Technology investments at banks could be hurting customer satisfaction

PROVIDENCE – J.D. Power this week released a report showing technology investments are helping to grow digital-only bank customers but potentially hurting overall customer satisfaction.

The study, released on Thursday, shows 28 percent of retail customers are now digital-only, but the group is among the least-satisfied segment of overall customers.

“There is no doubt that digital banking channels give banks an enormous opportunity to reduce costs, but the risk is that those cost savings come with lower levels of customer engagement,” said Paul McAdam, senior director of the banking practice at J.D. Power.

Meanwhile, Providence-based Citizens Bank on Friday reported widespread technical issues, leaving customers unable to access accounts and post transactions. Its online banking and app could not be accessed.

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The issue evoked outrage from many Citizens customers online, who criticized the bank for not allowing them to access their money, especially on payday.

“Right now, retail banks need to address the growing digital divide that is emerging within the customer segments,” McAdam said.

The J.D. Power study gave Citizens a score of 796 out a possible 1,000 in the New England. The score was slightly below the region average of 797.

Bangor Savings Bank ranked the highest in New England with a score of 862. KeyBank ranked last with 776.

The full study can be found here.

Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.

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