Facing rising household costs, a looming recession and record levels of debt, 59% of U.S. bank customers expect help to improve their financial health, but most feel that banks aren’t delivering, according to J.D. Power’s 2022 U.S. Retail Banking Advice Satisfaction Study released today.
Satisfaction with the advice and guidance provided by retail banks has fallen to 601 (on a 1,000-point scale), down 30 points from 2021, the study reported. The largest declines came from customer perceptions of the frequency of guidance about financial products and the quality of advice. “The tools banks have at their disposal aren’t always being used or, when they are, they are not used effectively,” a J.D. Power representative said.
Customer recall of specific advice content was down, according to the survey. Nearly two-thirds reported receiving advice two or more times in categories including financial planning; investment and retirement; savings, tips and information; or banking services. This was down from 70% a year ago. The only category not to see a decline was borrowing and housing. When two or more instances of advice were recalled by customers, overall satisfaction increased 52 points. Advice tailored to meet customers’ specific needs is important, the survey noted. Customers who receive personalized advice just once have higher satisfaction (697) than those who receive generic advice on five or more topics (583).
According to the survey, Capital One earned the highest marks for retail banking advice with a score of 629. Citibank was second with 620 followed by Bank of America at 618. Top-performing banks in the banking financial health support index (listed alphabetically) were: Bank of America, Capital One, Chase, Huntington and U.S. Bank.