Customer satisfaction in the overall retail banking industry has improved over the last twelve months, but ever so slightly, according to J.D. Power’s 2019 U.S. Retail Banking Satisfaction Study. Based on this report, released Thursday, the industry scored 807 on a 1,000-point scale, up just by one point from the 2018 report.

The single point of improvement was caused by increased customer satisfaction with product and fees, according to the report. The biggest negative impact to the customer satisfaction is the industry’s inability to solve customer problems, meaning either the bank is entirely unable to solve the customer issue or it is unable to resolve the problem in a timely fashion. The issue is further exacerbated, the study found, when the customer feels that their problem is unresolved because their bank is putting its interests ahead of theirs.

The report found that the call center is the most frequent servicing channel customers use to resolve problems, followed by online services (email, social media and chatbots). Both these channels scored badly in customer satisfaction, impacting the overall score. And, as a result, customer trust of the overall retail banking industry is still below pre-crisis levels, according to the report.  

 Paul McAdam, senior director of Banking Intelligence at J.D. Power, said in the report:

Customer satisfaction and convenience have improved, but far too many customers have not re-established the trust and developed the deeper levels of connection required to improve the industry’s reputation. Looking 10 years into the future, when digital banking will be the norm for nearly all customers, retail banks will be required to be unique by scale or unique by strategy. Personalization of important customer journeys — transactional, advisory and solving problems — will emerge as the ways to elevate customer trust.

The report points to a correlation between customer satisfaction and digital innovation, especially among customers below the age of 40. In the category of innovation and digital transformation, the big banks (worth more than $250 billion in domestic deposits) surpassed smaller ones in customer satisfaction among customers under 40 years old. One reason is that the larger financial institutions are able to innovate and provide more digital offerings than their smaller counterparts, due to a larger pool of resources, both financial and human.

One way for smaller FIs to get creative with their technological innovation is by partnering with fintechs. In fact, in a February poll conducted by Bank Innovation, 30% of those surveyed said fintech partnerships provide the greatest value in creating a better customer experience.

Also Read: What 2019 Holds for Bank-Fintech Partnerships

J.D. Power’s study measured satisfaction in six categories: account opening; communication and advice; channel activities (ATMs, branch, online call centers, mobile, website); convenience; problem resolution; and products and fees. The report surveyed 84,000 retail banking customers of more than 200 of the largest banks in the country during April 2018 and February 2019.

Read the full report here.