April 30--Itasca-based First Midwest Bank has the most satisfied retail customers in the Midwest for the second-straight year, according to J.D. Power.
The study looked at six factors to measure satisfaction: account information; channel activities, including ATMs, branches, call centers, and mobile and online banking; facility, including the convenience and appearance of the branch and ATM network; fees; problem resolution; and product offerings.
First Midwest performed particularly well in product offerings, account information and channel activities, according to the J.D. Power 2015 U.S. Retail Banking Satisfaction Study..
Publicly traded First Midwest received a score of 818 on a 1,000 point scale.
The bank with the second-highest Midwest score was Pittsburgh-based PNC Bank, with 808.
Three other banks recognizable to Chicagoans that received above-average scores, ranging from 803 to 786, respectively, were New York-based Chase, Green Bay-based Associated Bank, and Chicago-based MB Financial Bank.
Chase was tops in retail banking satisfaction in the Midwest in 2013.
Minneapolis-based U.S. Bank's score was average for the Midwest -- 785.
Locally known banks with below-average scores, ranging from 782 to 749, respectively, were: New York-based Citibank, Canadian-owned BMO Harris Bank, Cincinnati-based Fifth Third Bank, San Francisco-based Wells Fargo, Charlotte, N.C.-based Bank of America and Wayzata, Minn.-based TCF Bank.
Citibank's Midwest score fell from 789, but a spokesman said the bank's overall score is the highest it has received. "Still, we know there is work to be done, certainly including in the Midwest, and we will continue to execute our strategy to improve the banking experience," spokesman Andrew Brent said.
While Citi declined in the Midwest, it did indeed improve in three of the five regions it was ranked in, and did improve in all six measures and more than the industry average, J.D. Power confirmed.
Wells Fargo said its most important feedback comes from customers. "We're pleased with the results we continue to see in our internal surveys," spokesman Steve Carlson said. "We are committed to continually improving our customers' experience with us, and we're always looking for ways to apply their input."
BMO Harris Bank said it conducts its "own very robust and thorough internal review of customer satisfaction on a continuous basis."
"The results have been trending in a positive direction, and we expect this positive momentum to continue," BMO Harris Bank spokesman Patrick O'Herlihy said.
Overall nationally, J.D. Power found satisfaction with retail banks is up 5 points to 790. It cited fewer grievances over fees and fewer customers saying they had problems or complaints about their bank.
But consumer satisfaction with mobile banking and ATMs "has declined slightly, raising a red flag about retail banks' approach to technology," the report said.
Fewer customers said they "completely understand mobile" -- 47 percent compared with 57 percent in 2014.
Customer ATM use dropped to 65 percent from 70 percent in 2014. J.D. Power cited the declining use of cash and the ascent of mobile banking, but it also noted that consumers are "less satisfied with the range of services the ATM can perform and with the ease of use of ATMs."
"Success will not be driven by just adding more bells and whistles but by balancing functionality with ease of use and then clearly communicating features and benefits to customers," Jim Miller, J.D. Power senior banking director, said in the report.
J.D. Power also found that about 76 percent of people born after 1995 have visited a branch in the past year, while nearly the same percentage of people born from 1965 to 1994 have visited a branch.
Predictions of the end of free checking were also premature: Only 14 percent of customers told J.D. Power that they paid a monthly service charge over the past year.
The retail banking satisfaction study is based on responses from more than 80,000 customers of more than 130 of the nation's biggest banks. J.D. Power has said it doesn't release its margin of error but uses generally accepted international research methods.
byerak@tribpub.com
