JPMorgan Chase & Co. (JPM), Toronto-Dominion Bank (USA) (TD) & More: J.D. Power and Associates Ranks the Banks

J.D. Power and Associates released its eight annual U.S. Retail Banking Satisfaction Study last week, and results point to greater customer satisfaction at banks of all sizes. Over 50,000 customers across the country were surveyed regarding their banking experiences, with each bank ranked by region based on overall satisfaction. The top performing banks per region are:

Region Award Recipient Overall Satisfaction Score*
California Rabobank 825
Florida Toronto-Dominion Bank (USA) (NYSE:TD) Bank 803
Mid-Atlantic Beneficial Mutual Bancorp 839
Midwest
JPMorgan Chase & Co.

(NYSE:JPM)

799
New England Bangor Savings Bank 831
North Central Huntington Bancshares (NASDAQ:HBAN) 814
Northwest Banner (NASDAQ:BANR) Corporation 817
South Central Arvest Bank 820
Southeast First Citizens Bancorp 836
Southwest Arvest Bank 819
Texas Cullen/Frost Bankers 855

Source: J.D. Power and Associates 2013 U.S. Retail Banking Satisfaction Study. *out of 1,000.

Inside the results
Big banks, defined as the six largest financial institutions based on total deposits, saw the largest increase in satisfaction from last year’s results. Traditionally, big banks have had an advantage over smaller banks when it comes to branch availability, but they often trailed the smaller banks when it came to listening to what customers actually wanted. Senior director of banking at J.D. Power and Associates Jim Miller stated that “many of the big banks have made great strides in listening to what customers are asking for,” including communicating better about fees.

New or increased fees often have a negative impact on bank satisfaction. With bank customers paying $32 billion in overdraft fees during 2012, it is easy to see why fees can be such a contentious issue. Nevertheless, the study found that fees have begun to stabilize, and 33% of customers surveyed stated they “completely” understand the fee structure of their bank, which was up from 26% the year before.

JPMorgan Chase & Co. (NYSE:JPM)

Furthermore, while personal service at a branch cannot be completely discounted, the study also found that the numbers of online, ATM and mobile banking transactions are increasing, particularly in mobile banking. Usage in this area increased to 17% — up from 11% the year before — and the average number of transactions increased nearly 76%. The study concluded that successful banks are not “pushing customers out of the branch,” but instead providing tools that make banking more convenient.

What it means for investors
Simply appearing as a “winner” does not make the publicly traded banks on this list great investments, nor should their appearance be completely ignored. It should simply be another piece of information to consider when looking at these banks as investments. A satisfied customer base could potentially lead to increased profits down the road, especially if and when a customer expands his or her need of additional banking products. For example, a person with checking and savings account at Huntington Bank is more likely to get additional banking products — a mortgage or CD, perhaps — should his experience with the bank already be satisfactory.

The article J.D. Power and Associates Ranks the Banks: The Winners originally appeared on Fool.com is written by Robert Eberhard.

Fool contributor Robert Eberhard has no position in any stocks mentioned. The Motley Fool owns shares of Huntington Bancshares and JPMorgan Chase.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!