Retail Bank Customer Satisfaction Strained by Growth of ......824 817 800 797 797 792 788 781 U.S....
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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.: 26 April 2018 — 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 Millennial 1 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. 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.
Transcript of Retail Bank Customer Satisfaction Strained by Growth of ......824 817 800 797 797 792 788 781 U.S....
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.: 26 April 2018 — 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.
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.
• 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.
824
817
800
797
797
792
788
781
U.S. Bank
Chase
Region Average
Bank of America
Bank of the West
Citibank
Union Bank
Wells Fargo
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsCalifornia
(on a 1,000-point scale)
844
837
829
822
821
819
816
811
809
807
800
TD Bank
Chase
Regions Bank
PNC Bank
SunTrust Bank
Fifth Third Bank
Region Average
Citibank
BB&T
Wells Fargo
Bank of America
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsFlorida
(on a 1,000-point scale)
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
840839839
822820818817816815815810809804803803802801799798797791790789788786
778768
737
Northwest BankCommunity Bank
Dollar BankTD Bank
S&T BankHuntington
PNC BankChase
Citizens BankUnion Bank & Trust
Fulton BankNBT Bank
Region AverageCapital One
M&T BankValley National Bank
Bank of AmericaSunTrust Bank
New York Community BankFirst Commonwealth Bank
Apple Bank for SavingsCitibank
BB&TWells Fargo
KeyBankFirst NB of Pennsylvania
Santander BankHSBC
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsMid-Atlantic
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.
(on a 1,000-point scale)
Included in the Mid-Atlantic region are Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia and Washington, D.C.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
845
836
826
818
817
816
813
812
811
809
808
808
805
803
802
797
795
786
784
772
771
769
First National Bank of Omaha
Wintrust Community Bank
Regions Bank
First Midwest Bank
Bremer Bank
PNC Bank
U.S. Bank
Commerce Bank
Great Southern Bank
UMB Bank
BMO Harris Bank
Chase
Citibank
MB Financial Bank
Associated Bank
Region Average
Bank of America
Fifth Third Bank
Bank of the West
Great Western Bank
TCF National Bank
Wells Fargo
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsMidwest
(on a 1,000-point scale)
Included in the Midwest region are Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wisconsin.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
862
852
837
821
802
802
797
797
796
788
782
781
776
Bangor Savings Bank
Rockland Trust Co
Eastern Bank
TD Bank
Chase
Webster Bank
Region Average
People's United Bank
Citizens Bank
Santander Bank
Bank of America
Wells Fargo
KeyBank
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsNew England
(on a 1,000-point scale)
Included in the New England region are Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
854
847
836
822
821
820
820
820
819
809
808
806
805
804
803
803
798
790
786
782
780
City National Bank (W.V.)
Huntington
Chase
Fifth Third Bank
Region Average
First Financial (Ohio)
PNC Bank
U.S. Bank
Regions Bank
Bank of America
BB&T
Peoples Bank
WesBanco Bank
KeyBank
Comerica Bank
Flagstar Bank
Citizens Bank
Wells Fargo
Chemical Bank
Old National Bank
TCF National Bank
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsNorth Central
(on a 1,000-point scale)
Included in the North Central region are Indiana, Kentucky, Michigan, Ohio and West Virginia.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
838
809
807
805
803
795
787
784
772
Banner Bank
Chase
Columbia State Bank
Umpqua Bank
KeyBank
Region Average
Bank of America
U.S. Bank
Wells Fargo
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsNorthwest
(on a 1,000-point scale)
Included in the Northwest region are Idaho, Montana, Oregon and Washington.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
856
849
848
841
839
832
832
829
822
821
821
818
817
817
814
812
804
Trustmark National Bank
PNC Bank
Arvest Bank
Chase
Whitney Bank
Capital One
Regions Bank
Region Average
Wells Fargo
First Tennessee Bank
U.S. Bank
SunTrust Bank
BB&T
BBVA Compass
BancorpSouth Bank
Simmons First Bank
Bank of America
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsSouth Central
(on a 1,000-point scale)
Included in the South Central region are Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
854
848
836
834
833
828
827
824
817
816
816
807
807
804
802
United Community Bank
TD Bank
Regions Bank
BB&T
Synovus Bank
PNC Bank
First Citizens Bank & Trust
Chase
Wells Fargo
Fifth Third Bank
Region Average
Bank of America
SunTrust Bank
South State Bank
Capital Bank
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsSoutheast
(on a 1,000-point scale)
Included in the Southeast region are Georgia, North Carolina and South Carolina.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
877
856
839
838
828
819
817
810
805
804
797
789
783
780
MidFirst Bank
BancFirst
Nevada State Bank
Bank of Oklahoma
Arvest Bank
Chase
FirstBank (Colo.)
U.S. Bank
Bank of the West
Region Average
Zions First National Bank
Bank of America
Wells Fargo
BBVA Compass
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsSouthwest
(on a 1,000-point scale)
Included in the Southwest region are Arizona, Colorado, New Mexico, Nevada, Oklahoma and Utah.
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
873
847
841
829
821
820
819
819
813
809
808
807
Frost Bank
Woodforest National Bank
Prosperity Bank
First Financial Bank
Chase
Capital One
BBVA Compass
Region Average
Comerica Bank
Amegy Bank
Bank of America
Wells Fargo
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Retail Banking Satisfaction Index RankingsTexas
(on a 1,000-point scale)
J.D. Power2018 U.S. Retail Banking Satisfaction StudySM
Source: J.D. Power 2018 U.S. Retail Banking Satisfaction StudySM
