Dive Brief:
- Nearly nine in 10 customers are satisfied with their primary bank, according to an American Bankers Association survey of over 4,400 adults conducted by Morning Consult. The ABA, a trade association for banks, announced the results at its Washington Summit, held in Washington, Tuesday.
- An overwhelming 96% approve of their bank’s customer service, with only 4% considering their bank’s customer service poor, the survey found.
- “This national survey demonstrates that banks across the country continue to meet their customers’ needs and exceed their expectations in today’s highly competitive financial services marketplace,” Rob Nichols, ABA president and CEO, said in a prepared statement.
Dive Insight:
The ABA released its survey at the same time the banking industry is fighting regulations from the Consumer Financial Protection Bureau and a proposed bill meant to expand consumer’s credit card choices. The association pointed to its findings as evidence that the proposed regulations go too far.
“As the CFPB continues to make misleading statements about the competitiveness and fairness of our industry, this new data shows the disconnect between the bureau and the consumers they supposedly represent,” Nichols said in a prepared statement.
In February, the CFPB said a lack of competition among the largest credit card companies likely contributes to higher interest rates for consumers, which could mean the difference of $400 to $500 in annual savings for the average consumer.
The CFPB isn’t alone in looking to regulate credit card companies. Democrat Sen. Dick Durbin and Republican Sen. Roger Marshall proposed the Credit Card Competition Act to encourage more competition to protect consumers.
After union endorsements last fall, the two senators urged Congress to pass their bill, stating, “let’s break up the sweetheart deal that Visa, Mastercard and the big banks exploit and let’s fight for hardworking Americans paying the price for their price-gouging schemes.”
More than 4 in 5 consumers somewhat or strongly agree they have multiple options when selecting products and services including bank accounts, loans and credit cards, according to the ABA survey.
The ABA suggested consumers would lose credit card rewards should the government pass regulatory changes, asking consumers: “How disappointed would you be to lose the rewards program on your card(s) due to government regulatory changes?” Over a third of respondents said they would be very disappointed, and a quarter said they would be somewhat disappointed.
The ABA also proposed that regulation would be burdensome on banks and restrict lending.
The ABA’s customer satisfaction findings are in line with a February EPAM Continuum survey that found more than 4 in 5 customers are satisfied with their banks. Good customer service was a leading reason for customer satisfaction.
