U.S. consumer satisfaction got a slight boost this year, with big banks topping the list, but they are still turning to investment firms and internet-only financial services because of more attractive deposit rates elsewhere, according to a J.D. Power study published Thursday.
Among the expanding proportion of national bank customers holding secondary deposit accounts, the percentage with their secondary accounts at wealth management firms or internet-only financial institutions rose six percentage points to 50% in 2023.
“Customers want their bank to help them grow their money,” Paul McAdam, senior director of banking and payments intelligence at J.D. Power told Banking Dive in an emailed statement. “Deposit interest rates surely matter, especially to customers who have larger savings balances.”
But beyond helping customers grow their money, customers want fees to be easy to understand and avoid, a convenient way of managing accounts, prompt resolution to any problem they face, the feeling of security that their bank is protecting them from fraud, and consistent service across all products and channels, he noted. Customers also want a fast and easy process when opening new accounts and want to start using the account right away.
“The primary reasons customers choose online/digital banks are to receive lower fees, no minimum balance requirements, better interest rates, and better technology. But recommendations from family or friends and incentives or promotional offers are also key reasons for brand selection,” McAdam said.
Capital One holds the top position for the fourth consecutive year with a score of 706 on a 1,000-point scale. JPMorgan Chase and TD held on to their second and third positions, respectively. PNC slipped to fifth, U.S. Bank, meanwhile, moved in to take its place at fourth.
McAdam thinks customers like Capital One’s banking products because they feel that those help them save time and money. Capital One’s 360 Checking has no fees or minimum balance requirements, offers customer-friendly overdraft options, and pays interest. Capital One’s savings account pays a competitive interest rate, and the account is easy to use, according to him.
“Customers of Capital One like the bank’s mobile app and website, particularly their visual appeal and ease of navigation. Capital One also performs consistently well when customers need service; phone service, branch visits, resolving problems, etc.,” McAdam said.
A Capital One spokesperson told Banking Dive that, as customer needs shift, the bank is “committed to reimagining the banking experience by leaning into our people-first philosophy and providing customizable products and solutions that can be tailored to their individual needs.”
“We're proud of the hard work we've done to empower more than 100 million customers to feel confident in their financial literacy and wellbeing, and look forward to continuing to deliver innovation that drives real change and customer satisfaction in the banking industry,” the spokesperson said.
The study took responses from nearly 13,000 customers from nine retail banks with more than $300 billion in deposits and at least 200 branches.
The banks holding the top three positions scored above the survey’s average of 653 points. The average increased by 5 points from 648 in 2022.
Wells Fargo and Truist continue to hold the bottom two spots, though Truist's satisfaction increased to 624 from 605 last year.
Wells Fargo said the study validated the lender's urgency and commitment to better serve the customers where needed, American Banker reported.
“All that we do is guided by listening to our customers to improve,” Wells Fargo told the publication. “We gather feedback and measure customer experience through many channels and metrics — J.D. Power being one of them. Creating better experiences for our customers is our top priority, and we are committed to driving constant progress in this area.”
The survey measured customer experience based on seven factors, including trust, people, account offerings, allowing customers to bank however and whenever they want, saving time and money, access to digital channels, and promptness in resolving complaints.
