Customer satisfaction with traditional bank and credit card-branded lenders increased four points from last year to 861 while fintech lenders’ overall score declined five points to 852 on a 1,000-point scale, according to a new study by J.D. Power.
The study found that the decline in satisfaction was due to slower application approval times and tighter credit criteria from fintech firms. The consumer lending satisfaction study found that traditional lenders significantly outperformed fintech firms in putting the customer first, providing guidance, providing honest communication and reliable technology.
“After having identical overall satisfaction scores in 2020, the pandemic exposed some holes in the fintech model that caused their customer satisfaction to decline, while traditional bank customers were more satisfied,” the report said.
American Express and Discover ranked highest in a tie at 874 among personal loan lenders in overall customer satisfaction and Citi ranked third at 864. As a whole, the industry averaged a score of 858, according to data from the J.D. Power 2021 U.S. Consumer Lending Satisfaction Study.
