Big Banks Improve Customer Satisfaction Ratings

Big banks have improved in overall customer satisfaction, while midsize banks have declined and regional banks have plateaued, according to the J.D. Power 2016 U.S. Retail Banking Satisfaction Study.

Satisfaction with big banks rises for the sixth consecutive year, driven by a combination of improved digital offerings, more engaged personal interactions and stronger connections with growth segments of the population, while satisfaction with midsize banks has dropped for the first time since 2010.

The 11th annual customer satisfaction study is the longest-running and most in-depth survey of the U.S. retail banking industry, with more than 75,000 customers evaluating various aspects of their banking experience. The study measures satisfaction fees, product offerings and other metrics.

The 2016 U.S. Retail Banking Satisfaction Study is based on responses from more than 75,000 retail banking customers of more than 130 of the largest banks in the United States regarding their experiences with their retail bank.

"Based on their current trajectory, the country's largest retail banking institutions are expected to achieve a substantial lead in overall customer satisfaction vs. midsize and regional banks by 2020," said Jim Miller, senior director of banking at J.D. Power. "This trend puts Midsize banks most at risk. Regulatory costs have made it difficult for them to invest in strategies to compete with larger rivals, and unless they take proactive steps to change course, we expect this to result in consolidation in the Midsize bank marketplace."