J.D. Power and Associates Reports: Big Banks Make Significant Improvements, Closing the Customer Satisfaction Gap with Regional and Midsize Banks

Overall Customer Satisfaction with Retail Banks Improves Significantly

News provided by

J.D. Power and Associates

Apr 18, 2013, 04:00 ET

WESTLAKE VILLAGE, Calif., April 18, 2013 /PRNewswire/ -- Overall customer satisfaction with retail banks improves significantly from 2012, largely a result of improvements made by big banks,[1] according to the J.D. Power and Associates 2013 U.S. Retail Banking Satisfaction StudySM released today.

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The eighth annual customer satisfaction study is the longest-running and most in-depth survey of the retail banking industry, with feedback from more than 50,000 consumers 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.

After several years of relatively minor increases in overall satisfaction scores, customer satisfaction in 2013 (763 on a 1,000-point scale) has increased by 10 index points from 2012. The largest increase in satisfaction is in the big banks segment, which has improved in 2013 by 16 points from 2012 (759 vs. 743, respectively). While as a group big banks have historically trailed smaller banks in satisfying customers by a fair margin, the satisfaction gap between big banks vs. midsize (785, up 4 points from 2012) and regional (760, up one point from 2012) banks has narrowed year over year.

"While big banks have traditionally had an advantage over smaller banks in terms of convenience of branch locations and technology, their disadvantage was often in the personal service customers desired," said Jim Miller, senior director of banking at J.D. Power and Associates. "Many of the big banks have made great strides in listening to what their customers are asking for: reducing the number of problems customers encounter and, more importantly, improving satisfaction with fees. Consumers today are likely to find banks of all sizes offering the level of convenience, technology and personal service they have come to expect."

During the past several years, many banks have eliminated free checking and implemented new fees, which has often negatively impacted overall satisfaction. The study finds that as fees have begun to stabilize and banks have helped their customers better understand their fee structures, satisfaction in this area has begun to rebound, and is up by 14 points this year from 2012. One-third (33%) of customers say they "completely" understand their fee structure, compared with 26 percent in 2012. Fees also have been a major source of customer problems and complaints. The stability in fees, coupled with banks placing more emphasis on preventing problems, has lowered the proportion of customers experiencing a problem by 3 percentage points year over year, to 18 percent in 2013.

While customers appreciate the personal service they receive at their branch, such transactions are slowly declining, while the numbers of online, ATM and mobile banking transactions are increasing. This trend is especially pronounced in mobile banking, where usage has increased to 17 percent, up from 11 percent in 2012, and the average number of transactions per customer has increased to 51 per year, up from 29 in 2012. As banks roll out envelope-free ATM deposits and deposits by mobile phone, customers are finding it easier to handle routine transactions without needing to visit their branch.

"Successful banks are not pushing customers out of the branch, but rather providing tools that make it easier to conduct their banking business when and where it is convenient for them," said Miller. "Customers are quickly adopting mobile banking, making it a critical service channel for banks, not just a 'nice to have' option."

J.D. Power and Associates offers the following tips for consumers to keep in mind when shopping for a new bank:

  • Make sure to review your current bank's fee structure, as well as those of its competitors, to ensure the services and products you're receiving are those that best meet your needs.
  • Think about how you want to conduct business with your bank. If personal service is most important to you, how are you treated when you walk into a branch? If you prefer to deal with your bank remotely, what type of mobile and online tools do they offer? With a little research, you can find banks that offer the best of both worlds.
  • Evaluate the products and extra services you receive from your bank—including discounts or rewards programs—to ensure they are ones that meet your needs.
  • Consider how often you experience problems with your bank, including how well your bank resolves problems and complaints.
  • Consider changing banks if you are not satisfied with the service you currently receive. Switching banks may be easier than you think, and most banks have staff dedicated to supporting new customers who have recently switched.

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

California Region: Rabobank ranks highest in the California region with a score of 825, and performs particularly well in the product offerings, facility, account information, fees and channel activities factors. California Bank & Trust (792) and U.S. Bank (780) follow in the rankings.

Florida Region: TD Bank ranks highest in the Florida region with a score of 803, performing particularly well in the facility factor. Following TD Bank in the rankings are Regions Bank (796) and Chase and PNC Bank in a tie (794 each).

Mid-Atlantic Region: Beneficial Mutual Savings Bank ranks highest in the region with a score of 839, and performs particularly well in the product offerings, account information and channel activities factors. Union First Market Bank (836) and Northwest Savings Bank (816) follow in the rankings.

Midwest Region: Chase ranks highest in the region with a score of 799, and performs particularly well in the product offerings, facility and account information factors. Bank Mutual (793) and Regions Bank (790) follow in the rankings.

New England Region: Bangor Savings Bank ranks highest in the region with a score of 831, and performs particularly well in the product offerings, fees, and channel activities. Eastern Bank (818) and Rockland Trust Co. (814) follow in the rankings.

North Central Region: With a score of 814, Huntington National Bank ranks highest in the region, performing particularly well in the account information, fees and channel activities factors. Following in the rankings are Flagstar Bank (807) and 1st Source Bank (802).

Northwest Region: Banner Bank ranks highest in the region with a score of 817, and performs particularly well in the account information, and fees. Umpqua Bank (815) and Columbia State Bank (799) follow in the rankings.

South Central Region: Arvest Bank ranks highest in the region with a score of 820, performing particularly well in the product offerings, facility, account information and channel activities factors. Following in the rankings are PNC Bank (802) and Trustmark National Bank (795).

Southeast Region: First Citizens Bancorp ranks highest in the region with a score of 836, and performs particularly well in the product offerings, fees and channel activities factors. United Community Bank (835) and First Citizens Bancshares (819) follow in the rankings.

Southwest Region: With a score of 819, Arvest Bank ranks highest in the region, performing particularly well in the product offerings, facility, account information, channel activities and problem resolution factors. BancFirst (812) and MidFirst Bank (804) follow in the rankings.

Texas Region: Frost National Bank ranks highest in the Texas region with a score of 855, and performs particularly well in the product offerings, account activities, fees, account information and facility factors. Amegy Bank (814) and Chase (795) follow in the rankings.

The 2013 U.S. Retail Banking Satisfaction Study is based on responses from nearly 52,000 retail banking customers of more than 120 of the largest banks in the United States regarding their experiences with their retail bank. The study was fielded in January and February 2013.

For more information, view retail banking satisfaction rankings at JDPower.com

California




Customer Service Index Ranking
(Based on a 1,000-point scale)

J.D. Power.com Power Circle Ratings
For Consumers


Rabobank

825

5

California Bank & Trust

792

4

U.S. Bank

780

4

Bank of the West

773

4

Union Bank

771

4

Chase

768

4

Wells Fargo

756

3

California Average

755

3

Citibank

752

3

Bank of America

728

2

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





Florida


Customer Service Index Ranking

(Based on a 1,000-point scale) 

J.D. Power.com Power Circle Ratings
For Consumers


TD Bank

803

5

Regions Bank

796

4

Chase

794

4

PNC Bank

794

4

Fifth Third Bank

787

4

SunTrust Bank

784

4

Citibank        

771

3

Florida Avg.

770

3

Wells Fargo                          

769

3

Branch Banking & Trust (BB&T)   

750

2

Bank of America

749

2

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





Mid-Atlantic Region




Customer Service Index Ranking
(Based on a 1,000-point scale)               

J.D. Power.com Power Circle Ratings
For Consumers


Beneficial Mutual Savings Bank      

839

5

Union First Market Bank               

836

5

Northwest Savings Bank              

816

4

Susquehanna Bank                    

815

4

Hudson City Savings Bank         

812

4

First Commonwealth Bank        

808

4

National Penn Bank                          

803

4

Fulton Bank                                    

797

4

First NB of Pennsylvania                 

795

4

Five Star Bank                              

792

4

Huntington National Bank              

788

4

Community Bank                         

787

4

Branch Banking & Trust (BB&T)   

783

4

New York Community Bank        

777

4

S&T Bank                               

776

4

The Provident Bank                  

774

3

Manufacturers & Traders Bank
(M&T Bank)          

772

3

Chase                                      

771

3

TD Bank                                 

771

3

SunTrust Bank                        

764

3

Trustco Bank                         

760

3

  Mid-Atlantic Average            

760

3

Capital One                          

759

3

Valley National Bank            

755

3

First Niagara Bank               

752

3

KeyBank                                      

747

3

Apple Bank for Savings                 

745

3

Citibank                                      

744

3

Bank of America                         

743

3

Citizens Bank                            

743

3

Astoria FS&LA                          

741

3

Wells Fargo                             

741

3

Sovereign Bank                       

722

2

HSBC                                      

682

2

Included in the study but not ranked due to small sample size are Included in the study but not ranked due to small sample size are Carter Bank & Trust, Investors Savings Bank, Peoples United Bank, Sandy Spring Bank, StellarOne Bank, Sun National 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




Customer Service Index Ranking

(Based on a 1,000-point scale)       

J.D. Power.com Power Circle Ratings
For Consumers


Chase                                                 

799

5

Bank Mutual                               

793

5

Regions Bank                              

790

4

First Bank (MO)                            

786

4

Bank of the West                           

785

4

MB Financial Bank                          

784

4

PNC Bank                                       

784

4

AnchorBank                                     

781

4

Commerce Bank                               

781

4

UMB Bank                                        

776

4

Bremer Bank                               

764

4

U.S. Bank                                  

761

3

Associated Bank                          

759

3

First Midwest Bank                        

755

3

Midwest Average                            

755

3

Citibank                                          

752

3

Great Southern Bank                        

748

3

Bank of America                               

744

3

Fifth Third Bank                      

741

3

Wells Fargo                            

734

2

Charter One                             

730

2

BMO Harris Bank                      

716

2

TCF National Bank                     

712

2

Included in the study but not ranked due to small sample size is
First American Bank.


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


New England Region




Customer Service Index Ranking
(Based on a 1,000-point scale)

J.D. Power.com Power Circle Ratings
For Consumers


Bangor Savings Bank                    

831

5

Eastern Bank                              

818

4

Rockland Trust Co                      

814

4

KeyBank                                   

782

4

TD Bank                                   

780

4

Webster Bank                          

776

4

Peoples United Bank               

758

4

Wells Fargo                           

750

3

Citibank                                

742

3

New England Average           

742

3

Bank of America                  

732

3

Chase                                

729

3

First Niagara Bank              

726

3

Citizens Bank                    

723

3

Sovereign Bank                 

702

2

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


North Central Region  




Customer Service Index Ranking

(Based on a 1,000-point scale) 

J.D. Power.com Power Circle Ratings
For Consumers


Huntington National Bank               

814

5

Flagstar Bank                               

807

5

1st Source Bank                                  

802

4

Wesbanco Bank                                 

790

4

Chemical Bank                                  

789

4

Chase                                              

788

4

Citizens Bank (MI)                            

787

4

First Financial Bank (Ohio)               

787

4

PNC Bank                                      

783

3

FirstMerit Bank                              

780

3

Branch Banking & Trust (BB&T)     

778

3

TCF National Bank                       

777

3

North Central Average                  

776

3

Independent Bank                       

775

3

Regions Bank                            

774

3

Comerica Bank                         

768

3

United Bank                             

766

3

U.S. Bank                               

766

3

Charter One                            

760

2

Bank of America                     

756

2

City National Bank (WV)         

753

2

Fifth Third Bank                     

751

2

KeyBank                              

745

2

Wells Fargo                         

743

2

BMO Harris Bank                

741

2

Old National Bank              

740

2

Included in the study but not ranked due to small sample size are Community Trust 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 




Customer Service Index Ranking

(Based on a 1,000-point scale)

J.D. Power.com Power Circle Ratings
For Consumers


Banner Bank                                 

817

5

Umpqua Bank                              

815

5

Columbia State Bank                   

799

4

Sterling Bank                             

781

4

KeyBank                                  

764

4

Chase                                     

756

3

U.S. Bank                              

756

3

Northwest Average                 

746

3

Wells Fargo                          

739

3

Bank of America                   

716

2

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


Included in the Northwest region are Oregon and Washington.


South Central Region 




Customer Service Index Ranking
(Based on a 1,000-point scale)          

J.D. Power.com Power Circle Ratings
For Consumers


Arvest Bank                                   

820

5

PNC Bank                                    

802

4

Trustmark National Bank               

795

4

Chase                                             

793

4

U.S. Bank                                      

789

4

First Tennessee Bank                    

786

4

Whitney National Bank                  

785

4

BancorpSouth Bank                     

776

3

Capital One                                

775

3

South Central Average                

775

3

SunTrust Bank                                

773

3

Regions Bank                                

772

3

Branch Banking & Trust (BB&T)     

765

3

Wells Fargo                                    

752

2

Bank of America                             

749

2

BBVA Compass (Compass Bank)   

735

2

Included in the study but not ranked due to small 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 




Customer Service Index Ranking
(Based on a 1,000-point scale)     

J.D. Power.com Power Circle Ratings
For Consumers


First Citizens Bancorp                       

836

5

United Community Bank                   

835

5

First Citizens Bancshares                

819

4

TD Bank                                        

809

4

Branch Banking & Trust (BB&T)      

797

4

SunTrust Bank                                

785

4

First Federal                                  

782

4

PNC Bank                                    

780

4

Regions Bank                              

778

3

Fifth Third Bank                           

776

3

Synovus                                     

771

3

Southeast Average                     

770

3

Bank of America                       

755

3

Wells Fargo                             

751

2

Included in the study but not ranked due to small sample size is South Carolina Bank & Trust.





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


Southwest Region 




Customer Service Index Ranking
(Based on a 1,000-point scale)

J.D. Power.com Power Circle Ratings
For Consumers


Arvest Bank                                     

819

5

BancFirst                                        

812

5

MidFirst Bank                                 

804

4

Bank of the West                           

795

4

Chase                                          

789

4

Bank of Oklahoma                        

788

4

FirstBank (CO)                            

783

4

Zions First National Bank            

782

4

Nevada State Bank                    

771

3

Southwest Average                            

771

3

U.S. Bank                                        

764

3

KeyBank                                         

760

3

Wells Fargo                                    

759

3

BBVA Compass (Compass Bank)    

755

3

Bank of America                            

747

2

BMO Harris Bank                          

732

2

Included in the study but not ranked due to small sample size is National Bank of Arizona.


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


Texas




Customer Service Index Ranking
(Based on a 1,000-point scale)        

J.D. Power.com Power Circle Ratings
For Consumers


Frost National Bank                     

855

5

Amegy Bank                              

814

4

Chase                                       

795

4

Woodforest National Bank          

792

4

Capital One                                       

780

3

Texas Average                                  

778

3

Wells Fargo                                     

773

3

Citibank                                          

766

3

Prosperity Bank                              

763

3

International Bank of Commerce      

761

3

Bank of America                              

757

3

Comerica Bank                               

754

2

BBVA Compass (Compass Bank)   

751

2

Regions Bank                               

739

2

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

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies:
The McGraw-Hill Companies, to be renamed McGraw Hill Financial (subject to shareholder approval), is a powerhouse in credit ratings, benchmarks and analytics for the global capital and commodity markets. Leading brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mcgraw-hill.com.

J.D. Power and Associates Media Relations Contacts:
John Tews; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

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[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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