Overall Satisfaction Historically Declines As Customers Transition From Branches to Digital
May 1, 2020
A new J.D. Power survey shows retail banks face major customer satisfaction challenges as customers move more toward digital-only engagement. Those customers have the least loyalty to their financial institutions.
According to the J.D. Power 2020 U.S. Retail Banking Satisfaction Study, 52% of retail bank customers classified as branch dependent before the COVID-19 pandemic, and successfully transitioning them to digital—without compromising customer experience—will be critical in the weeks and months ahead. In New England, Bangor Savings Bank had the highest ranking.
“With fewer customers visiting branches, it will be important for retail banks to replace the in-person service they would have provided with personalized services delivered instead through digital channels,” said Paul McAdam, senior director, banking intelligence at J.D. Power. “Given the technology available to banks, customer pain points with digital should be easy to address.
“Let’s keep in mind that digital retail banking was introduced 25 years ago. Executing basic user-friendly functionality, providing a full range of services and offering easy ways to pay and move money are areas where banks could improve their digital offerings.”
The report found the most satisfied retail banking customers use both branch and digital services to conduct their personal banking, while the least satisfied are those who have a digital-only relationship with their bank and do not use branches.
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