Big Banks Improving in Reducing Number of Problems Experienced and in Problem Resolution

Facilities and Routine Interactions Offset Decreasing Satisfaction with Fees

Highlights from our 2012 U.S. Retail Banking Satisfaction Study(SM)

  • Overall retail banking customer satisfaction has improved by one index point in 2012 to an average of 753 (on a 1,000-point scale) from 2011.
  • When looking at banks in aggregate by relative size, satisfaction with big banks is 743, a two-point increase from 2011, while satisfaction with midsized banks is up four points to 781. Regional banks experience a slight dip in overall satisfaction, to 759 from 760 in 2011.
“Big banks continue to lag the other banks in overall satisfaction, but they have made significant improvements in reducing the number of problems customers experience and in problem resolution, specifically resolving problems on first contact,” said Michael Beird, director of banking services at J.D. Power and Associates.
  • While consumers are growing increasingly dissatisfied with fees, banks are able to offset it with higher satisfaction in other areas, such as banking facilities, account activities and problem resolution.

Fees:

  • Satisfaction with fees has declined to 609, down significantly from 625 in 2011 and from 656 in 2010.
  • Monthly maintenance fees have the most significant negative impact on fees satisfaction this year—more so than in the 2011 and 2010 studies—while fees assessed for ATMs and debit cards have less negative impacts on fees satisfaction.
“The negative reaction to fees reflects customers’ irritation about paying for something they didn’t have to pay for in the past,” said Beird. “It also reflects a lack of their complete understanding about what they’re getting for those fees. Customers understand why they’re being charged for ATM and debit card use, but are not clear on what they’re getting for monthly maintenance fees, which drives the bigger drop in satisfaction with those fees.”

Banking Facilities:

  • Customer satisfaction with bank facilities—branch and ATM locations, appearance and hours of operation—has improved this year to 779, compared with 771 in 2011 and 765 in 2010.
  • One behavior helping increase satisfaction with the branch is that 76 percent of customers say they are greeted by a bank employee when they enter the bank, an increase from 68 percent in the 2010 study.
  • Customer satisfaction with the reliability and ease of using ATM machines has increased to 815 from 795 in 2011.
The study measures satisfaction among banks in 11 regions. Study results by region are:

California: Rabobank ranks highest in California with a score of 803, and performs particularly well in the fees and account activities factors. California Bank & Trust (783) and U.S. Bank (774) follow in the rankings.

Florida: PNC Bank ranks highest in Florida with a score of 794 and performs well in the in-person and online account activities factors. Chase (785) and Citibank (783) follow in the rankings.

Mid-Atlantic Region: With a score of 823, Northwest Savings Bank ranks highest in the region and performs well in fees and account activities. Huntington National Bank follows with a score of 801, and S&T Bank ranks third with 799.

Midwest Region: Commerce Bank ranks highest in the region with a score of 801, and performs particularly well in the fees and facilities factors. UMB Bank follows with a score of 794, and AnchorBank ranks third with 783.

New England Region: Rockland Trust Co. ranks highest in the region with a score of 811 and performs well in the product offerings and fees factors. Eastern Bank follows with a score of 791, and TD Bank ranks third with 770.

North Central Region: Independent Bank ranks highest in the region with a score of 802. Community Trust Bank and Chemical Bank follow in the rankings with scores of 794 and 793, respectively.

Northwest Region: With a score of 821, Banner Bank ranks highest in the region and performs well in facilities and account activities. Umpqua Bank (807) ranks second, followed by Columbia State Bank and Sterling Savings Bank in a tie, each with 800.

South Central Region: Arvest Bank ranks highest in the region with a score of 826 and performs particularly well in the facilities and fees factors. Hancock Bank (802) and Whitney National Bank (795) follow in the rankings.

Southeast Region: First Federal ranks highest with a score of 830, performing particularly well in the facilities and product offerings factors. First Citizens Bancshares follows in the rankings with 817, and First Citizens Bancorp ranks third with 816.

Southwest Region: Arvest Bank ranks highest in the region with 827 and performs particularly well in facilities and product offerings. MidFirst Bank (813) and FirstBank (CO) (801) follow in the rankings.

Texas: With a score of 859, Frost National Bank ranks highest in Texas and performs well across all six factors, particularly in account activities and fees. Woodforest National Bank (817) and Prosperity Bank (802) follow in the rankings.

Learn More:

Register for the complementary webcast on Tuesday, April 24th at 2:00pm for an insider’s look at results
View the full press release at JDPower.com
View retail banking satisfaction ratings at JDPower.com
Contact Holly Zagresky at Holly_Zagresky@jdpa.com
The 2012 U.S. Retail Banking Satisfaction Study is based on responses from nearly 52,000 retail banking customers regarding their experiences with their retail bank. The study was fielded in January and February 2012.
Big banks are defined as the six largest financial institutions based upon total deposits as reported by the FDIC, averaging $180 billion and above. Regional banks are defined as those with between $33 billion and $180 billion in deposits. Midsized banks are defined as those with between $2 and $33 billion in deposits.
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