Direct Banks Surpass Traditional Banks in Customer Satisfaction

Direct banks are outperforming traditional retail banks on customer satisfaction by providing stronger support during challenging times, according to JD Power.

The 2025 US Direct Banking Satisfaction study revealed that customer satisfaction with direct bank checking accounts is 692, a four-point increase from the previous year. This is 24 points higher than regional banks and 35 points higher than national banks.

Meanwhile, for direct bank savings accounts, satisfaction stands at 705, surpassing regional banks by 89 points and national banks by 98 points.

The key performance indicator, "bank completely supports me during challenging times," contributes to a 73-point increase in checking account satisfaction and an 84-point increase in savings account satisfaction when banks meet this expectation.

According to the report, when direct banks achieve these gains, customers respond by increasing their use of direct deposit, expanding investment accounts and credit card ownership, and reducing the likelihood of transferring deposits to another bank.

The report also found that Gen Z and Gen Y report the largest year-over-year increase in perceived direct bank support, while Boomers feel their level of support from direct banks has decreased over the same period.

Paul McAdam, senior director of banking and payments intelligence at JD Power, said: “Customers of online-only direct banks have higher levels of satisfaction because these banks make them feel supported during challenging times.”

“Direct banks do this by enabling customers to grow their money, access credit when needed, improve their creditworthiness and by helping customers manage their spending or budget.”

“Direct banks further improved customers’ feelings of being supported during challenging times by making it easy to access customer service; delivering great app and web experiences; and making sure customers fully understand products and services.”