Overall customer satisfaction with mortgage lenders has reached its highest level in the past six years, according to our J.D. Power and Associates 2012 U.S. Primary Mortgage Origination Satisfaction StudySM released today.
For a second consecutive year, overall customer satisfaction has increased to 761 (on a 1,000-point scale) in 2012 from 747 in 2011 and 734 in 2010. This increase in customer satisfaction is driven by steady improvements related to transparency and communication. The study finds that during the past three years, lenders have improved in the following areas:
- Clearly explaining loan options and ensuring customers understand them
- Following up with customers in a timely manner after they complete their application
- Proactively updating customers on the status of their application
Furthermore, the results of the study show that there is a strong relationship between satisfaction with the origination process and the rates of customer consideration and usage of the same lender for refinancing. Among loan customers who have refinanced in 2012, only 40 percent cite price as their main reason for selecting their lender. Other reasons commonly cited for selection include an existing relationship; previously being a customer; and referrals.
Register for the complementary 2012 Primary Mortgage Origination Satisfaction Study Webcast
Date: Thursday, November 29
Time: 2:00 – 3:00 PM EST
Our J.D. Power and Associates 2012 U.S. Small Business Banking Satisfaction StudySM suggests that banks should focus on small business customers because of the value they represent, when compared to retail customers. On average, small businesses hold deposits four times greater and loan balances 15 times greater than retail banking customers.1 Small business customers also carry higher levels of personal banking business than the average consumer. In addition, the profit margins on small business customers are typically larger than those on larger corporate banking customers.
Yet, based on the results of the study, just released today, it appears that small businesses, like Rodney Dangerfield, get no respect. Despite overall satisfaction increasing by 19 index points year over year to 736 (on a 1,000-point scale) in this year’s study, it still represents one of the lowest-scoring financial services businesses that J.D. Power and Associates examines. Only mortgage servicing is lower. Even its perennial low-scoring counterpart, credit card, has surpassed small business banking in satisfaction to levels enjoyed in the retail banking sector.
Now in its seventh year, the study measures small business customer satisfaction with the overall banking experience by examining eight factors: product offerings; account manager; facility; account information; problem resolution; credit services; fees; and account activities.
The Small Stuff Matters
The study finds that when small business banking customers are greeted by name, the positive impact on overall satisfaction is 106 points. However, this occurs only 47 percent of the time, compared to 64 percent of the time among retail banking customers, representing a 17-percentage-point gap. This disparity occurs even though small business customers bank in person at the branch more than twice as often as retail customers (36 times vs. 16, respectively, on an annual basis). Continue reading ›
Best Banking Blogs of 2012
The Financial Brand, the premier online publication for bank and credit union marketers is conducting the second most important election this week; Best Banking Blog “2012 Readers’ Choice” awards.
Our J.D. Power and Associates Banking Blog, as part of having received the prestigious “Editor’s Choice” award, is now nominated for the “Reader’s Choice” award for Best Banking Blog of 2012. Your vote counts, and we would be grateful for your support!
To be recognized alongside our friends and distinguished bank bloggers Jim Marous, Ron Shevlin, Brett King, Bradley Leimer, Matt Wilcox, JJ Hornblass, Liz Lum, Chris Skinner, Serge Milman, Christophe Langois, Jim Bruene, Randy Smith and Jim Van Dyke is an honor in itself.
Congratulations to all of our fellow nominees for your continued dedication and delivery of superb insights to our banking community.
From our J.D. Power and Associates 2012 Credit Card Website Evaulation Study, the following viewing account history best practices highlight some of the exceptional techniques utilized by credit card issuer websites.
1. Recent Activity Link
Chase and Discover Card offer a link to recent activity from the website’s landing page
2. Offer Multiple Formats for Statements
Discover Card allows customers to download statements in multiple formats. Citi Cards offers customers navigation links from the log in field on the home page
___________________________________________________ Continue reading ›
With the fluctuating economy and new banking regulations continuing to affect the expectations that small business owners have of their banking experiences, financial institutions need to be armed with the insights that can help them meet and exceed these expectations. They need to know:
- How customers’ perceptions have changed since 2011
- The latest trends emerging in the small business banking industry
- Which factors are having the biggest impact on customer satisfaction
Our J.D. Power and Associates 2012 US and Canadian Small Business Banking Satisfaction Studies will provide these insights and much more!
Join us for an exclusive webcast during which we will give you an insider’s look into the results of these studies!
DATE: Tuesday, October 30
TIME: 2:00 – 3:00 PM ET
SPEAKER: Jim Miller, Senior Director, Banking Practice at J.D. Power and Associates
Unlike the majority of full service investors, self-directed investors MUST seek out information to aid in their decision-making regarding investments.
Did you know that satisfaction is highest among self-directed investors who use investment magazines and their firm as primary sources of this information?
The majority of self-directed investors (68%) indicate using their firm as one source of information, which is 4 percentage points lower than in 2011 (68% vs. 72%, respectively), and 30% of investors indicate that their firm is their main source of information, which is virtually the same as in 2011. Below are the top 10 main sources of information that self-directed investors indicate using to aid in their investment decision-maiking:
Not depicted above, but included in our J.D.Power 2012 US Self-Directed Investor Satsfaction Study, Sharebuilder from ING Direct leads the industry in the proportion of investors indicating that they use their firm as the primary source of information (36%), followed closely by E*TRADE Financial (35%) and Fidelity Investments (33%).
Data Source: J.D. Power and Associates 2012 US Self-Directed InvestorSatisfaction Study SM
From our J.D. Power and Associates 2012 Credit Card Website Evaulation Study, the following account log in best practices highlight some of the exceptional techniques utilized by credit card issuer websites.
1. Offer Prominent Log-in Fields
Citi Cards and Chase use color and shading to draw attention to log-in fields
2. Streamline Navigation
Citi Cards offers customers navigation links from the log in field on the home page
The proportion of credit card customers who use online channels to perform basic tasks continues to increase, with those who use a smartphone or tablet preferring different experiences from those who use a computer, according to our J.D. Power and Associates 2012 Credit Card Website Evaluation StudySM (CCWES) released today.
The inaugural study examines the usefulness of credit card company websites across six attributes (in order of importance) utilized in our J.D. Power and Associates 2012 U.S. Credit Card Satisfaction StudySM:
- Speed of completing desired activity
- Appearance of website
- Ease of navigating the website
- Ranges of service that can be performed online
- Usefulness of information provided via the website
- Clarity of information provided
During the past three years, credit card customers’ usage rates for self-service interaction (online and mobile) with their card issuer have increased, while usage rates of all other channels, such as mail and live and automated phone calls, have decreased.
Most notably, 78 percent of credit card customers use their computer to go online and interact with their issuer in 2012, compared with 76 percent in 2011 and 75 percent in 2010. Mobile phone usage has increased to 7 percent in 2012, compared with 4 percent in both 2011 and 2010.
Questions? For more information about this study, please contact Holly Zagresky at 248-680-6319 or Holly_Zagresky@jdpa.com.