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Customer satisfaction with national banks slightly improved this year, but a J.D. Power study found that depositors are attracted to higher interest rates at investment or wealth management and digital-only banks.
J.D. Power’s 2023 U.S. National Banking Satisfaction Study found that customer satisfaction with national banks increased by 5 points – on a 1,000-point scale – to 653 in 2023 from 648 in 2022.
But among the growing number of national bank customers with secondary deposit accounts, those with a secondary account at an investment or wealth management institution or an internet-only financial institution grew by 6 percentage points to 50 percent in 2023.12.28
“Deposit interest rates surely matter, but there are steps large banks can take to help minimize the deposit flow to secondary providers,” Paul McAdam, senior director of banking and payments intelligence at J.D. Power, said in a statement.
“Customers want banks to help them grow their money and save them time. Banks that ensure the banking process is easy for their customers, such as having an intuitive and easy-to-use mobile app, understandable credit cards and seamless processes for opening new accounts, are more likely to retain deposits, particularly among customers who have balances greater than $10,000,” he added.
Among the nine qualifying national banks that the study looked at – a US bank with domestic deposits over $300 billion and at least 200 branches – Capital One ranked the highest in overall satisfaction for a fourth consecutive year, with a score of 706. Chase came in second with 674 points and TD Bank at third place with 661 points.
The study, now in its seventh year, looked at customer experience across retail bank product lines of US national banks. Customer experience was evaluated across seven factors: trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.
The banks that are included in the study are Bank of America, Capital One, Chase, Citi, PNC, TD Bank, Truist, U.S. Bank and Wells Fargo.
Massachusetts banks are also concerned with depositors moving to higher-yielding deposit accounts that are being offered mostly by digital-only banks. Banks in general are concerned about the deposit gathering climate the next year, citing customers will likely still shop around for rates.
