According to the recently released J.D. Power 2022 U.S. Direct Banking Satisfaction Study, 27% of banking customers in the U.S. use an online-only bank, reflecting the continued growth in popularity for alternatives to traditional retail banks.
J.D. Power found that among direct banking customers, satisfaction with their checking and savings accounts is high. A large majority of checking and savings customers, 88%, say their direct bank is easy to do business with and 85% say their accounts do not have hidden fees. Only 6% of checking and savings customers say their direct bank does not put the customer”™s interests first.
Among customers of direct banks, the level of customer service provided using telephone and online chats or email is a key element in driving customer satisfaction. Among checking and savings customers, 59% reported they have never had a problem or complaint with their direct bank. Among customers who did experience a problem or have a complaint in the 12 months before participating in the study, 83% said it was convenient to reach customer service and 88% said their most recent problem was resolved.
“As so much of our lives continue to shift to digitally based providers, direct banks have been in prime position to gain market share and mindshare by delivering around-the-clock access, along with products that have attractive fee structures and interest rates,” said Paul McAdam, senior director of banking and payments intelligence at J.D. Power. “Increasingly, we”™re seeing the top-performing brands get the personalization formula right by helping customers reduce banking fees and grow their money, and by showing that they”™re available to help customers in challenging financial times.”
Jennifer White, senior consultant of banking intelligence at J.D. Power, in commenting on another J.D. Power study, this one on U.S. retail banking satisfaction, said, “A customer”™s definition of what support from their retail bank looks like is changing rapidly as we enter a new economic cycle and move further along the digital adoption curve. It”™s no longer predominately about being fast, efficient or convenient. The preeminent performance metric with the biggest influence on customer satisfaction is ”˜supporting customers during challenging times,”™ and that means customers are expecting a personalized mix of financial advice, hands-on help with problem resolution and guidance on how to grow their money.”
When asked how they would like their bank to personalize their banking experience, 46% of customers said they want help in avoiding fees and 37% said they want to receive account alerts.
Among customers who pay bank fees, such as fees for overdrafts or low balances, 61% either did not know or were unsure whether their bank had made any changes to its overdraft fee policy.
The study was based on responses from 101,587 retail banking customers of the largest banks in the U. S. regarding their experiences with their retail bank.
