JD Power announced Thursday that the company will offer financial health support certification to banks and credit card issuers. Bank of America is the first to receive certification.
“We play a vital role in the lives of our clients, and it’s imperative that we honor that position by providing them with the resources to help them achieve financial well-being in their daily lives,” said Holly O’Neill. , president of retail banking at Bank of America.
According to the press release, the certification examines the company’s ability to support the financial health of customers and its adherence to industry best practices when creating financial health programs. To qualify, brands must rank highly in the JD Power Financial Health Study, pass a comprehensive best practices assessment, and undergo leadership validation interviews conducted by JD Power.
The certification lasts for one year.
“Consumers need personalized communications more than ever directing them to the best products and services for their individual needs from their banking institutions,” said Bob Neuhaus, executive general manager of banking intelligence and payments at JD. Power, in the release.
Certification could help consumers choose one bank over another and determine which credit card issuer they trust. Banks and credit card issuers have recently placed more emphasis on financial wellness as the number of digital banking customers increases.
FICO recently discovered that 80% of digital banking customers will remain so after the pandemic. In another JD Power study, the company found that customers who engage in financial wellness programs experience higher levels of satisfaction.
The recent influx of digital banking customers, both retail and commercial, has led banks and digital payment processors to provide greater transparency into how digital systems work. How digitally proficient customers feel using these systems also contributes to customer satisfaction levels, JD Power found.
Paul McAdam, Senior Director of Banking & Payments Intelligence at JD Power said ZDNet that the perception of fees and the feeling that the customer has some degree of control are important factors as the digital banking space grows.
Bank of America has seen an impressive increase in customer satisfaction levels by reducing overdraft fees and providing many resources for its business and personal customers to take advantage of. The financial institution revealed in a recent study that the use of digital channels by small business owners contributed to an almost 300% increase in digital sales.
As FinTechs and credit card issuers see the positive changes that fee structures and system transparency have on customer satisfaction, McAdam said, they will begin to make similar changes.
“If you look at why consumers choose Chime, SoFi or Credit Karma and other neo-banking challenger brands, low fees and no overdrafts are a big part of the equation,” McAdam said.
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PayPal and Square consistently receive high customer satisfaction ratings due to their simple, easy-to-understand digital payment systems.
American Express recently announced a new high-yield digital checking account with very low fees for its cardholders as a banking alternative for digital customers. The debit card offers rewards for purchases to appeal to younger generations.