A new year often brings changes, especially when it comes to finances. Consumers who are dissatisfied with their bank – or who think they could get better service somewhere else – may be more inclined to make a change.
But what determines a better financial institution? In its annual survey, J.D. Power found that overall satisfaction among bank customers is declining, especially among younger consumers.
Bank customers under age 40 and who have the highest levels of education, highest income growth potential and are arguably the most desirable customer segment in the banking industry, appear to be the least satisfied. The survey found that overall, satisfaction with banks is down four points from 2021 and has fallen nine points since 2020.
Paul McAdam, senior director of banking services at J.D. Power, says banks appear to be falling short of expectations when it comes to branch service, new customer onboarding and resolving customer complaints.
“As a result, we’re seeing young, well-educated, high-income customers driving a steady decrease in customer satisfaction,” McAdam said. “This is a clear warning sign for banks because key metrics like intent to reuse the brand and customer perception of having a relationship with the brand are also in decline, suggesting a future erosion of new business these customers will bring to their banks.”
While rankings tend to be lower for all banking institutions, three are holding onto customer support. Capital One ranked highest for a third consecutive year with an overall satisfaction score of 694, on a 1,000-point scale. Chase was second with a score of 678 and TD Bank ranked third with a score of 663.
What ConsumerAffairs reviewers say
We decided to find out how ConsumerAffairs reviewers view the service they receive from banks. We not only looked at verified reviews of those three institutions in the J.D. Power survey top three but also included Bank of America and Wells Fargo, two major banks providing consumer banking services.
The results were somewhat surprising. Among ConsumerAffairs reviewers, Capital One, a perennial favorite, finished at the bottom, though not by much. Bank of America, which didn’t show up in J.D. Power’s top three, led the pack.
Here’s how the five banks rank with ConsumerAffairs reviewers, based on a five-star review system:
Bank of America 4-stars
TD Bank 3.8-stars
Wells Fargo 3.8-stars
Capital One 3.7-stars
Customer service, credit cards, disputes
Capital One suffered among ConsumerAffairs reviewers who cited different issues, including customer service, problems with credit cards, and the dispute process. Many of the low ratings were posted in recent months.
But David, of New Orleans, is mostly satisfied with Capital One and gave the bank a five-star rating in August.
“I've had no negative experiences and I find that customer service goes above and beyond,” David wrote in a ConsumerAffairs review. “If you're deciding which bank to go with for a checking account, do yourself a favor and pick Capital One.”
The J.D. Power study, now in its sixth year, measures the customer experience with all retail bank product lines for nine national banks in the United States. It evaluates bank customer experience across seven factors: trust; people; account offerings; allowing customers to bank how and when they want; saving time and money; digital channels; and resolving problems or complaints.