Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Surprise! Americans Don't Hate Bank of America

Do you hate Bank of America (NYSE: BAC  ) ? How its actual customers feel about it will stun you.

Since the financial crisis, Bank of America has been the object -- and at times rightly so -- of much criticism.

So, how do the people who actually park their money with Bank of America feel about it?

The answer: Good. And it's only getting better.

Things are looking up for Bank of America.

The rebound
Every year, Satmetrix releases its Net Promoter Industry Benchmarks, which survey more than 23,000 Americans to see what products and services they would recommend to someone else. It asks questions about brands and products across 22 different industries and spans more than 219 brands.

The way it calculates the score is relatively simple, as it takes the percent of those who are deemed "promoters" -- ranking the brand and product a 9 or 10 on the 10 point scale -- and subtracts out those who are "detractors," who rank it six or below.

And while Bank of America didn't lead the banks, 2014 marked an incredible turnaround. In the study's own words:

Bank of America's surge in loyalty continued for the second year in a row, with a 20 point increase in NPS in 2014, following a 25 point increase in 2013. This dramatic jump in loyalty has brought the bank up from worst performer in 2012 to sixth place out of the 14 banks included.

After the banking sector as a whole finally rose in 2013, after years of troubles, the study noted:

Bank of America led the rebound charge, with unprecedented increases of 34 and 25 points for their credit cards and banking ratings respectively. The jolt in Bank of America's banking NPS provides a dramatic halt to a six-year downward trend in loyalty.

Brighter days are  ahead for Bank of America. Source: Flickr / Mike Mozart.

The encouraging signs
Look back again at the words used to describe how the opinion of the actual customers at Bank of America has changed over the last two years: Unprecedented increases. Surge. Dramatic jump. Jolt.

Through its Project New BAC, Bank of America said it's "focusing all of its resources on serving individuals, companies, and institutional investors." While one of the key parts of the project was reducing the massive costs required to run the bank, it's important to know it was seeking to better serve its customers as well.

In a recent interview with Forbes magazine, Bank of America's CEO, Brian Moynihan, said:

We've fined-tuned the business around basic principles: Who are our customers? What do they need from us? And what can we be good at?

In 2014, we've learned that its improvements in J.D Power's customer satisfaction index outpaced all the other banks. Over the last two years, Bank of America also noted the number of satisfied customers has risen by more than 10%. Knowing it has 92 million accounts, a gain of 10% means millions more happy.

All of that is to say, Brian Moynihan and the employees at Bank of America aren't simply talking about the bank becoming new, but providing evidence after evidence that the change is actually happening.

What to take away from it
I've said it before, but I have to wonder if Bank of America and Brian Moynihan are clinging to the Warren Buffett wisdom -- remember his investment in B of A is worth nearly $11 billion -- that says, "if we are delighting customers, eliminating unnecessary costs and improving our products and services, we gain strength."

More and more each day we learn Bank of America isn't just eliminating "unnecessary costs," but it's also "delighting customers." Troubles once plagued it, but it's "gaining strength," and the new Bank of America is clearly here.

Join Warren Buffett in this great stock
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour (That’s almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company’s can’t-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock… and join Buffett in his quest for a veritable landslide of profits!

Read/Post Comments (1) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 15, 2014, at 5:55 PM, funfundvierzig wrote:

    What a PR puff piece for the most fraud-infested, customer-hostile, disreputable bank in the United States in the 21st century! We simply do not place much credence in these self-serving Parade Magazine-style surveys and polls.

    This is the bank whose officers on behalf of the Bank defrauded and cheated millions of customers, borrowers, and investors through serial frauds and numerous criminal acts, while simultaneously larding themselves with massive personal fortunes in pay and perks. Now hapless BAC shareholders are paying the price: $60 billion to date in fines, settlements and litigation charges, with another $17 billion likely soon. And the tab is still running.


Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2987469, ~/Articles/ArticleHandler.aspx, 8/30/2015 10:08:22 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Patrick Morris

After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. He's scaled back his everyday writing a bit, but he's always happy to opine on the latest headline news surrounding Berkshire Hathaway, Warren Buffett and all things personal finance.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:02 PM
BAC $16.36 Down -0.08 -0.49%
Bank of America CAPS Rating: ****