Big Banks Show Significant Gains in Customer Satisfaction as Midsize Banks Decline and Regionals Plateau, J.D. Power U.S. Retail Banking Study Finds
Improved Technology and Better In-Person Interactions with Millennials Drive Historic Performance Improvement among Nation's Largest Retail Banks
NEW YORK, April 28, 2016 /PRNewswire/ -- Big banks[1] have significantly improved in overall customer satisfaction, while Midsize banks have declined and Regional banks have plateaued, according to the J.D. Power 2016 U.S. Retail Banking Satisfaction Study,SM released today. Satisfaction with Big banks rises for the sixth consecutive year, driven by a combination of improved digital offerings, more engaged personal interactions and stronger connections with growth segments of the population, while satisfaction with Midsize banks has dropped for the first time since 2010.
The 11th annual customer satisfaction study is the longest-running and most in-depth survey of the U.S. retail banking industry, with more than 75,000 customers evaluating various aspects of their banking experience. The study measures satisfaction in six factors (listed in alphabetical order): account information; channel activities; facility; fees; problem resolution; and product offerings. Channel activities include six subfactors (listed in alphabetical order): ATM; branch; call center; IVR; mobile; and website. Satisfaction is measured on a 1,000-point scale.
"Based on their current trajectory, the country's largest retail banking institutions are expected to achieve a substantial lead in overall customer satisfaction vs. Midsize and Regional banks by 2020," said Jim Miller, senior director of banking at J.D. Power. "This trend puts Midsize banks most at risk. Regulatory costs have made it difficult for them to invest in strategies to compete with larger rivals, and unless they take proactive steps to change course, we expect this to result in consolidation in the Midsize bank marketplace."
Following are the key findings of the 2016 study:
- Big Banks Close the Customer Satisfaction Gap: Overall satisfaction in the retail banking industry improves to 793 from 790 in 2015. Satisfaction with Big banks improves 6 points to 793 from 2015, compared with 797 for Midsize banks, down 5 points, and 790 for Regional banks, remaining flat. Big bank segment satisfaction improves by 56 index points, nearly closing a 34-point gap with Midsize banks from 2010.
- Getting Tech Right: Big banks score highest in mobile (851), ATM (837) and online satisfaction (838). Mobile banking in particular has a direct impact on overall satisfaction, which is 27 points higher among customers who use mobile banking than among those who do not. Among mobile users who are satisfied with the mobile offering (mobile satisfaction score of 800 and above) the gap in satisfaction is 197 index points higher than among dissatisfied mobile users, those scoring below 800 index points (868 vs. 671, respectively).
- Winning in Growth Segments: Big banks have been most successful at acquiring and satisfying millennials, the fastest growing customer segment. Millennials represent the biggest growth potential for retail banks, but also pose much higher risk of attrition.
- Evolving the Branch Model: While the overall number of bank branches in the United States declines, brick and mortar branches are still a key channel for servicing customers in those moments of truth (e.g., resolving problems and dealing with more complex transactions). This is evident in user preference patterns, with the percentage of customers opening accounts online steadily increasing but the branch continually performing higher in terms of enhancing product understanding and reducing future problems.
"While customer satisfaction with Big, Midsize and Regional banks falls within a tight 7-point range, establishing customer service tools for competitive differentiation is key to a successful path forward," said Paul McAdam, senior director of banking services at J.D. Power. "We clearly see that the customer satisfaction leaders in retail banking excel by hitting the sweet spot of providing a great digital experience backed by personal service."
The study measures customer satisfaction with banks in 11 regions. Study results by region are:
California Region: U.S. Bank (808)
Florida Region: TD Bank (837)
Mid-Atlantic Region: Northwest Savings Bank (819)
Midwest Region: UMB Bank (821)
New England Region: Bangor Savings Bank (842)
North Central Region: Huntington National Bank (830)
Northwest Region: U.S. Bank (798)
South Central Region: Trustmark National Bank (855)
Southeast Region: United Community Bank (841)
Southwest Region: Arvest Bank (843)
Texas Region: Frost Bank (862)
The 2016 U.S. Retail Banking Satisfaction Study is based on responses from more than 75,000 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 2015 to February 2016:
Wave 1: April 1, 2015 – May 4, 2015
Wave 2: July 1, 2015 – August 3, 2015
Wave 3: September 21, 2015 – November 2, 2015
Wave 4: January 4, 2016 – February 3, 2016; February 18, 2016 – February 22, 2016
| Overall Customer Satisfaction Index Scores |
J.D. Power.com Power Circle RatingsTM |
|
| (Based on a 1,000-point scale) |
For Consumers |
|
| California |
||
| U.S. Bank |
808 |
5 |
| BBVA Compass |
805 |
5 |
| Bank of the West |
796 |
4 |
| Wells Fargo |
793 |
4 |
| Chase |
792 |
4 |
| Region Average |
786 |
3 |
| Bank of America |
782 |
3 |
| California Bank & Trust |
780 |
3 |
| Citibank |
775 |
2 |
| Union Bank |
774 |
2 |
| Florida |
||
| TD Bank |
837 |
5 |
| Chase |
824 |
4 |
| PNC |
822 |
4 |
| SunTrust |
816 |
4 |
| Wells Fargo |
806 |
3 |
| Regions Bank |
805 |
3 |
| Region Average |
805 |
3 |
| Citibank |
799 |
3 |
| Fifth Third |
793 |
2 |
| Bank of America |
792 |
2 |
| BB&T |
790 |
2 |
| Mid-Atlantic |
||
| Northwest Savings Bank |
819 |
5 |
| Susquehanna Bank |
816 |
5 |
| Huntington |
814 |
5 |
| PNC |
807 |
4 |
| New York Community Bank |
805 |
4 |
| M&T Bank |
804 |
4 |
| NBT Bank |
804 |
4 |
| SunTrust |
800 |
4 |
| Astoria FS&LA |
799 |
4 |
| TD Bank |
798 |
3 |
| Fulton Bank |
797 |
3 |
| Capital One |
796 |
3 |
| Chase |
795 |
3 |
| First Commonwealth Bank |
794 |
3 |
| National Penn Bank |
794 |
3 |
| Community Bank |
790 |
3 |
| Wells Fargo |
790 |
3 |
| Region Average |
790 |
3 |
| First NB of PA |
789 |
3 |
| BB&T |
788 |
3 |
| Bank of America |
784 |
3 |
| Citizens |
784 |
3 |
| KeyBank |
784 |
3 |
| First Niagara |
781 |
3 |
| Valley National Bank |
779 |
3 |
| Apple Bank for Savings |
778 |
3 |
| Beneficial Mutual Savings Bank |
773 |
3 |
| Citibank |
772 |
2 |
| Santander |
756 |
2 |
| HSBC |
732 |
2 |
| Included in the Mid-Atlantic region are Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia and Washington, D.C. |
||
| Midwest |
||
| UMB Bank |
821 |
5 |
| First Midwest Bank |
806 |
4 |
| Chase |
797 |
4 |
| Bremer Bank |
796 |
3 |
| PNC |
795 |
3 |
| U.S. Bank |
793 |
3 |
| Commerce Bank |
789 |
3 |
| Wells Fargo |
789 |
3 |
| Region Average |
789 |
3 |
| Regions Bank |
784 |
3 |
| Bank of America |
779 |
3 |
| Bank of the West |
779 |
3 |
| BMO Harris |
779 |
3 |
| Associated Bank |
778 |
3 |
| Citibank |
765 |
2 |
| Fifth Third |
765 |
2 |
| TCF National Bank |
745 |
2 |
| Included in the Midwest region are Iowa, Illinois, Kansas, Minnesota, Missouri and Wisconsin. |
||
| New England |
||
| Bangor Savings Bank |
842 |
5 |
| Rockland Trust |
823 |
4 |
| TD Bank |
801 |
4 |
| People's United Bank |
787 |
4 |
| Webster Bank |
786 |
4 |
| Eastern Bank |
777 |
3 |
| First Niagara |
770 |
3 |
| Wells Fargo |
769 |
3 |
| Region Average |
768 |
3 |
| Citizens |
766 |
3 |
| Chase |
762 |
3 |
| Bank of America |
755 |
3 |
| Santander |
741 |
2 |
| Included in the New England region are Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. |
||
| North Central |
||
| Huntington National Bank |
830 |
5 |
| Chase |
812 |
4 |
| 1st Source Bank |
811 |
4 |
| TCF National Bank |
803 |
3 |
| Wells Fargo |
801 |
3 |
| City National Bank |
800 |
3 |
| U.S. Bank |
800 |
3 |
| WesBanco Bank |
799 |
3 |
| Region Average |
799 |
3 |
| PNC |
798 |
3 |
| Fifth Third |
793 |
3 |
| Bank of America |
786 |
2 |
| First Financial Bank |
786 |
2 |
| Chemical Bank |
784 |
2 |
| BB&T |
783 |
2 |
| Old National Bank |
782 |
2 |
| Comerica |
777 |
2 |
| KeyBank |
776 |
2 |
| Citizens |
774 |
2 |
| FirstMerit |
767 |
2 |
| Included in the North Central region are Indiana, Kentucky, Michigan, Ohio, and West Virginia. |
||
| Northwest |
||
| U.S. Bank |
798 |
5 |
| Umpqua |
788 |
4 |
| Wells Fargo |
786 |
4 |
| Region Average |
779 |
3 |
| Chase |
776 |
3 |
| KeyBank |
774 |
3 |
| Bank of America |
765 |
2 |
| Included in the Northwest region are Oregon and Washington. |
||
| South Central |
||
| Trustmark National Bank |
855 |
5 |
| PNC |
844 |
4 |
| Arvest Bank |
829 |
4 |
| First Tennessee |
823 |
4 |
| Wells Fargo |
813 |
3 |
| U.S. Bank |
812 |
3 |
| BancorpSouth |
810 |
3 |
| Capital One |
810 |
3 |
| Chase |
809 |
3 |
| Whitney Bank |
806 |
3 |
| Regions Bank |
805 |
3 |
| Region Average |
805 |
3 |
| Bank of America |
789 |
3 |
| SunTrust |
786 |
2 |
| BB&T |
782 |
2 |
| BBVA Compass |
774 |
2 |
| Included in the South Central region are Alabama, Arkansas, Louisiana, Mississippi, and Tennessee. |
||
| Southeast |
||
| United Community Bank |
841 |
5 |
| BB&T |
826 |
4 |
| Regions Bank |
823 |
4 |
| First Citizens Bank & Trust |
822 |
4 |
| TD Bank |
821 |
4 |
| Wells Fargo |
805 |
3 |
| Region Average |
805 |
3 |
| Chase |
804 |
3 |
| PNC |
800 |
3 |
| Bank of America |
797 |
3 |
| SunTrust |
793 |
3 |
| Fifth Third |
788 |
2 |
| South State Bank |
773 |
2 |
| Included in the Southeast region are Georgia, North Carolina, and South Carolina. |
||
| Southwest |
||
| Arvest Bank |
843 |
5 |
| BancFirst |
823 |
4 |
| FirstBank |
809 |
4 |
| Zions Bank |
803 |
4 |
| U.S. Bank |
801 |
4 |
| Chase |
798 |
3 |
| Bank of Oklahoma |
797 |
3 |
| Region Average |
794 |
3 |
| Bank of America |
791 |
3 |
| Wells Fargo |
791 |
3 |
| Bank of the West |
784 |
3 |
| BBVA Compass |
774 |
2 |
| Included in the Southwest region are Arizona, Colorado, New Mexico, Nevada, Oklahoma, and Utah. |
||
| Texas |
||
| Frost Bank |
862 |
5 |
| Woodforest National Bank |
823 |
4 |
| Prosperity Bank |
822 |
4 |
| Wells Fargo |
815 |
4 |
| Amegy Bank |
806 |
3 |
| Chase |
806 |
3 |
| Region Average |
806 |
3 |
| First Financial Bank |
803 |
3 |
| BBVA Compass |
798 |
3 |
| Capital One |
796 |
3 |
| Comerica |
793 |
3 |
| Bank of America |
790 |
2 |
| Power Circle Ratings Legend |
||
| 5 – Among the best |
||
| 4 – Better than most |
||
| 3 – About average |
||
| 2 – The rest |
||
| Award-Eligible U.S. Retail Banks Included in the Study |
||
| Company |
Executive Name |
U.S. Address |
| 1st Source Bank |
Christopher Murphy III |
South Bend, Ind. |
| Amegy Bank |
Steve Stephens |
Houston, Texas |
| Apple Bank for Savings |
Alan Shamoon |
New York, N.Y. |
| Arvest Bank |
Kevin Sabin |
Lowell, Ark. |
| Associated Bank |
Philip Flynn |
Green Bay, Wis. |
| Astoria FS&LA |
Monte Redman |
New Hyde Park, N.Y. |
| BancFirst |
David E. Rainbolt |
Oklahoma City, Okla. |
| BancorpSouth |
Chris Bagley |
Tupelo, Miss. |
| Bangor Savings Bank |
Robert Montgomery-Rice |
Bangor, Maine |
| Bank of America |
Brian Moynihan |
Charlotte, N.C. |
| Bank of Oklahoma |
Stan Liearger |
Tulsa, Okla. |
| Bank of the West |
Nandita Bakhshi |
San Francisco, Calif. |
| BB&T |
Kelly King |
Winston Salem, N.C. |
| BBVA Compass |
Manuel Sanchez-Rodriguez |
Houston, Texas |
| Beneficial Mutual Savings Bank |
Gerard Cuddy |
Philadelphia, Pa. |
| BMO Harris |
David Casper |
Chicago, Ill. |
| Bremer Bank |
Stan Dardis |
Saint Paul, Minn. |
| California Bank & Trust |
David Blackford |
San Diego, Calif. |
| Capital One |
Richard Fairbank |
McLean, Va. |
| Chase |
James Dimon |
New York, N.Y. |
| Chemical Bank |
David Ramaker |
Midland, Mich. |
| Citibank |
Michael Corbat |
New York, N.Y. |
| Citizens |
Bruce Van Saun |
Providence, R.I. |
| City National Bank |
Charles Hageboeck |
Cross Lanes, W.Va. |
| Comerica |
Ralph Babb Jr. |
Dallas, Texas |
| Commerce Bank |
David Kemper |
Kansas City, Mo. |
| Community Bank |
Mark Tryniski |
De Witt, N.Y. |
| Eastern Bank |
Richard Holbrook |
Boston, Mass. |
| Fifth Third |
Greg Carmichael |
Cincinnati, Ohio |
| First Citizens Bank & Trust |
Frank Holding Jr. |
Raleigh, N.C. |
| First Commonwealth Bank |
Thomas Michael Price |
Indiana, Pa. |
| First Financial Bank |
Claude Davis |
Cincinnati, Ohio |
| First Midwest Bank |
Michael Scudder |
Itasca, Ill. |
| First NB of PA |
Vincent Delie Jr. |
Pittsburgh, Penn. |
| First Niagara |
Gary Crosby |
Buffalo, N.Y. |
| First Tennessee |
D. Bryan Jordan |
Memphis, Tenn. |
| FirstBank |
John Ikard |
Lakewood, Colo. |
| FirstMerit |
Paul Greig |
Akron, Ohio |
| Frost Bank |
Phillip Green |
San Antonio, Texas |
| Fulton Bank |
R. Scott Smith Jr. |
Lancaster, Pa. |
| HSBC |
Patrick Burke |
New York, N.Y. |
| Huntington |
Stephen Steinour |
Columbus, Ohio |
| KeyBank |
Beth Mooney |
Cleveland, Ohio |
| M&T Bank |
Robert Wilmers |
Buffalo, N.Y. |
| National Penn Bank |
Scott V. Fainor |
Allentown, Pa. |
| NBT Bank |
Martin Dietrich |
Norwich, N.Y. |
| New York Community Bank |
Joseph Ficalora |
Westbury, N.Y. |
| Northwest Savings Bank |
William Wagner |
Warren, Pa. |
| Old National Bank |
Robert Jones |
Evansville, Ind. |
| People's United Bank |
John Barnes |
Bridgeport, Conn. |
| PNC |
William Demchak |
Pittsburgh, Pa. |
| Prosperity Bank |
David Zalman |
Houston, Texas |
| Regions Bank |
O. B. Grayson Hall Jr. |
Birmingham, Ala. |
| Rockland Trust |
Christopher Oddleifson |
Hanover, Mass. |
| Santander |
Scott Powell |
Boston, Mass. |
| South State Bank |
Robert Hill |
Columbia, S.C. |
| SunTrust |
William Rogers Jr. |
Atlanta, Ga. |
| Susquehanna Bank |
William Reuter |
Lititz, Pa. |
| TCF National Bank |
Craig Dahl |
Wayzata, Minn. |
| TD Bank |
Mike Pedersen |
Cherry Hill, N.J. |
| Trustmark National Bank |
Gerard Host |
Jackson, Miss. |
| UMB Bank |
J. Mariner Kemper |
Kansas City, Mo. |
| Umpqua |
Raymond Davis |
Portland, Ore. |
| Union Bank |
Angie Muhleisen |
Lincoln, Neb. |
| United Community Bank |
Jimmy Tallent |
Blairsville, Ga. |
| US Bank |
Richard Davis |
Minneapolis, Minn. |
| Valley National Bank |
Gerald Lipkin |
Wayne, N.J. |
| Webster Bank |
James Smith |
Waterbury, Conn. |
| Wells Fargo |
John Stumpf |
San Francisco, Calif. |
| WesBanco Bank |
Todd Clossin |
Wheeling, W. Va. |
| Whitney Bank |
John Hairston |
Gulfport, Miss. |
| Woodforest National Bank |
Robert E. Marling |
The Woodlands, Texas |
| Zions Bank |
Harris Simmons |
Salt Lake City, Utah |
Media Relations Contacts
John Tews; J.D. Power; Troy, Mich.; 248-680-6218; [email protected]
For more information about the J.D. Power 2016 U.S. Retail Banking Satisfaction Study,SM visit http://www.jdpower.com/resource/us-retail-banking-satisfaction-study
See the online press release at http://www.jdpower.com/press-releases/2016-us-retail-banking-satisfaction-study
About J.D. Power and Advertising/Promotional Rules http://www.jdpower.com/about-us/press-release-info
[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.
Logo - http://photos.prnewswire.com/prnh/20130605/LA26502LOGO
SOURCE J.D. Power
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article