Retail banks appear to be less than effective at delivering financial advice to their customers as satisfaction with such services has dropped, with some of the largest — Chase, Wells Fargo and TD Bank — ranking below the industry average, according to a new report.
“The data make it crystal clear: retail bank customers want guidance, but many aren't receiving it. The tools banks have at their disposal aren't always being used or, when they are, they are not used effectively,” Jennifer White, senior director for banking and payments intelligence at J.D. Power, said in a statement.
“Neither banks nor their customers benefit from this dynamic. If banks don't begin to make more progress in making advice content resonate, they could be facing significant attrition risk," she added.
Capital One came in at the top of the rankings, scoring 620 points on a 1,000 point scale, with the industry average at 601 points, J.D. Power says it found in a survey of 5,177 retail bank clients in the U.S. who received any advice or guidance from their primary bank about relevant products and services or other financial needs over the past 12 months. The study was fielded in January and February.
Capital One was followed by Citibank, Bank of America and Fifth Third Bank, all of which scored above average, according to the survey.
Chase, meanwhile, was just below the average, with 598 points, followed by Wells Fargo, Truist and U.S. Bank, J.D. Power says.
TD Bank came in at the bottom of the ranking, with 572 points, according to the survey.
Overall, customer satisfaction with financial advice and guidance offered by national and regional banks slipped 30 points on a 1,000-point scale from a year ago, J.D. Power found.
The company says that the largest declines in satisfaction were related to perceptions of the frequency of advice or guidance about financial products or financial needs and the quality of advice or guidance.
And while 70% of customers in 2021 said they received advice two or more times on financial planning, investment and retirement, savings, tips and information, or banking services, that’s down to 63% in this year’s survey, J.D. Power says.
At the same time, 59% of retail bank customers expect help from their financial institutions in improving their financial well-being, J.D. Power found.
Do you have a news tip you’d like to share with FA-IQ? Email us at firstname.lastname@example.org.