Oct. 1, 2019-
Big banks still have poor reputations many years after the Great Recession, according to a major study.
Nevertheless, the report shows big banks’ improvements in innovation and customer service have propelled them to bigger market shares, especially with under-40 consumers.
That’s among the findings in a 2019 J.D. Power customer satisfaction study, “The U.S. Retail Banking Satisfaction Study.”
Consumers were surveyed on six factors:
- Account opening
- Communication and advice
- Channel activities
- Problem resolution
- Products and fees
Comparing 2019 with 2009
In 2009, the research firm says “the 10 largest U.S. retail banks managed 39 percent of industry deposits and 26 percent of branch bank offices.”
This year, big banks have 48 percent of deposits and 31 percent of the branches.
Mobile banking was negligible in 2009.
In 2019, mobile banking is popular with 53 percent of customers. But satisfaction scores have dramatically declined for midsize banks with customers under 40.
Preferred banks by region:
- California Region: Chase
- Florida Region: Chase
- Mid-Atlantic Region: Union Bank & Trust
- Midwest Region: Wintrust Community Bank
- New England Region: Bangor Savings Bank
- North Central Region: City National Bank
- Northwest Region: Banner Bank
- South Central Region: Arvest Bank
- Southeast Region: TD Bank
- Southwest Region: MidFirst Bank
- Texas Region: Frost Bank
J.D. Power says 84,000 retail banking customers of more than 200 banks were surveyed. Big banks are defined as institutions with more than $250 billion in domestic deposits. Regional banks have $55 billion to $250 billion in domestic deposits. Midsize Banks have less than $55 billion in domestic deposits.
To win, banks must eliminate their trust gaps with consumers with strong branding, innovative marketing and technology, and perceive exemplary customer service.
Win with eight strategies:
- Management should develop objectives and a complete, action-oriented strategic plan covering all goals from deposits to loans. Profitability should not heavily depend on interest rates and fees.
- Value propositions should be easy-to-communicate and understand.
- Using digital and traditional media, the customer-service and marketing plans should create a dominant top-of-mind awareness and include cross-promotion strategies with benchmarks to obtain the desired return on investment.
- For long-term growth and sustainability, the digital focus should include innovative mobile marketing and customer-experience strategies to attract and retain young people.
- Throughout the institution, it’s necessary to develop a consistent branding strategy – for positive consumer experiences – implemented by tellers to loan officers.
- Bank customer-experience policies must be published in a formal manual.
- Employees must be fully trained to understand how to build trust, the meaning of exemplary customer service and in the cross-promotion of products and services in synchronization with the branding.
- Marketing should have a seat at the senior-management conference-room table along with human resources, lending, business development, finance, compliance and information technology.
From the Coach’s Corner, related strategies:
Sales Success: Flawless ‘Brand Personality Appeal’ Is Vital – How you can gauge your brand’s personality appeal – if it’s suitable to yield great sales. Here’s a checklist of 16 important factors to measure your brand’s personality.
Marketing Checklist – Tips for Growth and Winning – Here are fundamentals in marketing, plus links to additional relevant information.
Improve Your Customer Service the Right Way with Chatbots – By scanning for keywords from a customer’s message — then replying with keywords from a database when they’re off-target — can be annoying to the recipient. Here’s how your chatbot system will enhance your customer service.
Tips for Building Long-Term Client Relationships with Effective Meetings — How are you faring with your clients? Not sure? To be certain you’re doing well, you must ask yourself three key questions.
Banks Have Credibility Issue with Affluent Women, Study – More than half of wealthy women are frustrated with their banks, according to a study.
“No matter how much the boss likes you, if you work in a bank you can’t bring home samples.”