Trust in Banks Increased During Pandemic

Unlike during the great recession over a decade ago, trust in banks has improved during the Covid-19 pandemic. In April 2020 the J.D. Power Trust Index (1,000 point scale) was at 821, up 14 points from January 2020 and 13 points higher from April 2019.

Source: J.D. Power Retail Banking Satisfaction Study

The J.D. Power Bank Trust index is based on ratings from over 20,000 bank customers each quarter. The index consists of 7 questions in which customers rate their primary:

• Puts the interests of customers first
• Provides useful guidance and/or advice
• Provides honest communication with me
• Provides reliable technology
• Is easy to do business with
• Protects my personal identify
• Doesn’t have hidden charges or fees

During the pandemic, banks scored higher on all 7 questions, with the greatest increase in “puts the interest of customers first”. While many branches were closed or had limited availability, customers seem to have recognized the efforts of their bank and rated their banks higher on this metric as well. Ease of doing business during the pandemic was more dependent on digital than at any time before and customers also rated their bank higher “provides reliable technology”.

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