Banking client satisfaction climbs, with credit unions registering a more significant rise according to J.D. Power's latest study

Banking client satisfaction climbs, with credit unions registering a more significant rise according to J.D. Power's latest study

Revamped Rundown

• Customer satisfaction soars at banks, with J.D. Power's latest study shining a positive light.
• Credit unions reign supreme, boasting higher customer satisfaction scores than their banking counterparts.
• However, one-third of credit union members under 40 are contemplating leaving due to irritating fees.

In a world where customer satisfaction is king, two newly released J.D. Power studies paint a promising picture: The J.D. Power 2025 U.S. Retail Banking Satisfaction Study and the J.D. Power 2025 U.S. Credit Union Satisfaction Study.

Banks are seeing a boost in customer satisfaction, with scores up 11 points to 655 (on a 1,000-point scale). According to Jennifer White, senior director of banking and payments intelligence at J.D. Power, "Banks have stepped up their game, delivering resources to help customers navigate a tough economic landscape."

She goes on to say that banks are now making meaningful efforts to help customers understand fees, resolve issues promptly, and provide additional personal financial management tools.

Credit unions, on the other hand, have higher levels of overall satisfaction compared to banks.

Highlights from the Studies

Here are some interesting findings from J.D. Power's 20th U.S. Retail Banking Satisfaction Study and J.D. Power's 2025 U.S. Credit Union Satisfaction Study:

• Banks Improving Performance: A higher percentage of customers believe their primary bank supports them in difficult times.
• Credit Unions Street Ahead: Credit unions score significantly higher on overall satisfaction compared to the average bank.
• Bank Customers Getting Smarter: Bank customers who comprehend their bank's fee structure have increased by 5%.
• Areas for Improvement: Debit cards, unauthorized account activity, fraud, and interest rate on deposit products contribute to a decrease in problem resolution satisfaction.

Fees Pushing Some Members Out

A troubling statistic lies within the credit union sector: nearly 1 out of 3 members under 40 plan to ditch their credit union due to vexing fees.

To steer clear of most fees at banks and credit unions, consider the following tips:

• No Monthly Service Fees: Nab no-frills accounts by opting for online-only banks or those that offer free checking accounts. These may require maintaining a minimum account balance through direct deposit.
• Avoid Overdraft Fees: Avoid those pesky overdraft fees by opting for banks without them or, for those with a history of overdrafts, consider fee-free banks with reasonable policies. Streamline accounts, and stay on top of transactions to avoid overdrawing.
• ATM Fees: Select banks with extensive ATM networks that cover your needs, or banks that reimburse fees for using out-of-network ATMs.

Champions of Satisfaction

Banks triumphing in customer satisfaction by state or region, courtesy of J.D. Power's recently released U.S. Retail Banking Satisfaction Study are as follows:

• California: Chase
• Florida: Fifth Third Bank and TD Bank (tied)
• Illinois: Wintrust Community Banks
• Lower Midwest Region: BancFirst
• Mid-Atlantic Region: Capital One
• New England Region: Bangor Savings Bank
• North Central Region: Centier Bank
• Northwest Region: Banner Bank
• New York Tri-State Region: Liberty Bank
• Pennsylvania: Chase
• South Central Region: Capital One
• Southeast Region: United Community Bank
• Southwest Region: FirstBank
• Texas: Frost Bank
• Upper Midwest Region: Gate City Bank

Credit unions glowing in member satisfaction include:

• SchoolsFirst Federal Credit Union
• Idaho Central Credit Union
• Navy Federal Credit Union

Enhancing Customer Satisfaction

Banks and credit unions can amplify customer satisfaction by offering:

• 24/7 Customer Service: Accessibility is key, so providing support around the clock becomes essential.
• Well-Staffed Branches: Adequately manned branches ensure prompt service and a pleasant experience.
• Innovative Digital Banking Services: Leading-edge technology lures the tech-savvy, enhancing the overall banking experience.

Customer satisfaction is a journey, not a destination. Banks and credit unions must focus on continually improving their services and training employees to meet ever-evolving customer needs.

If you're contemplating a switch to a new banking institution, research, compare, and assess each bank's offerings and services. Factors like fees, interest rates, digital tools, and customer service should all be taken into account. With a little homework and savvy decision-making, you're on your way to finding the perfect banking partner!

• In the J.D. Power 2025 U.S. Retail Banking Satisfaction Study, banks have seen an increase in customer satisfaction, with scores averaging 655, thanks to banks delivering resources to help customers navigate tough economic periods and offering personal financial management tools.
• Among credit unions, scores for overall satisfaction are higher compared to banks, but a concerning trend shows nearly one-third of members under 40 planning to leave due to irritating fees.
• For those seeking to avoid banking fees, choosing banks and credit unions with no monthly service fees, no overdraft fees, and extensive ATM networks can help avoid such charges.
• Banks and credit unions can boost customer satisfaction by offering 24/7 customer service, well-staffed branches, and innovative digital banking services, while continually improving their services and training employees to meet changing customer needs.

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