PROVIDENCE
– Throughout the U.S., retail bank customers report declining trust in their banks, according to a recent report by J.D. Power.
However, trust is above the national average in New England, the company's 2024 U.S. Retail
Banking Satisfaction Study shows: The region ranked second among the 15 areas [a mix of larger states and regions] identified in the study, at 726, though it still trailed about well behind the maximum possible score of 1,000.
Texas, with a score of 753, led the rankings. Followed by New England, the southeast placed third, with a score of 724, and California, with a customer satisfaction score of 657, ranked last. The nationwide average was 700.
J.D. Power based the rankings on offerings on factors such as trust, account offerings, time and money savings, and complain or problem resolutions. The results draw from the responses of 105,355 retail customers of the largest banks in the U.S., with surveying taking place from January 2023 through January 2024.
In New England, Maine-based Bangor Savings Bank ranked highest in customer trust, following in order of highest score by Rockland Trust, Eastern Bank Chase, TD Bank and Santander, all scoring above the regional average. Scoring below the regional average were, in order of ranking, M&T Bank, Citizens Bank and Bank of America.
Nationally, 13% of respondents said they will likely switch banks in the next year. This year's results mark the second year in a row that J.D. Power has noted a significant decrease in trust, the report states.
Customers identified account fees and poor customer service as major influences in their declining trust. Bank branches scored 123 points higher than average on customer satisfaction just by providing basic customer experience enhancements, the report found, such as calling customers by name and providing fast service.
Jennifer White, senior director of banking and payments intelligence at J.D. Power, said in a statement that banks must remember the importance of day-to-day interactions in order to foster customer loyalty.
“Retail bank customers interact with their bank every three days, on average, across a combination of digital, phone and in-branch channels, and the tenor of those interactions has a massive influence on customer satisfaction and overall levels of trust,” White said in a statement.
“Despite widespread efforts to improve the customer experience, many banks are missing the mark on critical customer touch points by treating customers like numbers," she continued. "To retain deposits and build customer loyalty and trust, banks need to do a better job of focusing on fundamental interactions, proactively solving problems and delivering personalized advice.”
(SUBS 5th paragraph to clarify ranking.)
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
