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

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Apr 28, 2016, 08:00 ET

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 Ratings^TM
(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,^SMvisit 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.

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SOURCE J.D. Power

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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

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