Category: Financial ServicesUnited States

As Artificial Intelligence Enters the Auto Loan Equation, Dealers Still Favor Face-to-Face Relationships with Lenders, JD Power Finds

2023-08-03

jillian.breska

TROY, Mich.: 10 Aug. 2023 — Auto lending has become an increasingly electronic process, and dealership finance teams are generally supportive of new technologies like artificial intelligence (AI) being used in the loan adjudication process. But when it comes to building business relationships, there is no substitute for an effective face-to-face sales meeting. According to the JD Power 2023 U.S. Dealer Financing Satisfaction Study,^SM released today, 77% of dealership finance and insurance (F&I) teams say in-person meetings with sales reps are the key to increased business with lenders.

“Finance teams overwhelmingly prefer one-on-one interaction with lending sales reps in the dealership, but there is a catch,” said Patrick Roosenberg, senior director of automotive finance intelligence at JD Power. “Those sales reps need to be prepared and the meetings need to be highly effective. When sales reps can clearly communicate current and upcoming programs and speak to the specifics of the dealership customer base, dealers are four times more likely to send more business within the next 12 months. The problem is, today, lender reps miss the mark on  delivering a highly effective sales meeting nearly 40% of the time.”

While dealers are very clear with their preference for interpersonal relationships in the sales process, some dealership F&I teams are embracing new technology options as well. “When it comes to the introduction of AI and machine learning in the loan adjudication and approval process, 30% of dealership finance teams say they are comfortable with the process,” Roosenberg said. “However, half say they are not, so it really is about striking the right balance between people and technology as the industry evolves.”

Study Rankings

Captive Mass Market—Prime

Southeast Toyota Finance ranks highest in overall dealer satisfaction with a score of 901, followed by Subaru Motors Finance (819) and Mazda Financial Services (766).

Non-Captive National—Prime

TD Auto Finance ranks highest in overall dealer satisfaction for a fourth consecutive year, with a score of 878. Ally Financial (854) ranks second and Wells Fargo Auto (778) ranks third.

Non-Captive Regional—Prime

Huntington National Bank ranks highest in overall dealer satisfaction with a score of 753. Santander Auto Finance (746) ranks second and Fifth Third Bank (703) ranks third.

Non-Captive—Sub-Prime

Ally Financial ranks highest in overall dealer satisfaction for a third consecutive year, with a score of 852. Chase Automotive Finance (762) ranks second and Wells Fargo Auto (718) ranks third.

The 2023 U.S. Dealer Financing Satisfaction Study is based on responses from 3,552 auto dealer financial professionals. The study, which was fielded in April-May 2023, measures auto dealer satisfaction in five segments of lenders: captive premium–prime,¹ captive mass market–prime, non-captive national–prime, non-captive regional–prime and non-captive–sub-prime.

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

¹ The Captive Premium–Prime segment is not award eligible in 2023.

 

Time-Starved U.S. Financial Advisors Considering Alternative Options, JD Power Finds

2023-06-30

jillian.breska

TROY, Mich.: 5 July 2023 — U.S. wealth management firms have an advisor engagement problem. With markets struggling, compliance and administrative responsibilities growing and the advisor population aging, many advisors are planning their own exit strategies. According to the JD Power 2023 U.S. Financial Advisor Satisfaction Study,^SM released today, nearly one-third (28%) of financial advisors say they do not have enough time to spend with clients and 20% say they are five years or less away from retirement.

“In difficult market conditions like the ones we’ve been experiencing for the past several years, great investment advisors set themselves apart by proactively addressing their clients’ needs, delivering comprehensive guidance and communicating clearly and frequently about the issues that matter most to their clients,” said Craig Martin, executive managing director and head of wealth and lending intelligence at JD Power. “Right now, many advisors are struggling to find the time to deliver the level of hands-on service they know is critical to growing their business. They’re spending more time on administrative and compliance-oriented tasks and, in many cases, they are starting to question whether their firm is committed to providing them with the support and resources they need to succeed.”

Following are some key findings of the 2023 study:

• Not enough time to spend with clients: Nearly one-third (28%) of advisors say they do not have enough time to spend with clients. Advisors falling into this category spend an average of 41% more time each month than their peers on non-value-added tasks, such as compliance and administrative duties. Net Promoter Scores® (NPS)¹, a measure of advisor advocacy, among those who say they do not have enough time to spend with clients are 27 points lower (on a -100 to 100 scale) among employee advisors and 30 points lower among independent advisors when compared with advisors who say they do have enough time to spend with clients.
• One eye on the exit: With the average age of U.S. financial advisors being 56 years old, 20% of advisors indicate that they are five years or less away from retirement. In addition, 30% of employee advisors and 28% of independent advisors say they “probably will” be working for their current firm in the next one to two years as opposed to saying they “definitely will.” This suggests that even if advisors are not contemplating leaving the industry or their firm, many may become apathetic about their situation. Among these two groups, overall satisfaction and NPS scores are significantly lower than among advisors who say they are strongly committed to their firms, meaning they could be perceived as hampering efforts to attract and retain talent.
• Female advisors lean in: Among employee advisors, overall satisfaction and NPS scores are significantly higher among female advisors than among their male counterparts. The overall satisfaction score among female employee advisors is 637 (on a 1,000-point scale) and the average NPS is 59. These compare with an average overall satisfaction score of 578 and an average NPS of 36 for male employee advisors.  Among independent advisors there is not a material difference in overall satisfaction and NPS scores between genders.
• Strong leadership, support and professional development matter: Among employee advisors who are most likely to stay with their firm for the long term, the top reasons given for staying are a strong culture and company leadership. Other key factors influencing advisor retention and advocacy include professional development support and training and technology.

Study Rankings

Among employee advisors, Stifel ranks highest in overall satisfaction with a score of 777. Raymond James & Associates (711) ranks second and Edward Jones (672) ranks third.

Among independent advisors, Commonwealth ranks highest in overall satisfaction with a score of 798. Raymond James Financial Services (697) ranks second, while Ameriprise (664) and Cambridge (664) rank third in a tie.

The U.S. Financial Advisor Satisfaction Study was redesigned for 2023. It measures satisfaction among both employee advisors (those who are employed by an investment services firm) and independent advisors (those who are affiliated with a broker-dealer but operate independently) based on six key factors (in alphabetical order): compensation; firm leadership and culture; operational support; products and marketing; professional development; and technology.

The study is based on responses from 4,183 employee and independent financial advisors and was fielded from December 2022 through April 2023.

For more information about the U.S. Financial Advisor Satisfaction Study, visit https://www.jdpower.com/business/resource/us-financial-advisor-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 System®, Net Promoter Score®, NPS®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Personalized Financial Advice: Key to Retail Bank Customer Engagement in Tough Economic Environment, JD Power Finds

2023-06-20

jillian.breska

TROY, Mich.: 22 June 2023 — U.S. retail bank customers have been through the ringer during the past few years. Inflation, market volatility and rising interest rates have contributed to increased prices for goods and services, leaving 69% of customers classified as financially unhealthy.¹ According to the JD Power 2023 U.S. Retail Banking Advice Satisfaction Study,^SM released today, banks that address this challenge head-on with personalized financial advice are earning high customer satisfaction and building strong customer engagement. However, just 38% of customers recall ever receiving such advice. Among those, just 55% say it completely meets their needs.

“Banks are sitting on a goldmine of customer goodwill and significant opportunities to build lifetime customer value by delivering financial advice and personalized guidance to their customers,” said Jennifer White, senior director for banking and payments intelligence at JD Power. “When advice hits the mark, customer satisfaction increases 228 points, but most bank customers still don’t recall ever receiving such advice. Among the small proportion that do receive advice, only 55% say it was effective. There’s still a great deal of work that needs to be done to unlock the full value of this powerful tool.”

Following are some key findings of the 2023 study:

• Customer satisfaction with financial advice surges: Overall satisfaction with the advice and guidance provided by retail banks rises 37 points year over year to 638 (on a 1,000-point scale). The increase is evident across all attributes of satisfaction and across all levels of financial health: strong advice is delivered frequently; includes high-quality content; is relevant and personalized to the customer; clearly provides a call to action; and conveys concern for customer’s needs.
• Most customers don’t remember receiving advice: While successfully delivered financial advice is consistent with significant gains in customer satisfaction, nearly two-thirds (62%) of bank customers do not recall receiving financial advice from their bank in the past year.
• Successful advice strategies leverage multichannel customer engagement: The highest performers both in financial advice customer satisfaction and in customer recall merge branch-based experiences with a strong digital presence to reinforce in-person interactions. Virtual assistants and personal financial management tools can help.
• Different messages required for different customers: Although overall satisfaction with financial advice has increased year over year, many banks have struggled with successfully delivering financial advice to those in all customer segments. While some banks have connected better with financially healthy customers, others have connected better with financially unhealthy customers. Just three banks—Bank of America, Chase and Wells Fargo—have managed to significantly improve on advice satisfaction in both customer segments.

Study Rankings

Bank of America ranks highest in customer satisfaction with retail banking advice with a score of 673. Citi (657) ranks second and KeyBank (648) ranks third.

The 2023 U.S. Retail Banking Advice Satisfaction Study includes responses of 6,532 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 February-March 2023. 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.

This study also captures responses from customers about their satisfaction with the financial health support provided by their financial partners. Top-performing banks in the banking financial health support index are (in alphabetical order): Bank of America, Bank of the West, Chase, Citi, Capital One and Huntington. 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 Wells Fargo.

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

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.

 

Fintech Lenders Gain Traction as Consumer Loan Satisfaction Increases, JD Power Finds

2023-05-05

jillian.breska

TROY, Mich.: 10 May 2023 — After a challenging period during the pandemic, the consumer lending space has come back stronger than ever in the form of digital, frictionless loans that consumers can access in minutes. According to the JD Power 2023 U.S. Consumer Lending Satisfaction Study^SM, released today, that focus on delivering a streamlined digital loan process has helped the newer crop of fintech lenders play catch-up with traditional brands. Across this year’s study, fintech lenders have seen the sharpest rate of improvement in overall customer satisfaction.

“Fintechs are having increased success in the lending space because they are effectively delivering what customers want: a quick, transactional approach to lending,“ said Craig Martin, executive managing director and head of wealth and lending intelligence at JD Power. “As the lending process becomes increasingly digital and significantly faster, brands need to focus on effective engagement to build loyalty.”

Following are some key findings of the 2023 study:

• Fintechs gain ground on legacy lending brands: Overall customer satisfaction scores for fintech brands evaluated in the study rise 16 points (on a 1,000-point scale) year over year. That compares with a 12-point increase in customer satisfaction across all non-fintech brands in the study. The gains made by fintechs have been driven by several key factors that include meeting the customer’s borrowing needs; managing loans once closed; and keeping customers informed during the process. Problem avoidance is also a strength for fintechs, as 83% of customers indicate never having a problem with their loan compared with 74% for non-fintech borrowers.
• Role of all digital vs. human interaction: Just 31% of applicants said they interacted with someone during the process. Of that group, 70% said it was necessary to obtain approval. Even though the market is digitally dominated, there is no difference in satisfaction when humans are involved. This reinforces the key idea regarding satisfaction that meeting the customer needs is more important than the way it is achieved.
• Younger and well-qualified buyers are informed: Younger customers, specifically those from Gen Z¹, and prime credit borrowers are diligently gathering information about lenders and their products. More than half (51%) of respondents from Gen Z “strongly agree” that a borrower should gather as much info as possible before taking a loan compared with 39% of Pre-Boomers/Boomers and 40% of Gen X respondents. Half of customers with a credit score of 740 or higher “strongly agree” about gathering as much information as possible compared with 35% of customers with a score of less than 670.
• Fintech brand awareness gets big bump: Fintech brand awareness increases by as much as 15 percentage points in this year’s study. This increased awareness has resulted in multiple fintech brands breaking the milestone of 50% of respondents having heard of them.

“Although applications are done online, and customers are coming to view person-to-person interactions as more of an obstacle to a transaction than a benefit, lenders still need to get the basics of the customer relationship right to build a strong foundation for a successful lending experience,” said Bruce Gehrke, senior director of wealth and lending intelligence at JD Power. “Today’s personal loan customers are looking for a secure application process, fast approval processes and easy-to-understand applications—those basics are unchanged. The key now is to consistently deliver on those core values in a more streamlined, digital user experience for all customers. Currently, only 56% of customers said their lender delivered on all these basic elements.”

Study Ranking

American Express (775) ranks highest among personal loan lenders in overall customer satisfaction, while BestEgg (772) ranks second. Discover (769) an SoFi (769) each rank third in a tie.

The U.S. Consumer Lending Satisfaction Study measures overall customer satisfaction based on performance in five factors (in alphabetical order): customer service for loan; experience managing loan; experience obtaining loan; kept informed about loan; and loan met borrowing needs. The study is based on responses from 4,525 personal loan customers and was fielded from January through March 2023.

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 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 Pre-Boomers as born before 1946; Boomers (1946-1964); Gen X (1965- 1976); Gen Y (1977-1994); Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

 

Higher Interest Rates, Ease of Moving Money Drive Higher Customer Satisfaction with Online-Only Banks, JD Power Finds

2023-05-11

jillian.breska

TROY, Mich.: 11 May 2023 (Updated 20 Sept. 2023) — If there is one silver lining to the constant forward march of inflation and rising interest rates, it can be found in the direct banking sector, in which customer satisfaction with online-only banks is climbing steadily. According to the JD Power 2023 U.S. Direct Banking Satisfaction Study,^SM released today, customer satisfaction with direct banks is up 14 points (on a 1,000-point scale) this year, thanks largely to increases in satisfaction with deposit interest rates and the ease of managing accounts and transferring money using a mobile app.

“Amid widespread volatility in the U.S. retail banking sector, direct banks—which offer branchless, digital alternatives to traditional retail banks—have been a bright spot that continues to drive exceptionally high levels of customer satisfaction,” said Paul McAdam, senior director of banking and payments intelligence at JD Power. “With their attractive fee structures and focus on seamless digital customer experience, direct banks have been able to offer even more competitive interest rates than their brick-and-mortar counterparts while also making it incredibly easy for customers to move money and manage their accounts. While satisfaction is high among existing customers, it is important to note that new customer growth has slowed 2% this year, suggesting that in addition to offering attractive deposit interest rates, direct banks may need to up the ante on generating word-of-mouth recommendations.”

Following are some key findings of the 2023 study:

• New customer volume slows: Despite these significant gains in customer satisfaction, the number of new customers opening direct bank accounts declined 2 percentage points this year. The decline in new customer volume is most pronounced (-6 percentage points) among neobanks, a subset of the online banking sector that consists of fintech companies that offer online banking services through a partnership with an established bank.
• New customer quality varies: The quality of customers opening new accounts with direct banks has improved in 2023, with increased volumes of affluent and mass affluent customers and those who bring deposit balances of $10,000 or more. The quality of new customers to neobanks weakened in this year’s study, with more being in financially vulnerable circumstances and having education levels less than a four-year college degree.
• No branch, no problem: Direct banks also see significant gains in satisfaction with customer service provided via automated phone-based assistance and live phone operators. Customers cite the knowledge of representatives, timeliness of resolving inquiry, request, or problem, courtesy of the representative and ease of understanding the phone instructions as the key drivers of these improved satisfaction scores.
• Online chat losing ground: One area where direct bank customers report declines in satisfaction is assisted online servicing of checking accounts via chat and email. Online chat service interactions see a 1-point decline in customer satisfaction while email service satisfaction is down 4 points.

Study Rankings

Charles Schwab Bank ranks highest in overall satisfaction among checking providers with a score of 732, marking the fifth consecutive year of being top ranked in the study. Discover Bank (730) ranks second and Ally Bank (729) ranks third. The segment average is 715.

Discover Bank ranks highest in overall satisfaction among savings providers with a score of 748. Marcus by Goldman Sachs (736) ranks second and both Ally Bank (731) and American Express (731) rank third in a tie. The segment average is 718.

The U.S. Direct Banking Satisfaction Study, now in its seventh year, 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/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.

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

 

Personal Financial Management Becomes New Frontier for Bank and Credit Card Apps, JD Power Finds

2023-05-30

jillian.breska

TROY, Mich.: 1 June 2023 — After more than a decade of significant investment in mobile apps and websites, many U.S. banks and credit card providers have mastered the basics of digital transaction management and are now turning their attention to more advanced “super tools.” According to a series of recent studies of bank and credit card mobile app and online users, released today by JD Power, digital features focused on personal financial management have become the keys to standout customer engagement and customer satisfaction, but they’ve also introduced a new set of challenges.

The studies—JD Power 2023 U.S. Banking Mobile App Satisfaction Study;^SM 2023 U.S. Online Banking Satisfaction Study;^SM 2023 U.S. Credit Card Mobile App Satisfaction Study;^SM and 2023 U.S. Online Credit Card Satisfaction Study^SM—track overall customer satisfaction with banking and credit card providers’ digital offerings.

“As apps and online tools become more sophisticated and customers grow increasingly comfortable using advanced features, providers that get their digital formulas right can position themselves as the hub of their customers’ financial lives,” said Jennifer White, senior director of banking and payments intelligence at JD Power. “Many banks and credit card providers clearly recognize this potential and have focused heavily on new digital tools related to personal financial management, but the results have been uneven thus far. While some providers are really elevating their customers’ digital experiences, others are struggling to get past basic transactional features.”

Following are some key findings of the 2023 studies:

• Basic transactional tools consistently perform better than more advanced features: Banks and credit card mobile apps and websites are producing significantly higher overall satisfaction scores for basic transactional tools, such as account transfer, bill pay, mobile check deposit and peer-to-peer (P2P) lending. When it comes to more advanced personal financial management tools, such as spending analysis and budgeting tools, many providers struggle to connect with customers.
• Personal financial management tools drive satisfaction—when they are used: When banking app customers actively engage with three or more personal financial management tools, such as credit score monitoring, spending analysis and budgeting tools, overall satisfaction scores rise 127 points vs. when these tools are not offered. The first hurdle to lifting satisfaction with these tools is garnering wider tool use.
• Virtual assistants do heavy lifting on adoption: Customers who use a virtual assistant provided on their banking app are four times more likely to use personal financial management tools.
• Regional banks struggle to compete: Among banking apps, national banks perform considerably higher in customer satisfaction than regional banks. Regional banks also show a significantly wider range of performance between top- and bottom-ranked providers.

Study Rankings

Bank of America ranks highest in banking mobile app satisfaction among national banks, with a score of 710 (on a 1,000-point scale). Capital One (691) ranks second and Chase (690) ranks third.

Capital One ranks highest in online banking satisfaction among national banks for a second consecutive year, with a score of 669. TD Bank (655) ranks second, while Chase (652) and PNC (652) rank third in a tie.

Bank of America ranks highest in credit card mobile app satisfaction, with a score of 706. American Express (699) ranks second and Capital One (696) ranks third.

Discover ranks highest in online credit card satisfaction for a second consecutive year, with a score of 676. Chase (667) ranks second and Capital One (666) ranks third.

Huntington ranks highest in banking mobile app satisfaction among regional banks for a fifth consecutive year, with a score of 651. Santander (645) ranks second and KeyBank (635) ranks third.

KeyBank ranks highest in online banking satisfaction among regional banks, with a score of 658. Bank of the West (651) ranks second and Regions Bank (650) ranks third.

The 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 were redesigned for 2023. The 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 16,745 retail bank and credit card customers nationwide and were fielded in February-March 2023.

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

 

Investor Satisfaction with Full-Service Financial Advisors Crumbles as Markets Fall, JD Power Finds

2023-04-03

jillian.breska

TROY, Mich.: 4 April 2023 — In 2022, Wall Street experienced its worst year since 2008, with the S&P 500 finishing down nearly 20%. Mirroring that performance, investor satisfaction with full-service investment advisors plunged 17 points (on a 1,000-point scale) year over year, according to the JD Power 2023 U.S. Full-Service Investor Satisfaction Study.^SM That lockstep movement between market performance and investor satisfaction highlights a real challenge in the wealth management industry. 

“Advisor satisfaction continues to track overall market performance, and this points to a systemic problem in our industry: advisor value propositions grounded in investment performance,” said Tom Rieman, head of wealth solutions at JD Power. “Advisors cannot control the ebbs and flows of the market, but the good ones help their clients plan for their best futures and deliver value in the form of comprehensive advice that should shine through in all market conditions.”

Following are some key findings of the 2023 study:

• Full-service advisor satisfaction plunges: Overall investor satisfaction with full-service investment advisors is 727, which is down 17 points from a year ago. The performance is consistent with the long-term trend of investor satisfaction moving in lockstep with stock market performance. The fact that advisor satisfaction is tracking market performance shows that few advisors are delivering on their core value proposition, which will not bode well for the future of an industry that’s already struggling under the weight of digital transformation and changing patterns of investor behavior.
• Small fraction of advisors currently offering comprehensive advice: Comprehensive advice is defined as personalized guidance from an advisor that addresses all financial and wealth management needs; demonstrates an intimate understanding of the client’s lifestyle and goals; puts the client’s best interest first; includes a financial plan; ensures clients understand the fees they pay; and is an integral part of the client’s life. Today, just 11% of advisors are delivering this level of advice. The rest are delivering transactional advice (42%) and goals-based advice (47%).
• Just more than half of full-service wealth clients have financial plans: Among full-service wealth management clients, 57% say they have a financial plan, yet only 56% of clients with plans say they are receiving comprehensive advice. Moreover, among clients with financial plans, 32% do not feel their advisor makes recommendations that are in their best interest and 29% say they do not feel their advisor understands their financial goals and needs.
• Younger clients ready to vote with their feet: Among clients in all age groups, those in the Millennial and Generation Z¹ groups are the most likely to switch firms in the next 12 months and are most likely to already be working with a secondary investment firm. Slightly more than one-fourth (27%) of these younger investors say they “definitely will” or “probably will” switch firms, and 49% say they are working with a secondary investment firm.

Study Ranking

Charles Schwab ranks highest in overall investor satisfaction with a score of 752. UBS (741) ranks second and Fidelity (740) ranks third.

The U.S. Full-Service Investor Satisfaction Study, now in its 21^st year, measures overall investor satisfaction with full-service investment firms in seven factors (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 study is based on responses from 6,168 investors who work directly with a dedicated financial advisor or team of advisors. The study was fielded from October 2022 through January 2023.

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 (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

 

Lenders Need to Focus on Brand Loyalty in Tighter Leasing Market, JD Power Finds

2023-03-27

jillian.breska

TROY, Mich.: 30 March 2023 — As auto leasing volume continues to fall—now accounting for just 17% of total new-vehicle sales—and lease options for customers are limited, lenders need to focus on bringing their lease customers back to the brand. According to the JD Power 2023 U.S. End of Lease Satisfaction Study,^SM released today, the key to attracting and retaining those customers is understanding when lessees make their decisions and how best to communicate with them at the right moment.

“In this market, lenders need to take actions that create and maintain brand loyalty,” said Patrick Roosenberg, director of automotive finance intelligence at JD Power. “Because there are fewer lease opportunities, the best course of action is for lenders to do everything in their power to maintain their current customers. In that effort, we compare the different end of lease journeys, between customers that are brand loyal and those that leave the brand, to identify and understand lender specific actions that affect loyalty. According to our data, the optimal recapture point is long before a customer ever sets foot in a dealership. The greatest opportunity to retain lease customers is six to nine months before vehicle turn-in. By being proactive with their communication, knowing when it should begin and understanding the communication channels customers value, lenders maximize their chances to forge a brand loyalty with a customer that can pay dividends for years to come.”

Study Rankings

Ford Credit ranks highest in end of lease satisfaction in the mass market segment for a second consecutive year, with a score of 873. Toyota Financial Services (857) ranks second, while Honda Financial Services (855) and Hyundai Motor Finance (855) rank third in a tie.

The 2023 U.S. End of Lease Satisfaction Study identifies lease-end practices and timely marketing opportunities that optimize lease retention for the same brand and at the same dealer. The study is based on responses from 2,513 mass market lease customers who have ended an auto lease within the past nine months of the survey period. The study was fielded from November 2022 through January 2023.

For more information about the U.S. End of Lease Satisfaction Study, visit https://www.jdpower.com/business/end-lease-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

 

Largest National Banks See Declining Satisfaction among Younger Customers, JD Power Finds

2022-12-12

TROY, Mich.: 15 Dec. 2022 — Bank customers under age 40—particularly those who have the highest levels of education, highest income growth potential and are arguably the most desirable customer segment in the banking industry—are leading a trend toward waning customer satisfaction with the nation’s largest banks. According to the JD Power 2022 U.S. National Banking Satisfaction Study,^SM released today, overall customer satisfaction is down 4 points (on a 1,000-point scale) compared with 2021 and down 9 points from 2020, led by steep declines among customers under 40.

“Regarding younger customers, the nation’s largest retail banks are missing the mark on branch service, new customer onboarding and resolving customer complaints,” said Paul McAdam, senior director of banking services at JD Power. “As a result, we’re seeing young, well-educated, high-income customers driving a steady decrease in customer satisfaction. This is a clear warning sign for banks because key metrics like intent to reuse the brand and customer perception of having a relationship with the brand are also in decline, suggesting a future erosion of new business these customers will bring to their banks.”

Study Ranking

Capital One ranks highest for a third consecutive year with an overall satisfaction score of 694. Chase (678) ranks second and TD Bank (663) ranks third.

The study, now in its sixth year, provides a comprehensive view of the customer experience with all 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 $200 billion. The study is based on responses from 8,836 retail banking customers and was fielded in August-September 2022.

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

 

Inflation Puts Strains on Small Business Credit Card Customer Satisfaction, JD Power Finds

2022-12-08

TROY, Mich.: 8 Dec. 2022 — Small business owners who’ve spent several months battling inflation are bracing for an even bumpier road ahead. According to the JD Power 2022 U.S. Small Business Credit Card Satisfaction Study,^SM released today, that growing sense of anxiety among small businesses is creating a new set of challenges for card issuers that must find ways to support their customers in an uncertain economic environment.

“It’s been a tough few years for small business owners, with 65% saying that inflation is having a major or severe effect on their business and 51% still suffering through supply chain challenges,” said John Cabell, managing director of payments intelligence at JD Power. “Accordingly, the small business outlook for 2023 is down significantly and many businesses are looking to their credit card issuers for help. This is a real moment of truth for card issuers that currently have an opportunity to position themselves as a valuable source of support and guidance for small business customers through a combination of proactive outreach, rewards promotions and personalized account management.”

Following are some key findings of the 2022 study:

• Overall customer satisfaction flat as inflation saps business outlook: Overall satisfaction among small business credit card customers is 851 (on a 1,000-point scale), which is down one point from last year. Small business customers report lower sales growth compared to last year and their outlook for the broad economy and their business has declined significantly. Nearly two-thirds (65%) of small business owners say inflation has had a severe or major effect on their business. 
• Inflation hurts all-important rewards value: Satisfaction with rewards is significantly lower among small businesses indicating major and severe inflationary effects than among those reporting little or no effect (836 vs. 862, respectively). Satisfaction among these cardholders most affected by inflation is also significantly lower for both rewards earned per dollar spent and the ability to completely maximize rewards with most frequent purchases.
• Spending decreases while revolving debt increases: Just 25% of small business owners expect to increase business-related spending on their credit cards during the next 12 months, down from 29% a year ago, and only 46% expect to spend more than $5,000 per month, down from 50% a year ago. Meanwhile, the percentage of small businesses that have revolving debt has grown to 44% from 39% in 2021.
• Airline reward cards continue to rebound while co-branded retail cards decline: Overall customer satisfaction with airline reward cards has increased 12 points during the past four years as small business employees have started to travel again. Overall customer satisfaction scores with co-branded retail cards, however, has declined 37 points during the same period.
• Proactive account management drives increased customer satisfaction: Overall customer satisfaction is a significant 35 points higher when small business owners are assigned a dedicated account manager by their credit card issuer. This boost in customer satisfaction is most pronounced among the most pessimistic business owners. Among business owners who say they are worse off this year than a year ago, the assignment of a dedicated account manager is associated with a 77-point increase in customer satisfaction.

Study Ranking

American Express ranks highest in customer satisfaction for a second consecutive year, with a score of 862. Chase (857) ranks second and Bank of America (855) ranks third.

The 2022 U.S. Small Business Credit Card Satisfaction Study, now in its fourth year, measures customer satisfaction with the largest small business credit card issuers in the U.S. by examining six factors (in alphabetical order): benefits and services; channel activities; credit card management; credit card terms; key moments; and rewards. The study includes responses from 3,164 small business credit card customers whose businesses have an approximate annual revenue between $10,000 and $10 million. The study was fielded in August-September 2022.

For more information about the U.S. Small Business Credit Card Satisfaction Study, visit https://www.jdpower.com/business/resource/us-small-business-credit-card-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