| 
iStock illustration
Despite the self-service nature of online-only checking and savings accounts, access to customer service channels, including phone and email, helped drive satisfaction with these direct bank accounts, according to a new study from J.D. Power.
The J.D. Power 2022 U.S. Direct Banking Satisfaction Study found that personal relationships through digital channels and superior customer service have helped drive customer satisfaction with online-only accounts at Charles Schwab, Discover and American Express, J.D. Power said in a statement.
“Today, 27 percent of banking customers in America use an online-only bank,” Paul McAdam, senior director of banking and payments intelligence at J.D. Power, said in the statement. “As so much of our lives continue to shift to digitally based providers, direct banks have been in prime position to gain market share and mindshare by delivering around-the-clock access, along with products that have attractive fee structures and interest rates. Increasingly, we’re seeing the top-performing brands get the personalization formula right by helping customers reduce banking fees and grow their money, and by showing that they’re available to help customers in challenging financial times.”
The study measured overall satisfaction with the direct bank and neobank checking, savings or money market products based on seven factors: customer service, ease of moving money, helps grow money, level of trust, managing account via mobile app, managing account via the website, and reduce banking fees.
Most customers were satisfied with online-only accounts, the study found, with 88 percent of checking and savings customers saying their direct bank was easy to do business with and 85 percent saying their accounts did not have hidden fees. Only 6 percent of checking and savings customers said their direct bank did not put the customer’s interests first.
Large companies dominated the top of the rankings. Charles Schwab Bank and Discover Bank scored the highest for checking accounts with 715 points on a 1,000-point scale, followed by Ally Bank with a score of 709. The average score was 701. American Express’ score of 718 was highest for savings accounts, with Discover Bank second at 717. The average was 704 points.
Customer service by phone, online chat or email was a key driver of customer satisfaction, the study found. More than half of checking and savings customers, 59 percent, said they never had a problem or complaint with their direct bank. Among customers who did have a problem in the past 12 months, 83 percent said it was convenient to reach customer service and 88 percent said their most recent problem was resolved.
Online-only customers also wanted support during difficult economic times. The study found that the perception of complete support in challenging times had the greatest influence on overall direct bank customer satisfaction. When direct banks met that criteria, satisfaction among checking account customers rose 204 points and satisfaction among savings account customers rose 186 points.
The study also found that neobanks, which do not have federal banking charters, continued to gain in popularity with customers who tend to be younger, less financially secure and more sensitive to banking fees.
“Overall, neobanks lag direct banks across most key factors evaluated in the study,” J.D. Power said. “However, the areas in which neobanks outperform direct banks are related to personalization and providing innovative technology.”
