BofA Ranked # 1 in Financial Advisory Client Satisfaction in the United States
- Bank of America leads the JD Power ranking for US customer satisfaction with financial advice from retail banks.
Bank of America ranked first in JD Power’s 2021 US Retail Banking Advice Satisfaction Survey. In the company’s fourth annual survey, the banking giant scored 673 points on a 1,000-point scale, surpassing second place from Citibank, which scored 640.
BofA excels in providing a service that is widely used and appreciated by the few customers who benefit from it. Yet demand for financial advice is limited across the industry.
- In contrast, usage is high: JD Power found that 69% of those surveyed who received financial advice acted on it. Personalized advice was also a key factor in overall satisfaction: the process is linked to a gain of 229 points.
- Despite the success of banks with the clients they advise, consumer interest in the service is low. JD Power found that only 19% of those surveyed said they were “very interested” in receiving financial advice, and an additional 33% said they were not at all interested in receiving advice.
- The gap between demand and use suggests that BofA and its peers have the opportunity to grow as providers of financial advice, especially as JD Power’s findings suggest that many clients could benefit from it. The survey showed that only 49% of respondents are considered financially healthy, with just 38% passing a basic financial literacy test.
In addition to representing a market opportunity, financial advice offers a way for incumbents like BofA to maintain their branch networks. People prefer to perform complex services in person. For example, a Deloitte 2020 survey find that respondents were more likely to prefer branches for services such as wealth management (62%) and mortgages (69%), as opposed to common offers like credit cards (44%) and management of their
This insight into channel preferences and market potential for financial advice can help incumbent banks as they examine their branch networks and assess how they can contribute to their customer value proposition. Both could offer a competitive advantage over digital-only banks.
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