As financially vulnerable customers lean on personal loans to consolidate debt and cover unexpected expenses, nonbank lenders are closing the satisfaction gap with traditional banks, according to a new survey by JD Power.
Overall customer satisfaction with personal loan providers was 706 on a 1,000-point scale, up two points from the 2025 study, according to the survey. Speed was a key driver of overall satisfaction. Satisfaction dropped sharply with delays, down 41 points when approval takes more than an hour and down 47 points when funding takes more than one day after approval. Nonbanks lead in speed, with 68% of customers receiving funding within one day vs. 58% at banks.
“Nonbanks are making measurable gains with financially vulnerable customers by meeting their needs for speed, simplicity and certainty, even as overall satisfaction across the market remains relatively unchanged,” said Bruce Gehrke, senior director of wealth and lending intelligence at JD Power. “If banks don’t adapt to those expectations, that opportunity quickly becomes a competitive risk.”
Still, banks maintained an edge, as nonbanks rely heavily on representatives throughout the loan approval process, dragging down satisfaction scores. “Higher reliance on representatives among nonbank customers is driving lower satisfaction at a key moment in the journey, suggesting these customers are less satisfied with the support they receive and diluting some of benefits gained from efficient digital interactions,” according to the survey.
