Category: Financial ServicesUnited States

Customer Retention More Critical Than Ever as Vehicle Financing Volume Declines and Competition Grows, JD Power Finds

2022-11-14

TROY, Mich.: 14 Nov. 2022 — Against a backdrop of rising interest rates, slowing loan/lease volumes and increased competition, auto lenders are finding that their most valuable future customers are the ones they already have. According to the JD Power 2022 U.S. Consumer Financing Satisfaction Study,^SM released today, customer retention has become a key focal point for auto loan providers, putting the spotlight on specific actions lenders can take to drive increased loyalty and brand advocacy.

“Consumers have more lending choices than ever before,” said Patrick Roosenberg, director of automotive finance intelligence at JD Power. “They’re doing more research and doing that research earlier in the vehicle-buying process. That’s why the customer experiences they are having with their existing lender is so important. For lenders that want to secure repeat business with existing customers, it is critical to consistently anticipate and meet their needs at key points in the customer journey.”

Following are key findings of the 2022 study:

• Captive lenders significantly outperform non-captives for customer advocacy: For a second consecutive year, automotive captive lenders significantly outperform non-captive lenders when it comes to brand advocacy with existing customers. The average Net Promoter Score® (NPS)[1] for captive lenders is 56 and the average NPS for non-captives is 40. Industry-wide, customers who are promoters (those who say their likelihood to recommend their current lender as a 9 or 10 (on a 0-10 scale) are nearly twice as likely to say they “definitely will” consider their current lender for their next vehicle when compared to customers who are passive (those who say their likelihood to recommend their current lender as a 7 or 8).
• Most auto financing research begins a month before a purchase: Among auto loan customers who research financing options prior to a purchase, most begin the research process more than 30 days prior to purchasing or leasing a vehicle. Effective use of both applied for and unsolicited pre-approvals can lead to a greater customer recapture rate and conquest opportunities.
• Key actions to drive brand advocacy: Specific actions taken by auto lenders that have the most positive effect on customer advocacy include easy-to-use websites; useful account review information; and electronic statements that are easy to set up.

Study Rankings

Capital One Auto Finance ranks highest in customer satisfaction among luxury brands, with a score of 879. GM Financial (865) ranks second and BMW Financial Services (858) ranks third.

Ford Credit ranks highest among mass market brands for a second consecutive year, with a score of 877. Southeast Toyota Finance (874) ranks second, while Capital One Auto Finance (870) and Honda Financial Services (870) each rank third in a tie.

The U.S. Consumer Financing Satisfaction Study measures overall auto financing customer satisfaction in five factors (listed alphabetically): account management; application/approval process; billing and payment process; customer orientation process; and customer service experience. The study was fielded in July-August 2022 and is based on responses from 10,199 customers who financed a new or used vehicle through a loan or lease within the past three years.

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

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

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

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

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

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

Mortgage Lenders Struggle to Stand Out as Demand Plummets and Rates Spike, JD Power Finds

2022-11-09

TROY, Mich.: 10 Nov. 2022 — What a difference a year makes. The U.S. mortgage industry has gone from record volume and profits in 2021 to a 22-year low in demand for new mortgages through the first half of 2022.¹ Along the way, JD Power finds that mortgage providers have struggled to differentiate themselves in the eyes of customers whose expectations of the experience are rising and competition for their business is even more intense. According to the JD Power 2022 U.S. Mortgage Origination Satisfaction Study,^SM released today, the average mortgage customer experience has become increasingly commoditized, with few lenders finding the right formula to build long-term trust and loyalty that truly stands out from the competition.

“There is no denying the effects of rising interest rates on mortgage demand, and this is precisely the time when lenders need to differentiate themselves as trusted advisors who can guide customers through the lending process and offer valuable counsel along the way,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at JD Power. “That means ramping up communication—keeping customers informed throughout the lending process and ensuring consistent and effective communications through all channels. Unfortunately, less than one in three customers say their lenders were able to deliver that optimal experience.”

Following are some key findings of the 2022 study:

• Commoditized customer experience: The top- and bottom-performing lenders in overall satisfaction in this year’s study are separated by just 87 points (on a 1,000-point scale), with very little variation in overall satisfaction among the top 10 companies evaluated. Additionally, the number one reason given for choosing a specific lender is rate, which suggests that lenders may be placing too much emphasis on price, reinforcing the notion that there is little difference beyond the product.
• Missing an opportunity: The key attributes customers are seeking in their mortgage lender are expertise; guidance; and communication. These are conveyed in the form of responsiveness, keeping customers informed, having an effective website and delivering consistent communications throughout the lending process. Currently, just 28% of lenders are successfully meeting all these key criteria.
• Less than half of mortgage customers kept fully informed: During the lending process, there are six key moments of truth that determine whether or not the lender is viewed as a trusted advisor: providing advice on customers’ financial situations; explaining the application process; fully answering application-related questions; meeting expectations for what is required; explaining the closing process; and providing information about servicing. Less than half (48%) of mortgage customers say they were kept fully informed in all the phases of the process.
• Appetite for digital, but most interactions still involve humans: While approximately 40% of mortgage customers indicate a willingness to complete the entire lending process via self-service digital tools, 67% are currently interacting with human representatives via phone.

“A rising tide of record demand and historically low interest rates hid a lot of the challenges lenders have been facing in forging more meaningful, lasting connections with customers and moving beyond a transactional, rate-driven relationship,” said Tom Lawler, head of consumer lending intelligence at JD Power. “Now, as the macroeconomic situation has reversed course, these relationship-driven attributes have become critical for lenders that want to convey a more unique value proposition and build more lifetime customers in a highly competitive marketplace.”

Study Ranking

Rocket Mortgage ranks highest in mortgage origination satisfaction, with a score of 750. Chase (736) ranks second, while Citi (733) and Fairway Independent (733) each rank third in a tie.

The U.S. Mortgage Origination Satisfaction Study, formerly known as the U.S. Primary Mortgage Origination Satisfaction Study, has been redesigned for 2022. It 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 study was fielded from June through August 2022 and is based on responses from 5,915 customers who originated a new mortgage or refinanced within the past 12 months.

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

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

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

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

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

¹https://www.cnbc.com/2022/06/08/mortgage-demand-falls-to-the-lowest-level-in-22-years.html

Stressed Small Business Owners Looking for Banks to Help Weather Tough Economy, JD Power Finds

2022-10-25

TROY, Mich.: 27 Oct. 2022 (Updated Dec. 20, 2022) — Small business owners are feeling the strain of a weakening economy and looking to their small business banking partners for help, but very few are receiving an exceptional experience. According to the JD Power 2022 U.S. Small Business Banking Satisfaction Study,^SM released today, half of small businesses nationwide are now classified as financially unhealthy,¹ and although 76% of them are interested in receiving financial advice from their bank, just 15% receive comprehensive advice.

“Small business owners are staring down an increasingly ominous set of challenges that include everything from lingering supply chain issues to inflation to a talent scarcity, and they are looking to their banks for guidance on things like available credit, tips to reduce fees and technology that can benefit their businesses,” said Paul McAdam, senior director of banking and payments intelligence at JD Power. “This scenario presents an enormous opportunity for banks to deliver comprehensive advice that takes into account a full understanding of the company’s business goals and shows real, committed partnership. Right now, most small business banking customers are receiving only transactional advice or are receiving no advice at all from their bank.”

Following are some key findings of the 2022 study:

• Banks missing opportunity to deliver comprehensive advice: JD Power evaluates the small business banking advisory experience on a continuum from transactional to constructive to comprehensive based on the bank relationship manager’s overall responsiveness, understanding of the client’s business, and the bank’s fulfillment of the roles of a trusted advisor and partner. Currently, just 15% of small business banking customers are receiving comprehensive advice, while 27% are receiving constructive advice and 58% are receiving transactional advice. Overall customer satisfaction among customers who receive comprehensive advice is 858 (on a 1,000-point scale), which is 82 points higher than among those who receive constructive advice and 195 points higher than among those who receive transactional advice.
• Relationship managers play a key role: The biggest factors influencing small business banking customer satisfaction are trust and people, both areas where bank relationship managers play a key role of explaining fee structures, resolving problems and providing advice. In the eyes of small businesses, bank relationship managers who provide operational advice fulfill these roles but fall short of being viewed as a partner who acts with the company’s long-term interests in mind and helps the company grow.
• Small businesses feeling the strains of a weakening economy: Just 50% of small business banking customers are classified as financially healthy, while 25% fall into the cash- or capital-constrained category and 25% are in the financially vulnerable category. Some of the biggest factors influencing the financial health of small businesses are inflation (60%), supply chain disruptions (44%) and talent retention/acquisition (36%).
• Key pain points: Top areas where small businesses are seeking advice from their banking partners include practical guidance on ways to reduce banking fees; tips to help improve the business’s financial situation; and understanding how the bank’s technology can benefit the business.

Study Ranking

Citi ranks highest nationally in small business banking customer satisfaction with a score of 706. Capital One (701) ranks second and Santander Bank (689) ranks third.

The 2022 U.S. Small Business Banking Satisfaction Study includes responses from 6,855 owners of—or financial decision-makers at—small businesses that use business banking services. The study was fielded from May through August 2022. The study also provides financial health support index benchmarking data evaluating banks’ proficiency in delivering financial support to small business customers. Top-performing banks in the small business banking financial health support index are (in alphabetical order): Bank of America, Capital One, Citi and Santander Bank.

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

About JD Power

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

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

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

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

¹JD Power measures the financial health of a small business as a metric combining their timeliness of paying bills, cash reserve, credit worthiness and safety net items like insurance coverage. Small businesses are placed on a continuum from healthy to vulnerable.

Retirement Plan Digital Experience Suffers as More Americans Struggle Financially, JD Power Finds

2022-09-14

jillian.breska

TROY, Mich.: 15 Sept. 2022 — While economists are still divided on whether the United States is in a recession, retirement investors have a clearer sentiment: their financial health is deteriorating, they are concerned about their investments and, when they turn to their plan’s websites and apps for help they are not finding what they need. According to the JD Power 2022 U.S. Retirement Plan Digital Experience Study,^SM released today, overall satisfaction is down 12 points (on a 1,000-point scale) this year as 53% of retirement plan investors are now classified as financially unhealthy,¹and 63% say they have challenges managing their accounts digitally.

“Retirement investors are under a great deal of financial stress right now and they are looking to their plan’s websites and apps for information and guidance,” said Mike Foy, senior director and head of wealth intelligence at JD Power. “Unfortunately, many are not finding what they need and end up having to call customer service for help. This is a moment-of-truth opportunity for plan providers. When they get the digital experience right, they see a very significant lift in the likelihood to grow and retain participant assets long after they have left their current employer.”

Following are some key findings of the 2022 study:

• Deteriorating financial health sours digital experience: During the past year, the percentage of retirement investors classified as financially healthy has plunged to 47% from 60%, with more than one-fourth (28%) of investors now falling into the financially vulnerable category. Overall satisfaction with retirement plan digital experience has fallen 12 points, in lockstep with the deterioration in financial health.
• Digital experience becomes battleground for customer retention: Strong digital performance is highly correlated with retirement investor asset acquisition and retention. Among top digital performers, 50% of investors say they “definitely will” keep their assets with their current provider in the event of a job change, vs. 17% of investors with low-performing firms. With average job tenure for Millennials² and members of Gen Z now hovering below three years,³ retaining investors through employment changes has become a top priority for retirement plans.
• Missing the mark on digital account management: Overall customer satisfaction with retirement plan digital experience rises 191 points to 671 when participants can complete tasks by themselves on their plan’s website or mobile app. However, just 37% of investors say they can manage their accounts digitally without contacting customer service.
• Huge upside potential in proactive guidance: Overall customer satisfaction rises 178 points when investors believe the retirement plan websites and apps offer proactive guidance and help, yet just 22% of firms evaluated are meeting this key performance indicator.

Study Ranking

Bank of America (including Merrill) and Charles Schwab rank highest in retirement plan digital satisfaction, in a tie, with a score of 704. Prudential Financial ranks third with a score of 696.

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 7,069 retirement plan participants and was fielded in May-June 2022.

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

²JD 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.

³“Millennials or Gen Z: Who’s Doing the Most Job-Hopping,” CareerBuilder, Oct. 5, 2021 https://www.careerbuilder.com/advice/how-long-should-you-stay-in-a-job

Credit Card Customer Satisfaction Surges, but Spending Wanes Amid Weakening Economy and Growth of Alternative Payment, JD Power Finds

2022-08-16

jillian.breska

TROY, Mich.: 18 Aug. 2022 — Against a backdrop of rising inflation, a weakening economy and increased competition in the consumer lending space, credit card issuers are experiencing sizable gains in customer satisfaction, trust and Net Promoter Scores^©1. However, according to the JD Power 2022 U.S. Credit Card Satisfaction Study,^SM released today, overall share of spend on a primary card has decreased significantly as customers cite increased financial stress and interest in alternatives such as buy now, pay later (BNPL).

“Credit card issuers are doing a relatively good job of building strong customer relationships in a highly uncertain economic environment, but there are some very real concerns looming on the horizon,” said John Cabell, director of banking and payments intelligence at JD Power. “Chief among these is the declining share of spend going to primary credit cards. Despite recent spikes in travel and spending, cardholders generally have been taking a more cautious stance with credit card spend in the past five years. They are increasingly turning to other channels such as debit cards, BNPL and even cash. It is going to become critically important for card issuers to improve product value and boost proactive support for a growing segment of financially stressed customers as we move into this next phase of the economic cycle.”

Following are some key findings of the 2022 study:

• Overall satisfaction, Net Promoter Score^© and trust increase: Overall satisfaction improves 5 points to 810 (on a 1,000-point scale) year over year. The rise in satisfaction has been driven largely by significant improvement in scores in the benefits and services, credit card terms, mobile and communication factors/subfactors. Net Promoter Scores also rise four points to 46 (on a 100-point scale) this year. Similarly, perceived levels of trust in credit card issuers have increased six points to 828 during the past year.
• Primary card share of spend declines: Credit card customers are now allotting just 42% of their monthly spending to their primary credit cards, which is down from 47% in 2021 and 2020 and down from 50% in 2019. During the past five years, the average monthly cash spend is up 49% and debit card use is up 80%.
• BNPL emerges as hot alternative, especially for large purchases: When making a large purchase, 44% of credit card customers say they would consider other financing options, such as BNPL, flexible financing/installment loans or personal loans. BNPL is the most popular of these lending alternatives, considered by 28% of customers entertaining a large purchase. Reasonable fees and competitive interest rates are drivers for considering BNPL.
• Consumer financial health is suffering: More than half (57%) of credit card customers are now classified as financially unhealthy,² up four percentage points from a year ago. Likewise, 22% of consumers say they are worse off financially in 2022 than the year before—up from 18% in 2021—and 49% of credit card customers say they are carrying revolving debt on their primary cards, up from 43% in 2021.
• Time for credit card to reassess their credit choices: Just 31% of credit card customers feel their frequent purchases completely maximize their rewards earning. As the economy tightens and new lending alternatives continue to emerge, it is an ideal time for customers to reevaluate their current card choices to ensure alignment between spending and rewards/benefits.

Study Rankings 

American Express ranks highest in customer satisfaction among national issuers (4+ million active accounts) for a third consecutive year, with a score of 848. Discover (841) ranks second and Bank of America (818) ranks third.

Goldman Sachs, issuer of the Apple Card, ranks highest in customer satisfaction among midsize issuers (275,000 – 4 million active accounts) for a second consecutive year, with a score of 843. TD Bank (808) ranks second. Fifth Third (806), PNC (806) and Regions Bank (806) each rank third in a tie.

The U.S. Credit Card Satisfaction Study, now in its 16th year, measures customer satisfaction with credit card issuers by examining six factors (in alphabetical order): benefits and services; communication; credit card terms; interaction; key moments; and rewards. The study includes responses from 27,819 credit card customers and was fielded from August 2021 through June 2022.

For more information about the 2022 U.S. Credit Card Satisfaction Study, visit https://www.jdpower.com/business/resource/us-credit-card-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 Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

²JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, credit worthiness and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

Personal Loans Emerge as Critical Financial Lifeline in Challenging Economy, JD Power Finds

2022-05-24

crescent.seward

TROY, Mich.: 25 May 2022 (Updated 5 Dec. 2022) — The personal loan marketplace has roared back to life after nearly grinding to a halt during the height of the pandemic. According to the JD Power 2022 U.S. Consumer Lending Satisfaction Study,^SM released today, a combination of competitive rates, easy access and a variety of options has driven widespread consumer adoption of personal loans, with some of the most significant growth occurring among financially vulnerable^[1] consumers who are accessing these products to get through a challenging economic period.

“Increasingly, personal loans are filling the void left by the end of pandemic-era relief efforts, which introduces some important new dynamics for the banks, credit card companies and FinTechs at the center of this marketplace,” said Craig Martin, managing director and global head of wealth and lending intelligence at JD Power. “While customers are largely satisfied with these products and the market is continuing to grow, it is important for lenders to ensure the experiences they deliver are matching the promises they are making to support improved financial health.”

Following are key findings of the 2022 study:

• Personal loans as lifelines for financially vulnerable: Nearly two in five (38%) of personal loan customers are classified as financially vulnerable. The top three reasons for obtaining a personal loan focus on addressing debt (including debt consolidation), lower interest rate on current debt and lower monthly payment on existing debt. Some brands that cater to higher risk customers have nearly double the average number of financially vulnerable customers.
• Gateway to other financial products: Overall customer loyalty with personal loan products is high, with 61% of loan customers indicating that they are likely to use their lender again. This could create expanded opportunities for lenders that historically only offered loans as these companies expand their product offerings with checking, savings, credit card and investment options.
• Advertising plays key role in adoption, but not all ads created equal: Nearly half (47%) of consumers indicate that an advertisement prompted them to consider a personal loan. However, the range of advertising effectiveness is wide, with some brands driving just 31% of new business through advertising and others generating 56% of their business through advertising.
• Men and women respond differently: The study also finds significant differences in the responses of men and women to specific brand experiences. At the individual brand level, overall satisfaction with lenders varies by at least 25 points (on a 1,000-point scale) between men and women among more than half of the lenders in the study and by more than 50 points for nearly one-fourth of the brands.

“As the personal loan market continues to grow rapidly, it is critical to note that there is not a one-size-fits-all option that can deliver all things to all consumers,” said Tom Lawler, head of consumer lending intelligence at JD Power. “We’re seeing a clear phenomenon in which industry-level averages give one perspective, but the experience of certain customer groups at the brand level can be materially different. The most successful firms have a clear understanding of the different needs and expectations of their target clients and optimally invest resources to meet or exceed the expectations of those different groups.”

Study Ranking

Marcus by Goldman Sachs (776) ranks highest among personal loan lenders in overall customer satisfaction. U.S. Bank (757) ranks second and American Express (754) ranks third.

The U.S. Consumer Lending Satisfaction Study was redesigned for 2022. It 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 5,269 personal loan customers and was fielded from January through March 2022.

For more information about the JD Power U.S. Consumer Lending Satisfaction Study, visit
https://www.jdpower.com/business/financial-services/us-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

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

Small Business Satisfaction with Merchant Services Providers Surges, Led by Big Banks, JD Power Finds

2022-02-03

jillian.breska

TROY, Mich.: 3 Feb. 2022 — Long live credit cards, debit cards and digital wallets! With paper currency now used in just 19% of consumer payments,¹ and use of payment cards, electronic payments and mobile payment apps surging, small businesses are increasingly reliant on a strong relationship with their merchant services payment processor. According to the JD Power 2022 U.S. Merchant Services Satisfaction Study,^SM released today, payment processors have stepped up their games during the past year, with big banks leading the way to a significant surge in merchant services satisfaction.

“The past couple of years have been very challenging for most small businesses, but industry-wide efforts to simplify payment processing fee structures, ramp up customer support and speed up payments have had positive effects on merchant services satisfaction,” said Paul McAdam, senior director of banking and payments intelligence at JD Power. “The largest year-over-year satisfaction gains have been driven by the big banks, which have historically trailed fintech payment providers in delivering low-cost, user-friendly merchant services solutions. Now, the big banks are matching or exceeding fintechs in small business satisfaction with merchant services.”

Following are key findings of the 2022 study:

• Overall satisfaction surges, led by big banks: Overall small business satisfaction with merchant services providers is 859 (on a 1,000-point scale), up a significant 23 points from 2021. The top two performers in the study—Bank of America and Chase Merchant Services—have notable gains this year, with Bank of America increasing 45 points and Chase rising 35 points from last year’s study.
• Simplified fee structures and better customer support drive gains: This year’s significant increases in overall satisfaction are driven by a 33-point increase in satisfaction with cost of service and a 32-point increase in satisfaction with service interactions. Small businesses have improved understanding of payment processing fee structures, which have led to increased satisfaction with the ability to manage or control total payment costs. Small businesses also have experienced notably fewer problems with point-of-sale terminal/card reader hardware and software.
• Show me the money: Small businesses say they are receiving payments faster. More than one-third (34%) say the typical amount of time from transaction to funding their merchant accounts was faster than expected, up 10 percentage points from a year ago. Likewise, 65% of small businesses say they’ve received faster funding, so card payments are settled/posted same day or on non-business days, up 14 percentage points from 2021.
• Provider responses to COVID-19 earn goodwill among small businesses: Nearly three-fourths (73%) of small business customers say they are aware of at least one proactive measure their merchant services provider has taken in response to challenges caused by the pandemic, which has driven a 71-point increase in satisfaction with cost of service. Specific actions taken by providers in response to the pandemic include offering discounted products and services, updated fraud controls and faster funding turnaround times.

Study Ranking

Bank of America ranks highest in merchant services satisfaction with a score of 894. Chase Merchant Services (879) ranks second and Square (878) ranks third.

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

The 2022 U.S. Merchant Services Satisfaction Study is based on responses from 4,406 small business customers of merchant services providers. The study was fielded in September-October 2021.

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

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

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

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

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

¹Source: Federal Reserve Bank of Atlanta https://www.frbsf.org/cash/publications/fed-notes/2021/may/2021-findings-from-the-diary-of-consumer-payment-choice/

Many Retirement Plans Miss Mark on Delivering Guidance to Participants through Digital Channels, JD Power Finds

2021-09-16

jillian.breska

As virtually every participant interaction has shifted to digital channels, the majority of retirement plans are failing to deliver proactive guidance and many have made it difficult to find the information users are seeking on their websites and mobile apps. According to the JD Power 2021 U.S. Retirement Plan Digital Satisfaction Study,^SM released today, just 24% of retirement investors strongly agree their provider offers proactive guidance and help, and just 43% found it very easy to locate the information they were looking for on their retirement plan websites and mobile apps.

“Very often an individual’s first experience with investing happens within an employer-sponsored plan, giving these plan providers an inside track to build a relationship and retain and grow the participant’s assets long after they have separated from their current employer,” said Mike Foy, senior director of wealth management intelligence at JD Power. “Many of these providers have invested significantly in developing digital content and tools to provide education and guidance, but if participants are unaware of those resources or can’t easily find or use them, it’s a huge missed opportunity.” 

However, there have also been some stand-out performers that are setting themselves apart from the pack. The top and lowest performers in this study are separated by nearly 100 points on a 1,000-point scale, setting the stage for a new battle for retiree hearts and minds that is taking place in digital.

Following are some key findings of the 2021 study:

• Proactive guidance key to customer engagement, but few retirement plans deliver: Net Promoter Scores®¹ significantly increase by 51 points among participants when their retirement plan provides proactive guidance via digital channels. Participants who receive this guidance are also 25 percentage points more likely to keep their retirement assets with their current retirement plan provider or roll over to a separate IRA with that provider. Despite these benefits, just 24% of retirement plan investors say they strongly agree that their retirement plan provider offers proactive guidance and help.
• Apps are key: Overall satisfaction with the mobile app experience is 69 points higher than for websites, yet only 35% of participants have downloaded their retirement plan provider’s app to their phone. By comparison, 52% of utility residential customers have downloaded their energy provider’s app.
• Guidance and overall financial health: Retirement planning and savings can’t be done effectively in isolation from a participant’s other short- and long-term financial goals and needs. While slightly more than half (58%) of plan participants are generally financial healthy, among those who are not—including the overextended, stressed and vulnerable—satisfaction scores are much lower for the value of the information and content provided. Providers need to do a better job of understanding participant needs and delivering more relevant digital content.

Study Ranking

Charles Schwab ranks highest in retirement plan digital satisfaction with a score of 725. Bank of America (formerly Merrill) ranks second with a score of 703 and AIG Retirement Services ranks third with a score of 699.

The U.S. Retirement Plan Digital Satisfaction Study, formerly known as the U.S. Retirement Plan Participant Satisfaction Study, was significantly redesigned this year to focus on investor interaction with retirement plan digital channels. Satisfaction scores are measured across four factors: information/content; navigation; speed; and visual appeal. The study is based on responses of 5,363 retirement plan participants and was fielded in May-June 2021.

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

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

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

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

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

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