Menu
Banking Exchange Magazine Logo
Menu

Retail banks struggling to support customers as inflation rises

Retail banks score lower among customers for helping them save money or time

  • |
  • Written by  Banking Exchange staff
Retail banks struggling to support customers as inflation rises

A large proportion of US retail banking customers feel unsupported by their banks, according to new research.

The J.D. Power 2022 US Retail Banking Satisfaction survey found that, overall, customer satisfaction with retail banks climbed 155 points — on a 1,000-point scale — when customers cite that their bank supports them during challenging economic times.

However, only 44% of banks are delivering on the customer satisfaction metric as measured by the survey.

The findings show that banks perform well on traditional customer engagement metrics, such as people, digital channels and overall trust, but that satisfaction scores are lowest for helping retail bank customers save time or money.

The combination of digitalization and surging inflation means US retail banks are facing a number of customer engagement challenges, as consumers experience elevated levels of financial stress.

Senior consultant of banking intelligence at J.D. Power, Jennifer White, said: “A customer’s definition of what support from their retail bank looks like is changing rapidly as we enter a new economic cycle and move further along the digital adoption curve.

“It’s no longer predominately about being fast, efficient or convenient. The preeminent performance metric with the biggest influence on customer satisfaction is ‘supporting customers during challenging times,’ and that means customers are expecting a personalized mix of financial advice, hands-on help with problem resolution and guidance on how to grow their money.”

Now in its 17th year, the study asked customers how they would like their bank to personalize their banking experience, with 46% saying they want help in avoiding fees and 37% who want to receive account alerts.

The study is based on responses from 101,587 retail banking customers of the largest US banks. The highest-ranking bank was Frost in Texas, with a score of 755, followed by Illinois-based Wintrust Community Bank, with a score of 733.

J.D. Power redesigned the survey for 2022, with customer satisfaction measured across seven factors: trust, people, account offerings, allowing customers to bank how and when they want, saving time and money, digital channels and resolving complaints.

back to top

Sections

About Us

Connect With Us

Resources

Webinar: Card Based Faster Payments in Today’s Digital Economy

Time/Date: June 28, 2022, at 2:00 ET

Consumers and businesses want instant gratification and the ability to move money in just minutes. From payroll to P2P to insurance benefits, demand is rising for instant disbursement. However, there are pain points in the current money movement ecosystem, and to address them, financial institutions need a payments strategy that addresses the dramatic rise in faster payments.

In this Banking Exchange hosted webinar on June 28, 2022, at 2:00 ET, Jaspreet Singh, Head of A2A/P2P Commercialization, Visa Direct at Visa Direct, and Al Griffin, Product Manager at Alacriti, discuss:

REGISTER NOW!

This webinar is brought to you by:
Alacriti logo