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Study: ATM, mobile, online channels key to customer satisfaction at big banks

May 4, 2016

Big banks 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.

This year marks big banks' sixth consecutive rise in customer satisfaction, according to a press release. These FIs' success has been driven by a combination of improved digital offerings, more engaged personal interactions and stronger connections with growth segments of the population, the company said.

In the 11th annual J.D. Power customer satisfaction study, more than 75,000 customers rated various aspects of their banking experience. The study measured satisfaction in six factors: account information; channel activities; facility; fees; problem resolution; and product offerings.

Channel activities comprised six subfactors: ATM; branch; call center; IVR; mobile; and website. Satisfaction is measured on a 1,000-point scale.

Following are selected year-over-year findings from the new study:

• Overall satisfaction in the retail banking industry improved to 793 from 790. Satisfaction with big banks improved six points to 793, compared with 797 for midsize banks (down 5 points), and 790 for regional banks (flat).
• 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.
• Big banks have been most successful at acquiring and satisfying millennials, who represent the greatest growth potential for retail banks, but also pose a higher risk of attrition.
• Though online account opening continues to grow at a steady rate, brick-and-mortar branches remain a key channel for servicing customers in critical moments (e.g., resolving problems and dealing with more complex transactions).

"[E]stablishing 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."