Category: Financial ServicesUnited States

Bank and Credit Card Apps and Websites Struggle to Stand Out, JD Power Finds

2025-05-28

jillian.breska

TROY, Mich.: 29 May 2025 — As mobile apps and websites have increasingly become the primary customer touch point for the nation’s bank and credit card brands, it’s getting harder to tell them apart from one another, given the similarity in core capabilities. According to a series of recent studies of bank and credit card mobile app and online users, released today by JD Power, the gap between best-performing and lowest-performing apps and websites has shrunk to its lowest level to date, providing customers a highly consistent but unmemorable digital experience from one brand to the next.

The studies—JD Power 2025 U.S. Banking Mobile App Satisfaction Study;^SM JD Power 2025 U.S. Online Banking Satisfaction Study;^SM JD Power 2025 U.S. Credit Card Mobile App Satisfaction Study;^SM and JD Power 2025 U.S. Online Credit Card Satisfaction Study^SM—track overall customer satisfaction with banking and credit card providers’ digital offerings.

“We’re seeing the digital customer experience for banking and credit card apps and websites plateau as most players have refined their digital properties around a well-defined set of proven industry best practices,” said Sean Gelles, senior director of banking and payments intelligence at JD Power. “However, as the consumer technology landscape rapidly evolves with generative artificial intelligence and other advanced tools becoming part of consumers’ everyday lives, banks and credit card companies are under growing pressure to innovate and elevate digital offerings.”

Following are some key findings of the 2025 studies:

• Overall satisfaction improves: When it comes to the foundational basics of the digital customer experience, such as seamless and speedy log-in, modern appearance and easy navigation, the majority of bank and credit card mobile apps and websites deliver a positive, if somewhat homogenous, customer experience. Overall satisfaction with U.S. national banking apps is 669 (on a 1,000-point scale), up 18 points from 2024, and overall satisfaction with credit cards is 659, up 10 points from 2024.
• Multifactor authentication finds its groove: Once considered a cumbersome hinderance to the log-in process, multifactor authentication has now become a key driver of customer satisfaction. Among national banking app users, overall customer satisfaction is 16 points higher when customers use multifactor authentication prior to log-in. This is likely the result of increased focus on security among customers and improvements in the authentication process, which have made it easier to log-in using multifactor authentication.
• An opening for AI: Virtual assistant utilization and customer satisfaction both decline in the 2025 studies. While virtual assistants are increasingly adopted by banks, many have fallen short of customer expectations due to limited conversational capabilities and narrow functionality. Although some banks and credit card companies are beginning to integrate AI and generative technologies, these assistants remain far less advanced than some state-of-the-art models with which customers are becoming increasingly accustomed.

“We’re seeing customer satisfaction improving with banking and credit card apps and websites this year because of technical enhancements and speed,” said Jon Sundberg, director of digital solutions at JD Power. “There is no question these digital tools have become more user-friendly, but utility alone is not the only factor in the overall digital experience. To differentiate and keep pace with ever-growing consumer expectations, banks and credit card companies are going to need to innovate further and break new ground on the complete digital experience.”

Study Rankings

Bank of America ranks highest in banking mobile app satisfaction among national banks, with a score of 678. PNC (675) ranks second and Chase (673) ranks third.

Capital One ranks highest in online banking satisfaction among national banks, with a score of 684. Chase (681) ranks second and Bank of America (670) ranks third.

American Express ranks highest in credit card mobile app satisfaction for a second consecutive year, with a score of 687. Wells Fargo (676) ranks second and Discover (674) ranks third.

American Express ranks highest in online credit card satisfaction for a second consecutive year, with a score of 704. Wells Fargo (693) ranks second and U.S. Bank (690) ranks third.

Fifth Third Bank ranks highest in banking mobile app satisfaction among regional banks, with a score of 667. Santander (666) ranks second and M&T Bank (660) ranks third.

Regions Bank ranks highest in online banking satisfaction among regional banks for a second consecutive year, with a score of 683. Huntington (683) ranks second and Citizens Bank (667) ranks third.

The U.S. Banking Mobile App Satisfaction Study; U.S. Online Banking Satisfaction Study; U.S. Credit Card Mobile App Satisfaction Study; and U.S. Online Credit Card Satisfaction Study each measure overall satisfaction with banking and credit card digital channels based on four factors: navigation; speed; visual appeal; and information/content. The 2025 studies are based on responses from 16,781 retail bank and credit card customers nationwide and were fielded from January through March 2025.

To learn more about these studies, visit https://www.jdpower.com/business/digital-banking-and-credit-card-studies-platform.

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

 

As Personal Financial Health Deteriorates, More Customers Look to Retail Banks for Help Navigating Everyday Economic Challenges, JD Power Finds

2025-05-27

jillian.breska

TROY, Mich.: 28 May 2025 — More U.S. retail bank customers than ever are having trouble paying their bills on time, are unable to cover six months or more of living expenses and are experiencing deteriorating credit, with 43% now falling into the financially vulnerable category,¹ up from 27% five years ago. Against this backdrop of deteriorating financial health, the JD Power 2025 U.S. Retail Banking Advice Satisfaction Study,^SM released today, finds customer interest in receiving advice and guidance from their retail bank is on the rise.

“Buzzwords like personalization and tailored advice get thrown around quite a bit among banking professionals, but this is much bigger than a marketing exercise,” said Jennifer White, senior director for banking and payments intelligence at JD Power. “Bank customers—particularly younger ones—are telling their banks they need help right now. This presents a once-in-a-lifetime opportunity for retail banks to build valuable, enduring relationships, but they need to act quickly. Between growing uncertainty around the current economy and fears about account security and fraud, customers cannot afford to wait for their bank to figure out an advice strategy. Banks need to start delivering helpful guidance today.”

Following are some key findings of the 2025 study:

• Customer interest in bank advice rising: More than one-fourth (26%) of bank customers say they are “very interested” in receiving bank advice or guidance, up from just 19% in 2021. The desire for bank advice is particularly strong among customers under age 40, as more than one-third (36%) of such bank customers are currently seeking advice.
• Customers actively seek direction on how to improve finances: The top four topics on which customers are actively seeking guidance are focused on immediate concerns and fear of future financial challenges. Examples include quick tips and information to help improve their financial situation; ways to help save for emergencies; quick tips to help stick to a budget; and saving for a goal or large purchase.
• Many existing advice services miss the mark: One-fifth (20%) of bank customers have actively researched budget management services—which may help them meet their financial goals and education on money management/financial wellness—but never ended up using them.
• Advice recall improves significantly: Overall customer satisfaction with retail banking advice is flat year over year but recall of financial advice improves dramatically. This year, 46% of retail bank customers recall receiving financial advice, up from 42% in 2024 and 34% in 2021.

Study Ranking

Bank of America ranks highest in customer satisfaction with retail banking advice with a score of 621 (on a 1,000-point scale). U.S. Bank (618) ranks second and Chase (617) ranks third.

The U.S. Retail Banking Advice Satisfaction Study includes responses of 8,903 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. It measures customer satisfaction with retail bank advice/guidance based on performance in five core dimensions on a poor-to-perfect rating scale. Individual dimensions measured are (in order of importance): quality; concern for needs; relevancy; clarity; and frequency. The study was fielded from March 2024 through March 2025.

In addition to bank financial advice ratings, the study also provides financial health support index benchmarking data that evaluates proficiency of banks and credit card issuers in delivering financial support to customers including such services as helping customers make better financial decisions or helping them meet savings, creditworthiness or budgeting goals. 

Top-performing banks in the banking financial health support index are (in alphabetical order): Bank of America, Chase, Capital One, Fifth Third Bank, First Citizens Bank, Huntington, PNC, Regions Bank, TD Bank 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, Chase, Discover, Fifth Third Bank, PNC, U.S. Bank and Wells Fargo.

For more information about the U.S. Retail Banking Advice Satisfaction Study, visit https://www.jdpower.com/business/financial-health-and-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 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.

 

Auto Finance Websites and Mobile Apps Struggle with Customer Experience and Effective Two-Way Communication, JD Power Finds

2024-12-10

jillian.breska

TROY, Mich.: 12 Dec. 2024 — Auto lenders that deliver a strong digital customer experience via their websites and mobile apps enjoy much higher levels of digital self-service and have customers who are significantly more satisfied than those of other lenders. However, according to the JD Power 2024 U.S. Automotive Finance Digital Experience Study,^SM released today, 40% of automotive finance customer digital experiences do not meet the most basic standards for modern design, problem-free operation and ease of navigation.

“Lenders have a huge opportunity to build customer loyalty and advocacy by fostering streamlined, two-way communication, but far too many are treating their digital properties as a transactional portal that only exists for bill pay,” said Patrick Roosenberg, senior director of automotive finance intelligence at JD Power. “These digital properties should be seen as two-way portals to communicate with customers on a month-to-month basis, while improving customer satisfaction and reducing cost to serve.”

Following are some key findings of the 2024 study:

• Just 2% of websites and apps deliver comprehensive digital experiences: Overall, just 60% of customer interactions with automotive finance websites and mobile apps meet the basic criteria for a foundational user experience (i.e., websites and apps are modern in their appearance and have no issues with log-in and work reliably). Of those, 27% of digital experiences meet key criteria for findable information and navigation, and just 2% meet the criteria for delivering a valuable user experience that includes the ability to verify payoff amounts, view account balance and select payment amount.
• Auto finance lags other industries on digital experience: When compared with self-service websites and mobile apps in similar industries, auto finance digital experiences substantially lag. While just 60% of auto finance digital properties deliver a foundational user experience, when compared with other industries in which JD Power conducts studies, that percentage jumps to 73% among wealth management digital offerings, 79% among retirement plan digital offerings and 83% among insurance digital offerings.
• Non-captive apps outperform captive apps: Customers using a non-captive app have a substantially more satisfying digital experience than those using a captive app. This is partially due to non-captive apps having the mobile banking framework as a foundation.

Study Ranking

GM Financial ranks highest in digital experience satisfaction among captive lenders, with a score of 710. BMW Financial Services (706) ranks second and Lexus Financial Services (697) ranks third.

Chase Auto ranks highest in digital experience satisfaction among non-captive lenders, with a score of 715. Wells Fargo Auto (698) ranks second and Capital One Auto Finance (695) ranks third.

The U.S. Automotive Finance Digital Experience Study, now in its second year, evaluates customer satisfaction with auto finance websites and apps used to manage their accounts based on four criteria (in order of importance): visual appeal; information/content; navigation; and speed. The 2024 study is based on responses from 6,090 automotive finance customers who used their lender’s desktop website or mobile app. It was fielded in August-September 2024.

For more information about the U.S. Automotive Finance Digital Experience Study, visit https://www.jdpower.com/business/us-automotive-finance-digital-experience-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]
Shane Smith; East Coast; 424-903-3665; [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

 

Mortgage Lenders That Help Customers Navigate Tough Housing Market Reap Benefits, JD Power Finds

2024-11-08

jillian.breska

TROY, Mich.: 12 Nov. 2024 — Despite a September interest rate cut by the Federal Reserve, the average 30-year mortgage rate in the United States has been on the rise during the fourth quarter, reaching 6.9%[1] in November, its highest level since August. Persistently high rates, combined with steadily rising housing prices, have put a strain on mortgage customers, according to the JD Power 2024 U.S. Mortgage Origination Satisfaction Study,^SM released today. Some lenders have managed to turn those challenges into an opportunity to play a more hands-on advisory role with customers, earning high marks for customer satisfaction along the way. Other lenders have struggled.

“The variability in rates and higher costs for buyers increases the importance of understanding consumers’ individual situations,” said Bruce Gehrke, senior director of wealth and lending intelligence at JD Power. “Consistently, we’re seeing that lenders that play an active advisory role in helping their clients navigate the current market are earning significantly higher customer satisfaction, loyalty and advocacy scores than those that are treating mortgage lending as a transactional process.”

Following are some key findings of the 2024 study:

• Overall satisfaction declines following sharp increase in 2023: Overall customer satisfaction with mortgage lenders is 727 (on a 1,000-point scale), down 3 points from a year ago when mortgage customer satisfaction surged 14 points year over year. In the past year, mortgage lenders have noticeably trimmed their staffing levels, making it more challenging to deliver the same level of highly personalized customer service that drove the gains in customer satisfaction a year ago.
• Interpersonal relationships with local brand reps critical to satisfaction: The only factor showing gains in this year’s study is people, which has risen by a single point. The factors showing the biggest year-over-year declines in customer satisfaction are digital (-8 points); communication (-5); and loan offering met my needs (-5). In fact, when local brand representatives are directly involved in the mortgage origination process, overall satisfaction rises 40 points.
• Lender as advisor becomes key to navigating tough market: Lenders that actively advise clients throughout the lending process drive significantly higher customer satisfaction scores. The satisfaction score for trust among borrowers who strongly rely on the lender’s expertise to get through the borrowing process is 133 points higher than among those borrowers who do not strongly rely on the lender’s expertise.
• Timing is everything and earlier is better: Overall satisfaction is 41 points higher when lenders engage early with customers, connecting with them when they are first thinking about purchasing a home, compared with overall satisfaction when lenders get involved once customers are actively shopping. Satisfaction is 107 points lower when lenders get involved at the time customers are getting ready to apply for a mortgage.

Study Ranking

Prosperity Home Mortgage ranks highest in mortgage origination satisfaction, with a score of 772. Movement Mortgage (761) ranks second and Bank of America (760) 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 2024 study was fielded from August 2023 through September 2024 and is based on responses from 7,534 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 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

¹Source: Bankrate

 

Homeowners Satisfaction with Mortgage Servicers Rises—But Risks Loom, JD Power Finds

2024-07-23

jillian.breska

TROY, Mich.: 25 July 2024 — Mortgage servicers this year have successfully fought back the headwinds of persistently high interest rates and financial uncertainty to drive improvements in overall customer satisfaction, but significant risks loom on the horizon. According to the JD Power 2024 U.S. Mortgage Servicer Satisfaction Study,^SM released today, mortgage servicer efforts to improve digital experiences and streamline problem resolution have helped drive incremental improvements in customer satisfaction, but the overall financial health¹ of borrowers has declined sharply and an increasing number of borrowers are paying their bill after the due date.

“On the surface, mortgage servicers’ efforts to elevate their digital tools and customer service are offsetting challenging market conditions,” said Bruce Gehrke, senior director of lending intelligence at JD Power. “But digging a little deeper, the data shows early signs of potentially serious challenges for servicers in the future. A proverbial ‘canary in the coal mine’ is the financial health of borrowers, which has materially declined in the past few years. At the same time, most borrowers are facing rising escrow costs that result in their total monthly mortgage payment increasing. This means the industry has a growing number of at-risk customers facing higher costs, a group that tends to be a lot more expensive to service.”

Following are some key findings of the 2024 study:

• Financial health of borrowers declines sharply: Just 41% of borrowers are currently classified as financially healthy, down from 46% in 2023 and 52% in 2022. Conversely, the percentage of at-risk borrowers is now 19%, up from 17% in 2023. Overall satisfaction scores among financially unhealthy borrowers are, on average, 117 points lower than among financially healthy borrowers.
• Escrow costs rising and borrowers need guidance: Escrow costs—the fees typically rolled into a mortgage to pay annual property tax and homeowners insurance bills—are rising nationwide, with 56% of borrowers experiencing an increase in escrow costs this year. Overall satisfaction is 62 points lower (on a 1,000-point scale), on average, among those who experienced an escrow cost increase than among those who experienced no change.  Among those borrowers whose escrow costs increased, overall satisfaction is higher among those who say they had access to tools/information on escrow from their servicer than among those who say they were not aware of such tools.
• Overall satisfaction with mortgage servicers improves: The overall customer satisfaction score for mortgage servicers is 606, up 5 points from 2023. Improvements in problem resolution and satisfaction with digital channels are the primary drivers of this year’s higher scores.
• Controlling costs still a challenge: Self-service is key to keeping costs down. Although satisfaction with the look and feel of mortgage servicer websites and apps improves this year, borrowers say the phone is still the most likely customer service channel to drive a successful outcome and 29% of borrowers still considered this the easiest channel to use.  Among those who had a problem, just 49% say their initial contact was calling customer service.

Study Ranking

Rocket Mortgage ranks highest among mortgage servicers with a score of 713. Regions Mortgage (678) ranks second and Chase (676) ranks third.

The U.S. Mortgage Servicer Satisfaction Study measures customer satisfaction with the mortgage servicing experience in six dimensions (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 15,020 customers who have been with their current mortgage loan servicer for at least one year. The study was fielded from May 2023 through May 2024.

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 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.

 

Consumer Loan Satisfaction Strained by High Rates and Deteriorating Financial Health, JD Power Finds

2024-05-13

jillian.breska

TROY, Mich.: 16 May 2024 — With nearly three-fourths (73%) of consumer loan customers now categorized as financially unhealthy¹, up from 67% in 2023, lenders have their work cut out for them delivering products that meet customer needs in a persistently high interest rate environment. According to the JD Power 2024 U.S. Consumer Lending Satisfaction Study^SM, released today, customer satisfaction with consumer loans is highest among those with the highest levels of financial health and significantly lower among those who are overextended or financially vulnerable.

“Consumer loans are primarily used to consolidate higher-cost debts at a lower rate, but that’s a tough proposition when interest rates have remained so high for so long,” said Bruce Gehrke, senior director of wealth and lending intelligence at JD Power. “As a result, we’re seeing significantly lower levels of customer satisfaction among those who are most at-risk financially and arguably could benefit most from products that help them consolidate or reduce debts.”

Following are some key findings of the 2024 study:

• Returning to same lender correlated with financial health and satisfaction: More than three-fourths (79%) of customers who are financially healthy are likely to return for their next loan vs. only 55% of financially unhealthy customers. Overall satisfaction for financially healthy customers is 797 (on a 1,000-point scale) vs. 668 for unhealthy customers. However, financially unhealthy customers are more likely to need another loan and are a crucial source of new business. By delivering an experience that drives increased satisfaction for unhealthy customers, lenders will greatly increase their chances of continuing business.
• Satisfaction higher for customers with multiple products: On average, overall customer satisfaction scores are 68 points higher when consumer loan customers have multiple products, such as credit cards, savings accounts and other types of loans. However, the type of product does matter to the overall impression of the lender’s brand. Credit card customers see the lender as more profit focused whereas customers with other loans and accounts view the lender as more customer focused.
• Data security is critical for delivering high satisfaction: On average, overall customer satisfaction scores are 176 points higher when consumer loan customers believe that their lender has a secure lending process that protects their personal information.

Study Ranking

American Express ranks highest among personal loan lenders in overall customer satisfaction for a second consecutive year, with a score of 781. Discover (742) ranks second and Citi (730) ranks third.

The U.S. Consumer Lending Satisfaction Study was redesigned for 2024. It 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 4,387 personal loan customers and was fielded from January through March 2024.

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.

 

Years of Consolidation and No-Fee Trading Forces Online Brokerage Firms to Reexamine Their Value Equation, JD Power Finds

2024-04-03

jillian.breska

TROY, Mich.: 4 April 2024 — What has your online brokerage firm done for you lately? For most do-it-yourself (DIY) investors whose level of satisfaction with their brokerage firm has not budged despite significant stock market growth, the answer is unclear. According to the JD Power 2024 U.S. Self-Directed Investor Satisfaction Study,^SM released today, firms have struggled to differentiate and add value for DIY investors as the industry moves deeper into the no-fee future.

“Retail brokerages need to rethink their role in their clients’ lives and start to deliver clear, quantifiable value, particularly to younger investors,” said Craig Martin, executive managing director and head of wealth and lending intelligence at JD Power. “The one area where we are seeing increased demand across all categories of investors—even those historically characterized as strictly DIY—is for some level of personalized guidance and support. Right now, that personal connection is really missing at many firms.”

Following are key findings of the 2024 study:

• DIY investor satisfaction stagnates: Overall satisfaction among DIY investors this year is 708 (on a 1,000-point scale), up one point from 2023 and even with 2021. This lack of improvement amid a strong surge in stock market growth suggests that DIY investor satisfaction is no longer benefiting from the “halo effect” that typically comes with strong markets.
• Buy-and-hold investors become defection risk: Investor satisfaction is highest among DIY investors who are trading more actively. It is lowest among those who tend to use a buy-and-hold strategy, which can limit their ability to see the market recovery benefit or adjust their portfolio to take advantage of increased rates from products such as fixed income securities. This could put customer loyalty at risk for firms that cater to less active investors.
• Guidance and advice become critical: While satisfaction among DIY investors is flat, satisfaction among self-directed investors in the seeking guidance category improves 15 points in 2024, signaling the importance of personalized guidance in driving overall investor satisfaction.

“Trust is going to be a key variable for brokerage firms as they fight to attract growing ranks of Millennial[1] and Gen Z do-it-yourself investors,” said Kapil Vora, senior director of wealth intelligence at JD Power. “Right now, trust levels are flat and until firms find ways to better connect with investors, they are going to struggle to forge the strong relationships they need to differentiate and add value beyond just digital prowess.”

Study Rankings

Fidelity (708) ranks highest in self-directed investor satisfaction among investors seeking guidance. Charles Schwab (707) ranks second, while TD Ameritrade (702) and Vanguard (702) each rank third in a tie.

TD Ameritrade (722) ranks highest in self-directed investor satisfaction among do-it-yourself investors. Charles Schwab (717) and Vanguard (717) each rank second in a tie.

The U.S. Self-Directed Investor Satisfaction Study, now in its 22^nd year, evaluates key satisfaction drivers and firm performance among both investors seeking guidance (those who don’t have a dedicated financial advisor but do have access to interact with a registered investment professional) and true do-it-yourself investors (those who do not interact with professional advisors). The study measures self-directed investors’ satisfaction with their investment firm based on performance in seven factors (in order of importance): trust; digital channels; the ability to manage wealth how and when I want; products and services; value for fees; people; and problem resolution.

The 2024 study is based on responses from 9,875 investors who make all their investment decisions without the counsel of a full-service dedicated financial advisor. It was fielded from January 2023 through January 2024.

For more information about the U.S. Self-Directed Investor Satisfaction Study, visit https://www.jdpower.com/business/wealth-management-platform.  

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 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.

 

Satisfaction Rises among Clients Using Financial Advisors, but Lack of Loyalty among More Affluent Millennials Sets Stage for Future Challenges, JD Power Finds

2024-03-21

jillian.breska

TROY, Mich.: 21 March 2024 — A rising tide lifts all boats, and a strong stock market makes investors feel good about their financial advisors, but what happens when the tide recedes? That’s the central question explored in the JD Power 2024 U.S. Full-Service Investor Satisfaction Study,^SM which finds a significant 8-point (on a 1,000-point scale) year-over-year increase in investor satisfaction. However, the study also finds pockets of weakness, notably among the rising ranks of affluent Millennial¹ investors, with 36% of them saying they “probably will” or “definitely will” switch firms in the next year.

“It is conventional wisdom that investor satisfaction tracks closely with stock market performance, but for advisors who want to build long-term, sustainable relationships that can weather good markets and bad, they will need to build a deeper level of engagement with clients,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at JD Power. “This is especially true among the younger segment of investors who show lower levels of client loyalty than investors in other generational groups. Advisors will need to adjust their approach to meaningfully connect with younger investors or risk a major outflow of assets in coming years.”

Following are some key findings of the 2024 study:

• Full-service advisor satisfaction rises on strong markets: Overall investor satisfaction with full-service investment advisors is 735, which is up 8 points from a year ago. This performance is consistent with the long-term trend of investor satisfaction moving in concert with stock market performance and illustrates a potential risk factor for advisors whose perceived value is dependent on market forces.
• Younger affluent clients present greatest flight risk: Intended attrition rates tend to be very low among clients with advisors, especially among Gen X and older clients. Millennials—particularly more affluent Millennials—are a different story. More than one-third (36%) of Millennials with more than $1 million in investable assets say they are likely to change firms in the next year. A potential factor in this lack of loyalty is that 70% of affluent Millennials have a secondary investment firm. This number is significantly lower among older affluent cohorts.
• Technology becomes increasingly important: Technology and digital solutions have become increasingly critical to enabling advisor efficiency and empowering more proactive client engagement. A majority (86%) of advised clients logged into their account on their firm’s site in the past 12 months and 60% logged onto the mobile app. Furthermore, advisors who take the time to help clients understand and engage with digital channels are consistently driving higher levels of investor satisfaction. Advisors who fail to clearly explain digital options are perceived more negatively and get half the number of referrals as their more digitally supportive peers.
• Rapid growth of AI puts spotlight on advisor relationships: As AI-enabled investment advisory solutions rapidly gain traction in the marketplace, advisors need to be clear on what differentiates them. In 2024, 41% of advised clients’ experiences fall into the transactional category on the JD Power advice continuum.² This group is put at the greatest risk by technology-enabled solutions that can effectively compete on price and efficiency. Delivering truly personalized guidance that addresses a client’s unique goals and challenges, major life changes and investment strategies that transcend returns are keys to insulating the business from future competitive threats.

Study Ranking

U.S. Bank ranks highest in overall investor satisfaction with a score of 761. Edward Jones (749) ranks second and Vanguard (748) ranks third.

The U.S. Full-Service Investor Satisfaction Study, now in its 22^nd year, measures overall investor satisfaction with full-service investment firms in seven dimensions (in order of importance): trust; people; products and services; value for fees; ability to manage wealth how and when I want; problem resolution; and digital channels.

The 2024 study is based on responses from 9,951 investors who work directly with a dedicated financial advisor or team of advisors. The study was fielded from January 2023 through January 2024.

For more information about the U.S. Full-Service Investor Satisfaction Study, visit https://www.jdpower.com/business/wealth-management-platform.

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 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.

²The JD Power Advisor Continuum measures the efficacy of advice delivery on a scale extending from transactional to comprehensive. It categorizes performance into three tiers—transactional, client-centric and comprehensive—thereby indicating a progression from basic to exceptional service.

 

Mobile Apps Become Increasingly Critical Battleground for Retirement Plan Providers, JD Power Finds

2023-09-13

jillian.breska

TROY, Mich.: 14 Sept. 2023 — The unstable financial markets in the United States during the past few years have people keeping a wary eye on their retirement accounts and, increasingly, they are doing so via mobile apps. According to the JD Power 2023 U.S. Retirement Plan Digital Experience Study,^SM released today, improved market performance has helped lift overall satisfaction with retirement plan digital tools. However, for those firms that want to differentiate and increase customer satisfaction in good markets and bad, more work needs to be done on digital, especially when it comes to mobile apps.

“The good news is that overall satisfaction with the retirement plan digital experience is up considerably this year, but when we compare those scores to similar customer-facing industries such as wealth management, property and casualty insurance and automotive, it’s clear that retirement plans still have a lot of opportunities to improve their digital offerings,” said Craig Martin, managing director and global head of wealth and lending intelligence at JD Power. “Consistently, we’re finding that improved digital experiences are critical to strong financial performance. Participants who have a great digital experience vote with their dollars, with roughly double the amount of participants rolling in assets from other plans and more than triple the amount saying they will keep their money with their current provider if their job situation were to change. The effects of the digital experience to the business are impossible to ignore and will only become more important when an inevitable market downturn occurs and satisfaction is affected.”

Following are some key findings of the 2023 study:

• Retirement plan digital experience improves but continues to lag other industries: Overall satisfaction with retirement plan digital experiences increases to 685 (on a 1,000-point scale) this year, a 22-point increase from 2022. However, just 38% of retirement plan participants give their plans high marks for their digital capabilities. Overall satisfaction lags significantly behind other industries in which JD Power conducts studies, such as wealth management (701),¹ property and casualty insurance (702)² and automotive (718).³
• Mobile apps take center stage as critical tool for retirement investors: Retirement plan mobile apps have shown substantial increases in adoption and continue to drive higher levels of satisfaction when they are used. Nearly half  (47%) of participants have downloaded their retirement plan’s mobile app, up from 35% in 2021, and 38% have used the mobile app in the past 30 days, up from 27% in 2021. Overall satisfaction with retirement plan mobile apps is 728, which is 38 points higher than for mobile websites and 72 points higher than for desktop websites.
• Strong digital experiences drive strong bottom line: More than one third (34%) of retirement plan participants who give their provider the highest marks for their digital experience have rolled over money from other retirement accounts, compared with just 20% among clients who give their retirement plans poor ratings on their digital experience. Likewise, the percentage of participants who say they “definitely will” keep assets with their current provider in the event of a job change is 48% among those giving their retirement plans the highest ratings for digital, which compares with just 15% among those with low digital satisfaction.

“The digital playbook for retirement firms could not be any clearer,” said Jonathan Sundberg, director, digital solutions at JD Power. “More clients than ever are interacting with their brands via mobile apps, and when they do, virtually every mark of customer engagement, retention and asset acquisition increases. Right now, a handful of standout firms are really delivering well when it comes to the mobile digital experience, but many more still have a great deal of work to do to get to the level of experience participants expect based on their interactions in other industries.”

Study Ranking

Capital Group/American Funds ranks highest in retirement plan digital satisfaction, with a score of 753. Charles Schwab (746) ranks second and Bank of America (including Merrill) (715) ranks third.

The U.S. Retirement Plan Digital Experience Study, formerly known as the U.S. Retirement Plan Participant Satisfaction Study, measures customer satisfaction across four factors: information/content; navigation; speed; and visual appeal. The study is based on responses of 5,804 retirement plan participants and was fielded in May-June 2023.

For more information about the U.S. Retirement Plan Digital Experience Study, visit https://www.jdpower.com/business/financial-services/us-retirement-plan-digital-experience-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

¹JD Power 2022 U.S. Wealth Management Digital Experience Study^SM
2JD Power 2023 U.S. Insurance Digital Experience Study^SM
3 JD Power 2023 U.S. Manufacturer Website Evaluation Study^SM – Summer

 

Debit Cards Reign Supreme amid Proliferation of Point-of-Sale Payment Options, JD Power Finds

2023-08-28

jillian.breska

TROY, Mich.: 31 Aug. 2023 — Whether consumers have swiped, tapped, dipped, waved a wrist or held a device near a card reader at a retail location in recent months, the chances are good that they’ve used some form of digital, point-of-sale (POS) payment option in addition to cash. According to the inaugural JD Power U.S. Consumer POS Payment Program,^SM released today, consumers have used no fewer than four different types of payment methods, including debit cards, cash, credit cards, digital wallets and buy now/pay later (BNPL).

The new program consists of four interconnected JD Power syndicated studies focused on understanding consumer preference and experience with the various forms of POS payment options: the POS Choice Satisfaction Study;^SM Debit Card Satisfaction Study;^SM Digital Wallet Satisfaction Study;^SM and BNPL Satisfaction Study.^SM The program, which includes evaluations of 30 top payment brands and 11 different payment methods, delivers a detailed, nuanced view of changing patterns of consumer behavior and preference for different forms of POS payment.

“The POS payment landscape is moving very quickly, and consumers are being confronted with so many different options that we’re seeing a real splintering of the total addressable market,” said Miles Tullo, managing director, banking and payments at JD Power. “Consumers now use multiple different payment options for dozens of different reasons, mostly correlated with specific needs but sometimes out of basic habit. By analyzing consumer behavior across the proliferation of different POS payment types, scenarios and consumer personas, we’re able to provide critical insights on what’s driving utilization and what steps brands need to take to scale POS payment products.”

Following are some of the key findings of the four 2023 studies:

• Debit cards dominate POS marketplace: Despite the widespread availability of new forms of digital payment, debit cards are used by more consumers than any other form of payment at the point of sale, with 78% of consumers indicating that they use debit cards for purchases. Debit cards are followed by cash (74%); credit cards (66%); digital wallets (36%); gift cards (33%); BNPL (28%); merchant apps (20%); checks (19%); prepaid cards (14%); pay by bank (7%); and cryptocurrency (3%).
• Typical consumer uses multiple different payment options in different scenarios: While most consumers say they use debit cards, they also say they use multiple forms of payment. On average, consumers are using 4.1 different payment methods, and the reasons given for each varies considerably, incorporating everything from ease of use to the perception of social status associated with different forms of payment.
• More than half of consumers used non-traditional payment method in past 90 days: A slight majority (55%) of consumers say they have been using newer forms of digital payment methods, such as digital wallets, BNPL, merchant apps and even cryptocurrency. The most frequently used of these are digital wallets (36%) and BNPL (28%).
• Distinct consumer segments exist: Based on patterns of consumer behavior and customer satisfaction with the multiple different forms of POS payment methods, JD Power has identified six distinct consumer personas that POS payment brands can use to segment the market and target delivery of their offerings: experimenters; borrowers; rewards optimizers; security seekers; budgeters; and minimalists.
• Financial health influences behavior: JD Power has measured the financial health of consumers since 2020 and embedded those measurements into the Customer POS Payment Program. The results validate the influence consumer financial health has on POS decision-making and indicate how behaviors are likely to change with economic conditions.

The JD Power Consumer POS Payment Program measures usage behaviors and customer satisfaction with 11 POS payment methods and 30 POS payment brands that offer debit cards, digital wallets and BNPL loans. The program includes four JD Power syndicated studies: the POS Choice Satisfaction Study; Debit Card Satisfaction Study; Digital Wallet Satisfaction Study; and BNPL Satisfaction Study. Collectively, the studies captured the responses of 62,635 consumers and were fielded from April through June 2023.

For more information about the U.S. Consumer POS Payment Program, visit https://www.jdpower.com/business/consumer-payments-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