Banks & CUs Now Even in Consumer Satisfaction: ACSI
Credit unions have witnessed a dip in customer satisfaction of 1.2% year over year.
Banks have caught up to credit unions in consumer satisfaction for the first time in 10 years, according to the American Customer Satisfaction Index, a national standard for customer satisfaction.
This sector — which includes banks, credit unions, health insurance, property and casualty insurance, life insurance, internet investment services, and financial advisors — saw a 1.4% bump in customer satisfaction to an ACSI score of 78.3 (on a 0 to 100 scale), according to the Ann Arbor, Mich.-based ACSI’s Finance and Insurance Report 2018. Customer satisfaction within this sector overall is the highest it’s been in 24 years.
Credit unions and banks both had an ACSI score of 81, yet the former is trending in the wrong direction. Credit unions see a dip in customer satisfaction of 1.2% year over year. Banks, on the other hand, remain unchanged.
“The 2008 financial crisis was a boon for credit union membership,” David VanAmburg, Managing Director at the ACSI said. “Many customers, fed up with big banks, took their business to credit unions where they received better, more individually tailored service. But with the economy much improved, there’s less incentive to join credit unions – particularly if they no longer provide higher levels of satisfaction than banks do.”
Credit unions do offer better in-person customer service than banks, but not by much—credit unions scored an 89 while banks scored 88. Credit unions also led banks in speed of service at branches (88 to 85) and call center satisfaction (84 to 81). However, banking mobile apps are superior in quality (86 to 85) and more reliable (85 to 83).
“Digital is everything right now, and it’s helped banks close the gap,” VanAmburg held. “With the boom in mobile banking apps, customers don’t even have to go into branches. Depositing checks or applying for a loan through an app is more appealing than the charm of the old-school, small-town customer service offered by credit unions.”
Credit unions can improve customer satisfaction by providing more financial services, making it easier to open and change accounts, and offering more competitive interest rates.
According to the index, while banks stand steady overall, national banks dropped 1.3% to remain at the bottom of banking sector with an ACSI score of 77.
Regional and community banks led the category with an 84, despite seeing a 1.2% dip in customer satisfaction. These banks outperform national and super-regional banks in nearly every area of the customer experience.
Chase emerged as the highest-rated national bank after a 1% increase to a score of 80. Chase received high ratings from its customers for its mobile banking app and its easy-to-access brick-and-mortar locations and ATMs. Former category leader Citibank came in second among national banks after falling 2% to 79. Bank of America fell below the national bank average following a 1% decrease to 76. Wells Fargo stayed in last place with an ACSI score of 74, the same as last year.
Super-regional banks are second among banks with an ACSI score of 79 that is steady for a third year. Within this category, Capital One and SunTrust Bank distinguished themselves, each experiencing a 1% increase to 81. TD Bank remained at 80, while Regions Bank dropped 2% into a three-way tie with U.S. Bank and BB&T (each down 1%) at 79.
Citizens Bank moved up 1% to tie PNC Bank (unchanged) at 78. Despite ranking second to last, KeyBank rose 3% to 77, the biggest increase among super-regional banks. Last place: Fifth Third Bank, which could stand to improve its interest rates, fell 1% to 75.
After two years of improvement, customer satisfaction with health insurance is stagnant with an ACSI score of 73.
The ACSI Finance and Insurance Report 2018 is based on interviews with 25,555 customers contacted between October 2, 2017, and September 26, 2018.