JPMorgan Chase ranks No. 1 in customer satisfaction: J.D. Power

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JPMorgan Chase scored the highest marks in a J.D. Power study that evaluated customer satisfaction at the nation’s six largest retail banks.

Last year’s first-place finisher, PNC Financial Services Group, came in second this year. The rest of the rankings were unchanged from 2017. U.S. Bancorp finished third, followed by Bank of America, Wells Fargo and Citigroup.

The study was based on surveys of customers who use one of the banks as their primary financial institution. The six banks in the study account for 44% of total domestic deposits, according to Costa Mesa, Calif.-based J.D. Power.

While JPMorgan Chase's score of 854, on a 1,000-point scale was unchanged from a year earlier, the other five banks all scored lower in 2018 than they last year.

Bob Neuhaus, senior director at J.D. Power, attributed the lower scores to the ongoing industrywide transition from a branch-based service model to one that is more focused on digital channels. He indicated that banks would be wise not to discourage customers from visiting branches, at least for now.

“Customers who become digital-only are becoming lower satisfaction than those who have the right blend,” Neuhaus said.

In a separate J.D. Power study that compares customer satisfaction at big banks and midsize banks, the smaller institutions are scoring higher, according to Neuhaus. And their advantage has widened over the last year.

Neuhaus said that the big banks’ faster embrace of digital channels likely accounts for their lagging customer satisfaction scores.

JPMorgan Chase is a leader in digital capabilities, but the $2.6 trillion-asset bank is also investing in its branch network. The firm plans to open approximately 400 locations across the country over five years, primarily in markets where it currently has little to no retail presence. Bank of America and U.S. Bancorp are also planning branch expansions in select markets.

JPMorgan Chase has an average of 199 branches in each state which it operates, the most among the six biggest retail banks, according to J.D. Power.

“It’s the biggest compliment when customers tell us we’re doing a good job for them,” Gordon Smith, CEO of consumer and community banking at JPMorgan, said in an email.

“We will continue to invest in our branches, our people and our digital capability to make sure we are always providing our customers with the best experience possible.”