Dive Brief:
- More consumers are looking to their banks for advice as their overall financial health deteriorates, according to a J.D. Power report released Thursday.
- More than one-quarter of bank customers are “very interested” in bank advice or guidance. That number is particularly pronounced among younger generations. More than one-third of customers under the age of 40 are currently seeking advice.
- Customers are most interested in short-term solutions, according to Jennifer White, senior director for banking and payments intelligence at J.D. Power. “We see a shift in consumer thirst for content that is around short-term solutions, things like, ‘Ways to help pay my bills on time?’”
Dive Insight:
As consumers become more anxious about the economy, they’re looking to their financial institutions for guidance, creating an opportunity for banks to build lasting relationships.
Providing financial advice drives trust and in turn satisfaction, according White.
“There's many factors that influence satisfaction, but the factor that has the highest weight in driving customer satisfaction is the level of trust that a customer has in their financial institution,” she told CX Dive.
Trust is driven by several key factors, including a bank’s ability to resolve a customer’s problem, a customer’s confidence they have the account right for their situation, and a bank providing a customer support and guidance during a challenging time.
Customers’ thirst for short-term solutions reflect that increase in vulnerable customers, White said. More than 2 in 5 bank customers are considered financially vulnerable, meaning they have trouble paying their bills on time, are unable to cover living expenses for a minimum of six months and are seeing their credit deteriorate.
The best banks don’t treat guidance as an afterthought and make it available beyond branch locations, according to J.D. Power. Customers are most satisfied with retail banking advice from Bank of America, followed by U.S. Bank and Chase.
“Most of the institutions that are at the top of the list have embedded advice or guidance throughout their ecosystem,” White said. “They're combining in-person experiences with digital engagement.”
Perhaps that’s offering a personal financial management tool or even a banner interruption that educates customers on scams, White said.
But even if customers don’t follow bank advice, the act of offering it grows customer satisfaction.
“No advice results in the lowest overall customer satisfaction,” White said. “Advice that isn't acted on is still higher than that, but advice that is acted on is the highest.”
