The banking sector faces unprecedented challenges in an era marked by economic uncertainty and shifting consumer priorities. In a surprising twist, retail bank customer satisfaction has surged, defying the gloomy economic forecast that has seen consumer financial health, total deposits, and household income take a hit.
The latest J.D. Power 2025 U.S. Retail Banking Satisfaction Study reveals that banks are winning over customers with enhanced support and personalised engagement strategies, lifting overall satisfaction to 655 on a 1,000-point scale, an impressive 11-point jump from last year.
The study reveals significant improvements in customer loyalty, advocacy, and problem resolution. Year-over-year Net Promoter Scores have climbed by three points, with an increased likelihood of customers sticking with their banks, up two percentage points for those who “definitely will not switch” and three percentage points for those who “definitely will reuse” their bank. Notably, customer sentiment that their primary bank “completely supports me in challenging times” has risen by four percentage points, signaling a shift towards more meaningful customer relationships.
Tackling unexpected fees
Banks have also made headway in addressing a longstanding pain point: unexpected fees. As these charges have historically been a major source of dissatisfaction, financial institutions are now proactively educating customers about their fee structures.
This year, the percentage of customers who fully understand their bank’s fees has increased by five points, while those who feel their bank has effectively communicated how to avoid these fees has risen by four points.
Moreover, when it comes to problem resolution, banks are showing marked improvement. Among customers who reported issues like fraud or incorrect charges, a solid 66% had their problems resolved within one day—up from 62% last year.
Additionally, 59% found their issues addressed with just one contact, compared to 56% previously. A remarkable 85% of customers who encountered problems reported resolution, contributing to a staggering 246-point boost in overall satisfaction scores.
The growing awareness of supportive services is another factor driving satisfaction. Customers now have greater access to tools for financial health, including credit score monitoring and budgeting resources. Those who are aware of these tools reported overall satisfaction scores that are, on average, 96 points higher than those who are not.