Customers Satisfied With Online Banking

    April 16, 2008

People who bank online have a higher level of customer satisfaction then when they use other online financial services like credit card sites and investment sites,  according to a new study by ForeSee Results and

The study, which uses the methodology of the University of Michigan’s American customer satisfaction Index (ACSI), found that online banking scores 82 on ACSI’s 100-point scale. Credit card and investment Web sites both score 75.

Online banking outperforms overall retail banking in terms of customer satisfaction, which scored 78 when measured in 2007. This is the first year the study surveyed credit card and investment Web site customers.

"Online banking is setting the bar for online financial services," said Larry Freed, president and CEO of ForeSee Results and author of the study. "Improving customer satisfaction is an effective way to move customers to the most cost-efficient channel. It’s smart business."

The low score for credit card Web sites suggest that credit card companies are not using their sites to improve their overall business operations, the report said. The study indicates that credit card companies could increase customer satisfaction by improving Web site performance and site experience.

For investment Web sites, customers are more likely to go online to do transactions, so it is critical that the Web site meet customer needs. Highly satisfied customers are 37 percent more likely to increase online transactions and 51 percent more likely to purchase more services.

"Financial services firms should resist the temptation to cut investment in the online channel in times of tight money," said Freed.

"Our research suggests that, if anything, a commitment to improving satisfaction with the web channel can improve both overall loyalty and the bottom line by moving customers into the most cost-efficient service channel."