NEW YORK (Credit.com) — Since the end of the recession, many Americans have chosen to reevaluate the way they deal with financial institutions. These days, it seems some are growing more enamored of their banks.
Consumer satisfaction with banks’ checking, savings and loan products rose 2.7% this year, though much of that increase was driven by improvements for smaller community institutions, according to the latest American Customer Satisfaction Survey. The biggest reason for that increase is that rising fees for traditional banking services at larger institutions that were previously free forced many consumers to move to smaller competitors unburdened by heavier federal regulation. As such, many grew happier with their banking situation.
“As more customers move from large banks to smaller banks and credit unions, the overall customer satisfaction level for banks goes up as a matter of mathematics,” says Claes Fornell, ACSI founder and author of a book on how businesses can have more satisfied customers. “As the smaller banks do a better job with customers and therefore attract more of them, customer satisfaction for banks on the whole gets a boost.”For instance, larger banks continued charging customers massive overdraft fees for making missteps with their accounts, and those levies alone cost Americans some $30 billion, the report says. That isn’t even counting the other ways in which banks generate revenues through higher fees.
Not all big banks were subject to a decline in satisfaction, the report says. JPMorgan Chase saw its overall satisfaction index rate climb 6%, to a score of 74, the same level it enjoyed before the recession.
Its competitors, though, mostly saw declines. Wells Fargo dipped 3%, to 71; Citi fell 4%, to 70; and Bank of America slipped 3%, to 66, the lowest rate seen in the past decade. In fact, Bank of America is now the only major bank with a satisfaction rating below where it was before the recession.