction with Mortgage Lenders Rises but Signs Point to Challenges Ahead, JD Power Finds

2023-11-13

jillian.breska

 

TROY, Mich.: 16 Nov. 2023 — The average 30-year mortgage rate in the United States reached 7.79%¹ in October, the highest level since November 2000, forcing homebuyers and their lenders to get creative when it comes to finding ways to finance their home. According to the JD Power 2023 U.S. Mortgage Origination Satisfaction Study,^SM released today, many lenders have had to pivot in the past year to meet the needs of a purchase-heavy market and have successfully delivered on key elements of the borrowing experience, resulting in significantly higher overall customer satisfaction.

That said, this improved service level could be hard for most to maintain as the effect of aggressive cost-cutting is starting to take a toll and market conditions are unlikely to improve in the foreseeable future.

“Two years ago, the mortgage market was an ultra-low-rate goldmine in which lenders were making big profits and the primary challenge was keeping up with demand,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at JD Power. “It’s the opposite today with high rates and a lack of affordable homes leading to a limited number of eligible borrowers. To effectively compete in the future, lenders need to set themselves apart by focusing on addressing customers’ unique challenges and meeting their needs rather than selling a product.”

Following are some key findings of the 2023 study:

• Overall satisfaction rises despite record high rates: Overall customer satisfaction with mortgage lenders is 730 (on a 1,000-point scale), up 14 points from a year ago, even as the average mortgage rate has climbed to its highest level in 23 years and overall lending volume has declined.
• Beyond rates: Almost one-third (31%) of mortgage customers say they selected their lender solely because they offered the lowest interest rate. More than two-thirds (69%) chose lenders for other reasons, such as personalized service and ability to help navigate the loan market.
• Lenders engaging earlier but more is wanted: Many lenders are finding that by engaging with borrowers earlier in their shopping journey, they can retain those customers throughout the process. Overall, 38% of mortgage customers say they started working with a lender when they first thought about buying.  The percentage of borrowers who say their loan rep should have been more involved has risen to 40% from just 29% a year ago.
• Struggling first-time homebuyers: While overall customer satisfaction with the lending process is up this year, the increase has been driven primarily by repeat buyers. Overall satisfaction among first-time homebuyers, however, is down significantly. This reflects the complex lending environment and considerable challenges customers are facing.

“The value equation for mortgage originators has shifted from instant approvals and lightning-fast processing to helpful advice and creative problem solving,” said Bruce Gehrke, senior director of wealth and lending intelligence at JD Power. “Lenders that manage this transition well have a great opportunity to build customer goodwill and limit defection by showing customers they understand their unique needs and the challenges of the current market.”

Study Ranking

Fairway Independent Mortgage Corporation ranks highest in mortgage origination satisfaction, with a score of 776. Rocket Mortgage (759) ranks second and Citi (756) ranks third.

The U.S. Mortgage Origination Satisfaction Study measures overall customer satisfaction based on performance in six factors (in alphabetical order): communication; digital channels; level of trust; loan offering meets my needs; made it easy to do business with; and people. The 2023 study was fielded from November 2022 through August 2023 and is based on responses from 9,191 customers who originated a new mortgage or refinanced within the past 12 months.

For more information about the U.S. Mortgage Origination Satisfaction Study, visit https://www.jdpower.com/business/financial-services/us-mortgage-origination-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

¹Freddie Mac

 

 

Uncertainty and Financial Challenges Driving Down Homeowner Satisfaction with Mortgage Servicers, JD Power Finds

2023-07-24

jillian.breska

TROY, Mich.: 27 July 2023 — With the average rate on a 30-year fixed-rate mortgage currently sitting at 6.8%, the highest level since November 2022¹ and costs for everything from home insurance to maintenance and repair to groceries still elevated, mortgage servicer customers are feeling strained. According to the JD Power 2023 U.S. Mortgage Servicer Satisfaction Study,^SM released today, that combination of reduced financial health,² an increased rate of mortgage transfers and a rise in reported account problems is driving a significant decline in customer satisfaction.

“The past year has been an incredibly challenging time for both customers and the mortgage industry—and  there remains a lot of uncertainty,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at JD Power. “So far, the worst-case scenarios haven’t come to bear but mortgage servicers need to ensure they aren’t ignoring key advanced indicators. We have seen the percentage of financially unhealthy mortgage customers rise to 54% from 48% during the past year. Servicers need to ensure they are building trust and engaging with their customers so they can effectively stay ahead of potential problems when customers face financial hardships. When customers lack trust in their servicer, the costs to serve increases materially because those customers will gravitate to more costly service channels and they are at higher risk to take their complaints beyond the company.”

Following are some key findings of the 2023 study:

• Mortgage servicers cannot ignore customers’ financial health: The proportion of mortgage servicing customers identified as financially unhealthy is 54% this year. Overall satisfaction among financially unhealthy customers is 107 points lower than among customers in the financially healthy category. Default risk is also up 4% this year among mortgage customers.
• Rise in mortgage transfers exacerbates year-over-year decline in customer satisfaction: Overall customer satisfaction with mortgage servicers is 601 (on a 1,000-point scale), down 6 points from 2022. The drop is most significant among the 37% of customers who had their mortgage transferred to a servicer that they did not choose. Overall satisfaction scores are 119 points lower when customers do not choose their servicer.
• Problem resolution suffers: While problem incidence hasn’t had a major shift this year, overall customer satisfaction with problem resolution declines 10 points. Customers who say their most recent problem contact was payment- or escrow-related has increased to 43% from 36% in 2022. At the same time, customers who say they contacted their servicer about their problem has increased to 19% from 17% year over year and the number of customers who say they had a problem that was not resolved has increased to 20% from 15% a year ago.
• Advice for mortgage customers: Mortgage servicers want to help customers when they are under financial stress or having problems with their account. The key for customers is to notify their mortgage servicer as early as possible and to provide as much detail as they can to get the best guidance.

“It’s at times like this, when market conditions and personal financial health are strained, that great customer experiences can have the biggest influence on loyalty and advocacy,” said Bruce Gehrke, senior director of lending intelligence at JD Power. “Servicers that recognize proactive customer outreach and effective problem resolution as opportunities to build stronger client relationships—rather than obstacles to overcome—are in a great position to differentiate themselves and set a new standard for the industry to follow.”

Study Ranking

Rocket Mortgage ranks highest among mortgage servicers with a score of 686. Guild Mortgage (668) ranks second and Chase (665) ranks third.

The U.S. Mortgage Servicer Satisfaction Study, formerly known as the U.S. Primary Mortgage Servicer Satisfaction Study, measures customer satisfaction with the mortgage servicing experience in six factors (in order of importance): level of trust; makes it easy to do business with; keeps me informed and educated; people; resolving problems or questions; and digital channels. The study is based on responses from 11,325 customers who have been with their current mortgage loan servicer for at least one year. The study was fielded from October 2022 through May 2023.

For more information about the U.S. Mortgage Servicer Satisfaction Study, visit https://www.jdpower.com/business/financial-services/us-mortgage-servicer-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

¹Freddie Mac

²JD 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.