Industry: Financial Services

One-Third of U.S. Consumers are Working a Second Job or Side Hustle in the Hopes of Stabilizing their Finances

Banking and Payments Intelligence Report
September 2025

 

More than Half are Working Longer Hours than Six Months Ago

As the number of consumers in the United States classified as financially unhealthy1 has remained flat, as measured by JD Power, many Americans are working harder to stabilize their finances.

Overall, 33% of consumers say they work either a second job or a “side hustle.” With an uncertain economic forecast and over half (68%) of consumers saying the cost of goods is growing faster than their incomes, more work and longer hours may become a fact of life.

Financial Health Steadies 

Overall consumer financial health levels were stable in August. The share of consumers who are either vulnerable, overextended or stressed, remained steady at 64%, unchanged from July.

The percentage of consumers who say the price of goods is rising faster than their income declined in August to 68%, down from 71% in July. Vulnerable (79%), overextended (56%) and stressed (81%) consumers all saw at least a 3 percentage-point decrease. That’s noteworthy because consumer prices are still rising, but at least for this month, consumers aren’t feeling as sharp of a sting. 


 

Side Hustles are Here to Stay

One-third (33%) of consumers report working a second job or maintaining a side hustle. The rate is highest among consumers under age 40 (45%) and those who are financially overextended (43%).

Earning extra income is the most common reason given (78%) for working an extra job or a side hustle, followed by paying off debt (29%), and saving toward a goal (28%).

Why are some people working multiple jobs and or having a side hustle

More than half of respondents (53%) are working longer hours today than they were six months ago, and 17% of those are required to work longer by their employers. Financially overextended customers are the most likely to be working longer because of work demands, while those classified as financially vulnerable are putting in the additional hours to make ends meet.

Are people working more than they did 6 months ago

What Role Should Banks Play in this Evolution?

As economic headwinds continue to swirl, it stands to reason that side hustles will become even more prevalent. Interestingly, more than half (54%) of consumers have gone through some form of major life experience in the last 12 months. These events range from moving to medical issues to divorce. And with many consumers lacking emergency savings funds, a second job or side hustle could soon become a necessity.

This is where banks can step in and play an important role. With consumers looking to make extra money to pay down debt or achieve a financial goal, banks can be valuable partners in prioritizing these goals and coming up with a plan on how to achieve them. With so many Americans working longer hours, there is likely a tipping point toward burnout, and if banks can help their customers put their second job or side hustle money to good use, it could help customers make the most of the money they have coming in.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in August 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]
Joe LaMuraglia, JD Power; East 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.

As More U.S. Consumers Struggle with Rising Prices, Many Turn to Artificial Intelligence for Financial Advice

With prices on consumer goods increasing at the fastest rate in five months in July, the number of consumers in the United States classified as financially unhealthy1 has climbed to its highest level in 12 months, as measured by JD Power.

As these struggling consumers increasingly seek guidance on a wide range of financial topics from budgeting to investing, many are turning to artificial intelligence (AI) tools for help.

 

Financial Health Shows Strain

After June showed the best financial health metrics in over a year, the proportion of consumers who are financially vulnerable rose to 40% in July. That increase brings the total share of financially unhealthy consumers, defined as vulnerable, overextended or stressed, to 64%.

 

 

The persistently high price of consumer goods is at the center of this trend. Overall, 71% of consumers say the price of goods is increasing faster than their income in July, up from 66% in June. Vulnerable (82%) and stressed (85%) consumers have notably higher levels of concern regarding inflation.  

 

 

AI Emerges as Consumer Financial Advice Tool

As consumers’ concerns about inflation persist, more than half (51%) say they are using AI to get financial advice or information. 

In the past 3 months, have you used an AI tool to get financial advice or information?

 

When asked about which AI tools or platforms they use, more than half (52%) say ChatGPT. That number gets even bigger for respondents under age 40 (63%). Google Gemini is also popular with consumers over age 40 (23% vs. 15% of those under age 40).

Which AI Platform are Consumers Using Most Often?

When asked what they are using these tools for, 13% of consumers say they use AI for banking and financial services on a daily basis. That is the highest percentage of daily users among all other AI use cases. However, 27% of respondents say they never use AI tools for banking and financial services, which suggests that consumer AI adoption rates vary considerably.

Consumers most frequently ask AI about saving strategies (45%) and credit scores or credit cards (41%). Investing in the stock market (36%), budgeting or managing expenses (36%), and general financial education (36%) were also among the most sought-after financial topics when using AI.

What types of financial topics have you asked an AI tool about in the past 3 months?

 

What Role Should Banks Play in this Evolution?

As consumers continue to grapple with market headwinds and economic volatility, and popular culture news stories continue to extol the virtues of AI as a tool to hack everything from a to-do list to a stock portfolio, consumers will undoubtedly experiment with AI-driven banking and financial advice solutions. While this analysis did not track the use of bank-branded AI tools, it establishes an important baseline of consumer interest in technology that should be noteworthy to retail banks. 

In times of economic uncertainty, consumers often turn to banks in the hopes of guiding them to solid ground. The current daily utilization of AI for banking and financial services tasks shows that consumers see value in these solutions. As banks hope to build better relationships with consumers, leveraging new technology and effectively building awareness behind it could be a key cog in building trust and might even help some consumers get a better handle on their financial health.

 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in July 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]
Joe LaMuraglia, JD Power; East 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.

Top Credit Card Issuer Trends In 2025: What’s Happening Now and What’s Next

 

In the latest episode of the JD Power Financial Services Intelligence Update podcast, John Cabell, managing director of payments intelligence at JD Power, shares key credit card trends from the JD Power 2025 U.S. Credit Card Satisfaction Study. His analysis highlights major trends affecting credit card issuers today and what they can expect moving forward.

 This episode answers:

  • The financial health of today’s cardholders
  • Affluent customers’ preferences
  • BNPL adoption’s effect on credit card usage
  • The negative impact of surcharges
  • Innovation and AI opportunities for credit card issuers. 

Effectively navigating these cardholder trends is essential for issuers to differentiate their offerings and capture market share in a rapidly changing industry.

 

Economic Uncertainty and Consumer Financial Health Impact Satisfaction

Adapting to the shifting financial realities of consumers remains a significant challenge for issuers. Cabell points to rising financial difficulties among cardholders:

“We’re seeing an uptick in the average of financially unhealthy consumers among cardholders in the United States in 2025,” he said. Although some recent improvements have been observed, Cabell warns that “the economy has been uncertain and consumers have really been watching their budgets in ways that are unforeseen.”

This volatility influences credit card satisfaction, making it critical for issuers to adjust their strategies to retain consumers who are more cautious with spending and credit usage.

 

Empowering Consumers with Financial Tools

Cabell emphasizes the importance of providing cardholders with tools to better manage their finances.

“The key is to help provide financial tools and resources that can help consumers navigate uncertainty and really understand and track their finances,” he said.

With more than half of U.S. consumers carrying revolving credit card debt, personalized financial guidance is essential to building trust and reducing credit risk.

 

Winning the Affluent Cardholder Segment

Another standout trend in 2025 is the continued strength of premium credit cards targeted at affluent consumers.  

“Premium cardholders score higher in terms of their satisfaction. They’re willing to accept a hefty annual fee in exchange for overall what they think is good value in terms of rewards and benefits.”

Issuers must focus on delivering compelling rewards and benefits to justify premium pricing.

 

The Impact of Buy Now, Pay Later 

BNPL Later services continue to grow, increasingly competing with traditional credit cards. Cabell shares:

  • 20% of consumers have used BNPL in the last year from a different lender.
  • 37% say they will likely use BNPL from a different lender in the coming year.

This trend suggests issuers need to reconsider their offerings and explore integrating flexible payment options to maintain market share.

 

Surcharging and Card Usage Friction

For the first time, surcharges on credit and debit transactions were measured in the Credit Card Satisfaction Study, revealing significant consumer pushback.

  • Most cardholders report experiencing surcharges.
  • When faced with a surcharge, 81% have chosen an alternative payment method instead of using their credit card.

Surcharging negatively affects perceptions of ease of use and overall satisfaction. This metric is important for credit card providers to monitor, as surcharges can significantly reduce customer satisfaction and lead to increased attrition.

 

Innovation and AI in Credit Cards

Artificial intelligence offers new ways to improve credit card experiences, especially in fraud protection and optimizing rewards. Cabell said, “Consumers have said they would like to see AI used for fraud protection, helping them optimize rewards and benefits.” 

Despite this interest, many issuers have not clearly communicated how they use AI. Those that do can stand out and better meet what consumers expect.

 

What’s Ahead for Credit Card Issuers?

The 2025 credit card landscape is defined by economic uncertainty, evolving consumer needs, and technology-driven innovation. As Cabell sums up:

“Issuers must balance offering financial tools, tailoring premium rewards, navigating BNPL competition, addressing surcharges, and embracing AI innovation to meet cardholder demands and drive satisfaction.”

Credit card issuers who align their strategies with these trends will be best positioned to grow customer loyalty and strengthen their portfolios in a changing market.

The full results from the JD Power 2025 U.S. Credit Card Satisfaction Study are now available. To explore the rankings and findings, view the press release below.

 

Read the press release

Contact our team

 

Timely Insights You Won’t Find Anywhere Else

The JD Power Financial Services Intelligence Update podcast delivers timely, data-driven insights on trends shaping banking, payments, wealth management, and lending. Hosted by industry experts, each episode breaks down findings from JD Power’s latest studies.

 

Showing Resilience: Consumers Forge Ahead with Summer Travel Plans Despite High Prices

Are consumers in the United States learning to persevere through turbulent economic times? Given the latest data from JD Power, that certainly seems to be the case.

The overall financial health of consumers in the United States improved, as the percentage of financially healthy consumers hit its highest point in 13-months. What’s more, fewer say they are having a hard time keeping up with the price of goods—even as costs remain high—and fewer are changing their summer travel plans due to cost.

 

Financial Health Gets a Lift  

After a discouraging turn in May, the number of consumers who are financially healthy rose to 37% in June. This reflects a 13-month high.

 

 

The positive development also translated to consumers’ dealings with inflation. Nearly two-thirds (66%) of those surveyed said the cost of goods is increasing faster than their income, which reflects a monthly decline of 4 percentage points. The improvement was spread throughout all levels of consumer financial health, with consumers in the overextended category seeing the biggest monthly improvement. Currently, 54% of those classified as overextended say the price of things they buy is rising faster than their income, down from 58% in May of 2025.

While consumers currently suggest their financial health may be improving, data in the months ahead will indicate if this is the start of a deeper trend or just something temporary.

 

 

Travel Liftoff?

Consumers are also still planning summer travel. More than three-fourths (76%) of consumers say they will travel this summer, up from 74% a year ago. That’s noteworthy, because it shows that consumers were still making plans, even as financial health fluctuated throughout the year, hinting that consumers are simply pushing through in the face of economic uncertainty. Younger and healthier consumers are more likely to travel.

 

 

In fact, 28% of consumers made no changes to their summer travel plans, down from 32% a year ago. Consumers under 40 are more likely to make changes to their itinerary as opposed to respondents over 40, who are committed to making travel work under almost all circumstances. Overall, just 10% say they are not going to travel when they usually would have taken a trip.

 

 

Developing Discipline

While it’s encouraging to see consumers’ financial health bounce back, these data points have shown fluctuations before and are subject to ongoing volatility. And while financial health may ebb and flow from month to month, the overall picture largely remains unchanged. What is new, though, is how consumers are handling it. And for some, that means simply forging ahead with what they had already planned to do.

For banks looking to help their customers navigate these conditions, it’s essential to first recognize the pressures consumers face and encourage mindful spending. While it’s certainly tempting to live for the moment, customers need to be mindful that long-term financial health requires some level of discipline. To truly build better financial health, banks need to be active partners in customers’ planning, budgeting and investing.

 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in June 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]

 

How Wealth Management Firms Can Stay Ahead of the Advisor Shortage

As more veteran financial advisors prepare to retire and younger investors increasingly begin seeking professional guidance, many wealth management firms are entering a period of supply-demand imbalance. The number of experienced advisors is declining just as demand for advice is rising. According to the newly released JD Power 2025 U.S. Financial Advisor Satisfaction Study, firms that want to remain competitive need to act now to address advisor recruitment, productivity and retention.

“Roughly 26 percent of advisors today are over the age of 65, and 20 percent say they plan to retire within five years,” said Mike Foy, Managing Director of Wealth Intelligence at JD Power. “At the same time, we’re seeing a shift in investor behavior. Many younger, self-directed investors are beginning to seek out professional advice.”

This creates a critical moment for firms to rethink how they attract, support and retain advisor talent.

 

Retaining Advisors Starts with Leadership

The study found that advisor satisfaction is strongly influenced by leadership behavior and culture. Foy identified three attributes that matter most to advisors: strategic direction, accountability, and transparency.

“Advisors want to know the firm has a clear and smart strategy that prioritizes both the client and the advisor,” said Foy. “They also expect leaders to create an environment where performance is recognized and rewarded appropriately. And they want honest, timely communication.”

Retention is not just about compensation. It is about building confidence and connection between advisors and the firm’s long-term vision.

 

Autonomy Is a Competitive Advantage

Top-performing firms in both the employee and independent channels share a common trait: they empower advisors to build their business with flexibility.

“Whether advisors are W-2 or independent, they want to feel trusted to manage their client relationships and operate their practice in a way that works for them,” said Foy. “Even firms with more structured employment models, like Stifel, Edward Jones, and Raymond James, are successful because they offer autonomy within that structure.”

Creating an entrepreneurial culture—one that values advisor input and respects how they work—is essential to attracting and keeping top talent.

 

Technology Must Be Strategic, Not Overwhelming

Technology continues to play a significant role in shaping the advisor’s experience, but many firms are struggling to strike the right balance.

“Advisors are split,” Foy explained. “Some say the technology is behind and needs to move faster. Others feel overwhelmed by constant updates and change. The challenge is to modernize without creating friction.”

The firms that are most successful are those that invest in the right capabilities, roll them out with thoughtful training, and align tools with what advisors actually need to grow their business.

 

Invest in the Next Generation of Advisors

The industry is not just facing a retirement wave. It is also facing an advice renaissance, especially among younger investors.

To meet this demand, firms must expand their pipelines. That means actively recruiting new advisor talent, offering structured onboarding, and building mentorship programs that help early-career professionals succeed in an evolving client landscape.

Clients today are looking for holistic, goals-based advice delivered with digital ease. Advisors need to be equipped to meet that standard.

 

What Firms Should Do Now

To stay competitive, firms should focus on three core areas:

  • Support succession. Help experienced advisors plan and execute smooth client transitions.
  • Strengthen leadership. Build trust and loyalty through communication, strategic clarity, and cultural alignment.
  • Simplify the advisor’s experience. Ensure technology, processes, and support systems are enablers, not obstacles.

“This is an inflection point for the industry,” said Foy. “The firms that invest in the advisor experience today will be the ones that lead it tomorrow.”

The full results from the JD Power 2025 U.S. Financial Advisor Satisfaction Study are now available. To explore the rankings and findings, view the press release below.

Read the press release

Contact our team

 

Timely Insights You Won’t Find Anywhere Else

The JD Power Financial Services Intelligence Update podcast delivers quick, data-driven insights into the trends shaping banking, payments, wealth, and lending. Hosted by industry experts, each episode breaks down findings from JD Power’s latest studies

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The Financial Advice People Actually Want from Their Banks

Building deeper customer relationships now depends on how well banks understand and address the financial challenges consumers face. The 2025 U.S. Financial Health and Advice Satisfaction Study offers new insight into whether banks are meeting rising demand for financial advice and where they can improve. Jennifer White, senior director for banking and payments intelligence at JD Power joined the Financial Services Intelligence Update to share what advice U.S. customers want from their banks.

U.S. Financial Health Stabilizes, but Other Worries Persist

Jennifer described the current landscape as “a bit of good news, bad news.” While two-thirds of Americans are classified as financially unhealthy, a sobering long-term trend, the good news is that this decline has largely stabilized over the past year. 

Many consumers are caught in a state of cautious uncertainty. “They worry that in three months, things will cost more and they worry that a recession might become more than just a buzzword,” said White.  Widespread anxiety makes it a must for banks to provide relevant and reassuring financial guidance.

A Prime Opportunity to Win Over Younger Consumers

One of the most encouraging trends White highlighted is the growing interest in financial advice, particularly among younger consumers. Interest in value-added financial advice from banks rose from 19% in 2021 to 25% today.

The “sweet spot” is the young and emerging affluent. Younger customers show roughly twice the appetite for advice compared to those aged 65 and older. The strongest demand comes from the young and emerging affluent segment, with 38 percent expressing a strong interest in personalized financial guidance.

White called this shift “at least a once in a generation opportunity for banks to capture the hearts and minds of younger consumers.” Banks that successfully engage this group stand to build lasting loyalty.

What Financial Advice Are Bank Customers Looking For?

Today’s customers are looking for help with immediate financial challenges — not just long-term investment planning, explained White. Common questions include:

  • How do I set aside money for an emergency?
  • How much should I save?
  • How do I stick to a budget and track my progress?
  • How can I earmark money for goals without juggling multiple accounts?
  • How can I change my financial situation in the short-term?

These are very short-run needs that, when met, position customers well for longer-term planning. Meeting these everyday needs can pave the way for deeper financial conversations.

Are Banks Effectively Delivering Financial Advice? Progress with Room to Grow

The study highlights encouraging improvements across three key areas:

  1. Customer Attention: Customer recall of financial advice from banks rose from 34% in 2021 to 46% today — a clear sign banks are making progress in engaging customers.
  2. Advice Quality: Banks stand out by delivering frequent, and personalized advice with a clear call to action.
  3. Behavioral Impact: More customers are acting on the advice they receive, providing evidence that bank guidance is resonating and making a difference.

How Can Banks Improve to Improve Financial Advice Delivery

Customers want more value-added content, and they want it more often. They expect at least three meaningful advice interactions per year, delivered over time instead of clustered around tax season or specific events. Successful advice blends personal interactions, digital tools, and passive reminders such as emails and alerts.

“Even if customers don’t open the emails, the presence of these reminders builds trust and belief that the bank is there when needed,” said White. 

This omni-channel approach ensures customers feel supported whenever they need guidance.

The JD Power 2025 U.S. Financial Health and Advice Satisfaction Study is now available for those interested in a deeper dive.

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Consumer Financial Health Declines as Expenses Remain Elevated

The overall financial health1  of retail bank customers in the United States declined in May following two consecutive months of improvement as they confront an uncertain economy and persistently high cost of goods. The top reasons cited among those who say they are worried their personal financial condition will worsen in the next three months are inflation, job security, government policies, housing and personal debt.

 

Financial Health Sags                                                       

After a two-month reprieve, the number of customers who are financially healthy dipped to 32%. This is largely in line with the level observed during the previous 12 months.

June 2025 Understanding the Population’s Financial Health Status | J.D. Power

 

For a second consecutive month, 70% of bank customers said the cost of goods is increasing faster than their income. That percentage dipped slightly among healthy (57%) and overextended (58%) customers but rose among vulnerable (79%) and stressed (84%) customers. 

June 2025 Tracking Consumer Recognition of Inflation | J.D. Power

 

Recession Fears Slightly Tamed

Despite a decline in overall financial health, the number of bank customers who believe their future financial health is at risk of getting worse in the next three months has dipped slightly. Overall, 41% of customers think their finances are at risk, a 3-percentage point decrease. Stressed customers are the most concerned (46%).

June 2025 Do Consumers Believe Their Future Financial Is at Risk in the Next 3 Months | J.D. Power

When asked what they are most worried about in the next three months, cost of living expenses still topped the list, followed by managing household costs. Interestingly, concerns about the stock market declined 5 percentage points (22%).

June 2025 What Are Consumers’ Largest Financial Concerns in the Next 3 Months | J.D. Power

 

 

Wait and See

In the current economic environment, it’s becoming increasingly difficult to read the tea leaves. But even as topline inflation rates decline and economists continue to disagree on the likelihood of a recession, it’s clear that household expenses and the future of the economy are still very much front-of-mind for customers.

For banks looking to help customers navigate these uncertain times, building a relationship and understanding what each customer values is key. Not all customers will have the same fears or needs, and they’ll require an individualized approach based on their finances, age, future plans, and a host of other variables. Banks that can cater to these specialized needs will build valuable relationships that will last beyond this period of volatility.

 

Find out More

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

Direct Banks Are Winning Younger Customers—Challenges Remain

New findings from the JD Power 2025 U.S. Direct Banking Satisfaction Study reveal how direct banks are shaping the future of banking by delivering more than just competitive rates. Paul McAdam, Senior Director of Banking and Payments Intelligence at JD Power, breaks down what’s driving satisfaction—and where direct banks still have work to do.

Growth Beyond Rates: Checking Satisfaction Rises

While savings satisfaction has taken a hit due to falling interest rates, checking satisfaction among direct bank customers is on the rise. What’s behind the upward trend?

“Customers are feeling like their direct bank checking accounts are helping them grow their money,” McAdam explained. “Not through interest, but through credit access, budgeting tools, and insights into their creditworthiness.”

These features go beyond the basics, supporting customers in managing their financial lives more holistically. As a result, customers are engaging more and reporting higher satisfaction with their checking relationships.

Savings Satisfaction Slips Amid Lower Deposit Rates

In contrast, satisfaction with savings accounts is declining. Interest rates have dropped, and customers are noticing.

But declining rates aren’t the only issue.

“We’re also seeing more frustration with website usability,” McAdam noted. “Navigation, login ease, and general user experience are falling short for some brands.”

With many customers accessing their savings accounts through digital platforms, a smooth experience is critical. Poor digital performance is now a differentiator and not in a good way.

Younger Customers Are More Engaged—And More Satisfied

Direct banks are gaining traction with younger customers, especially in the checking space. While the overall profile of a direct bank customer looks similar to a traditional bank customer, subtle differences are emerging.

“Younger customers are gravitating toward checking products, while older customers are more likely to hold savings accounts with direct banks and larger balances,” said McAdam.

This year, satisfaction rose among younger generations, thanks largely to their use of tools that support credit management and financial education. In contrast, older customers, particularly Gen X and Boomers, saw their satisfaction decline, driven primarily by lower interest rates.

Big Brands, Big Competition

Direct banks are no longer niche players. Leading the way are powerhouse brands like Charles Schwab and American Express—both of which topped the checking satisfaction rankings this year.

“These customers are serious about their relationships,” McAdam said. “They typically hold three or more accounts with their direct bank provider.”

The implication for traditional banks is clear: competition is intensifying, and digital-first players are quickly earning customer loyalty.

When Products Are Equal, Service Matters Most

Despite similar product offerings across brands, customer service remains a key differentiator, especially when something goes wrong.

“Direct bank customers don’t experience a lot of issues,” McAdam noted. “But when they do, service quality really matters. The lower-ranked brands are falling short on resolving problems and delivering strong phone support.”

This is a red flag for providers: product parity means that customer service quality can make or break the overall experience.

What’s Next for Direct Banking?

The 2025 study makes it clear that continued success in the direct banking space hinges on a few critical areas:

  • Double down on value-added tools like credit tracking, budgeting, and expense management to keep younger customers engaged.
  • Improve digital usability, especially on the savings side, where outdated platforms are dragging down satisfaction.
  • Don’t overlook service—strong customer support is still one of the most powerful drivers of satisfaction and loyalty.

As direct banks continue to expand their footprint, delivering seamless and supportive experiences across digital and service channels will be the key to staying ahead.

Read the full findings in the JD Power 2025 U.S. Direct Banking Satisfaction Study press release.

Read Press Release

While Bank Customers’ Recession Fears Persist, Overall Number of Financially Health Customers Holds Steady at 13-Month High

Facing a conflicting stream of economic news that contains both positive economic indicators and continued uncertainty over the long-term fate of the United States economy, even the world’s leading economists cannot agree on the likelihood of a U.S. recession in the coming months.  

Bank customers in the U.S. are less optimistic, with a majority (86%) concerned that a recession will affect their everyday finances. The concern is understandable. According to JD Power data, just 35% of customers are financially healthy.[1] While that level is steady month-over-month, many customers are still feeling the pain of high prices and preparing for the worst. 

Financial Health Holds Steady Amid Rising Concerns                                                        

The number of customers who are financially healthy remained steady at 35% for a second consecutive month. This is the first time in over a year that customer health has not regressed after a one-month bump, giving some hope that the recent gains could be sustainable.

J.D. Power Understanding the Populations Financial Health Status April 2025

 

Despite the steady financial health numbers, the percentage of bank customers who say the cost of goods is increasing faster than their income rose sharply to 70%. The biggest gain was among healthy customers (59%), up 8 percentage points in the last month. 

J.D. Power Tracking Consumer Recognition of Inflation

 

Recession Confessions

Even as some customers firm up their financial footing, the looming threat of an economic downturn has the majority of people on edge. Overall, 86% are either somewhat or very worried that a recession will make things worse in their everyday life. This rate is highest among overextended customers (54%), followed by healthy customers (53%). 

J.D. Power How worried are you that recession will make things worse for your everyday life

When asked how prepared they are for a recession, 18% of customers say they are not at all prepared, and another 22% of customers say they do not know where to begin to get prepared. Just 9% of customers feel comfortable enough to weather a recession in their current economic situation.

J.D. Power How prepared are you financially for a recession

Customers cite reducing their discretionary spending (47%), creating or building up an emergency fund (43%), or having more cash available (39%) most often as measures they can take to prepare for a recession. One-third (34%) say pay down debt, while only 9% say having access to more credit or loans. 

J.D. Power What are the three most important activities for you to prepare for a recession chart

 

Building Partnerships

After finally making inroads on financial health, customers are worried about losing that progress. But instead of being paralyzed by fear, customers need to spring into action and plan contingencies. That’s where banks come in.

Customers seem to understand that preparedness is within their grasp. Instead of leaning on loans and more lines of credit, customers are ready to hunker down, reduce spending, and pay down their debt. But they may need help from their bank to devise a plan. With 40% of customers indicating that they either do not know how to go about preparing or do not know where to start in preparing for an economic lull, banks can tailor their communications to educate and triage in the event of any setbacks. Those who can do this effectively will reap the rewards of healthier customers and 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 April 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.

Customers Want Security, Ease of Use from their P2P Transfer Brands

When it comes to P2P (person-to-person) transfers, bank customers are fiercely loyal to the brand they prefer. However, according to new JD Power data, network effects, security and ease of use play a large role in determining which “additional” brands consumers are using.
This Payments Intelligence Report dives into the findings of the JD Power 2025 U.S. P2P Transfers Satisfaction Study to spotlight the prevailing sentiment and emerging trends in P2P transfer customer experience.
 

Customers Prefer Adding Over Switching

Most customers say they do not intend to switch using their primary P2P brand, but most also use more than one brand, indicating openings exist for providers to grab more market share. The average P2P user has accounts with 2.8 brands, with PayPal being the most common additional brand. Overall, 47% of P2P users have a secondary account with PayPal.

Bar chart showing how many P2P payment accounts consumers have with different brands.

 

Customers Want Ease of Use, Security

Customers say the most likely reason to switch P2P brands for both sending and receiving money is family and friends using a different P2P transfer account (41%). Security concerns (27% for sending money, 25% for receiving) were also among the top reasons.

Chart showing reasons consumers would switch P2P brands for sending or receiving money.

 

Brands using the Zelle network continue their dominance over industry peers. For a second consecutive year, among the top eight performing brands in the study, seven are part of the Zelle network. They are (in alphabetical order): Bank of America, Capital One, Chase, PNC, Truist, U.S. Bank and Wells Fargo.

That said, how banks integrate Zelle into their mobile and electronic platforms has a large effect on satisfaction. Zelle integration is largely customizable, so how and where Zelle’s features appear in each bank’s tool vary.

Capital One’s P2P customer experience, for example, is enhanced by strong discoverability from the home screen, a pay/move screen featuring a Zelle-centric money movement experience, and a final send screen that displays the recipient’s information to reconfirm money is being sent to the right person.

 

Breaking Through

While P2P users are steadfastly loyal to their primary brand, competing providers have a real opportunity to expand their customer base by turning existing users into advocates. Many users are receptive to opening secondary accounts to ensure they can send money across their entire social network. This means an incumbent—or even a new disruptor—doesn’t need to break brand loyalty to make meaningful gains. Sometimes, all it takes is one friend or family member requesting a transfer via another service, and suddenly, that competitor has gained a new user.

As brands build out their platforms, it is incumbent on them to understand what differentiates the top performers.

 

Find out More

This Payments Intelligence Report is based on responses from the JD Power 2025 U.S. P2P Transfers Servicer Satisfaction Study, which included 6,105 responses and was fielded from January to March 2025. It is authored by Sean Gelles, Senior Director, Payments Intelligence. Please contact us at the numbers below to connect with Mr. Gelles 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]


 

Why Gen Y & Z are Increasingly Open to Seeking Advice from Financial Advisors

Despite the rise of digital platforms and DIY investing tools, younger DIY investors are increasingly open to seeking advice from financial advisors. Gen Y and Gen Z DIY investors are showing a stronger preference for working with financial advisors than their older DIY counterparts, even though they grew up using technology for almost everything, according to the latest JD Power U.S. Investor Satisfaction Study.

Kapil Vora, Senior Director of Wealth Intelligence at JD Power, shares his expertise in the Financial Service Intelligence Update on why this shift is happening and what it means for the future of wealth management.

DIY Investors Are Reaching Out

“We tend to think of DIY investors as confident and independent,” said Vora. “But the data shows many of them are open to advice, especially younger ones. Gen Y and Gen Z investors are the ones most likely to say they want help from an advisor”

As these younger investors move through major life milestones like starting families and building wealth, they are realizing that digital tools alone may not be enough.

“They’re beginning to recognize that they don’t have all the answers,” Vora added. “Many are saying that online information just is not enough to support their financial decisions anymore.”

Why Advisors Matter More Than Ever to Gen Y & Z

Younger investors are not turning away from digital platforms. Instead, they are saying they want more support than digital alone can provide. The study shows that they often feel uncertain about financial matters and want guidance that feels personal and reliable.

“Younger investors are growing, and so are their financial responsibilities,” Vora said. “They want to talk to someone who understands their unique goals and challenges.”

This presents a clear opportunity for wealth management firms.

What Must Firms Do?

To meet the needs of younger investors, firms should focus on three key priorities:

  • Combine digital platforms with access to financial advisors
  • Create services and products that support goals like homeownership, debt repayment, and asset building
  • Make their platforms easy to use and understand

“The most successful firms will be the ones who make advice accessible and relevant without forcing a choice between tech and people,” Vora explained.

Market Volatility Is Accelerating the Shift

With market volatility continuing, more investors are reaching out for support. According to Vora, this environment is increasing the desire for professional guidance.

“Some DIY investors may be caught off guard, and we expect to see a growing interest in advice during this period,” said Vora. “For investors who already work with an advisor, those who receive comprehensive advice feel more confident and secure.”

Who’s Leading the Pack?

This year’s top-performing firms stand out for their ability to align with investor needs, whether that means offering hands-on advice or robust self-directed tools. Raymond James ranks highest in overall satisfaction among advised investors, with a score of 748 (on a 1000-point scale). U.S. Bank (738) ranks second and Edward Jones (734) ranks third.

Vanguard ranks highest in overall satisfaction among DIY investors, with a score of 704. Fidelity (703) ranks second and T. Rowe Price (691) ranks third.

“These firms are meeting their clients where they are, whether they want self-directed tools or hands-on support,” said Kapil Vora.

To see the full list of rankings and detailed insights, read the press release.

Read Press Release

What’s Next for Gen Y and Z Wealth Management?

The future of wealth management for this emerging cohort lies in a hybrid model that blends technology with human empathy. As Kapil Vora put it:

“It’s not just about being digital. It’s about being helpful. That’s what younger investors are asking for.”

Firms that recognize and respond to this shift will be better positioned to earn long-term loyalty from the next generation of investors.

See how your firm can benchmark performance and uncover deeper insights with JD Power investor satisfaction data and analytics.

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