TROY, Mich.—There is one type of feature above all others that is proving to be the “key” to standout customer engagement and customer satisfaction when it comes to mobile apps and websites, according to a new report from J.D. Power.
The analysis also includes one finding about community banks that could likely also be applied to credit unions.
“…Many U.S. banks and credit card providers have mastered the basics of digital transaction management and are now turning their attention to more advanced ‘super tools’,” J.D. Power said. According to a series of recent studies of bank and credit card mobile app and online users by the company, digital features focused on personal financial management have become the keys to standout customer engagement and customer satisfaction, but they’ve also “introduced a new set of challenges.”
The Studies
The studies—J.D. Power 2023 U.S. Banking Mobile App Satisfaction Study, 2023 U.S. Online Banking Satisfaction Study, 2023 U.S. Credit Card Mobile App Satisfaction Study, and 2023 U.S. Online Credit Card Satisfaction Study—track overall customer satisfaction with banking and credit card providers. digital offerings, according to the company.
“As apps and online tools become more sophisticated and customers grow increasingly comfortable using advanced features, providers that get their digital formulas right can position themselves as the hub of their customers’ financial lives,” said Jennifer White, senior director of banking and payments intelligence at J.D. Power, in a statement accompanying release of the findings. “Many banks and credit card providers clearly recognize this potential and have focused heavily on new digital tools related to personal financial management, but the results have been uneven thus far. While some providers are really elevating their customers’ digital experiences, others are struggling to get past basic transactional features.”
Key Findings
According to J.D. Power, some key findings of the 2023 studies include:
- Basic transactional tools consistently perform better than more advanced features. “Banks and credit card mobile apps and websites are producing significantly higher overall satisfaction scores for basic transactional tools, such as account transfer, bill pay, mobile check deposit and peer-to-peer (P2P) lending,” J.D. Power said. “When it comes to more advanced personal financial management tools, such as spending analysis and budgeting tools, many providers struggle to connect with customers.”
- Personal financial management tools drive satisfaction—when they are used. “When banking app customers actively engage with three or more personal financial management tools, such as credit score monitoring, spending analysis and budgeting tools, overall satisfaction scores rise 127 points vs. when these tools are not offered. The first hurdle to lifting satisfaction with these tools is garnering wider tool use.”
- Virtual assistants do heavy lifting on adoption. “Customers who use a virtual assistant provided on their banking app are four times more likely to use personal financial management tools.”
- Regional banks struggle to compete. “Among banking apps, national banks perform considerably higher in customer satisfaction than regional banks. Regional banks also show a significantly wider range of performance between top- and bottom-ranked providers,” J.D. Power said.
Study Rankings
Bank of America ranks highest in banking mobile app satisfaction among national banks, with a score of 710 (on a 1,000-point scale), J.D. Power reported. Capital One (691) ranks second and Chase (690) ranks third.
Other findings:
- Capital One ranks highest in online banking satisfaction among national banks for a second consecutive year, with a score of 669. TD Bank (655) ranks second, while Chase (652) and PNC (652) rank third in a tie.
- Bank of America ranks highest in credit card mobile app satisfaction, with a score of 706. American Express (699) ranks second and Capital One (696) ranks third,
- Discover ranks highest in online credit card satisfaction for a second consecutive year, with a score of 676. Chase (667) ranks second and Capital One (666) ranks third.
- Huntington ranks highest in banking mobile app satisfaction among regional banks for a fifth consecutive year, with a score of 651. Santander (645) ranks second and KeyBank (635) ranks third.
- KeyBank ranks highest in online banking satisfaction among regional banks, with a score of 658. Bank of the West (651) ranks second and Regions Bank (650) ranks third.
For additional information, go here.
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