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 Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

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!