Retail Bank Customer Satisfaction Holds Steady but Trust Declines, J.D. Power Finds

"Retail bank customers interact with their bank every three days, on average, across a combination of digital, phone and in-branch channels, and the tenor of those interactions has a massive influence on customer satisfaction and overall levels of trust," said Jennifer White, senior director of banking and payments intelligence at J.D. Power. "Despite widespread efforts to improve the customer experience, many banks are missing the mark on critical customer touch points by treating customers like numbers. To retain deposits and build customer loyalty and trust, banks need to do a better job of focusing on fundamental interactions, proactively solving problems and delivering personalized advice."

Following are some key findings of the 2024 study:

• Bank customer satisfaction flat while trust declines: Overall customer satisfaction held steady during the past year, declining a single point (on a 1,000-point scale), but trust is down significantly for a second consecutive year. The top contributors to customers losing trust in their financial institution are unexpected fees; delayed availability of deposited funds; news reports about bad banking practices; errors blamed on customer actions; and closed branches and reduced hours.

• Customer loyalty at risk: This year, 8% of retail bank customers say they have changed their primary bank, up from 5% in 2018. What's more, 13% of retail bank customers say they "probably will" or "definitely will" switch banks in the next 12 months. Fewer than half (46%) of bank customers say they are certain they will remain with their current bank in the next year.

• Account fees and poor customer experiences are drag on loyalty: Among those customers who are likely to switch banks in the next 12 months, 29% say it is because they were charged either too many or high fees for products and services and 26% say they had a poor service experience.

• Back to basics of customer engagement: Overall branch customer satisfaction scores are 123 points higher than average (830 vs. 707, respectively) when banks deliver on absolute basics of customer service, such as welcoming customers to the branch; delivering fast service; thanking customers for their business; and calling customers by name. Every contact and every interaction influences customers' experiences and their satisfaction.

The study measures customer satisfaction with retail banks in 15 geographic regions. Highest-ranking banks and scores by region are as follows:

California: U.S. Bank (657) (for a fourth consecutive year)
Florida: Fifth Third Bank (689)
Illinois: Wintrust Community Banks (696) (for a third consecutive year)
Lower Midwest Region: BancFirst (718) (for a second consecutive year)
Mid-Atlantic Region: Capital One (692)
New England Region: Bangor Savings Bank (726) (for a seventh consecutive year)
North Central Region: City National Bank (707)
Northwest Region: Glacier Bank (703)
New York Tri-State Region: Capital One (673)
Pennsylvania: Huntington (693) (for a second consecutive year)
South Central Region: Chase (703)
Southeast Region: United Community Bank (724)
Southwest Region: 1^st Bank (687) (for a fourth consecutive year)
Texas: Frost (753) (for a 15^th consecutive year)
Upper Midwest Region: Associated Bank (669)

See the rank chart for each segment at http://www.jdpower.com/pr-id/2024028.

The U.S. Retail Banking Satisfaction Study, now in its 19th year, measures satisfaction across seven dimensions (in order of importance): trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.

The 2024 study is based on responses from 105,355 retail customers of the largest banks in the United States regarding their experiences with their retail banking institution. It was fielded from January 2023 through January 2024. National banks are defined as banks with more than $300 billion in domestic deposits; regional banks are those with $65 billion-$299 billion in domestic deposits; and midsize banks are those with 45-100 branches nationally and at least 20 branches within a respective region.

For more information about the U.S. Retail Banking Satisfaction Study, visit https://www.jdpower.com/business/retail-banking-study-1.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

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

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

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