2013 U.S. Retail Banking Satisfaction Study Result

2013 U.S. Retail Banking Satisfaction Study Results


Date Published: 04/19/2013

Overall customer satisfaction with retail banks has improved significantly in the past year, according to the recently released J.D. Power and Associates 2013 U.S. Retail Banking Satisfaction Study.SM

The study, now in its eighth year, is the longest-running and most in-depth survey of the retail banking industry. Fielded in January and February of 2013, it includes feedback from nearly 52,000 retail banking customers of more than 120 of the largest banks in the United States. The study measures customer satisfaction across six factors: account information, channel activities, facility, fees, problem resolution, and product offerings. Banks are ranked based on overall customer satisfaction in each of the following regions: California, Florida, Mid-Atlantic, Midwest, New England, North Central, Northwest, South Central, Southeast, Southwest, and Texas.

Overall customer satisfaction has risen to 763 (on a 1,000-point scale) in 2013, from 753 in 2012. Satisfaction with big banks has risen to 759, compared with 743 in last year's study. 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 (785, up 4 points from 2012) and regional (760, up one point from 2012) banks has narrowed year over year.

"While big banks have traditionally had an advantage over smaller banks in terms of convenience of branch locations and technology, their disadvantage was often in the personal service customers desired," said Jim Miller, senior director of banking at J.D. Power and Associates. "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. Consumers today are likely to find banks of all sizes offering the level of convenience, technology and personal service they have come to expect."

While customers appreciate the personal service they receive at their branch, in-person transactions are slowly declining, while 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 transactions per customer has increased to 51 per year, up from 29 in 2012.

"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 Miller. "Customers are quickly adopting mobile banking, making it a critical service channel for banks, not just a 'nice to have' option."

The study measures satisfaction among banks in 11 regions. Study results by region are:

California Region
Rabobank ranks highest in the California region with a score of 825, and performs particularly well in the product offerings, facility, account information, fees and channel activities factors. California Bank & Trust (792) and U.S. Bank (780) follow in the rankings.

Florida Region
TD Bank ranks highest in the Florida region with a score of 803, performing particularly well in the facility factor. Following TD Bank in the rankings are Regions Bank (796) and Chase and PNC Bank in a tie (794 each).

Mid-Atlantic Region
Beneficial Mutual Savings Bank ranks highest in the region with a score of 839, and performs particularly well in the product offerings, account information and channel activities factors. Union First Market Bank (836) and Northwest Savings Bank (816) follow in the rankings.

Midwest Region
Chase ranks highest in the region with a score of 799, and performs particularly well in the product offerings, facility and account information factors. Bank Mutual (793) and Regions Bank (790) follow in the rankings.

New England Region
Bangor Savings Bank ranks highest in the region with a score of 831, and performs particularly well in the product offerings, fees, and channel activities. Eastern Bank (818) and Rockland Trust Co. (814) follow in the rankings.

North Central Region
With a score of 814, Huntington National Bank ranks highest in the region, performing particularly well in the account information, fees and channel activities factors. Following in the rankings are Flagstar Bank (807) and 1st Source Bank (802).

Northwest Region
Banner Bank ranks highest in the region with a score of 817, and performs particularly well in the account information, and fees. Umpqua Bank (815) and Columbia State Bank (799) follow in the rankings.

South Central Region
Arvest Bank ranks highest in the region with a score of 820, performing particularly well in the product offerings, facility, account information and channel activities factors. Following in the rankings are PNC Bank (802) and Trustmark National Bank (795).

Southeast Region
First Citizens Bancorp ranks highest in the region with a score of 836, and performs particularly well in the product offerings, fees and channel activities factors. United Community Bank (835) and First Citizens Bancshares (819) follow in the rankings.

Southwest Region
With a score of 819, Arvest Bank ranks highest in the region, performing particularly well in the product offerings, facility, account information, channel activities and problem resolution factors. BancFirst (812) and MidFirst Bank (804) follow in the rankings.

Texas Region
Frost National Bank ranks highest in the Texas region with a score of 855, and performs particularly well in the product offerings, account activities, fees, account information and facility factors. Amegy Bank (814) and Chase (795) follow in the rankings.

J.D. Power and Associates offers the following tips for consumers to keep in mind when shopping for a new bank:

Make sure to review your current bank's fee structure, as well as those of its competitors, to ensure the services and products you're receiving are those that best meet your needs.
Think about how you want to conduct business with your bank. If personal service is most important to you, how are you treated when you walk into a branch? If you prefer to deal with your bank remotely, what type of mobile and online tools do they offer? With a little research, you can find banks that offer the best of both worlds.
Evaluate the products and extra services you receive from your bank--including discounts or rewards programs--to ensure they are ones that meet your needs.
Consider how often you experience problems with your bank, including how well your bank resolves problems and complaints.
Consider changing banks if you are not satisfied with the service you currently receive. Switching banks may be easier than you think, and most banks have staff dedicated to supporting new customers who have recently switched.


Additional Research:

View 2013 Retail Banking Ratings
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