PayThink | October 20-22, 2014 | Phoenix

Consumer Satisfaction With Banks Improves Significantly For First Time In Years

Big banks make significant improvements in J.D. Power and Associates’ annual consumer satisfaction study. Regional and midsize banks still outperform their bigger brethren, but the gap is closing.

Overall customer satisfaction with retail banks improved significantly from 2012, largely a result of improvements made by big banks, according to the J.D. Power and Associates 2013 U.S. Retail Banking Satisfaction Study.

Banks are ranked in 11 different regions based on overall customer satisfaction across six factors:

  • account information
  • channel activities
  • facility
  • fees
  • problem resolution
  • product offerings

After several years of relatively minor increases in overall satisfaction scores, customer satisfaction in 2013 improved significantly, with the largest increase among big banks. While as a group big banks have historically trailed smaller banks in satisfying customers by a fair margin, the satisfaction gap between big banks vs. midsize and regional banks has narrowed year over year. (You can find last year’s research here.)

During the past several years, many banks have eliminated free checking and implemented new fees, which has often negatively impacted overall satisfaction. The study found that as fees have begun to stabilize and banks have helped their customers better understand their fee structures, satisfaction in this area has begun to rebound. One-third (33%) of customers say they “completely” understand their fee structure, compared with 26% in 2012. Fees also have been a major source of customer problems and complaints. The stability in fees, coupled with banks placing more emphasis on preventing problems, has lowered the proportion of consumers experiencing a problem by 3 percentage points year over year, to 18% in 2013.

Consumers appreciate the personal service they receive at their branch, but such interactions are slowly declining as the numbers of online, ATM and mobile banking transactions increase. This trend is especially pronounced in mobile banking, where usage has increased to 17%, up from 11% in 2012, and the average number of mobile transactions per customer has increased to 51 per year, up from 29 in 2012. As banks roll out envelope-free ATM deposits and deposits by mobile phone, customers are finding it easier to handle routine transactions without needing to visit their branch.

“Successful banks are not pushing customers out of the branch, but rather providing tools that make it easier to conduct their banking business when and where it is convenient for them,” said Jim Miller, senior director of banking at J.D. Power and Associates. “Customers are quickly adopting mobile banking, making it a critical service channel for banks, not just a ‘nice to have’ option.”

“Many of the big banks have made great strides in listening to what their customers are asking for — reducing the number of problems customers encounter and, more importantly, improving satisfaction with fees,” Miller added. “Consumers today are likely to find banks of all sizes offering the level of convenience, technology and personal service they have come to expect.”

This is the eighth year J.D. Power has conducted this customer satisfaction study, making it the longest-running and most in-depth survey of the retail banking industry, with feedback from more than 50,000 consumers covering various aspects of their banking experience.

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California

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
Rabobank 825 5_stars
California Bank & Trust 792 4_stars
U.S. Bank 780 4_stars
Bank of the West 773 4_stars
Union Bank 771 4_stars
Chase 768 4_stars
Wells Fargo 756 3_stars
California Average 755 3_stars
Citibank 752 3_stars
Bank of America 728 2_stars

Included in the study but not ranked due to small sample size are BBVA Compass, City National Bank (CA), Comerica Bank, East West Bank, First Bank (MO), OneWest Bank, Pacific Western Bank, Tri-Counties Bank, Umpqua Bank and West America Bank.

Florida

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
TD Bank 803 5_stars
Regions Bank 796 4_stars
Chase 794 4_stars
PNC Bank 794 4_stars
Fifth Third Bank 787 4_stars
SunTrust Bank 784 4_stars
Citibank 771 3_stars
Florida Avg. 770 3_stars
Wells Fargo 769 3_stars
Branch Banking & Trust (BB&T) 750 2_stars
Bank of America 749 2_stars

Included in the study but not ranked due to small sample size are BankUnited, CenterState Bank and Synovus.

Mid-Atlantic Region

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
Beneficial Mutual Savings Bank 839 5_stars
Union First Market Bank 836 5_stars
Northwest Savings Bank 816 4_stars
Susquehanna Bank 815 4_stars
Hudson City Savings Bank 812 4_stars
First Commonwealth Bank 808 4_stars
National Penn Bank 803 4_stars
Fulton Bank 797 4_stars
First NB of Pennsylvania 795 4_stars
Five Star Bank 792 4_stars
Huntington National Bank 788 4_stars
Community Bank 787 4_stars
BB&T 783 4_stars
New York Community Bank 777 4_stars
S&T Bank 776 4_stars
The Provident Bank 774 3_stars
M&T Bank 772 3_stars
Chase 771 3_stars
TD Bank 771 3_stars
SunTrust Bank 764 3_stars
Trustco Bank 760 3_stars
Mid-Atlantic Average 760 3_stars
Capital One 759 3_stars
Valley National Bank 755 3_stars
First Niagara Bank 752 3_stars
KeyBank 747 3_stars
Apple Bank for Savings 745 3_stars
Citibank 744 3_stars
Bank of America 743 3_stars
Citizens Bank 743 3_stars
Astoria FS&LA 741 3_stars
Wells Fargo 741 3_stars
Sovereign Bank 722 2_stars
HSBC 682 2_stars

Included in the Mid-Atlantic region are: Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia and Washington, D.C. Included in the study but not ranked due to small sample size are Carter Bank & Trust, Investors Savings Bank, Peoples United Bank, Sandy Spring Bank, StellarOne Bank, Sun National Bank and United Bank.

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Midwest Region

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
Chase 799 5_stars
Bank Mutual 793 5_stars
Regions Bank 790 4_stars
First Bank (MO) 786 4_stars
Bank of the West 785 4_stars
MB Financial Bank 784 4_stars
PNC Bank 784 4_stars
AnchorBank 781 4_stars
Commerce Bank 781 4_stars
UMB Bank 776 4_stars
Bremer Bank 764 4_stars
U.S. Bank 761 3_stars
Associated Bank 759 3_stars
First Midwest Bank 755 3_stars
Midwest Average 755 3_stars
Citibank 752 3_stars
Great Southern Bank 748 3_stars
Bank of America 744 3_stars
Fifth Third Bank 741 3_stars
Wells Fargo 734 2_stars
Charter One 730 2_stars
BMO Harris Bank 716 2_stars
TCF National Bank 712 2_stars

Included in the Midwest region are Iowa, Illinois, Kansas, Missouri, Minnesota and Wisconsin. Included in the study but not ranked due to small sample size is First American Bank.

New England Region

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
Bangor Savings Bank 831 5_stars
Eastern Bank 818 4_stars
Rockland Trust Co 814 4_stars
KeyBank 782 4_stars
TD Bank 780 4_stars
Webster Bank 776 4_stars
Peoples United Bank 758 4_stars
Wells Fargo 750 3_stars
Citibank 742 3_stars
New England Average 742 3_stars
Bank of America 732 3_stars
Chase 729 3_stars
First Niagara Bank 726 3_stars
Citizens Bank 723 3_stars
Sovereign Bank 702 2_stars

Included in the New England region are Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont.

( Read More: Customer Service Champs: JD Power Ranks U.S. Retail Banks )

North Central Region

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
Huntington National Bank 814 5_stars
Flagstar Bank 807 5_stars
1st Source Bank 802 4_stars
Wesbanco Bank 790 4_stars
Chemical Bank 789 4_stars
Chase 788 4_stars
Citizens Bank (MI) 787 4_stars
First Financial Bank (Ohio) 787 4_stars
PNC Bank 783 3_stars
FirstMerit Bank 780 3_stars
Branch Banking & Trust (BB&T) 778 3_stars
TCF National Bank 777 3_stars
North Central Average 776 3_stars
Independent Bank 775 3_stars
Regions Bank 774 3_stars
Comerica Bank 768 3_stars
United Bank 766 3_stars
U.S. Bank 766 3_stars
Charter One 760 2_stars
Bank of America 756 2_stars
City National Bank (WV) 753 2_stars
Fifth Third Bank 751 2_stars
KeyBank 745 2_stars
Wells Fargo 743 2_stars
BMO Harris Bank 741 2_stars
Old National Bank 740 2_stars

Included in the North Central Region are Indiana, Kentucky, Michigan, Ohio and West Virginia. Included in the study but not ranked due to small sample size are Community Trust Bank, First Merchants Bank, MainSource Bank and Park National Bank.

Northwest Region

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
Banner Bank 817 5_stars
Umpqua Bank 815 5_stars
Columbia State Bank 799 4_stars
Sterling Bank 781 4_stars
KeyBank 764 4_stars
Chase 756 3_stars
U.S. Bank 756 3_stars
Northwest Average 746 3_stars
Wells Fargo 739 3_stars
Bank of America 716 2_stars

Included in the Northwest region are Oregon and Washington. Included in the study but not ranked due to small sample size are Union Bank and Washington Federal.

South Central Region

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
Arvest Bank 820 5_stars
PNC Bank 802 4_stars
Trustmark National Bank 795 4_stars
Chase 793 4_stars
U.S. Bank 789 4_stars
First Tennessee Bank 786 4_stars
Whitney National Bank 785 4_stars
BancorpSouth Bank 776 3_stars
Capital One 775 3_stars
South Central Average 775 3_stars
SunTrust Bank 773 3_stars
Regions Bank 772 3_stars
Branch Banking & Trust (BB&T) 765 3_stars
Wells Fargo 752 2_stars
Bank of America 749 2_stars
BBVA Compass (Compass Bank) 735 2_stars

Included in the South Central region are Alabama, Arkansas, Louisiana, Mississippi and Tennessee. Included in the study but not ranked due to small sample size are Cadence Bank, Centennial Bank, First Security Bank, Hancock Bank, iBERIABANK, Renasant Bank, Simmons First Bank and Synovus.

Southeast Region

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
First Citizens Bancorp 836 5_stars
United Community Bank 835 5_stars
First Citizens Bancshares 819 4_stars
TD Bank 809 4_stars
Branch Banking & Trust (BB&T) 797 4_stars
SunTrust Bank 785 4_stars
First Federal 782 4_stars
PNC Bank 780 4_stars
Regions Bank 778 3_stars
Fifth Third Bank 776 3_stars
Synovus 771 3_stars
Southeast Average 770 3_stars
Bank of America 755 3_stars
Wells Fargo 751 2_stars

Included in the Southeast region are Georgia, North Carolina and South Carolina. Included in the study but not ranked due to small sample size is South Carolina Bank & Trust.

( Read More: The Tightrope Between Checking Fees And Consumer Defections )

Southwest Region

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Score Rating
Arvest Bank 819 5_stars
BancFirst 812 5_stars
MidFirst Bank 804 4_stars
Bank of the West 795 4_stars
Chase 789 4_stars
Bank of Oklahoma 788 4_stars
FirstBank (CO) 783 4_stars
Zions First National Bank 782 4_stars
Nevada State Bank 771 3_stars
Southwest Average 771 3_stars
U.S. Bank 764 3_stars
KeyBank 760 3_stars
Wells Fargo 759 3_stars
BBVA Compass (Compass Bank) 755 3_stars
Bank of America 747 2_stars
BMO Harris Bank 732 2_stars

Included in the Southwest region are Arizona, Colorado, New Mexico, Nevada, Oklahoma and Utah. Included in the study but not ranked due to small sample size is National Bank of Arizona.

Texas

Customer Service Index Ranking
(Based on a 1,000-point scale)
Power Circle Ratings Rating
Frost National Bank 855 5_stars
Amegy Bank 814 4_stars
Chase 795 4_stars
Woodforest National Bank 792 4_stars
Capital One 780 3_stars
Texas Average 778 3_stars
Wells Fargo 773 3_stars
Citibank 766 3_stars
Prosperity Bank 763 3_stars
International Bank of Commerce 761 3_stars
Bank of America 757 3_stars
Comerica Bank 754 2_stars
BBVA Compass (Compass Bank) 751 2_stars
Regions Bank 739 2_stars

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