Banks have an image problem today. The sub-prime mortgage debacle has consumers questioning bank stability and integrity. Financial institutions are under intense financial pressure and one common response has been for banks to cut back on services to try and help the bottom line. The result? Poor problem resolution, long wait times and excessive fees that all contribute to an overall decline in customer satisfaction with retail banks, according to J.D. Power and Associates 2008 Retail Banking Satisfaction StudySM .
The study, now in its third year, finds that overall satisfaction with the retail banking experience has decreased considerably since 2007—down 26 index points on a 1,000-point scale to 737 in 2008. In particular, dissatisfaction with fees is the most commonly reported problem by customers, as well as the second-most common reason for switching financial institutions. In addition, increases in the number of problems experienced, dissatisfaction with the resolution of problems and difficulty in accessing bank branches contribute to the decrease.
Still, even in that dismal climate, some banks distinguish themselves by focusing on customer satisfaction. The payoff for that effort is more highly committed customers who contribute to their bank’s profitable annual balance growth.
We analyzed customer satisfaction with the retail banking experience in six factors to see which banks served consumers best. The study considered:
- Transactions
- Account statements
- Account initiation/product offerings
- Convenience
- Fees
- Problem resolution
Here are the Study results by region:
- Mid-Atlantic Region: Commerce Bank (Bancorp) ranks highest in the region with a score of 781 points, performing particularly well in convenience. First National Bank of Pennsylvania (764) follows in the regional rankings.
- Midwest Region: Commerce Bank (Bancshares) ranks highest in the region with a score of 750, performing particularly well in account statements. Washington Mutual (742) and Comerica Bank (739) follow in the region.
- Southeast Region: BancorpSouth Bank ranks highest in the region with a score of 782, performing well in the transactions factor. First Tennessee Bank (774) and WaMu (768) follow in the region.
- Southwest Region: With a score of 802 points, Wachovia Bank ranks highest in the region, performing particularly well in the transactions factor. Bank of America, Capital One and Zions National Bank follow with scores of 740, in a tie.
- West Region: Bank of the West leads the region with a score of 772, performing particularly well in the transactions factor. Citibank (759) and Union Bank of California (746) follow in the region.
For more information, read the press release or view our ratings.