Menu
Banking Exchange Magazine Logo
Menu

From Advice to Action: Banks’ Evolving Role in Financial Guidance

JD Power study found that big banks are leading the way when it comes to financial advice

  • |
  • Written by  Banking Exchange staff
  • |
  • Comments:   DISQUS_COMMENTS
From Advice to Action: Banks’ Evolving Role in Financial Guidance

The US’s biggest banks have drawn praise for their approach to financial advice, according to a new consumer study.

Market research group JD Power’s fourth annual study on retail banking advice, published this month, showed that more than two thirds (69%) of customers who receive advice from their bank go on to act on it.

Big banks in particular were seen to be leading the way on advice, with the top four banks earning high marks for their diverse advice offerings, the relevancy of their advice and guidance, and their concern for customer needs.

The top banks in terms of ranking were Bank of America and Citibank, who both scored well above the industry average.

JD Power’s survey found that, when customers were offered advice and guidance that met their needs, overall customer satisfaction rose by 229 points on a 1,000-point scale.

However, individuals overall remained more likely to receive financial advice and guidance from family, friends, internet searches or personal finance websites than from their primary bank.

Despite significant customer satisfaction gains associated with receiving financial advice, JD Power reported that just 19% of customers said they were interested in receiving it. A third (33%) said they were not at all interested in receiving advice or guidance from their bank.

For the first time, JD Power also attempted to assess customers’ financial health and literacy. It classified less than half (49%) of customers as financially healthy, with 11% falling into the “overextended” category.

In addition, 13% were classified as “stressed”, and more than a quarter (27%) were deemed “vulnerable”. Just 38% of bank customers surveyed by JD Power passed its financial literacy test.

back to top

Sections

About Us

Connect With Us

Resources

Webinar: In-person and Remote Banking –
Why this Hybrid Model is the Future of the Branch

Banks combine the brick and mortar
physical banking experience with virtual banking

Time/Date: August 5th, 2021 2:00 P.M. ET

As consumers increasingly prefer to engage with their bank remotely instead of going to a branch location, institutions are looking to modernize the ways in which they interact with customers. Depending on the complexity of the banking activity, some consumers will use self-service digital channels while others will turn to channels where they can get human help. In a hybrid banking model, banks combine the brick and mortar physical banking experience with virtual banking.

In this webinar, OneSpan and guest speaker Alyson Clarke, Principal Analyst at Forrester Research, will discuss why hybrid banking will become mainstream and the importance of putting the right tools in place to support remote account opening, account maintenance, wealth management, and lending.

REGISTER NOW!

This webinar is brought to you by:
OneSpan Logo