Study shows digital banking alternatives are gaining momentum

According to the recently released JD Power 2022 US Direct Banking Satisfaction Study, 27% of banking customers in the US use online-only banking, reflecting the continued growth in popularity of alternatives to traditional retail banking.

JD Power has found that among direct banking customers, satisfaction with their checking and savings accounts is high. A large majority of checking and savings customers, 88%, say it’s easy to do business with their direct bank and 85% say their accounts have no hidden fees. Only 6% of checking and savings customers say their direct bank does not put the customer’s interests first.

Among direct banking customers, the level of customer service provided by phone and online chat or email is a key element of customer satisfaction. Among checking and savings customers, 59% said they had never had a problem or complaint with their direct bank. Of customers who experienced a problem or complained in the 12 months prior to participating in the study, 83% said it was convenient to contact customer service, and 88% said their problem caused it. newer was resolved.

“As much of our lives continue to shift to digital providers, direct banks have been in a unique position to gain market share and mind share by offering round-the-clock access, as well as products which have attractive fee structures and interest rates,” said Paul McAdam, senior director of banking information and payments at JD Power. “Increasingly, we’re seeing the most successful brands get the personalization formula right by helping customers reduce bank fees and make their money work harder, and showing that they’re available to help customers in these tough financial times.”

Jennifer White, senior banking intelligence consultant at JD Power, commenting on another JD Power study, this one on U.S. retail banking satisfaction, said, “A customer’s definition of what looks like its retail banking support is changing rapidly as we enter a new economic cycle and progress along the digital adoption curve. It’s no longer primarily about being fast, efficient, or convenient. The predominant performance indicator with the greatest influence on client satisfaction is “client support during difficult times”, meaning that clients expect a personalized mix of financial advice, practical help with solve problems and advice on how to make their money work. »

When asked how they would like their bank to personalize their banking experience, 46% of customers said they wanted help avoiding fees and 37% said they wanted to receive account alerts.

Among customers who pay bank fees, such as overdraft or low balance fees, 61% did not know or were unsure that their bank had changed its overdraft fee policy.

The study was based on responses from 101,587 retail banking customers of the largest US banks regarding their experiences with their retail bank.

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