Retail Bank Customer Satisfaction Strained by Growth of Digital-Only Segment, J.D. Power Finds

Digital-Only Customers Now Account for Nearly 30% of Retail Bank Clientele; Far Less Satisfied with Bank Experience Than Customers Who Use Branch and Digital

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J.D. Power

Apr 26, 2018, 07:00 ET

COSTA MESA, Calif., April 26, 2018 /PRNewswire/ -- Retail bank investments in technology are paying off in the form of substantial numbers of digital-only bank customers, but some of that growth may be coming at the expense of customer satisfaction. According to the J.D. Power 2018 U.S. Retail Banking Satisfaction Study,SM released today, 28% of retail bank customers are now digital-only, but they are the least satisfied among all customer segments examined in the study.

"There is no doubt that digital banking channels give banks an enormous opportunity to reduce costs, but the risk is that those cost savings come with lower levels of customer engagement," said Paul McAdam, Senior Director of the Banking Practice at J.D. Power. "Right now, retail banks need to address the growing digital divide that is emerging within customer segments. Successfully navigating that transition will require banks to provide better, more personalized advice that is consistent across both digital and branch interactions and to ensure that customer needs are met, regardless of channel."

Following are some key findings of the study:

  • Digital-only and branch-only customers are least-satisfied customer segments: Overall satisfaction is lowest among retail bank customers who exclusively used online or mobile banking channels during the past three months (791 on a 1,000-point scale). Customers who exclusively used a branch are slightly more satisfied (804). The segment with the highest level of overall satisfaction—823—is branch-dependent digital customers, the group that used the branch two or more times in the past three months and also used online or mobile banking. This group is followed by digital-centric branch-using customers (808), who used the branch once in the past three months and used online or mobile banking.
  • Communication is where relationships fall short: The lower satisfaction scores found among digital-only customers are largely driven by weaker performance across three factors in the study: communication and advice; products and fees; and new account opening.
  • Digital divide largest among Millennial1 and Gen X bank customers: The gap in satisfaction between digital-centric and branch-dependent customers cuts across all generations of retail bank customers, but it is most pronounced among Millennials (35-point satisfaction gap) and Gen X (24-point satisfaction gap), bucking the conventional wisdom that younger banking customers do not like to use branches.
  • Big banks lead the way on digital transformation: Big banks have the largest concentration of digital-centric customers (47%). Within the big and regional bank segments, Capital One and Bank of America have the highest percentages of digital-centric customers (55% and 53%, respectively), giving them a significant lead in digital transformation.

"While the retail banking industry has a great deal of work to do to bridge the growing digital divide, some leaders have already begun to make huge progress on the digital learning curve," McAdam said. "Some of the best practices being pioneered today by digital leaders include highly personalized digital interactions along with branch transformation efforts that serve the needs of both digital-centric and branch-dependent customers."

Study Rankings

The study measures customer satisfaction with banks in 11 regions of the United States. The scores reflect satisfaction of the entire retail banking customer bases of these banks, representing a broader group of customers than just the branch-dependent and digital-centric segments. The J.D. Power award recipients with the highest retail banking customer satisfaction scores by region are:

California Region: U.S. Bank (824)
Florida Region: TD Bank (844)
Mid-Atlantic Region: Northwest Bank (840)
Midwest Region: First National Bank of Omaha (845)
New England Region: Bangor Savings Bank (862)
North Central Region: City National Bank (W.V.) (854)
Northwest Region: Banner Bank (838)
South Central Region: Trustmark National Bank (856)
Southeast Region: United Community Bank (854)
Southwest Region: MidFirst Bank (877)
Texas Region: Frost Bank (873)

The 13th annual U.S. Retail Banking Satisfaction Study measures satisfaction in six factors (listed in alphabetical order): channel activities; communication and advice; convenience; new account opening; problem resolution; and products and fees. Channel activities include seven subfactors (listed in alphabetical order): assisted online service; ATM; branch service; call center service; IVR/automated phone service; mobile banking; and online banking.

The study is based on responses from more than 88,000 retail banking customers of 200 of the largest banks in the United States regarding their experiences with their retail bank. It was fielded in quarterly waves from April 2017 to February 2018.

For more information about the U.S. Retail Banking Satisfaction Study, visit http://www.jdpower.com/resource/us-retail-banking-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2018053.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

NOTE: 11 charts follow.

J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM Rankings

Retail Banking Satisfaction Index Ranking

JDPower.com Power Circle Ratings™

(on a 1,000-point scale) 

for consumers:

                               California

U.S. Bank                                 

824

5

Chase                                        

817

4

Region Average                          

800

3

Bank of America                           

797

3

Bank of the West                           

797

3

Citibank                                           

792

3

Union Bank                                       

788

2

Wells Fargo                                       

781

2

                                 Florida

TD Bank                                 

844

5

Chase                                      

837

4

Regions Bank                           

829

4

PNC Bank                                  

822

4

SunTrust Bank                            

821

4

Fifth Third Bank                            

819

3

Region Average                             

816

3

Citibank                                           

811

3

BB&T                                                

809

3

Wells Fargo                                        

807

2

Bank of America                                  

800

2

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

J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM Rankings

Retail Banking Satisfaction Index Ranking 

JDPower.com Power Circle Ratings™

(on a 1,000-point scale) 

 for consumers:

                             Mid-Atlantic 



Northwest Bank                           

840

5

Community Bank                          

839

5

Dollar Bank                                    

839

5

TD Bank                                          

822

4

S&T Bank                                         

820

4

Huntington                                         

818

4

PNC Bank                                           

817

4

Chase                                                   

816

4

Citizens Bank                                         

815

4

Union Bank & Trust                                 

815

4

Fulton Bank                   

810

3

NBT Bank                       

809

3

Region Average               

804

3

Capital One                       

803

3

M&T Bank                           

803

3

Valley National Bank            

802

3

Bank of America                    

801

3

SunTrust Bank                        

799

3

New York Community Bank     

798

3

First Commonwealth Bank        

797

3

Apple Bank for Savings          

791

3

Citibank                                    

790

3

BB&T                                         

789

3

Wells Fargo                                 

788

3

KeyBank                                       

786

3

First NB of Pennsylvania               

778

2

Santander Bank                              

768

2

HSBC                                               

737

2

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

 

J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM Rankings

Retail Banking Satisfaction Index Ranking

JDPower.com Power Circle Ratings™

(on a 1,000-point scale) 

for consumers:

                                 Midwest



First National Bank of Omaha  

845

5

Wintrust Community Bank         

836

4

Regions Bank                              

826

4

First Midwest Bank                       

818

4

Bremer Bank                                  

817

4

PNC Bank                                       

816

4

U.S. Bank                                         

813

4

Commerce Bank                                

812

4

Great Southern Bank                

811

4

UMB Bank                                  

809

4

BMO Harris Bank                         

808

4

Chase                                            

808

4

Citibank                                           

805

4

MB Financial Bank                           

803

3

Associated Bank                                

802

3

Region Average                                  

797

3

Bank of America                                   

795

3

Fifth Third Bank                                     

786

3

Bank of the West                                    

784

3

Great Western Bank                             

772

2

TCF National Bank                                

771

2

Wells Fargo                                             

769

2

                             New England

Bangor Savings Bank                  

862

5

Rockland Trust Co                        

852

4

Eastern Bank                                  

837

4

TD Bank                                           

821

4

Chase                                                

802

3

Webster Bank                                     

802

3

Region Average                                   

797

3

People's United Bank                         

797

3

Citizens Bank                                       

796

3

Santander Bank                                     

788

3

Bank of America                                      

782

3

Wells Fargo                                              

781

3

KeyBank                                                    

776

2

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

J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM Rankings

Retail Banking Satisfaction Index Ranking

JDPower.com Power Circle Ratings™

(on a 1,000-point scale)

for consumers:

                             North Central

City National Bank (W.V.)             

854

5

Huntington                                      

847

5

Chase                                              

836

4

Fifth Third Bank                                

822

3

Region Average                                 

821

3

First Financial (Ohio)                           

820

3

PNC Bank                                             

820

3

U.S. Bank                                               

820

3

Regions Bank                                          

819

3

Bank of America                                       

809

3

BB&T                                                      

808

3

Peoples Bank                                           

806

2

WesBanco Bank                                        

805

2

KeyBank                                                     

804

2

Comerica Bank                                            

803

2

Flagstar Bank                                                

803

2

Citizens Bank                                                 

798

2

Wells Fargo                                                     

790

2

Chemical Bank

786

2

Old National Bank

782

2

TCF National Bank

780

2

                               Northwest

Banner Bank                             

838

5

Chase                                         

809

4

Columbia State Bank                   

807

4

Umpqua Bank                               

805

4

KeyBank                                         

803

4

Region Average                               

795

3

Bank of America                                

787

3

U.S. Bank                                            

784

3

Wells Fargo                                          

772

2

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

J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM Rankings

Retail Banking Satisfaction Index Ranking

JDPower.com Power Circle Ratings™

(on a 1,000-point scale)

for consumers:

                             South Central

Trustmark National Bank              

856

5

PNC Bank                                      

849

4

Arvest Bank                                     

848

4

Chase                                               

841

4

Whitney Bank                                     

839

4

Capital One                                          

832

3

Regions Bank                                        

832

3

Region Average                                      

829

3

Wells Fargo                                              

822

3

First Tennessee Bank                               

821

3

U.S. Bank                                                   

821

3

SunTrust Bank                                             

818

2

BB&T                                                             

817

2

BBVA Compass                                              

817

2

BancorpSouth Bank                                         

814

2

Simmons First Bank                                          

812

2

Bank of America 

804

2

                               Southeast



United Community Bank                      

854

5

TD Bank                                                

848

4

Regions Bank                                         

836

4

BB&T                                                       

834

4

Synovus Bank                                           

833

4

PNC Bank                                                   

828

4

First Citizens Bank & Trust                           

827

4

Chase                                                             

824

4

Wells Fargo                                                      

817

3

Fifth Third Bank                                                 

816

3

Region Average                                

816

3

Bank of America                                 

807

3

SunTrust Bank                                     

807

3

South State Bank                                  

804

2

Capital Bank                                           

802

2

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

J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM Rankings

Retail Banking Satisfaction Index Ranking

JDPower.com Power Circle Ratings™

(on a 1,000-point scale)

for consumers:

                                 Southwest

MidFirst Bank                               

877

5

BancFirst                                       

856

4

Nevada State Bank                         

839

4

Bank of Oklahoma                            

838

4

Arvest Bank                                        

828

4

Chase                                                  

819

4

FirstBank (Colo.)                                   

817

4

U.S Bank                                             

810

3

Bank of the West                               

805

3

Region Average                                    

804

3

Zions First National Bank                       

797

3

Bank of America                                      

789

3

Wells Fargo                                              

783

2

BBVA Compass                                         

780

2

                                    Texas



Frost Bank                               

873

5

Woodforest National Bank        

847

4

Prosperity Bank                          

841

4

First Financial Bank                        

829

4

Chase                                               

821

3

Capital One                                        

820

3

BBVA Compass                                   

819

3

Region Average                                    

819

3

Comerica Bank                                       

813

3

Amegy Bank                                             

809

3

Bank of America                                        

808

3

Wells Fargo

807

3

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

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

1 J.D. Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); and Gen Y (1977-1994). Xennials (1978-1981) and Millennials (1982-1994) are subsets of Gen Y.

SOURCE J.D. Power