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.

Comments
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

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!