Consumer Loan Satisfaction Strained by High Rates and Deteriorating Financial Health, J.D. Power Finds

With nearly three-fourths (73%) of consumer loan customers now categorized as financially unhealthy1, up from 67% in 2023, lenders have their work cut out for them delivering products that meet custom...

American Express Ranks Highest in Personal Loan Customer Satisfaction for Second Consecutive Year

TROY, Mich.: With nearly three-fourths (73%) of consumer loan customers now categorized as financially unhealthy1, up from 67% in 2023, lenders have their work cut out for them delivering products that meet customer needs in a persistently high interest rate environment. According to the J.D. Power 2024 U.S. Consumer Lending Satisfaction StudySM, released today, customer satisfaction with consumer loans is highest among those with the highest levels of financial health and significantly lower among those who are overextended or financially vulnerable.

“Consumer loans are primarily used to consolidate higher-cost debts at a lower rate, but that’s a tough proposition when interest rates have remained so high for so long,” said Bruce Gehrke, senior director of wealth and lending intelligence at J.D. Power. “As a result, we’re seeing significantly lower levels of customer satisfaction among those who are most at-risk financially and arguably could benefit most from products that help them consolidate or reduce debts.”

Following are some key findings of the 2024 study:

Returning to same lender correlated with financial health and satisfaction: More than three-fourths (79%) of customers who are financially healthy are likely to return for their next loan vs. only 55% of financially unhealthy customers. Overall satisfaction for financially healthy customers is 797 (on a 1,000-point scale) vs. 668 for unhealthy customers. However, financially unhealthy customers are more likely to need another loan and are a crucial source of new business. By delivering an experience that drives increased satisfaction for unhealthy customers, lenders will greatly increase their chances of continuing business.

Satisfaction higher for customers with multiple products: On average, overall customer satisfaction scores are 68 points higher when consumer loan customers have multiple products, such as credit cards, savings accounts and other types of loans. However, the type of product does matter to the overall impression of the lender's brand. Credit card customers see the lender as more profit focused whereas customers with other loans and accounts view the lender as more customer focused.

Data security is critical for delivering high satisfaction: On average, overall customer satisfaction scores are 176 points higher when consumer loan customers believe that their lender has a secure lending process that protects their personal information.

Study Ranking

American Express ranks highest among personal loan lenders in overall customer satisfaction for a second consecutive year, with a score of 781. Discover (742) ranks second and Citi (730) ranks third.

The U.S. Consumer Lending Satisfaction Study was redesigned for 2024. It measures overall customer satisfaction based on performance in seven core dimensions on a poor-to-perfect rating scale. Individual dimensions measured are (in order of importance): loan met borrowing needs; level of trust; experience obtaining loan; makes it easy to do business with; people; digital channels; and kept informed about loan. The study is based on responses from 4,387 personal loan customers and was fielded from January through March 2024.

For more information about the U.S. Consumer Lending Satisfaction study, visit https://www.jdpower.com/business/consumer-lending-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2024044.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto-shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

1 J.D. Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

Fonte: Business Wire