NEW YORK, April 28, 2016 /PRNewswire/ -- Big banks([1]) have significantly improved in overall customer satisfaction, while Midsize banks have declined and Regional banks have plateaued, according to the J.D. Power 2016 U.S. Retail Banking Satisfaction Study,(SM) released today. Satisfaction with Big banks rises for the sixth consecutive year, driven by a combination of improved digital offerings, more engaged personal interactions and stronger connections with growth segments of the population, while satisfaction with Midsize banks has dropped for the first time since 2010.
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The 11th annual customer satisfaction study is the longest-running and most in-depth survey of the U.S. retail banking industry, with more than 75,000 customers evaluating various aspects of their banking experience. The study measures satisfaction in six factors (listed in alphabetical order): account information; channel activities; facility; fees; problem resolution; and product offerings. Channel activities include six subfactors (listed in alphabetical order): ATM; branch; call center; IVR; mobile; and website. Satisfaction is measured on a 1,000-point scale.
"Based on their current trajectory, the country's largest retail banking institutions are expected to achieve a substantial lead in overall customer satisfaction vs. Midsize and Regional banks by 2020," said Jim Miller, senior director of banking at J.D. Power. "This trend puts Midsize banks most at risk. Regulatory costs have made it difficult for them to invest in strategies to compete with larger rivals, and unless they take proactive steps to change course, we expect this to result in consolidation in the Midsize bank marketplace."
Following are the key findings of the 2016 study:
-- Big Banks Close the Customer Satisfaction Gap: Overall satisfaction in
the retail banking industry improves to 793 from 790 in 2015.
Satisfaction with Big banks improves 6 points to 793 from 2015, compared
with 797 for Midsize banks, down 5 points, and 790 for Regional banks,
remaining flat. Big bank segment satisfaction improves by 56 index
points, nearly closing a 34-point gap with Midsize banks from 2010.
-- Getting Tech Right: Big banks score highest in mobile (851), ATM (837)
and online satisfaction (838). Mobile banking in particular has a direct
impact on overall satisfaction, which is 27 points higher among
customers who use mobile banking than among those who do not. Among
mobile users who are satisfied with the mobile offering (mobile
satisfaction score of 800 and above) the gap in satisfaction is 197
index points higher than among dissatisfied mobile users, those scoring
below 800 index points (868 vs. 671, respectively).
-- Winning in Growth Segments: Big banks have been most successful at
acquiring and satisfying millennials, the fastest growing customer
segment. Millennials represent the biggest growth potential for retail
banks, but also pose much higher risk of attrition.
-- Evolving the Branch Model: While the overall number of bank branches in
the United States declines, brick and mortar branches are still a key
channel for servicing customers in those moments of truth (e.g.,
resolving problems and dealing with more complex transactions). This is
evident in user preference patterns, with the percentage of customers
opening accounts online steadily increasing but the branch continually
performing higher in terms of enhancing product understanding and
reducing future problems.
"While customer satisfaction with Big, Midsize and Regional banks falls within a tight 7-point range, establishing customer service tools for competitive differentiation is key to a successful path forward," said Paul McAdam, senior director of banking services at J.D. Power. "We clearly see that the customer satisfaction leaders in retail banking excel by hitting the sweet spot of providing a great digital experience backed by personal service."
The study measures customer satisfaction with banks in 11 regions. Study results by region are:
California Region: U.S. Bank (808)
Florida Region: TD Bank (837)
Mid-Atlantic Region: Northwest Savings Bank (819)
Midwest Region: UMB Bank (821)
New England Region: Bangor Savings Bank (842)
North Central Region: Huntington National Bank (830)
Northwest Region: U.S. Bank (798)
South Central Region: Trustmark National Bank (855)
Southeast Region: United Community Bank (841)
Southwest Region: Arvest Bank (843)
Texas Region: Frost Bank (862)
The 2016 U.S. Retail Banking Satisfaction Study is based on responses from more than 75,000 retail banking customers of more than 130 of the largest banks in the United States regarding their experiences with their retail bank.
The study was fielded quarterly from April 2015 to February 2016:
Wave 1: April 1, 2015 - May 4, 2015
Wave 2: July 1, 2015 - August 3, 2015
Wave 3: September 21, 2015 - November 2, 2015
Wave 4: January 4, 2016 - February 3, 2016; February 18, 2016 - February 22, 2016
Overall Customer Satisfaction Index J.D. Power.com Power Circle
Scores RatingsTM
(Based on a 1,000-point scale) For Consumers
California
U.S. Bank 808 5
BBVA Compass 805 5
Bank of the West 796 4
Wells Fargo 793 4
Chase 792 4
Region Average 786 3
Bank of America 782 3
California Bank &
Trust 780 3
Citibank 775 2
Union Bank 774 2
Florida
TD Bank 837 5
Chase 824 4
PNC 822 4
SunTrust 816 4
Wells Fargo 806 3
Regions Bank 805 3
Region Average 805 3
Citibank 799 3
Fifth Third 793 2
Bank of America 792 2
BB&T 790 2
Mid-Atlantic
Northwest Savings Bank 819 5
Susquehanna Bank 816 5
Huntington 814 5
PNC 807 4
New York Community
Bank 805 4
M&T Bank 804 4
NBT Bank 804 4
SunTrust 800 4
Astoria FS&LA 799 4
TD Bank 798 3
Fulton Bank 797 3
Capital One 796 3
Chase 795 3
First Commonwealth
Bank 794 3
National Penn Bank 794 3
Community Bank 790 3
Wells Fargo 790 3
Region Average 790 3
First NB of PA 789 3
BB&T 788 3
Bank of America 784 3
Citizens 784 3
KeyBank 784 3
First Niagara 781 3
Valley National Bank 779 3
Apple Bank for Savings 778 3
Beneficial Mutual
Savings Bank 773 3
Citibank 772 2
Santander 756 2
HSBC 732 2
Included in the Mid-Atlantic region are Delaware, Maryland, New
Jersey, New York, Pennsylvania, Virginia and Washington, D.C.
Midwest
UMB Bank 821 5
First Midwest Bank 806 4
Chase 797 4
Bremer Bank 796 3
PNC 795 3
U.S. Bank 793 3
Commerce Bank 789 3
Wells Fargo 789 3
Region Average 789 3
Regions Bank 784 3
Bank of America 779 3
Bank of the West 779 3
BMO Harris 779 3
Associated Bank 778 3
Citibank 765 2
Fifth Third 765 2
TCF National Bank 745 2
Included in the Midwest region are Iowa, Illinois, Kansas, Minnesota,
Missouri and Wisconsin.
New England
Bangor Savings Bank 842 5
Rockland Trust 823 4
TD Bank 801 4
People's United Bank 787 4
Webster Bank 786 4
Eastern Bank 777 3
First Niagara 770 3
Wells Fargo 769 3
Region Average 768 3
Citizens 766 3
Chase 762 3
Bank of America 755 3
Santander 741 2
Included in the New England region are Connecticut, Maine,
Massachusetts, New Hampshire, Rhode Island and Vermont.
North Central
Huntington National
Bank 830 5
Chase 812 4
1st Source Bank 811 4
TCF National Bank 803 3
Wells Fargo 801 3
City National Bank 800 3
U.S. Bank 800 3
WesBanco Bank 799 3
Region Average 799 3
PNC 798 3
Fifth Third 793 3
Bank of America 786 2
First Financial Bank 786 2
Chemical Bank 784 2
BB&T 783 2
Old National Bank 782 2
Comerica 777 2
KeyBank 776 2
Citizens 774 2
FirstMerit 767 2
Included in the North Central region are Indiana, Kentucky, Michigan,
Ohio, and West Virginia.
Northwest
U.S. Bank 798 5
Umpqua 788 4
Wells Fargo 786 4
Region Average 779 3
Chase 776 3
KeyBank 774 3
Bank of America 765 2
Included in the Northwest region are Oregon and Washington.
South Central
Trustmark National
Bank 855 5
PNC 844 4
Arvest Bank 829 4
First Tennessee 823 4
Wells Fargo 813 3
U.S. Bank 812 3
BancorpSouth 810 3
Capital One 810 3
Chase 809 3
Whitney Bank 806 3
Regions Bank 805 3
Region Average 805 3
Bank of America 789 3
SunTrust 786 2
BB&T 782 2
BBVA Compass 774 2
Included in the South Central region are Alabama, Arkansas,
Louisiana, Mississippi, and Tennessee.
Southeast
United Community Bank 841 5
BB&T 826 4
Regions Bank 823 4
First Citizens Bank &
Trust 822 4
TD Bank 821 4
Wells Fargo 805 3
Region Average 805 3
Chase 804 3
PNC 800 3
Bank of America 797 3
SunTrust 793 3
Fifth Third 788 2
South State Bank 773 2
Included in the Southeast region are Georgia, North Carolina, and
South Carolina.
Southwest
Arvest Bank 843 5
BancFirst 823 4
FirstBank 809 4
Zions Bank 803 4
U.S. Bank 801 4
Chase 798 3
Bank of Oklahoma 797 3
Region Average 794 3
Bank of America 791 3
Wells Fargo 791 3
Bank of the West 784 3
BBVA Compass 774 2
Included in the Southwest region are Arizona, Colorado, New Mexico,
Nevada, Oklahoma, and Utah.
Texas
Frost Bank 862 5
Woodforest National
Bank 823 4
Prosperity Bank 822 4
Wells Fargo 815 4
Amegy Bank 806 3
Chase 806 3
Region Average 806 3
First Financial Bank 803 3
BBVA Compass 798 3
Capital One 796 3
Comerica 793 3
Bank of America 790 2
Power Circle Ratings Legend
5 - Among the best
4 - Better than most
3 - About average
2 - The rest
Award-Eligible U.S. Retail Banks Included in the Study
Company Executive Name U.S. Address
1st Source Bank Christopher Murphy III South Bend, Ind.
Amegy Bank Steve Stephens Houston, Texas
Apple Bank for Savings Alan Shamoon New York, N.Y.
Arvest Bank Kevin Sabin Lowell, Ark.
Associated Bank Philip Flynn Green Bay, Wis.
Astoria FS&LA Monte Redman New Hyde Park, N.Y.
BancFirst David E. Rainbolt Oklahoma City, Okla.
BancorpSouth Chris Bagley Tupelo, Miss.
Bangor Savings Bank Robert Montgomery-Rice Bangor, Maine
Bank of America Brian Moynihan Charlotte, N.C.
Bank of Oklahoma Stan Liearger Tulsa, Okla.
Bank of the West Nandita Bakhshi San Francisco, Calif.
BB&T Kelly King Winston Salem, N.C.
BBVA Compass Manuel Sanchez-Rodriguez Houston, Texas
Beneficial Mutual Savings Bank Gerard Cuddy Philadelphia, Pa.
BMO Harris David Casper Chicago, Ill.
Bremer Bank Stan Dardis Saint Paul, Minn.
California Bank & Trust David Blackford San Diego, Calif.
Capital One Richard Fairbank McLean, Va.
Chase James Dimon New York, N.Y.
Chemical Bank David Ramaker Midland, Mich.
Citibank Michael Corbat New York, N.Y.
Citizens Bruce Van Saun Providence, R.I.
City National Bank Charles Hageboeck Cross Lanes, W.Va.
Comerica Ralph Babb Jr. Dallas, Texas
Commerce Bank David Kemper Kansas City, Mo.
Community Bank Mark Tryniski De Witt, N.Y.
Eastern Bank Richard Holbrook Boston, Mass.
Fifth Third Greg Carmichael Cincinnati, Ohio
First Citizens Bank & Trust Frank Holding Jr. Raleigh, N.C.
First Commonwealth Bank Thomas Michael Price Indiana, Pa.
First Financial Bank Claude Davis Cincinnati, Ohio
First Midwest Bank Michael Scudder Itasca, Ill.
First NB of PA Vincent Delie Jr. Pittsburgh, Penn.
First Niagara Gary Crosby Buffalo, N.Y.
First Tennessee D. Bryan Jordan Memphis, Tenn.
FirstBank John Ikard Lakewood, Colo.
FirstMerit Paul Greig Akron, Ohio
Frost Bank Phillip Green San Antonio, Texas
Fulton Bank R. Scott Smith Jr. Lancaster, Pa.
HSBC Patrick Burke New York, N.Y.
Huntington Stephen Steinour Columbus, Ohio
KeyBank Beth Mooney Cleveland, Ohio
M&T Bank Robert Wilmers Buffalo, N.Y.
National Penn Bank Scott V. Fainor Allentown, Pa.
NBT Bank Martin Dietrich Norwich, N.Y.
New York Community Bank Joseph Ficalora Westbury, N.Y.
Northwest Savings Bank William Wagner Warren, Pa.
Old National Bank Robert Jones Evansville, Ind.
People's United Bank John Barnes Bridgeport, Conn.
PNC William Demchak Pittsburgh, Pa.
Prosperity Bank David Zalman Houston, Texas
Regions Bank O. B. Grayson Hall Jr. Birmingham, Ala.
Rockland Trust Christopher Oddleifson Hanover, Mass.
Santander Scott Powell Boston, Mass.
South State Bank Robert Hill Columbia, S.C.
SunTrust William Rogers Jr. Atlanta, Ga.
Susquehanna Bank William Reuter Lititz, Pa.
TCF National Bank Craig Dahl Wayzata, Minn.
TD Bank Mike Pedersen Cherry Hill, N.J.
Trustmark National Bank Gerard Host Jackson, Miss.
UMB Bank J. Mariner Kemper Kansas City, Mo.
Umpqua Raymond Davis Portland, Ore.
Union Bank Angie Muhleisen Lincoln, Neb.
United Community Bank Jimmy Tallent Blairsville, Ga.
US Bank Richard Davis Minneapolis, Minn.
Valley National Bank Gerald Lipkin Wayne, N.J.
Webster Bank James Smith Waterbury, Conn.
Wells Fargo John Stumpf San Francisco, Calif.
WesBanco Bank Todd Clossin Wheeling, W. Va.
Whitney Bank John Hairston Gulfport, Miss.
Woodforest National Bank Robert E. Marling The Woodlands, Texas
Zions Bank Harris Simmons Salt Lake City, Utah
Media Relations Contacts
John Tews; J.D. Power; Troy, Mich.; 248-680-6218; media.relations@jdpa.com
For more information about the J.D. Power 2016 U.S. Retail Banking Satisfaction Study,(SM )visit http://www.jdpower.com/resource/us-retail-banking-satisfaction-study
See the online press release at http://www.jdpower.com/press-releases/2016-us-retail-banking-satisfaction-study
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[1] Big banks are defined as the six largest financial institutions based on total deposits as reported by the FDIC, averaging $180 billion and above. Regional banks are defined as those with between $180 billion and $33 billion in deposits. Midsize banks are defined as those with between $33 billion and $2 billion in deposits.
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SOURCE J.D. Power
