Thu, 24 June 2021 | advice banking
Retail banks are finding the ultimate formula for customer engagement in a service few customers ask for, but many could benefit from: financial advice. According to the J.D. Power 2021 U.S. Retail Banking Advice Satisfaction Study,SM released today, 69% of customers who receive advice from their banks act on it, but just 19% of customers say they are interested in receiving it. These findings are notably important in a challenging economic environment in which fewer than half of retail bank customers are financially healthy and just 38% pass a basic financial literacy test.
The study, now in its fourth year, measures retail banking customer satisfaction with the advice and guidance provided by national and regional banks in the United States. This year, the study has been redesigned to also include a series of measures related to personal financial health and literacy.
“Retail banks fill a critical role in customers’ financial lives and, even though customers may not think to seek financial advice from their bank, they tend to respond extremely well when that advice is proactively offered,” said Paul McAdam, senior director of banking intelligence at J.D. Power. “There is huge opportunity for retail banks to forge deeper relationships by helping customers with things like advice on investment and retirement planning, building savings to cover emergencies and techniques to ensure paying bills on time.”
Following are key findings of the 2021 study:
Study Ranking
Bank of America ranks highest in customer satisfaction with retail banking advice with a score of 673. Citibank (640) ranks second. The industry average is 631.
The 2021 U.S. Retail Banking Advice Satisfaction Study includes responses of 5,491 retail bank customers in the United States who received any advice/guidance from their primary bank regarding relevant products and services or other financial needs in the past 12 months. The study was fielded in March 2021.
Source: J.D. Power