Digital, Branch, Drive-Through or ATM? Yes, Please! Say Bank Customers in J.D. Power Study Among Millennials, Highest Satisfaction Achieved When Combining Mobile and Branch Banking COSTA MESA, Calif.: 27 April 2017 As retail banks continue to brace for the digital future, branches are still having a significant effect on customer satisfaction across all customer age groups, according to the J.D. Power 2017 U.S. Retail Banking Satisfaction Study, SM released today. The study finds that overall retail bank satisfaction is significantly higher among customers who have visited a branch within the past 12 months vs. those who have only used digital channels. Within the closely watched Millennial 1 age group (those born from 1982-1994), satisfaction is highest when bank customers use both branch and digital banking channels. There is no question that banks need to get the digital experience right in order to attract and retain customers, however, the branch continues to play an important part of the overall customer experience, said Jim Miller, senior director of banking at J.D. Power. The trend is particularly noteworthy among Millennials who represent the future of banking, and consistently demonstrate that overall satisfaction is higher among customers who use both the branch and mobile banking. Banks can t choose between the two channels; rather, they must focus on how the two work together. Following are key findings of the 2017 study: Rise of retail banking omnivore: More customers than ever are using mobile banking (49% of Millennials, 31% of Gen X and 16% of Boomers). Despite this widespread adoption of the digital channel, 71% of all bank customers visited the branch an average of 14 times over the past year. Among Millennials, 71% used the branch, averaging 11 visits in the past year. Branches still matter: Across all customers in the study, overall satisfaction among those who visited a bank branch within the past 12 months is 27 index points higher than among those who did not visit a branch (824 vs. 797, respectively). Among Millennials, overall satisfaction among those who used the branch and mobile is 20 index points higher than among those who used the branch only and 37 points higher than among those who used mobile only. Additionally, 78% of new accounts are opened in the branch. Mobile payments pose disruptive threat: Customer satisfaction, overall brand image and retention metrics are higher among customers who have a mobile payment service linked to their bank account. The trend is most pronounced among the emerging affluent segment of Millennial 1 J.D. Power defines the generations as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); Gen Z (1995-2004). Millennials are defined those born between 1982-1994.
customers with incomes above $80,000, among whom 64% currently have mobile payment services linked to their accounts. Digital problem resolution is key: Unsuccessful problem resolution is highly correlated with low levels of satisfaction and high levels of customer attrition. Overall satisfaction among customers whose problem was not resolved is 564 points. Further, only 20% of these customers say they were likely to reuse that bank. When the problem is resolved, satisfaction scores jump to 812 and loyalty increases to 58%. While the branch has been the traditional channel for handling problems, younger customers prefer to resolve problems online or via social media. It s becoming increasingly clear that banks that can get the balance right between digital and personal interactions will be those that build the strongest customer relationships, Miller said. The Millennial generation is a great source of insight into the trend, but it s one that s larger than any single generation: all customers want choice. They want to choose when, where and how they conduct their banking, and banks must continue to meet that need by offering consistent, tailored experiences regardless of the channel. The study measures customer satisfaction with banks in 11 regions. Study results by region are: California: BBVA Compass (846) Florida: Fifth Third Bank (849) Mid-Atlantic Region: Huntington National Bank (849) Midwest Region: Wintrust Community Bank (843) New England Region: Rockland Trust (858) North Central Region: Huntington National Bank (849) Northwest Region: Banner Bank (840) South Central Region: U.S. Bank (854) Southeast Region: United Community Bank (852) Southwest Region: BancFirst (866) Texas: Frost Bank (867) About the Study The U.S. Retail Banking Satisfaction Study, now in its 12 th year, is the longest-running and most in-depth survey of the U.S. retail banking industry. The study measures satisfaction in six factors (listed in alphabetical order): account information; channel activities; facility; fees; problem resolution; and product offerings. The channel activities factor includes six subfactors (listed in alphabetical order): ATM; branch; call center; IVR; mobile; and website. Satisfaction is measured on a 1,000-point scale. The 2017 study is based on responses from more than 78,000 retail banking customers of 136 of the largest banks in the United States regarding their experiences with their retail bank, and was fielded from April 2016 to February 2017. For more information about the U.S. Retail Banking Satisfaction Study, visit http://www.jdpower.com/resource/us-retail-banking-satisfaction-study. See the online press release at http://www.jdpower.com/pr-id/2017045. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe.
Media Relations Contacts Geno Effler; Costa Mesa, Calif.; 714-621-6224; media.relations@jdpa.com John Roderick; St. James, N.Y.; 631-584-2200; john@jroderick.com About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info # # # NOTE: 11 charts follow.
California BBVA Compass 846 California Bank & Trust 842 U.S. Bank 826 Bank of the West 812 808 807 Citibank 804 Union Bank 803 Source: J.D. Power and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.
Florida Fifth Third Bank 849 TD Bank 844 Citibank 837 834 Regions Bank 832 PNC 831 831 829 BB&T SunTrust Source: J.D. Power and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.
Mid-Atlantic Huntington National Bank Apple Bank for Savings Northwest Bank Fulton Bank New York Community Bank Capital One NBT Bank Community Bank SunTrust PNC Citizens M&T Bank First Commonwealth Bank Citibank TD Bank Valley National Bank First NB of PA First Niagara Santander BB&T Astoria Bank KeyBank HSBC 849 838 834 832 830 829 829 826 824 821 818 817 817 816 813 812 807 807 803 801 801 800 794 793 779 Included in the Mid-Atlantic region are Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia and Washington, D.C. Source: J.D. Power and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.
Midwest Wintrust Community Bank First National Bank of Omaha Regions Bank Associated Bank Citibank Commerce Bank First Midwest Bank PNC U.S. Bank UMB Bank Bank of the West BMO Harris Bremer Bank Fifth Third Great Western Bank TCF National Bank 843 834 825 824 817 816 816 814 810 810 801 800 794 791 776 768 Included in the Midwest region are Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wisconsin. Source: J.D. Power
New England Rockland Trust Eastern Bank Bangor Savings Bank TD Bank Citizens People's United Bank KeyBank Webster Bank Santander 858 846 842 804 803 800 796 794 790 788 776 Included in the New England region are Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. Source: J.D. Power
Huntington National Bank 1st Source Bank WesBanco Bank PNC Comerica KeyBank First Financial Bank Fifth Third U.S. Bank Citizens BB&T Chemical Bank FirstMerit TCF National Bank Old National Bank North Central 766 849 840 827 826 826 825 823 822 821 817 814 811 802 796 795 793 Included in the North Central region are Indiana, Kentucky, Michigan, Ohio, and West Virginia. Source: J.D. Power
Northwest Banner Bank 840 Columbia Bank 828 Umpqua 823 814 804 U.S. Bank 802 KeyBank 797 795 795 Included in the Northwest region are Idaho, Montana, Oregon and Washington. Source: J.D. Power
South Central U.S. Bank PNC Capital One Arvest Bank First Tennessee Trustmark National Bank Regions Bank SunTrust BBVA Compass BancorpSouth BB&T Whitney Bank 854 848 842 840 837 837 837 834 831 828 827 826 825 823 821 Included in the South Central region are Alabama, Arkansas, Louisiana, Mississippi and Tennessee. Source: J.D. Power
United Community Bank Southeast 852 Regions Bank First Citizens Bank & Trust Synovus Bank BB&T PNC TD Bank SunTrust Fifth Third South State Bank 845 844 839 833 829 826 822 818 816 810 806 Included in the Southeast region are Georgia, North Carolina and South Carolina. Source: J.D. Power
Southwest BancFirst 866 Arvest Bank 856 FirstBank 840 Bank of Oklahoma 835 827 817 U.S. Bank 814 Zions Bank 814 BBVA Compass 813 810 804 Bank of the West 797 Included in the Southwest region are Arizona, Colorado, New Mexico, Nevada, Oklahoma and Utah. Source: J.D. Power
Texas Frost Bank Amegy Bank Woodforest National Bank Capital One First Financial Bank Prosperity Bank Comerica BBVA Compass Regions Bank 867 859 847 840 840 832 832 831 829 822 817 815 810 Source: J.D. Power