Can Capital One Maintain its J.D. Power Ranking in 2020?
Find out how other banks fared in the Mobile App Satisfaction category and what’s next in the age of digital banking
Whether paying bills or checking their account balance, customers are turning to mobile to manage their day-to-day banking needs. In fact, nearly 84% of retail bank customers have had at least one digital interaction with their banks in the past three months. Mobile apps are an increasingly critical channel for traditional banks to improve customer loyalty and experience, especially as digital-only banks vie for their attention. In 2018, Capital One received J.D. Power’s coveted ranking for highest customer satisfaction among mobile banking apps, but this year, the brand dropped to second place.
As competition heats up and customers get more choosy, will Capital One regain its top spot in 2020? And how will mobile-only banks affect the rankings going forward? Here’s how several traditional banks fared in this year’s J.D. Power Banking Mobile App Satisfaction Study, and the strategies they’ll need to employ to stay ahead of digital-first competitors in 2020:
Capital One may have dropped to second in this year’s J.D. Power study, but NerdWallet recently named it one of the best big banks for mobile banking. In addition to standard mobile banking functions, the app offers an extra layer of security with TouchID and SureSwipe, a custom pattern you can draw with your finger to sign-in. These security features are a smart tactic to improve customer satisfaction since 87% of Americans would still trust traditional banks more than non-bank financial institutions.
Although Chase ranked 10th in J.D. Power’s report, it was also named one of the best big banks for mobile banking by NerdWallet. Chase’s mobile app offers essential features like mobile check deposit, ATM locator, bill pay, and provides branch and ATM coverage in nearly 30 states — an offering that digital-only banks can’t match.
Bank of America, which now identifies 54% of its customers as digitally-centric, landed at sixth in this year’s J.D. Power rankings. The bank launched a redesigned version of its mobile app earlier this year, including streamlined functionality and enhancements to its virtual financial assistant, Erica. In 2020, Erica users will be able to view how much they can save if they accelerate payments on credit card balances. They can also access details on unauthorized charges and launch card disputes directly in the app. With nearly 29 million mobile clients currently using the BofA app, we’ll see if these changes help the brand improve its customer satisfaction rankings in 2020.
Traditional banks like Capital One, Chase, and Bank of America will need to tread lightly as they consider implementing new mobile features. According to J.D. Power’s findings, customer satisfaction with mobile banking has largely been strained by a surplus of new features that have made banking apps more complex and difficult to use.
In a 2018 UserTesting study, customers noted the importance of a clean, clear, and consistent app experience. Chase’s app ranked highly for its simple color scheme, easy-to-read font, and personalized greetings. J.D. Power also found that 58% of customers would like to receive advice from their bank through a digital channel, but only 12% report receiving guidance via mobile.
These findings open up opportunities for mobile-only banks like Chime to compete with larger traditional banks. SmartAsset ranked Chime as the best mobile banking app user experience, with a sleek interface and features like no monthly fees, no overdraft fees, and the ability to round up purchases to the next dollar and save the remainder. Rather than overwhelming customers with too many features, the app focuses on no-frills offerings, which The Balance called “easy to understand, regardless of your level of financial literacy.”
As we enter 2020, which brand are you banking on to take the top spot? What mobile strategies will your organization employ to improve customer satisfaction?
