2014

J.D. Power Reports: Customer Satisfaction with Banks at All-Time High, but Areas of Weakness Signal Competitive Vulnerability Midsize Banks Not Keeping Up with Demographic Shifts

WESTLAKE VILLAGE, Calif., May 1, 2014 /PRNewswire/ -- Despite ongoing public scrutiny, customer satisfaction with banks is at a record high as banks improve experiences for their customers, reduce problems and create a better understanding of fees, according to the J.D. Power 2014 U.S. Retail Banking Satisfaction StudySM released today. Yet, midsize banks are missing the mark with key audience segments, such as millennials (born 1977-1995) and minorities, with affluent customers still the least-satisfied customer segment.

"Midsize[1] banks are falling behind in meeting the needs of the fastest growing demographic groups, millennials and minorities, especially in online, mobile and problem resolution," said Jim Miller, director of banking services at J.D. Power. "If midsize banks don't change their focus to adjust to demographic shifts, they are extremely vulnerable and risk losing market share to competitors and becoming irrelevant."

Improving consumer sentiment with the economy and personal finances has helped lift overall satisfaction with retail banks to 785 (on a 1,000-point scale) in 2014, up from 763 in 2013. Bank customers are experiencing fewer problems; when problems do occur, they are more satisfied with how they are resolved. Discontent with fees has declined, with fees satisfaction rising 46 points to 669, the highest level since before the 2010 study re-design.

However, not all customers feel the same. Banks are not meeting the needs of affluent customers, the least-satisfied segment. Expectations for personalized experiences are high among affluent customers, and banks have not provided a differentiated experience to meet those expectations.

"It's remarkable that banks are failing to satisfy affluent customers, especially with deposits and liquidity so important to the life of a financial institution," said Miller. "As boomers age, the country is poised for a huge transfer of wealth in upcoming years. As this occurs, those banks that have satisfied the affluent segment will be more competitively positioned to prosper."

KEY FINDINGS

  • Overall satisfaction among big banks improves 23 points to 782, while midsize banks improve only 11 points to 796 and regional banks improve 24 points to 784.
  • Midsize banks have held a strong lead with satisfaction among affluent customers; however, big banks have closed the gap with a 40-point improvement. Satisfaction with midsize banks declines by 6 points among affluent customers, while regional banks improve 30 points among affluent customers.
  • In 2014, 16 percent of customers have experienced a problem or had a complaint, down from 18 percent in 2013 and 24 percent in 2010.
  • Satisfaction with the problem resolution process has improved to 620 in 2014 from 595 in 2013.
  • Among customers who switched banks during the past 12 months, the most common reasons are poor customer service (28%); branches are not conveniently located (21%); and interest rates are not competitive (19%). Only 15 percent of these customers cite high fees as a primary reason for switching.

Also, while overall banking satisfaction is at an all-time high, not all banks are serving their customers' needs effectively.

According to Miller, "Even with record high satisfaction, there are some banks that fall far short in meeting customer needs. It is easy for banks to become complacent. To stay at the top of their game, banks should focus on those customers who are not satisfied. And consumers should keep in mind they have the opportunity to shop banks to find the right combination of services, products and fees to meet their needs."

J.D. Power offers the following tips for consumers:

  • Make sure you review your account and keep track of the fees you are paying. Contact your bank to see if there are lower cost product options or shop other banks to understand your alternatives.
  • Find a bank that delivers well on how you want to bank. With a little research, you can find a bank that makes it easy to bank when, where and how you want. If you prefer to bank remotely, what type of mobile and online services does your bank offer? Can you deposit a check with your smartphone? If you prefer to bank in person, how convenient are the branch locations and hours?
  • Visit jdpower.com to view satisfaction rankings on banks in your region.

The ninth annual customer satisfaction study is the longest-running and most in-depth survey of the retail banking industry, with more than 80,000 customers covering various aspects of their banking experience. The study measures satisfaction in six factors: account information; channel activities; facility; fees; problem resolution; and product offerings. Banks are ranked based on overall customer satisfaction in each of the following regions: California, Florida, Mid-Atlantic, Midwest, New England, North Central, Northwest, South Central, Southeast, Southwest and Texas.

The study measures customer satisfaction with banks in 11 regions. Study results by region are:

California Region: Rabobank ranks highest in the California region with a score of 832 and performs particularly well in the account information, fees and channel activities factors. Following Rabobank in the rankings are Bank of the West, Chase, U.S. Bank and Wells Fargo in a tie (796 each).

Florida Region: Chase ranks highest in the Florida region with a score of 826, performing particularly well in the facility and channel activities factors. TD Bank (823) and SunTrust (814) follow in the rankings.

Mid-Atlantic Region: Northwest Savings Bank ranks highest in the region with a score of 832 and performs particularly well in the product offerings factor. Susquehanna Bank (829) and National Penn Bank (825) follow in the rankings.

Midwest Region: First Midwest Bank ranks highest in the region with a score of 813 and performs particularly well in the facility, account information and channel activities factors. Following First Midwest Bank in the rankings are Commerce Bank (801) and AnchorBank and UMB Bank in a tie (799 each).

New England Region: Eastern Bank ranks highest in the region with a score of 817 and performs particularly well in the account information and fees factors. Rockland Trust Co. (810) and Webster Bank (794) follow in the rankings.

North Central Region: With a score of 828, Huntington National Bank ranks highest in the region, performing particularly well in the product offerings, account information and fees factors. Following in the rankings are Regions Bank (816) and Flagstar Bank (809).

Northwest Region: Umpqua Bank ranks highest in the region with a score of 841 and performs particularly well in the product offerings, facility, account information, fees and channel activities factors. U.S. Bank (793) and Sterling Bank (791) follow in the rankings.

South Central Region: Arvest Bank ranks highest in the region with a score of 843, performing particularly well in the product offerings, facility, account information and channel activities factors. Following in the rankings are PNC Bank and Trustmark National Bank in a tie (816 each).

Southeast Region: United Community Bank ranks highest in the region with a score of 854 and performs particularly well in the product offerings, facility, account information, fees and channel activities factors. Following United Community Bank in the rankings are First Citizens Bancorp (836) and Branch Banking & Trust (BB&T) and First Citizens Bancshares in a tie (815 each).

Southwest Region: With a score of 831, Arvest Bank ranks highest in the region, performing particularly well in the product offerings, facility, account information, fees and channel activities factors. MidFirst Bank (822) and Chase (814) follow in the rankings.

Texas Region: Frost Bank ranks highest in the Texas region with a score of 856, and performs particularly well in the product offerings, account activities, fees and account information factors. Woodforest National Bank (843) and Amegy Bank (812) follow in the rankings.

The 2014 U.S. Retail Banking Satisfaction Study is based on responses from more than 80,000 retail banking customers of more than 130 of the largest banks in the United States regarding their experiences with their retail bank. The study was fielded quarterly from April 2013 to February 2014:

Wave 1: April 1, 2013April 26, 2013
Wave 2: July 1, 2013July 29, 2013
Wave 3: October 1, 2013October 28, 2013
Wave 4: January 9, 2014January 31, 2014

Overall Customer Satisfaction Index Scores

JDPower.com Power Circle RatingsTM

(Based on a 1,000-point scale)

For Consumers




California






Rabobank

32

5

Bank of the West                            

796

4

Chase                                                  

796

4

U.S. Bank                                                    

796

4

Wells Fargo                                                

796

4

BBVA Compass                                            

791

4

Union Bank                                                     

783

4

California Average                                              

775

3

California Bank & Trust                                        

771

3

Citibank                                                                      

761

3

Bank of America                                                  

753

2

Included in the study but not ranked due to sample size are City National Bank (CA), Comerica Bank, East West Bank, First Bank (MO), OneWest Bank, Pacific Western Bank, Tri Counties Bank, Umpqua Bank and Westamerica Bank.                     

Florida






Chase                                                             

826

5

TD Bank                                                              

823

5

SunTrust Bank                                              

814

4

PNC Bank                                                        

812

4

Citibank                                                                    

809

4

Fifth Third Bank                                            

804

4

Regions Bank                                                

801

4

Florida Average                                           

795

3

Wells Fargo                                                           

791

3

Bank of America                                                       

779

2

Branch Banking & Trust (BB&T)                    

767

2

Included in the study but not ranked due to sample size are BankUnited, CenterState Bank and Synovus.                         

Mid-Atlantic Region






Northwest Savings Bank                                    

832

5

Susquehanna Bank                                        

829

5

National Penn Bank                                          

825

5

Hudson City Savings Bank                          

823

5

S&T Bank                                                        

813

4

First Commonwealth Bank                               

810

4

Branch Banking & Trust (BB&T)            

804

4

Community Bank                                               

804

4

PNC Bank                                                          

802

4

Manufacturers & Traders Bank (M&T Bank)  

801

4

NBT Bank                                                                

798

4

TD Bank                                                     

797

4

Fulton Bank                                              

796

4

Chase                                                         

786

3

SunTrust Bank                              

783

3

New York Community Bank                 

782

3

Mid-Atlantic Average                  

781

3

First NB of Pennsylvania                  

779

3

Wells Fargo                                               

779

3

Huntington National Bank                    

778

3

Trustco Bank                                          

778

3

Valley National Bank                                 

778

3

Citizens Bank                                         

777

3

Capital One                                           

776

3

First Niagara Bank                               

769

3

Citibank                                                              

767

3

Astoria FS&LA                                               

765

3

Bank of America                                                

765

3

Apple Bank for Savings                                  

763

3

KeyBank                                                            

760

3

Santander Bank                                                

740

2

HSBC                                                                       

714

2

Included in the study but not ranked due to sample size are Beneficial Mutual Savings Bank, Carter Bank & Trust, Five Star Bank, Investors Savings Bank, People's United Bank, The Provident Bank, Sandy Spring Bank, StellarOne Bank, Sun National Bank, Union First Market Bank and United Bank.                        

Included in the Mid-Atlantic region are Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia and Washington, D.C.                            

Midwest Region






First Midwest Bank                                 

813

5

Commerce Bank                                       

801

4

AnchorBank                                          

799

4

UMB Bank                                             

799

4

Bank Mutual                                         

796

4

PNC Bank                                              

794

4

Chase                                                 

793

4

First Bank (MO)                               

793

4

Citibank                                               

789

4

U.S. Bank                                            

789

4

Associated Bank                                     

784

3

Regions Bank                                             

784

3

Fifth Third Bank                                               

781

3

Midwest Average                                         

780

3

Bremer Bank                                                   

779

3

Bank of America                                            

776

3

Charter One                                                    

766

3

Bank of the West                                            

765

2

MB Financial Bank                                            

764

2

Wells Fargo                                                            

761

2

BMO Harris Bank                                                

760

2

TCF National Bank                                      

741

2

Included in the study but not ranked due to sample size are
First American Bank, Great Southern Bank, NBH Bank and Wintrust Community Bank.

Included in the Midwest region are Iowa, Illinois, Kansas, Minnesota, Missouri and Wisconsin.                               

New England Region






Eastern Bank                                                         

817

5

Rockland Trust Co                                                

810

5

Webster Bank                                                        

794

4

People's United Bank                                             

784

4

TD Bank                                                              

783

4

Citizens Bank                                                   

770

3

Wells Fargo                                                          

770

3

Chase                                                                   

768

3

New England Average                                       

762

3

First Niagara Bank                                         

756

3

KeyBank                                                              

750

3

Citibank                                                             

748

3

Bank of America                                               

745

2

Santander Bank                                                  

735

2

Included in the study but not ranked due to sample size is Bangor Savings Bank.

Included in the New England region are Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.                               

North Central Region






Huntington National Bank                         

828

5

Regions Bank                                               

816

4

Flagstar Bank                                                

809

4

Branch Banking & Trust (BB&T)             

806

4

City National Bank (WV)                      

806

4

Community Trust Bank                          

806

4

Wells Fargo                                               

804

4

1st Source Bank                               

803

4

Chase                                                       

801

3

Chemical Bank                                      

801

3

TCF National Bank                             

798

3

North Central Average                    

796

3

PNC Bank                                              

795

3

U.S. Bank                                                      

794

3

First Financial Bank (OH)                     

793

3

FirstMerit Bank                                  

791

3

Bank of America                              

789

3

Fifth Third Bank                                

788

3

Independent Bank                            

786

3

WesBanco Bank                                   

783

3

KeyBank                                                          

781

2

Comerica Bank                                                  

779

2

Charter One                                              

773

2

Old National Bank                             

765

2

United Bank                                          

761

2

Included in the study but not ranked due to sample size BMO Harris Bank, First Merchants Bank, MainSource Bank and Park National Bank.

Included in the North Central Region are Indiana, Kentucky, Michigan, Ohio and West Virginia.                             

Northwest Region






Umpqua Bank                                          

841

5

U.S. Bank                                                      

793

4

Sterling Bank                                                    

791

4

Columbia State Bank                                   

783

3

Chase                                                      

778

3

KeyBank                                                        

776

3

Wells Fargo                                                 

774

3

Northwest Average                                     

773

3

Bank of America                                        

740

2

Included in the study but not ranked due to sample size are Banner Bank,
Union Bank and Washington Federal.

Included in the Northwest region are Oregon and Washington.                               

South Central Region






Arvest Bank                                          

843

5

PNC Bank                                                          

816

4

Trustmark National Bank                             

816

4

BancorpSouth Bank                                

814

4

SunTrust Bank                                       

813

4

Capital One                                            

812

4

First Tennessee Bank                          

808

4

Chase                                                  

806

3

Branch Banking & Trust (BB&T)           

799

3

South Central Average                     

799

3

Wells Fargo                                          

798

3

Regions Bank                                   

793

3

U.S. Bank                                                   

792

3

Whitney Bank                                        

780

2

Bank of America                                    

774

2

BBVA Compass                                    

756

2

Included in the study but not ranked due to sample size are Cadence Bank, Centennial Bank, First Security Bank, Hancock Bank, IBERIABANK, Renasant Bank, Simmons First Bank and Synovus.

Included in the South Central region are Alabama, Arkansas, Louisiana, Mississippi and Tennessee.                      

Southeast Region






United Community Bank                  

854

5

First Citizens Bancorp                              

836

4

Branch Banking & Trust (BB&T)            

815

4

First Citizens Bancshares                       

815

4

TD Bank                                                        

812

4

SunTrust Bank                                                  

805

4

PNC Bank                                                     

803

3

Regions Bank                                              

803

3

Fifth Third Bank                                             

802

3

Southeast Average                                             

795

3

Bank of America                                                 

787

3

Wells Fargo                                                                

785

3

Synovus                                                                           

773

2

Included in the study but not ranked due to sample size are First Bank (NC), First Federal and South Carolina Bank & Trust.

Included in the Southeast region are Georgia, North Carolina and South Carolina.                          

Southwest Region






Arvest Bank                                              

831

5

MidFirst Bank                                            

822

4

Chase                                                              

814

4

FirstBank (CO)                              

806

4

BancFirst                                                             

802

4

Bank of Oklahoma                                      

796

3

U.S. Bank                                                      

794

3

Southwest Average                                    

793

3

Wells Fargo                                                       

792

3

Bank of the West                                            

789

3

Zions First National Bank                          

788

3

Nevada State Bank                               

774

2

Bank of America                                 

772

2

BBVA Compass                        

769

2

KeyBank                                                 

752

2

Included in the study but not ranked due to sample size are BMO Harris, National Bank of Arizona and Washington Federal.

Included in the Southwest region are Arizona, Colorado, New Mexico, Nevada, Oklahoma and Utah.                   

Texas






Frost Bank                                

856

5

Woodforest National Bank  

843

4

Amegy Bank                                                                  

812

4

Chase                                                                          

811

4

First Financial Bank (TX)                                        

810

4

Capital One                                                             

808

4

Texas Average                                                      

798

3

BBVA Compass                                                 

790

3

Prosperity Bank                                                

788

3

Wells Fargo                                                     

787

3

Bank of America                                           

783

3

Regions Bank                                             

783

3

Citibank                                                    

781

2

Comerica Bank                                      

779

2

International Bank of Commerce          

773

2

Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest

Media Relations Contacts
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; jperlman@brandwarepr.com
John Tews; J.D. Power; Troy, Mich.; 248-680-6218; media.relations@jdpa.com

About J.D. Power and Advertising/Promotional Rules http://www.jdpower.com/about-us/press-release-info
About McGraw Hill Financial www.mhfi.com

[1] Big banks are defined as the six largest financial institutions based on total deposits as reported by the FDIC, averaging $180 billion and above. Regional banks are defined as those with between $180 billion and $33 billion in deposits. Midsize banks are defined as those with between $33 billion and $2 billion in deposits.

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SOURCE J.D. Power



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