Rockwell Clancy
TD Banknorth took the top spot among J.D. Power and Assoc.’s ranking of overall customer satisfaction for banks in the New England region. The bad news is TD Banknorth’s region-high score of 730 falls below the national, industry-wide mark of 737.
Poor problem resolution, long wait times and additional fees all contribute to an overall decline in customer satisfaction with retail banks, according to the company’s 2008 Retail Banking Satisfaction Study.
The study, now in its third year, finds that overall satisfaction with the retail banking experience has decreased considerably since 2007 – down 26 index points on a 1,000-point scale to 737 in 2008. In particular, dissatisfaction with fees is the most commonly reported problem by customers, as well as the second-most common reason for switching financial institutions. In addition, a rise in the number of problems experienced and problems that go unresolved, increases in wait times to see tellers or speak to phone representatives, and declines in the ease of accessing branches all contribute to the drop in satisfaction.
The study analyzes customer satisfaction with the retail banking experience through six factors: transactions, account statements, account initiation/product offerings, convenience, fees and problem resolution. The latest study, fielded in January 2008, is based on responses from 19,602 households regarding their experiences with their primary banking provider.
“Many retail banks are experiencing a decline in their brand image, especially in the current economic climate, where many consumers hold banks responsible for the current housing and mortgage crisis,” said Rockwell Clancy, executive director of financial services at J.D. Power and Assoc. “With customers experiencing more problems, longer wait times and more fees, that negative view is intensified.”
In New England, the survey is based on data from 1,444 households. Rounding out the top five in overall customer satisfaction are Citizens Bank, Webster Bank, Sovereign Bank and Bank of America.
The most commonly reported problems for the region were fees and incorrect account information. In resolving those problems, the New England region did slightly better than the national trend, with 51 percent of the New England respondents reporting the problem was solved after contacting the bank one time. Nationally, the figure was 48 percent.
Selecting a financial institution has very little to do with the advertising, according to the report. Of the various factors a consumer might consider in making that choice – from branch locations to product offerings to available interest rates – advertising ranked last. Only 8 percent of the respondents listed advertising as a consideration.
The top factors in making that choice were the bank’s proximity to the consumer’s home or work, offering of free services, reputation and availability of online banking.
Based in Westlake Village, Calif., J.D. Power and Assoc. is a global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction.
Campground Secures Financing
Dave Rabinowitz and James K. Coleman of Houlihan Parnes/iCap Realty Advisors placed $2.5 million in private financing on a 153-acre resort and RV campground known as Strawberry Park in Preston.
The property includes three outdoor swimming pools, whirlpools and wading pools, a 20,000-square-foot, 2-story recreational building with a food-service operation, game room, and restrooms with hot showers. The property is near the Mohegan Sun and Foxwoods casinos.
The financing came from a group of investors brought together by HP Capital, a subsidiary of Houlihan-Parnes.
Houlihan-Parnes/iCap Realty Advisors is a real estate investment company based in White Plains, N.Y. Its companies and affiliates are engaged in the acquisition and ownership of all types of commercial real estate investment property in the continental United States. Its various companies and affiliates specialize in commercial mortgage finance, investment sales, property management, leasing and mortgage servicing.
