Even before COVID-19, branchless — or direct — banks were already taking deposit market share from traditional retail banks, particularly among younger customers. But while challenger banks like to tout their aggressive growth numbers, they’re still small competitors to large incumbent banks. There is one place where challenger banks are outperforming: customer satisfaction.
Overall satisfaction for direct banks is 864 (on a 1,000-point scale), substantially higher than the overall satisfaction for customers who use branches at traditional branch-based retail banks, according to the J.D. Power 2020 U.S. Direct Banking Satisfaction Study. Direct banks’ overall satisfaction also is substantially higher than the average score at the Big Six retail banks among customers who are not conducting branch transactions.
4 charts that show the growing competitiveness of digital banks
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