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Banking Customer Insights from JD Power Research

In today’s market, consumers have more banks to choose from than ever, making it harder for institutions to attract new customers, retain existing ones and build lasting loyalty. With 52%  of customers open to switching banks in the next 12 months, standing out from the competition with tailored strategies is more important than ever. To succeed, financial services marketers must engage current customers while also attracting new ones. This requires meaningful, actionable insights into customer preferences and behavior. 

“In a shifting financial landscape, unbiased data is the core of sound decision-making, providing an anchor of stability and a compass for navigating uncertain markets,” says Jennifer White, senior director of banking and payments intelligence at JD Power.

Unbiased customer insights help banks understand what matters most, allowing banks to craft more effective marketing strategies. Messaging should resonate with regional audiences while reinforcing the bank’s reputation as a trusted institution. By addressing the priorities of different customer segments, banks can fight attrition and strengthen their competitive position. 

Regional Variations in Customer Satisfaction 

A one-size-fits-all national approach can fall short in addressing local market differences—especially those around trust and reputation. JD Power research reveals that customers in the NY-Tri State, Southwest, Upper Midwest and California regions have lower-than-average scores on critical-to-success metrics. These include overall satisfaction; level of trust; likelihood to say they definitely will reuse the bank; and reputation. This regional performance gap is driven in part by a divide between those customers under age 40 and those over age 40. For example, customers in the NY-Tri State and California regions who are over 40 years old have high levels of trust for midsize banks and lower trust for national or regional banks. The reverse is true for those under 40 with Millennial¹ and Gen Z customers having a lack of confidence in midsize banks and a preference for national or regional banks.  

Banks on both sides of the size equation must proactively highlight their reputation for satisfying customers to win new business and retain existing accounts. 

Marketing Strategies Based on Data-Driven Regional Insights  

Effective regional marketing requires a nuanced and informed approach with strategically tailored messages that speak to regional customer preferences. 

Regional marketing campaigns help banks to meaningfully engage customers, reinforce a reputation for exceptional customer satisfaction, and build lasting relationships that inspire retention.  

“Highly satisfied customers are the cornerstone of long-term success for retail banks,” White said. “By tailoring regional marketing strategies to highlight customer satisfaction, banks can strengthen connections with local customers and drive lasting loyalty.”

Marketers can make the most of regional consumer data with messaging that meaningfully addresses the concerns of regional banking customers. 

Emphasizing Reputation 

A bank’s reputation remains a top reason why customers select a bank. Marketers should highlight credible proof of performance and customer satisfaction to reinforce and promote their bank’s positive reputation in regional markets. By pairing marketing efforts with reputation management based on real-world customer satisfaction data, banks can more effectively communicate their trustworthiness, commitment to delivering a satisfying customer experience and brand value.

Developing Regionally Tailored Campaigns 

Banking customers in different regions have distinct priorities and expectations when choosing and working with a financial institution. To connect with customers effectively, banks must create tailored campaigns that address regional concerns, demonstrate their commitment to local markets and highlight how they meet customer needs.

Final Thoughts 

The banking landscape is changing rapidly. Staying competitive relies on leveraging every advantage. Credible third-party customer insights are more important to marketing efforts across the banking industry than ever before, especially for banks serving clients in a variety of regions and those competing with national players.

Customer insights from reliable sources are useful to banks looking to stand out in a competitive market and understand how they perform when compared with national and regional competitors. Data-driven rankings and recognitions also help consumers avoid exhaustive searches and piecemeal comparisons, saving time, and frustration, and giving a more accurate picture of available choices. 

The results of the JD Power 2025 U.S. Retail Banking Satisfaction Study are in. See which banks are setting the standard for excellence in each region. Read the press release now >

[1] JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2006). Millennials (1982-1994) are a subset of Gen Y.

2025 Insurance E-Gift Card Offer

The 2025 Insurance E-Gift Card Offer (the “Offer”) commences at 12:00:01 Eastern Time (“ET”) on 2/11/2026 and ends at 11:59:59 PM ET on 3/31/2026, or whenever the 280th e-gift card is claimed, /whichever is sooner (the “Promotion Period”). Offer is open to individuals who are legal residents of the 50 United States (including the District of Columbia), who at time of entry: i) are age 18 or older; ii) provide a U.S.-based mobile phone number with a traditional phone carrier that will accept text messages; iii) qualify and complete the 2025 Automotive Claims Survey and/or the 2026 Property Claims Study (collectively referred to herein as a “Participant”). Void where prohibited by law. Offer is subject to all federal, state and local laws and regulations.

Participants qualify to receive a digital $10 e-gift card (“Card”), while supplies last, when you: 1) access the survey by using the website link provided on the solicitation you received; 2) submit your validly completed survey during the Promotion Period; and 3) your responses are verified by JD Power (the “Sponsor”). Limit: one (1) Card per Participant. The Sponsor reserves the right not to award a Card if determines, in its sole discretion, that the Participant engaged in improper activity. No responsibility is assumed for lost, misdirected, incomplete, inaccurate or illegible email or inability to retain your coupon code for direct redemption. All correspondence received for and from this Offer becomes the property of the Sponsor.

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As Financial Health Declines, Customers Try to Parse How New Tariffs Will Affect their Spending

Banking and Payments Intelligence Report
March 2025

As Financial Health Declines, Customers Try to Parse How New Tariffs Will Affect their Spending

As the inflation rate dipped below 3% in February, a whole new financial landscape has emerged for bank customers in the United States in light of new tariffs on foreign imports.

Earlier this month, the United States imposed a new 25% tariff on imports from Mexico and Canada. Accordingly, customers are trying to figure out exactly what that will mean for their finances, particularly those who are struggling.  

According to JD Power data, 31% of customers are financially healthy,[1] a rate at which customers have been largely stuck since 2024. And even though the headline inflation rate has come down, many customers are still saying it affects their day-to-day decisions. Could tariffs start to have the same kind of effect?

Financial Health Returns to Baseline    

After a slight upward swing, the number of customers who are financially healthy returned to 31% in February, while 46% of bank customers were in the vulnerable category. The rate of vulnerable customers represents a 13-month high.

The percentage of bank customers who say the cost of goods is increasing faster than their income rose to 67%. Healthy customers represented the biggest increase, up to 58% from 52% last month, a sobering metric that could portend a further decline in customer health.

Tariff Trouble?

Prior to tariffs taking effect on March 6, less than half (47%) of U.S. bank customers said that these tariffs would hurt their financial situation, while 27% said it would make no difference and 7% said it would help their financial situation. Nearly one-fifth (19%) of customers said they did not know. Meanwhile, bank customers in Canada had a more pessimistic view, as 60% said tariffs would hurt their financial situation and just 20% said they would make no difference. Eight in 10 (79%) customers in Canada said that tariffs would increase inflation, while 57% of U.S. customers agreed. Interestingly, 9% of U.S. customers said tariffs would lower inflation, compared with only 2% of customers in Canada. 

Regardless of how tariffs affect the economies of the U.S. and Canada, one thing seems certain: Bank customers north of the border plan to buy fewer American products. Nearly three-fourths (74%) of customers in Canada say they will buy fewer U.S. products in light of tariffs, while 22% say it will not make a difference in their purchasing decisions.

Navigating the Uncertainty 

As the U.S. begins to define carve outs for tariff exemptions, and companies rush to secure them for their products, it’s still unclear exactly what the end of result of these tariffs will look like. But for customers trying to find some certainty in a very fluid situation, banks have a chance to step in offer some stability.

Customers who are both dialed into the latest developments of this trade standoff and those that haven’t been paying attention are just as susceptible, and they’ll need guidance to get through it. Short of some momentary glimmers, the financial health of customers in the U.S. has been largely unchanged, even as inflation has fallen steadily since 2023. Banks that can keep their customers informed and help them chart a course through the clutter will stand to build better relationships.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in February 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[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.

It’s a Buyer’s Market for EVs. Where are the Buyers?

E-Vision Intelligence Report
June 2024

Key Findings

• EVs More Widely Available and Affordable Than Ever: The majority of premium (70.1%) and mainstream (55.7%) vehicle buyers now have a suitable electric vehicle (EV) option available in the marketplace and the prices for these vehicles has never been lower. The average total cost of ownership (TCO) for a premium EV fell to $62,600 in May and the average TCO for a mainstream EV is now $58,100. In many cases, EVs are now more affordable than their gasoline-powered counterparts.
• EV Consideration and Adoption Stalled: Overall, 59.5% of new-vehicle shoppers say they are either “very likely” or “somewhat likely” to consider buying an EV in the next 12 months, a slight increase from April (58.2%), but down from the highest levels observed in the fourth quarter of 2023. Real-world EV adoption rates have been flat at 8.4% since March 2024.
• Next Several Months Pose Critical Test for Mainstream Consumer Demand: Two major impediments to widespread mass market EV adoption have been a significant price premium vs. comparable gas-powered vehicles and a notable lack of vehicle options in the mainstream market. During the past two months, both of those trends have shifted sharply, with major mainstream launches and trim expansions planned during the next several quarters. Consumer response to these changing market dynamics during the next several months will be a key indicator of future EV demand.

Executive Summary

It’s become impossible to ignore the rising tide of negative sentiment about consumer demand for EVs.  But when we look deep into the data on EV market dynamics, consumer sentiment and infrastructure development, we find that it is still too early to say exactly how shoppers will respond to major new improvements in EV affordability and availability. The next several months will be critical in shaping that longer-term forecast.

This E-Vision Intelligence Report dives into key data points trending in each monthly EV Index update, along with other data points gathered from JD Power studies and pulse surveys, to spotlight emerging trends and important shifts in EV consumer sentiment.

EV Availability and Affordability Surges

The EV market has skewed premium since its inception, and that is still the case. Tesla, a premium brand, accounted for 50% of all EVs sold in the U.S. in May, and 70.1% of premium vehicle buyers currently have a comparable EV option available. In addition, many premium EVs are now more affordable than comparable gas-powered vehicles. But that dynamic is starting to shift into the mass market, as well. In fact, mainstream EV availability has surged considerably since March 2024, with 55.7% of mainstream buyers now having a viable EV option. A combination of manufacturer incentives and growth of lower-priced trims in existing EV models is driving this surge. Additionally, new mainstream models in the popular crossover SUV segment are coming to market, meeting more consumers’ needs, including the Honda Prologue and Chevrolet Equinox EV.

When it comes to affordability, mainstream EVs are now just $1,500 more expensive, on average, than their gas-powered counterparts. That gap has shrunk from a high of $8,400 in May 2023. When looking at specific models, in many cases, EVs have become considerably cheaper than gas-powered vehicles. The Ford F-150 Lightning, for example, now has an average customer-facing transaction price (CFTP) of $53,494 after federal tax credits, which is $5,073 cheaper than the average CFTP of a gas-powered F-150.

Mainstream Affordability

Premium Affordability

Demand Stalls

Despite these recent improvements in affordability and availability, total EV industry market share has been largely flat for the past three months, currently accounting for 8.4% of total vehicle sales. When it comes to consumer sentiment, 59.5% of new-vehicle shoppers say they are either “very likely” or “somewhat likely” to consider buying an EV in the next 12 months, a slight increase from April (58.2%), but down from the highest levels observed in the fourth quarter of 2023.

Digging deeper into those numbers, we find that the month-over-month increase in EV consideration is being driven by vehicle shoppers who say they are “very likely” to consider an EV. Conversely, the percentage of vehicle shoppers who say they are “very unlikely” to consider an EV is trending down.

EV Retail Share 

Mainstream EV Adoption: Still in the Early Days

While it is tempting to read these data points as an indication of waning consumer interest in EVs, it is important to keep perspective of the larger context of the transformation currently unfolding in the automobile industry. The industry is at a tipping point in the evolution of the EV market, whereby the initial influx of premium vehicles that appealed largely to early adopters is now giving way to more mainstream models designed—and priced—for a mass-market audience. Importantly, this is only the third consecutive month that we’re seeing an improving trend toward mainstream affordability and availability.

The next several months will be critical to watch as mainstream EV models are being offered at steep discounts when compared with comparable gas-powered models. Once the barriers of cost and availability are no longer a factor in the EV purchase equation for consumers, the focus will shift squarely to driving and charging experience as the true gauges of consumer sentiment in the EV market.

Methodology

This JD Power E-Vision Intelligence Report is based on data and insights from the JD Power EV Index, the JD Power EV Retail Share Forecast, the JD Power 2024 U.S. Electric Vehicle Experience (EVX) Ownership Study, the JD Power 2023 U.S. Electric Vehicle Experience (EVX) Public Charging Study and the JD Power U.S. Electric Vehicle Consideration (EVC) Study. The JD Power EV Index is an analytics tool to benchmark the growing EV market in the United States. It tracks millions of data points aggregated into six categories—interest, availability, adoption, affordability, infrastructure and experience—to evaluate the progress to parity of EVs with gas-powered vehicles in the U.S. Each month, the JD Power electric vehicle practice will analyze these data points, and others to spotlight emerging trends and important shifts in consumer sentiment that are helping to define the fast-moving EV marketplace.

Find out More

This report was authored by Elizabeth Krear, vice president, electric vehicle practice; Brent Gruber, executive director, electric vehicle practice; Stewart Stropp, executive director, electric vehicle practice; and Kristen Richter, senior manager, electric vehicle practice. The JD Power E-Vision initiative is a company-wide program focused on maximizing JD Power industry-leading EV data, analytics, insights and solutions. Please contact us at the numbers below to connect with the authors or to learn more about the underlying research.

Media Contacts

Shane Smith; East Coast; 424-903-3665; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

As Overall Inflation Concerns Ease, U.S. Bank Customers Turn Focus to Rising Energy Costs

The concern about inflation among bank customers in the United States is seemingly cooling but new worries about energy costs are bubbling up with each new summer heatwave.

The average utilization rate of electricity is on the rise and, as a result, the cost of summer season cooling is set to spike. That has customers worried that their energy bills will absorb any savings they might be seeing on consumer goods.

According to JD Power, the percentage of U.S. bank customers who are financially healthy[1] has remained steady and the overall level of concern regarding inflation has begun to fall, but customers in every financial category are at least somewhat worried about the size of their energy bill.

It’s a discouraging development for customers trying to dig out of the financial holes left by the last two years, as they try to discern how they can manage both their energy consumption and their budgets in the face of unrelenting weather.

Financial Health Largely Flat as Inflation Concerns Wane               

The number of customers who are financially healthy remains steady at 30%, while 45% fall into the vulnerable category.

 

The number of bank customers who say that the cost of goods is increasing faster than their income decreased to 69%, the lowest level this calendar year.

 

Energy Tensions Rise

Just as inflation concerns have started to subside, a new worry has emerged. Nearly one-third (32%) of customers are extremely worried their energy costs will rise this summer, and 85% are at least somewhat concerned. These fears are highest among vulnerable consumers.

 

What’s more, more than half (55%) of customers say they are making daily attempts to reduce their energy usage by lowering their consumption, a rate that is highest among stressed customers (65%) and those over the age of 40 (63%). Interestingly, even among financially healthy customers, 55% say they have made daily adjustments, showing the universality of these concerns.

 

Customers have also begun to get assistance to pay for their utilities. Overall, 13% say that they have received financial assistance from the government or other organizations. The rate is highest for customers that are overextended (20%) and under the age of 40 (17%).

 

Rising Financial Temperatures

It certainly appears that just as customers have begun to get a reprieve from inflation, energy costs are here to throw everyone a curveball. But the reality is that if it wasn’t energy costs, it would be holiday shopping or travel plans or any other cyclical cost. The truth is that the financial health of customers in the United States has just not recovered yet, and that puts increased pressure on banks to help their customers manage these challenges.

While many banks are well-positioned to come to the rescue with budgeting tools, assistance programs, and a host of other solutions that are available to their customers, those solutions will only help if customers are aware of them and trust the institutions from which they are coming. It’s incumbent on the banks to communicate with their customers and proactively offer personalized help that meets their unique financial needs.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in June 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[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.

Utility Customers Give Sunbelt States Low Marks for Water Quality as Concerns about Water Safety Persist

Utilities Intelligence Report

August 2024

Amid a seemingly non-stop barrage of safety alerts and growing concerns about contamination and supply shortages, Americans are using more water than ever before.

The combined water and sewer bill for a typical household in the United States has increased 54.8% since 2012, even as utility customers have serious reservations about the quality of the very water they’re consuming. According to JD Power data, 41% of customers say they do not feel the water provided by their local utility is safe to drink.

That’s created quite a quandary for local water utilities, as they wrestle with providing uninterrupted, high-quality service, while figuring out a way to effectively tamp down fears about water safety. Some water utilities are doing a much better job than others when it comes to customer perceptions of water quality.

Methodology

Each year, JD Power gathers feedback from customers of water utilities in its U.S. Water Utility Residential Customer Satisfaction Study. The study measures satisfaction among residential customers from 92 water utilities that deliver water to populations of at least 400,000.

For this report, JD Power drilled into the data of the 2024 U.S. Water Utility Residential Customer Satisfaction Study to further examine consumer perceptions about the quality of their water. Customers were asked to rate the quality of water in terms of taste, color, odor, hardness, and other factors on a scale of 1-10. 1 being unacceptable, 5 being average and 10 being outstanding. States are then ranked based on the percentage of customers that respond positively about their water from best and worst. This year’s study is based on the responses of 32,833 residential water utility customers and was conducted from June 2023 through March 2024.

Tap, Please

After tallying the results, Washington State took home the top spot with 84.5% of customers giving their water positive marks. This comes amid recent news that the state will move to tougher federal limits on PFAS chemicals.

 

Washington	84.5%
Kansas	81.4%
Hawaii	80.0%
Kentucky	79.3%
Massachusetts	79.3%
New York	78.7%
Connecticut	77.7%
Georgia	76.5%
Louisiana	76.5%
Virginia	75.1%

 

Kansas ranked second (81.4%) followed by Hawaii (80.0%).

Sunbelt Struggles

On the opposite end of the spectrum, Arizona ranked lowest among the 50 states with a 62.6% favorability score. Arizona is joined by four other Sunbelt states—New Mexico, Alabama, Nevada and California—on the list of worst performers.

California	69.8%
Texas	69.7%
Wisconsin	69.0%
Maryland	68.0%
Nevada	67.8%
Indiana	67.7%
Oklahoma	66.5%
Alabama	65.8%
New Mexico	65.2%
Arizona	62.6%

 

Trickle Down Satisfaction

What once felt like an issue confined to one region of the country, water safety is now a nationwide issue. However, despite rising levels of concern, many customers say that their water districts are not doing an effective job getting ahead of the problem. In fact, just 2% of residential water utility customers nationwide say they recall receiving any proactive communication from their utility about PFAS contamination and steps they are taking to address the issue.

For customers to truly feel like their utility is a partner in their family’s health, utilities must find a way to not just provide cleaner drinking water, but to effectively communicate the strides they are taking to ensure the quality of that water. By doing so, water districts around the country will likely see an increase in customer satisfaction and confidence.

Find out More

This Utilities Intelligence Report was authored by Ramah Vaughn, director of utilities intelligence at JD Power. Please contact us at the numbers below to connect with Mr. Vaughn or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

VIDEO: Financial Services Intelligence Update — July 2024

 

The JD Power Financial Advisor Satisfaction Study provides crucial insights into what drives advisor contentment and retention, offering valuable guidance for wealth management firms. Tune in to the July 2024 Financial Services Intelligence Update with Kapil Vora and Miles Tullo to refine your advisor retention strategies and stay ahead in the industry.

Key Insights:

• Employee Advisors: Satisfaction has surged by 49 points this year, thanks to better compensation, advanced technology, and enhanced support systems.
• Independent Advisors: Satisfaction has declined by 15 points, primarily due to leadership issues. Only 46% of independent advisors feel their firm is heading in the right direction, a drop from 54% last year.

Important Takeaways:

• Attrition Trends: Advisors who signal they might leave often do. Conversely, those committed to staying are likely to remain, underscoring the need for early intervention and resolution of concerns.
• Culture and Leadership: Effective firm culture and leadership are critical for retention. Advisors planning to stay rate these factors much higher than those considering leaving. For less tenured advisors, professional development is also key.

 

Where can you find more insights like this?  

The JD Power Financial Advisor Satisfaction Study is a critical tool for understanding and improving the financial advisory industry. This annual study measures the satisfaction levels of financial advisors with their respective firms, focusing on key areas that directly impact advisor performance and retention. The study measures satisfaction based on six key dimensions: compensation, firm leadership and culture, operational support, products and marketing, professional development, and technology.

READ THE LATEST PRESS RELEASE

More About These Experts 

Kapil Vora is the Senior Director of Wealth Intelligence at JD Power. In this role, he is focused on equipping clients with data, analytics, and strategy to make them competitive with today’s investors and financial advisors. He leads research for Investor Satisfaction and Advisor Satisfaction studies.  

Miles Tullo is the managing director of the JD Power Financial Services team. He oversees the company’s consumer payments program, focusing on point-of-sale choice and non-credit card payment methods. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients.  

Summer Travel Demand Remains Strong, But Many Consumers Are Looking for Ways to Cut Costs

Hospitality Intelligence Report

August 2024

This summer, no one can stand in the way of Americans and their vacations.

Sounds like the tagline to a summer blockbuster, right? With the challenges many families have faced juggling rising costs and jam-packed work schedules, not to mention over-subscribed flights and sold-out hotels, the annual rite of the summer getaway has become an adventure in patience and careful planning.

To get a better sense of how consumers are managing the balance between their finances and their summer travel plans, JD Power surveyed more than 4,000 retail bank customers in the United States about their summer travel plans in May. Below are the key findings.

Hitting the Road                                                    

Nearly three-fourths (74%) of consumers surveyed say they are planning to travel this summer, although a large portion (30%) of them plan to stay close to home. Still, 37% say they plan travel to other areas in the United States and 7% plan to travel outside the U.S. This trend is consistent with data we are seeing across a wide range of JD Power hotel and air travel data. Those under age 40 are more likely than older consumers to have summer travel plans.

Vacation Budgets Shrink

While almost one-third (32%) of those planning summer travel will not make any changes to their usual travel plans this summer, most say they will be finding ways to cut costs.

Predictably, with airfares projected to increase between 3% and 7% in 2024, one third of those changing how they plan to travel say they plan to drive instead of fly this summer (33%). Other cost-cutting moves include changing their ultimate destination (46%), reducing the length of their trips (34%) and changing when they travel (27%).

Younger Travelers More Willing to Splurge

Additionally, only one in five summer travelers (19%) plan to use rewards or pay extra for added luxury on their trips. This proportion rises to 29% among summer travelers under the age of 40, who are far more willing to pay for upgrades compared to older travelers. For some, it seems there is still a willingness to err on the side of more extravagance versus less, perhaps due to continued post-pandemic attitudes of ‘you only live once.’  However, travelers’ willingness to change their plans shows that the industry optimism we’re observing for summer travel is of the cautious type.

Hospitality brands and vacation destinations would be wise to meet consumers where they are financially by tailoring their services to provide a great baseline experience, as opposed to focusing on upselling luxury upgrades. Travelers across every level of financial health will be hitting the road, this summer, and hospitality brands that meet or exceed those travelers’ expectations will earn significantly higher levels of customer satisfaction and brand advocacy.  

Find out More

This Hospitality Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in May 2024. It was authored by Andrea Stokes, hospitality intelligence practice lead at JD Power. Please contact us at the numbers below to connect with Ms. Stokes or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

Bank Customers Finding Ways to Manage Inflation—But Not Necessarily with Personal Financial Management Tools

With the inflation rate in the United States stubbornly stuck around 3%, more bank customers are trying to find ways to manage the higher cost of goods, even if their overall financial health[1] has not necessarily improved.

According to JD Power, the percentage of U.S. bank customers who are financially healthy has remained steady, but the overall level of concern regarding inflation has fallen sharply. This implies consumers are finding workarounds for higher consumer prices.

Unfortunately for banks, it seems that customers are finding these workarounds without the benefit of using the personal financial management tools they’ve developed to provide this type of guidance. Customers say they find these tools clunky and hard to interpret, which represents a missed opportunity for banks to provide valuable insights to the customers that need them the most.

Financial Health Largely Flat as Inflation Concerns Wane                                           

The number of customers who are financially healthy remains steady at 31%, while 45% of bank customers fall into the vulnerable category.

For a third consecutive month, the number of bank customers who say that the cost of goods is increasing faster than their income decreased. Nearly two-thirds (66%) of customers say they are struggling to keep up with the cost of goods, which is the lowest level this calendar year by far.

Management Tools Come Up Short

As customers acclimate to higher prices, banks have tried to offer personal financial management tools for support. Unfortunately, many are finding these tools to not be particularly helpful. In fact, just 40% of customers say that they completely understand the data presented to them in their bank’s personal financial management tool. That leaves an interpretation gap for more than half of users, one that widens as financial health status declines.

When asked specifically if personal financial management tools helped teach them about their money management behaviors, just 29% said they completely understand their spending habits thanks to these tools. That rate drops to 19% for vulnerable customers.

What’s more, customers are finding these tools to be too passive. Just 39% of customers said that their bank’s management service prompts them with advice to make an immediate change to their financial activity to improve their situations, while only 36% said the tools took action on their behalf (i.e., putting more money into savings or setting up a proposed budget).

Becoming Proactive

While the easing anxiety over inflation is certainly worth celebrating, the fact that most customers’ financial health has not changed is an indication that these modest improvements may not be sustainable. Simply growing numb to higher consumer goods isn’t the same as bolstering a customer’s finances, and that’s where most banks have an opportunity to intervene.

Personal financial management tools can be a game-changing solution for customers, particularly those searching for some relief. But if the data and insights provided aren’t digestible to the customer, there is no way to make them actionable. Customers are expressing a willingness to try these tools and have clear preference on what they want them to look like. Banks must find a way to make the solutions not only easier to understand, but more proactive to help customers take key steps toward better financial health. Banks that can do this stand to build trust and forge valuable relationships with their customers.

Find Out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in July 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

[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.

JD Power Revises EV Retail Share Forecast

E-Vision Intelligence Report
August 2024

Key Findings

• Near-Term EV Forecast Revised Down: JD Power has revised down its 2024 and 2025 EV market share forecast, projecting 9% total EV market share in 2024, which translates to approximately 1.2 million in sales of battery electric vehicles (BEVs), excluding plug-in hybrids (PHEVs) and hybrids (HEVs). The 2024 EV forecast was revised down from 12%. Longer term, JD Power projects annual EV sales volumes will reach 36% market share by 2030 and 58% market share by 2035.
• Growth of PHEVs, Lingering Concerns About Public Charging Create Hurdles to Adoption: While 60 different EV models are now available, the number of PHEV options has also grown considerably, reaching 45 models and accounting for 1.8% of total sales. The growth of PHEVs has created additional substitutes for gas-powered vehicles and increased competition for EVs. The other persistent headwind on EV sales has been consumer concern with public charging infrastructure.
• Incentives, New Models and Returning Lessees Could Spark More Growth: EV affordability and availability scores have been improving for two consecutive months, with current tax incentives and lease deals making EVs more affordable than their gas-powered counterparts, in many categories. Continued improvements in overall accessibility of EVs and increased volume from returning EV lessees—94% of whom say they are likely to consider another BEV—are likely to drive a surge in EV sales volume during the next two years.

Executive Summary

Welcome to the messy middle of the EV evolution. As manufacturers continue to refine their go-to-market EV strategies, offering an increasingly varied mix of powertrains ranging from HEVs to PHEVs to BEVs, the adoption curve continues to grow but in a less predictable, more volatile fashion. Overall, BEV sales are up 35,000 units through July 2024, and while that is a clear sign of continued momentum, it is a slower growth rate than previously expected. In this report, we’ll discuss how this trend has affected our EV sales forecast and dive into the data to better understand the dynamics at play in the current market.

This E-Vision Intelligence Report dives into key data points trending in each monthly EV Index update, along with other data points gathered from JD Power studies and pulse surveys, to spotlight emerging trends and important shifts in EV consumer sentiment.

EV Market Share Forecast Revised Down

Based on the current mix of EV interest, availability, adoption, affordability, infrastructure and customer experience metrics tracked each month at JD Power, we are projecting total EV market share will reach 9%, or 1.2 million units, by the end of this year. That forecast is revised down from 12% in January 2024, based on a slower-than-expected growth rate for the first half of the year.

Longer term, we are projecting EV sales will reach 36% of the total U.S. retail market by 2030 and 58% by 2035. The current rate of slower-than-expected sales volume is being driven by a combination of relatively near-term variables that will fade as EV adoption continues to reach critical mass.

Consumers Confront Mixed Signals

One major driver of the slower-than-expected EV growth rate in the first half of this year has been increased competition in the market for gasoline-powered vehicle alternatives. While HEVs and BEVs currently account for the lion’s share of sales in this category at 8.6% and 8.4%, respectively, PHEVs have recently gained more widespread attention and now account for 1.8% of retail sales. That’s up from just 0.6% in 2020 across 45 different models that are now available. However, while PHEV sales have been increasing recently, JD Power customer satisfaction data suggests this surge in interest may be temporary. PHEVs score significantly lower than BEVs in nine of the 10 categories tracked in the JD Power 2024 U.S. Electric Vehicle Experience Ownership Study, particularly when it comes to battery range and total cost of ownership.

The other headwind on EV sales has been ongoing consumer concerns with public charging infrastructure. According to the JD Power 2024 U.S. Electric Vehicle Experience (EVX) Public Charging Study,^SM the ease of home charging is the most satisfying single aspect of the EV ownership experience and public charging availability is the least-satisfying aspect. However, customer satisfaction with both Level 2 and DC Fast Charging segments has improved for two consecutive quarters—a first for the study which is in its fourth year. As public charging infrastructure continues to improve, this headwind to EV adoption should dissipate.

Expect an EV Inflection Point

EV availability and affordability metrics have continued to improve for the past two months as a surge in new mainstream models rolls out nationwide. Currently, 66% of new-vehicle buyers have a viable EV alternative available to them and, in many cases, EVs are now less expensive to own than their gas-powered counterparts.

One important detail in current EV sales volumes is the extraordinarily high proportion of leasing activity. Due to tax incentives introduced under the Inflation Reduction Act, which allow the $7,500 Clean Vehicle Credit to pass through on leased EVs, 86% of premium BEV transactions (excluding Tesla) are leases. Similarly, 72% of mass market BEV transactions are leases. Conversely, only 11% of Tesla transactions are leases. When these leasing customers return to market, we expect a significant surge in new EV volumes, especially from traditional franchise dealers. Currently, 94% of current BEV owners say they are likely to consider another BEV for their next vehicle, according to JD Power data.

Methodology

This JD Power E-Vision Intelligence Report is based on data and insights from the JD Power EV Index, the JD Power EV Retail Share Forecast, the JD Power 2024 U.S. Electric Vehicle Experience (EVX) Ownership Study,^SM the JD Power 2023 U.S. Electric Vehicle Experience (EVX) Public Charging Study^SM and the JD Power U.S. Electric Vehicle Consideration (EVC) Study.^SM The JD Power EV Index is an analytics tool to benchmark the growing EV market in the United States. It tracks millions of data points aggregated into six categories—interest, availability, adoption, affordability, infrastructure and experience—to evaluate the progress to parity of EVs with gas-powered vehicles in the U.S. Each month, the JD Power electric vehicle practice will analyze these data points, and others to spotlight emerging trends and important shifts in consumer sentiment that are helping to define the fast-moving EV marketplace.

Find out More

This report was authored by Elizabeth Krear, vice president, electric vehicle practice; Brent Gruber, executive director, electric vehicle practice; Stewart Stropp, executive director, electric vehicle practice; and Kristen Richter, senior manager, electric vehicle practice. The JD Power E-Vision initiative is a company-wide program focused on maximizing JD Power industry-leading EV data, analytics, insights and solutions. Please contact us at the numbers below to connect with the authors or to learn more about the underlying research.

Media Contacts

Shane Smith; East Coast; 424-903-3665; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]