Retail banking customers seek better rates and experiences as satisfaction plateaus
After two years of declines, overall satisfaction with retail banks has inched up a bit, according to the 2023 U.S. National Banking Satisfaction Study from J.D. Power. But the increase was marginal at best, with overall satisfaction remaining well below pre-pandemic levels.
According to the J.D. Power 2023 U.S. National Banking Satisfaction Study℠, higher interest rates created some momentum last year among customers opening more products with their primary bank, especially CDs. But the data also signals storm clouds ahead: Customers are increasingly opening deposit accounts with alternative organizations, such as online banks, wealth management firms and other non-bank competitors, drawn not only by higher rates but better experiences.
This has driven a diversification of the providers used by most consumers, and accelerated a ‘silent attrition’ from legacy banks and credit unions. Nearly all banks are losing wallet share as customers open secondary accounts.
In other words, the banking industry is at an inflection point where traditional banks must up their game — or risk losing customers or weakened relationships.
The J.D. Power study provides a view of the retail banking customer experience for nine national banks in the United States with domestic deposits exceeding $300 billion and at least 200 branches. It evaluates bank customer experience across seven factors: trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.
continue reading »
