Category: Uncategorized

This month, we’re diving into the results of our flagship U.S. Credit Card Satisfaction Study. With insights from over 39,000 cardholders across 283 cards and 19 major issuers, this study reveals key trends shaping the credit card industry. Miles Tullo, Managing Director of Financial Services and John Cabell, Managing Director of Payments Intelligence, discuss the widening gap in satisfaction between revolvers and transactors. 

A Widening Divide

According to the results of the 2024 U.S. Credit Card Satisfaction Study, the satisfaction gap between credit card revolvers and transactors is wider than ever. “While there has always been a difference, this year we saw a dramatic shift,” John Cabell notes. Those who manage to stay financially healthy continue to enjoy their rewards cards and benefits. Meanwhile, those grappling with debt are facing increasing dissatisfaction as interest rates, fees, and account terms become more critical factors in their overall experience.

What Does This Mean for Issuers? 

The implications for credit card issuers are clear: financial health isn’t just a consumer issue; it’s a business imperative. As dissatisfaction grows among financially stressed cardholders, issuers must refine their strategies. Offering support that goes beyond standard customer service, particularly around managing interest charges and fees, can make all the difference. The focus should be on proactive financial health support, which has long been a gap in the credit card industry.

The Path Forward 

For issuers, this year’s results are a wake-up call: Consumer satisfaction is a moving target, and the credit card industry must continue to evolve to meet the changing needs of cardholders. The study highlights that satisfaction varies significantly depending on cardholder priorities:

• For Revolvers: Account terms, such as credit limits, interest rates, and fees, dominate as top concerns. With financial pressures mounting, these cardholders are more likely to feel the pinch of their credit card’s terms.
• For Transactors: Rewards remain a key driver of satisfaction. Interestingly, benefits like free FICO score tracking have seen a surge in both awareness and usage, helping to boost satisfaction among this group.

Get the complete breakdown of this year’s study by watching the full video.

Watch the Full Video

Where can you find more insights like this?  

The JD Power U.S. Credit Card Satisfaction Study is the most comprehensive and independent survey of credit cardholders available. Designed to help both consumers and issuers, it provides valuable insights into satisfaction ratings for the largest credit card brands. The study establishes a quality benchmark for personal card issuers and delivers a deep understanding of customers’ needs, expectations, and preferences at both the brand and product levels.

Read the press release

More About These Experts

John Cabell serves as the Senior Director of Banking and Payments Intelligence at JD Power, where he leads strategic direction and oversees the execution of our credit card studies. With over 25 years of experience in customer experience (CX) across the banking, payments, and mortgage industries, John brings deep expertise to his role. He holds an MBA from the Raymond A. Mason School of Business at William & Mary and a bachelor’s degree in Economics and French from the Virginia Military Institute.

Miles Tullo is Managing Director of Financial Services at JD Power. He oversees client engagement for the Financial Services Practice in North America and recently led the development and launch of the JD Power U.S. Consumer Payment Program. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients.  
 

Customers Growing More Optimistic about Potential of AI in Financial Services, But Skepticism Remains

Customers Growing More Optimistic about Potential of AI in Financial Services, But Skepticism Remains

It seems that financial services customers are technologically optimistic at heart.

While forecasts of artificial intelligence (AI) integrations often bring a gloom and doom, man vs. machine, dystopian dynamic, it seems that customers generally are encouraged at the prospect of further implementation of generative AI (GenAI) tools and solutions at their respective banks. To get a sense of just how optimistic they are, JD Power surveyed more than 2,000 financial services customers in the United States about their utilization and opinions of AI.

According to JD Power, 54% of all customers say they have used some version of a generative AI tool, and 32% say they have a complete understanding of AI. That level of comprehension and adoption has fueled a largely positive view of the technology, as 50% of customers are optimistic that AI will at least somewhat enhance their lives.

But an undercurrent of skepticism still exists, as customers can’t shake concerns about security, an increased risk of fraud, and loss of human support. The good news is that these fears provide financial institutions with a roadmap toward broader adoption for their AI solutions.

 AI Usage Rises, But Trust Issues Persist            

The use of AI chatbots among customers is on the rise. Overall, 54% of customers say they have used a GenAI tool. That level is significantly higher among national bank customers (66%) than regional banks (42%). Unsurprisingly, chatbot usage is higher among customers under the age of 40 (72%). 

When asked how confident customers feel about using AI chatbots for specific purposes, just 27% of customers said they trust AI for financial information and advice. When compared with other categories of advice, this ranks lower than travel information (37%), but slightly ahead of medical information (25%).

 

Understanding the Tech

Some of the above hesitation undoubtedly comes from a lack of understanding of how GenAI solutions work. Despite this tech becoming increasingly common, there is a widespread lack of comprehensive knowledge about GenAI. While most customers have used GenAI, just 32% of customers claim to possess a full understanding of AI solutions, a rate that is highest among those under 40 years old.

While customers are confident that AI tools will provide some added convenience, they are a lot more skeptical about the positive impacts to their financial situation. While 72% of customers agree or strongly agree that AI tools will provide easy, convenient self-service in the near future, only 42% believe AI will improve personal finances. The difference highlights an important gap for financial services firms to close.

Finding the Opportunity

Customers are most likely to be receptive to personalized alerts and recommendations that can help them, but many are wary of allowing AI to control the actions and the application of personal security measures.

Nearly two-thirds (62%) of bank customers say they would immediately try AI-driven personalized account alerts to help avoid service charges and fees, 44% would use automated phone voice assistants to resolve a customer service problem, and 42% would take personalized product recommendations from an AI agent.

Given the fact that customers are clearly open to AI tools, the onus is on financial institutions to communicate to their customers a clear understanding of how AI works and its benefits. These solutions can help customers and banks forge a symbiotic relationship to improve workflows and bolster personalized advice and alerts, but there must be buy-in from the customer to make that happen. By getting insights into how and when customers are most likely to use AI, banks can tailor their outreach accordingly. Those that do it well stand to win big with customers, both new and existing.  

Find out More

This Financial Services Intelligence Report is based on responses from 2,001 financial services customers nationwide and was fielded in April 2024. It was authored by Ila Ghosh, senior director of financial services intelligence at JD Power. Please contact us at the numbers below to connect with Ms. Ghosh 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]

Even as Inflation Eases, Bank Customers in U.S. Struggle to Find Relief

Inflation is the bugaboo that just won’t go away. As the U.S, Presidential election hits a fever pitch, the persistently high cost of consumer goods is a huge talking point among the candidates and the voters.

That may be surprising to some, as the rate of inflation finally dropped below 3% this summer and, at its current 2.5%, represents a 73% drop from the 9.1% high that was reached in June 2022. But according to JD Power, the percentage of bank customers in the United States who are financially healthy[1] has only modestly improved, while the number of customers who say the cost of goods is increasing faster than they can afford has increased in the past month.

It’s a fact that is difficult to reconcile, leading some analysts to wonder just how reliable some customer feedback is. Notably, 28% of customers say they do not track their own financial status, leaving banks with the uphill task of building products and offering services to a clientele that is often in the dark about their actual situation and needs.

Inflation Becomes the Ultimate Enigma

The number of customers who are financially healthy rose slightly to 32%, while 44% of bank customers fall into the vulnerable category.

For the first time in four months, the number of bank customers who say that the cost of goods is increasing faster than their income increased (68%). That rise comes amid the lowest inflation numbers in recent memory.

Relief Hard to Come By, But Lack of Tracking Breeds Confusion

When asked about where they have experienced relief from inflation, customers express modest improvement from six months ago. Grocery and restaurant prices show the most improvement, but shockingly, 34% of customers say prices have not gone down for any goods. Those rates are highest among financially stressed and vulnerable customers, but even 30% of healthy customers say they have not felt any relief.

Even as customers continue to express struggles, there seems to be a disconnect between what customers feel and what they actually know. While some customers are using either banking digital tools or a personally made system, a surprisingly high 28% of customers admit that they do not track their finances with any digital tool or other system.

A Need for Clarity

Even with inflation easing, it is clear that customers are not feeling immediate relief. After being under duress for more than two years, financial health improvements are likely to lag inflation’s downward trend. That means that inflation is still a factor in many Americans’ day-to-day financial decisions.

For banks, this creates an interesting dilemma. With so many customers making choices, both financial and political, based on inflation, yet such a sizeable portion of them refusing to track their finances, it is difficult to build an outreach strategy. Banks will need a multi-pronged approach that incorporates financial literacy, vigilance, and planning to help customers out of the cycle of stress that they’ve been experiencing.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in August 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.

Plug-In Hybrid Paradox: Manufacturers Embrace Them, U.S. Shoppers Not Yet Fully Convinced

E-Vision Intelligence Report
September 2024

Key Findings

• Plug-In Hybrid (PHEV) Market Share Remains Stubbornly Low: Despite recent efforts by manufacturers to pivot to PHEVs as a bridge to full EV adoption, PHEV market share remains below 2% of the total automobile market. This compares with 9.4% for battery electric vehicles (BEVs) and 10.7% for hybrid vehicles (HEVs). Meanwhile, the total number of available PHEV models in the market (41) is larger than that of HEVs (39).
• Large Gap Emerges Between PHEV and BEV Purchase Prices: PHEVs are significantly more expensive to purchase than BEVs or HEVs. The average customer-facing transaction price (CFTP),[1] for a PHEV in the compact SUV category is $48,700. That compares with an average CFTP of $37,700 for a HEV and $36,900 for a BEV in the compact SUV category.
• PHEVs Missing the Mark on Customer Satisfaction: Overall customer satisfaction with PHEVs has been significantly lower than BEVs. Overall satisfaction with PHEVs is 669 (on a 1,000-point scale), while mass market BEVs (716) and premium BEVs (738) score significantly higher.

Executive Summary

By now, it is no secret that the big obstacle keeping shoppers from broad adoption of EVs is range anxiety. Consistently, across every study JD Power has conducted to evaluate customer experience with EVs, five of the top 10 reasons people give for rejecting an EV are focused on things like lack of charging station availability, limited driving range, time required to charge, and other charging- and infrastructure-related concerns.

The auto industry’s solution has been something of a compromise. In the past year, virtually every major automaker has made a pivot to PHEVs as a bridge between gasoline-powered vehicles and fully electric vehicles. On paper, it makes a ton of sense. In reality, it’s creating some new challenges.

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

PHEVS Not Moving the Needle on Sales

Despite heavy marketing pushes and high-profile introductions of new models, PHEV sales are not yet making a significant dent in total auto industry market share. Through August, PHEVs represented just 1.9% of total vehicle sales, which is down slightly from July. That compares with 9.4% market share among BEVs and 10.7% among HEVs.

In terms of vehicle availability, there are currently 41 different PHEV models available in the U.S. market. By comparison, there are 39 HEV and 60 BEV models currently available.

At What Cost Charging Independence

PHEVs have been widely embraced by the automotive industry as a bridge to meeting ambitious fleet emissions targets while also easing consumers into the EV transition by removing range anxiety from the ownership equation. It also doesn’t hurt that they are able to sell them at a significant premium to BEVs and HEVs.

On average, the CFTP for a compact SUV PHEV sold in January-August of 2024 was $48,700, which is 24% higher than the average real-world transaction price for a comparable BEV ($36,900). HEVs, which are most similar to PHEVs from a mechanical and production cost standpoint, have an average CFTP of $37,700 in the compact SUV category during the same period.

When viewed through the lens of total cost of ownership, which factors in things like fuel and maintenance costs, BEVs are just 1% cheaper to own over a 5-year period than all other fuel types.

Customer Satisfaction: A Critical Missing Link

Perhaps the biggest concern surrounding the auto industry’s pivot to PHEVs is the overall lack of customer satisfaction among the people who are buying these vehicles. Although they are being pitched as the best of both worlds, when it comes to customer experience PHEVs are starting to look like a compromised solution.

According to the latest updates to the JD Power U.S. Electric Vehicle Experience (EVX) Ownership Study,^SM overall customer satisfaction with PHEVs has been significantly lower than BEVs. Overall satisfaction with PHEVs is 669 (on a 1,000-point scale), while mass market BEVs (716) and premium BEVs (738) score much higher. Among the challenges PHEV owners experience are higher-than-expected ownership costs associated with vehicles that have two different power sources, each with its own maintenance and fueling requirements. Also, since PHEVs are not discernably different in terms of style and design from their gasoline-powered counterparts, yet come at a steep premium, many consumers are not seeing a big enough difference in overall ownership experience to make them feel they are getting enough value for their money.

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; 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]

[1] Consumer facing transaction price is the negotiated vehicle price less customer-facing incentives and includes the Federal Tax Credit.

As trust and transparency become paramount, servicers are surprisingly thriving amidst challenges, showcasing resilience in customer relationships. In this month’s update, JD Power, Bruce Gehrke, Senior Director of Lending Intelligence and Miles Tullo, Managing Director, discuss the latest insights from the Mortgage Origination Satisfaction Study and Mortgage Servicer Satisfaction Study. Here’s a breakdown of the key highlights:

Why Mortgage Originators Face a Satisfaction Slump
Borrower satisfaction with mortgage originators has dropped significantly in 2024, reversing last year’s positive trend. Only 42% of lenders are achieving higher satisfaction scores this year, down from 70% in 2023.

Key factors influencing borrower loyalty and advocacy include:

• Trust: Borrowers need to feel confident they got a good deal.
• Ease of the process: Simple, fast, and transparent processes resonate with borrowers.
• Competitive interest rates: While market factors dictate rates, customers expect lenders to remain competitive.

“At the end of the day, those interest rates matter, and a customer needs to believe and trust that their lender gave them a good deal,” says Bruce Gehrke.

Interestingly, digital tools—despite heavy investment—are not delivering the highest customer satisfaction. Traditional, human-centered service models continue to outperform digital-first approaches.

Mortgage Servicers Thrive Despite Rising Challenges
Mortgage servicers are seeing a notable increase in satisfaction, even among financially vulnerable customers. Trust plays a vital role, especially when servicers aim to retain customers for refinancing opportunities.

The top factors driving servicing satisfaction include:

• Minimal interactions: Customers prefer smooth experiences with few issues requiring service intervention.
• Transparency: Clear communication about fees and escrow accounts is crucial in building trust.
• Escrow management: Rising insurance premiums and property taxes put pressure on servicers to manage escrow accounts effectively.

How Declining Rates Will Reshape the Market
As elevated interest rates reduce transaction volumes, the mortgage market is undergoing rapid changes. However, as rates begin to decline:

• The refinance market may experience a resurgence, with direct-to-consumer models gaining the most traction.
• “Trade-up” borrowers—those who have been reluctant to sell due to low-interest mortgages—may re-enter the market.
   

Where can you find more insights like this?  
Stay up to date on the latest mortgage customer satisfaction insights with JD Power. Discover key trends and performance metrics in the Mortgage Origination Satisfaction Study and the Mortgage Servicer Satisfaction Study, covering the experiences of thousands of borrowers and homeowners. 

RecEIVE our Upcoming Press Releases

More About These Experts 
Bruce Gehrke is the Director of Lending Intelligence at JD Power, overseeing including the Mortgage Origination Satisfaction Study and Consumer Lending Satisfaction research. He develops client improvement strategies based on data analytics and has built consulting relationships with leading asset managers and mortgage lenders.

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.  

With AI-Powered Chatbots Coming to Customer Service, Are Mortgage Customers Ready? 

Lending Intelligence Report
October 2024

With AI-Powered Chatbots Coming to Customer Service, Are Mortgage Customers Ready? 

Artificial intelligence (AI) is here to stay. Three-fourths of business leaders say they are planning to escalate their AI investments, as they see its potential to redefine customer service and many other business functions. That includes the lending industry, in which AI-powered customer service has already started to establish a foothold and is poised to grow. Are customers ready for the future of AI-driven customer service?

This Lending Intelligence Report dives further into one aspect of the JD Power 2024 U.S. Mortgage Servicer Satisfaction Study. It highlights the prevailing sentiment and emerging trends in AI-powered customer service, and how that may change with the continued uptick in servicer adoption. 

AI Can Be a Problem-Solver

Arguably one of the biggest barriers to adoption of AI-powered customer service solutions is customers’ perception of online chat. Early iterations of chatbots left many customers feeling like they were simply wasting their time. But that may be changing.

Overall, 21% of mortgage servicing customers have experienced a problem in the past 12 months. Just 9% of those customers used online chat as their first point of contact. That pales in comparison with the 48% that called customer service, but customers from Generation Y¹  and Z are three times more likely to use online chat than older generations so this channel will become increasingly important.

The good news is that the majority of customers who use chat found it to be useful. Two-thirds (67%) of customers using chat said it was to try to solve a problem. Of that group, 83% of those said that their problem was resolved on that chat. Unsurprisingly, those who were able to solve their problem via chat had an overall customer satisfaction rating of 702 (on a 1,000-point scale) vs. 482 for those who could not solve their problem.  

An Opportunity for AI

Nearly three-fourths (73%) of customers who used chat say they interreacted with a live representative, while just 10% thought it was a chat bot, and 17% were not sure. Those who said they interacted with a human had a better experience than those who thought it was a machine on the other side. Further, 63% of chat users working with a human felt the chat rep used a script, while 37% did not. 

That’s important for a few reasons. Customer satisfaction for those who felt no script was used was 699, considerably higher than the average satisfaction score (636) among customers who thought a script was used. Nearly three-fourths (73%) of those customers who felt no script was used said that the process was extremely easy vs. 27% among those who felt a script was used. As AI evolves and becomes more widely adopted in the servicing industry, firms are going to need to keep a close eye on potential negative impacts to consumer perceptions. A key point for servicers to consider is that customers are usually fine with a technological improvement, provided it adds value.   

That poses a challenge to lenders: An investment in AI needs to represent a clear understanding of what the customer wants in terms of service and problem resolution, and how they interact with their customer service channels. Without that, customers may simply refuse to engage, leaving lenders on the hook for the time and resources spent on underutilized technology. Those who can thread this needle will see higher customer satisfaction scores, improved processes, and streamlined costs. 

Find out More

This Lending Intelligence Report is based on responses from the JD Power 2024 Mortgage Servicer Satisfaction Study, which included 11,565 responses and was fielded from May 2023 through February 2024. It is authored by Bruce Gehrke, Senior Director, Lending Intelligence. Please contact us at the numbers below to connect with Bruce 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 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.

Security Breaches Take Centerstage as Bank Customers Worry About Data Privacy

Inflation isn’t the only stressor for bank customers in the United States. Data breaches have emerged as a big concern, and the National Public Data breach (NPD) is only bound to exacerbate those worries.

Nearly nine in 10 bank customers are worried about personal information data breaches. It’s an alarmingly high number, and it may be set to move even higher, as 44% of customers are currently aware of the NPD breach.

Banks can take heart in the fact that most customers who are aware of the breach did act to protect their identity, but they may be failing to properly educate their customers on their exposure risk. Just 50% of customers say they received an alert from their financial partner about their data being compromised.

Financial Health Stays Stagnant
        
The number of customers who are financially healthy  declined slightly to 31%, while 45% of bank customers fall into the vulnerable category.

The number of bank customers who say that the cost of goods is increasing faster than their income decreased slightly (67%). Notably, stressed customers did see an increase to 84%, from 82%.

Data Privacy Starts Becomes a Top Concern

While inflation worries have begun to dip, a new customer stressor has reared its head: data breaches. An alarming 88% of bank customers are worried about personal information data breaches—a fear that spans all financial health status and age. That is despite that only 44% are aware of the NPD breach that some estimates say may have affected up to as many as 2.9 billion people.

Among those aware of the breach, 61% acted swiftly to confirm whether they were personally affected. Healthier customers are more likely to have acted, but age does not appear to make a difference in response. Troublingly, though, only 50% of those aware say they received an alert from a financial institution.

The good news is that customers are checking their credit scores with greater regularity than their credit reports. Nearly half (48%) of all customers have checked their score in the past month, with the highest levels among older and financially health customers. 

Locking Down the Data

With inflation levels low enough to temporarily tamp down customer concerns about the cost of goods, data breaches have taken the mantle as a pressing issue. But banks do have it within their power to be key partners in helping customers avoid becoming victims of identity theft.

Customers—particularly those under the age of 40 and those in poor financial health—need guidance from informed partners on how they can help lock up their personal data. That includes offering the best advice on how to monitor their credit, the difference between the credit reports and scores, how to effectively freeze their credit, and what warning signs they should be looking for along the way. Financial partners that can engage by customers will likely establish vital bonds of trust and will benefit from more customer loyalty and higher levels of engagement.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in September 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]
 

Inside the 2024 Small Business Banking Satisfaction Boom

With banking satisfaction among small business decision-makers reaching new heights, banks are capitalizing on fresh opportunities to support and grow their relationships with these important customers. In this episode of JD Power Monthly Intelligence Update, Paul McAdam, Senior Director of Banking and Payments Intelligence and Miles Tullo, Managing Director of Financial Services, share the latest insights from the JD Power 2024 Small Business Satisfaction Study and why satisfaction is trending up.

Small Business Sentiment: Their Banks

Paul McAdam explains, “Small businesses are feeling good, with a significant improvement in satisfaction for the second consecutive year. They’re especially appreciative of the increased client-centric, proactive, and personalized service they’re receiving.”

According to our recent study, small business satisfaction is on the upswing, driven by:

• Client-Centric Service: Banks are placing greater emphasis on personalized, proactive support.
• Improved Credit Access: Steady credit availability is empowering small business growth.
• High Retention Rates: Business owners are more likely to return for future services, a positive indicator of satisfaction.

Renewed Energy in Small Business Banking

There’s renewed interest in small business banking on both sides—banks and clients alike. Banks are increasingly looking at this line of business for growth, motivated by:

• Rise in New Startups: Post-pandemic, the rate of small business startups has remained robust.
• Dual Relationship Benefits: Small businesses often bring personal accounts with them, blending retail and business banking for deeper partnerships.

Top Performers in Small Business Banking

The 2024 U.S. Small Business Banking Satisfaction Study measures satisfaction based on seven key factors: trust, staff, convenience, account offerings, time and cost savings, digital channels, and issue resolution. The study reflects feedback from 6,976 small business owners or financial decision-makers using business banking services.

These banks are ranked the highest based on their Overall Satisfaction performance:

1. Capital One 
2. Chase
3. Regions Bank
4. Huntington
5. Bank of America

See the full rank chart here.

Building Lasting Relationships in Small Business Banking

While small business banking satisfaction is on the rise, there are still crucial areas for banks to address. Proactive communication is essential as businesses seek guidance on saving money and managing fees amidst rising costs. Relationship managers are increasingly important, with satisfaction levels rising this year, but digital tools are also vital for providing ongoing support. Curious about how banks can tackle these challenges and enhance the customer experience —watch the full video now.

Where can you find more insights like this?  

The JD Power Small Business Satisfaction Study evaluates small business owners’ satisfaction with leading financial institutions. It uncovers opportunities for banks to enhance their support for small businesses in today’s market and beyond. The insights from this study highlight which banks excel in managing small business relationships and the reasons for their success. This study is available in both the U.S. and Canada.

READ THE LATEST PRESS RELEASE – US

READ THE LATEST PRESS RELEASE – CA

 

More About These Experts 

Paul McAdam is a Senior Director of Banking and Payments Intelligence at JD Power. Clients rely on his expertise to gain a better understanding of how to improve the customer experience, with a particular emphasis on the regional banking segment. His research at JD Power has led dozens of research programs that have enabled leading U.S. banks and global financial technology companies to quantify market demand and measure customer experience.

Miles Tullo is the managing director of the JD Power Financial Services team. He oversees client engagement for the Financial Services Practice in North America and recently led the development and launch of the JD Power U.S. Consumer Point of Sale Payment Program. Drawing from over 20 years of experience in banking, payments, and mortgage lending, Miles brings valuable expertise to clients.