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
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
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