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JPMorgan Chase's Customer Satisfaction Scores Aren't What You'd Expect

By John Maxfield - Apr 30, 2017 at 9:29AM

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Despite people’s general enmity toward big banks, the nation’s largest bank by assets scores high when it comes to customer satisfaction.

The nation's biggest banks have gotten a bad name over the past decade, given their role in the financial crisis combined with the recent sales scandal at Wells Fargo. But there's one big bank that's bucking the trend: JPMorgan Chase (JPM 1.66%).

This week, J.D. Power released its 2017 U.S. retail banking satisfaction survey. The results show that JPMorgan Chase earned a higher customer satisfaction score than the average bank in all 11 of the geographic regions broken out by the survey.

State/Region

JPMorgan Chase

Average Score

California

819

812

Florida

834

829

Mid-Atlantic

821

816

Midwest

825

810

New England

819

800

North Central

823

821

Northwest

814

804

South Central

837

831

Southeast

822

820

Southwest

827

817

Texas

832

831

Data source: J.D. Power's 2017 U.S. Retail Banking Satisfaction Survey.

Its best performance was in the South Central region, covering Alabama, Arkansas, Louisiana, Mississippi, and Tennessee. The nation's largest bank by assets scored 837 out of 1,000 in the region compared with the average score among other banks of 831.

State/Region

JPMorgan Chase's 2017 Score

JPMorgan Chase's 2016 Score

California

819

792

Florida

834

824

Mid-Atlantic

821

795

Midwest

825

797

New England

819

762

North Central

823

812

Northwest

814

776

South Central

837

809

Southeast

822

804

Southwest

827

798

Texas

832

806

Data source: J.D. Power.

JPMorgan Chase also saw its score improve from the previous year. Its average score among the regions in 2016 was 798. This year it improved to 825, equating to a 3.4% gain. By contrast, the average bank's score last year was 793, while the average this year was 817, translating into a 3% gain.

Consequently, JPMorgan Chase is outperforming a majority of its peers not only on a static basis when it comes to its customer satisfaction score this year, but also on a dynamic basis, as it improved at a faster pace compared with last year.

JPMorgan Chase Chairman and CEO Jamie Dimon.

JPMorgan Chase Chairman and CEO Jamie Dimon. Image source: JPMorgan Chase.

"[C]ustomer satisfaction is at the center of everything we do," wrote Chairman and CEO Jamie Dimon in his latest letter to shareholders. "Each business has gained market share -- which is possible only when you are improving customer satisfaction and your products and services relative to the competition."

One can point to a lot of reasons JPMorgan Chase is the most dominant force in banking today, but to Dimon's point, customer satisfaction certainly seems to be one of them.

John Maxfield owns shares of Wells Fargo. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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