Big banks are regaining ground through technology says JD Power

The financial crisis and housing bust of a decade ago resulted in reputational damage for the global banking industry, but it seems time is a healer.

A new report from J.D. Power shows that the banking industry’s reputation in the US remains below pre-crisis levels but with big banks able to provide customers with the tech solutions they demand, customers are less concerned.

“Looking at the 10-year trend in retail bank customer perceptions, the industry has improved in service quality and provided technology that has made it easier for customers to access and manage their money,” said Paul McAdam, Senior Director, Banking Intelligence at J.D. Power. “Customer satisfaction and convenience have improved, but far too many customers have not re-established the trust and developed the deeper levels of connection required to improve the industry’s reputation.”

For under 40s, the previous bad rep of the big banks is even less of an issue and they consider big to mean better; deposits at the 10 largest US banks have increased from 39% in 2009 to 48% in 2019.

“Looking 10 years into the future, when digital banking will be the norm for nearly all customers, retail banks will be required to be unique by scale or unique by strategy. Personalization of important customer journeys—transactional, advisory and solving problems—will emerge as the ways to elevate customer trust,” said McAdam.

Banks leading for satisfaction

The study measures customer satisfaction with banks in 11 geographic regions. Study results by region are as follows:

California Region: Chase (823)
Florida Region: Chase (847)
Mid-Atlantic Region: Union Bank & Trust (856)
Midwest Region: Wintrust Community Bank (845)
New England Region: Bangor Savings Bank (872)
North Central Region: City National Bank (WV) (842)
Northwest Region: Banner Bank (870)
South Central Region: Arvest Bank (841)
Southeast Region: TD Bank (858)
Southwest Region: MidFirst Bank (859)
Texas Region: Frost Bank (884)