Banks Have Retained Customers Despite Poor Reputation

Despite banks’ long-lasting struggle with poor reputation since the financial crisis, they have found ways to retain customers, especially big banks. According to a recent survey by J.D. Power, only four percent of customers switched their primary bank last year, the lowest amount since the survey started more than a decade ago.

According to the survey, people’s positive perception of retail banks has declined over time, especially the belief that banks are customer-driven. A common complaint is the amount of time it takes for a bank to solve a problem.

Nevertheless, customers have reported higher satisfaction with in-person branch services, online banking, and ATMs over the past 10 years. Mobile banking has also done tremendously well, especially as people have become more familiar with it as a banking option.

In recent years, large banks have been able to innovate and offer a wide array of services, making it a hassle for existing customers to leave. “The industry has improved convenience and driven increased levels of operating efficiency, but a trade-off for banks is a decline in easy interaction, providing advice and strengthening customer relationship.”