According to JD Power, online banking is the preferred transaction method among banking customers. One reason is that online banking is faster than visiting a bank and standing in line to see a bank teller.
The inaugural study focused on performance among the nation?s largest banks via two points of view:
1) Customer satisfaction
2) Customer commitment
Transactions had the greatest impact on a customer?s overall satisfaction with their bank. The average online transaction takes less than three minutes to complete, compared to over seven minutes of combined wait and transaction time with a branch teller.
In-person branch transactions are conducted more frequently and are next highest in satisfaction, followed by ATM use.
Products once offering only via brick and mortar banks are now offered through their online services, such as free checking.
90 percent of banking customers stated they had free checking, and 94 percent of banks offer free online banking and free debit cards.
Regarding customer commitment, customer satisfaction is a major aspect influencing customer commitment to the bank, in addition to brand image and a customer's propensity toward loyalty.
The study finds a strong positive relationship between customer commitment levels and the number of revenue generating banking products a customer utilizes, as well as the number of times a customer recommends the bank to others. Customers with commitment levels in the top 25 percent use an average of 3.3 banking services, compared to 2.5 for those in the bottom 25 percent. Fifty-five percent of highly committed customers also have loans with their primary bank and make 6.6 recommendations of the bank to others. Among those with low commitment, just 31 percent have loans with the bank, and they average fewer than one recommendation. Overall, the retail banking industry enjoys a commitment level of 28 percent, compared to 13 percent, on average, in other industries measured by J.D. Power and Associates.
Commerce Bank, Downey Savings and Loan and USAA are among banks that record particularly high levels of both customer satisfaction and customer commitment.
The 2006 Retail Banking Satisfaction Study is based on responses from 12,904 households regarding their experiences with their primary banking provider.
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