There’s no doubt the U.S. banking industry is under fire. The recent spate of government bailouts, takeovers and closures has consumers across the nation anxious, wondering which bank might be next and, more importantly, if their own money is safe. Unfortunately for the banks, things aren’t getting any easier as consumers continue to voice their dissatisfaction. To make matters worse, customer commitment to retail banks continues to fade, driven primarily by declines in both satisfaction and brand image, according to a new study by J.D. Power and Associates. The biggest gripe among bank customers? Higher fees. In fact, one out of three customers who switched banks in the past 12 months did so because of increased fees. In particular, overdraft fees increased most on average, rising from $30 in 2008 to $35 in 2009.The J.D. Power and Associates 2009 Retail Banking Satisfaction StudySM analyzes customer satisfaction with the retail banking experience across six factors:
- transactions;
- account statements;
- account initiation/product offerings;
- convenience;
- fees;
- problem resolution.
A retail bank is one whose primary customers are consumers and small businesses, accessed primarily through branches and ATMs, as opposed to commercial banks that primarily focus on larger businesses and corporate relationships. The study, now in its fourth year, finds that only 35 percent of customers are highly committed to their retail bank in 2009, compared with 37 percent in 2008.
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