By Ray Birch
TROY, Mich.—Big banks have spent years trying to buy their way out of a reputation problem: higher fees, lower trust, and “good luck reaching a human.” Now, new J.D. Power data suggest they’re finally moving the needle—three straight years of improving satisfaction scores—by getting more disciplined about everyday pain points that matter to consumers: clearer fee communication, better digital experiences, and stronger perceptions that the bank will protect customers from fraud.
That’s not just a branding win. It’s a direct challenge to credit unions’ historic home-field advantages—especially trust and fee fairness. National banks are strengthening trust while improving account offerings and digital channels, and overall satisfaction among national bank customers rose eight points to 666 on J.D. Power’s 1,000-point scale.
If the largest institutions can continue to close those perception gaps, credit unions may find they have to work harder—and market smarter—to keep their experience edge from being treated as a given, J.D. Power says.
Why Bank Satisfaction Is Rising
Paul McAdam, senior director of banking and payments intelligence at J.D. Power, points to broad-based improvement where customers “touch” their bank most often: deposits and cards, mobile and online banking, ATMs, and even branches. Satisfaction is improving with the reasonableness of fees on deposit accounts, along with better experiences tied to checking accounts, credit cards, and certificates of deposit.
The more important shift, however, may be less about fee levels than about how fees are experienced. Fewer surprises, clearer explanations, and more real-time visibility are reshaping customer perceptions. McAdam describes the approach simply: reduce negative surprises. Banks are doing a better job explaining fees, helping customers understand how to avoid them, and using alerts and tools to keep consumers informed.
Banks are also seeing gains from deeper engagement with digital “helpers” that act as experience multipliers. Customers who use virtual assistants show higher satisfaction and stronger advocacy scores and tend to understand fee structures better, receive more alerts, and use budgeting and credit tools more frequently.
The result is fewer avoidable problems, faster answers, and a stronger sense that the bank is actively looking out for the customer.
Fraud protection is another powerful driver. McAdam said customers increasingly feel their banks are protecting them and securing their information—even as fraud incidents continue to rise across credit cards, P2P payments, and checking accounts.
In an era when scams dominate headlines and personal anxiety, that feeling of protection translates directly into higher trust, McAdam said.
The Uncomfortable Credit Union Angle
McAdam does not shy away from the implication: Banks’ improvements in trust and perceived fee fairness are, in fact, creeping into territory long associated with credit unions.
That matters because trust and fairness are not just selling points for credit unions—they are the emotional core of the cooperative model.
J.D. Power’s comparative data highlight the stakes. Credit unions still lead banks in overall satisfaction by a wide margin—69 points on the 1,000-point scale—but that lead has narrowed from 76 points a year earlier.
The slippage is most pronounced in products and fees. Credit unions’ lead over retail banks declined by 14 points in overall experience with products and fees, including a 20-point narrowing on fee reasonableness and a 25-point narrowing on deposit-rate competitiveness.
Credit unions still retain large advantages—84 points on fee reasonableness and 93 points on deposit-rate competitiveness—but the direction of travel is what should grab CUs’ attention.
The Digital Dividend—And The Digital Warning
Banks’ satisfaction gains are not evenly distributed across age groups, creating both a lesson and an opening for credit unions.
Younger customers are driving much of the improvement. Satisfaction among national bank customers under age 65 rose sharply, while scores among customers 65 and older were flat. Banks are being rewarded for delivering easy mobile experiences, fast self-service, and tools that save time and money.
At the same time, that digital focus is creating cracks with older customers—particularly when interactions require human assistance. Satisfaction among customers 65 and older is slipping in journeys involving customer service, problem resolution, new account opening, and receiving advice.
McAdam characterized this as a warning sign for large banks. Older customers often hold larger balances and more products, and they are increasingly turning to credit unions for advice, alongside retirement-plan providers. Closing that gap, he notes, will require greater empathy, patience, and more customized guidance for seniors.
For credit unions, the strategic fork is clear. If banks continue gaining ground on trust and fee fairness, credit unions can no longer assume those virtues will be automatically credited to them—especially by younger consumers who judge institutions by app quality and issue resolution speed, McAdam noted. At the same time, if banks’ digital-first strategies leave seniors underserved, credit unions have an opportunity to deepen loyalty by blending high-touch advice with modern digital delivery.