OBSERVATIONS FROM THE FINTECH SNARK TANK
Who’s the best bank in America? The ideal approach to ranking banks would take an objective and quantitative approach to measure a bank’s impact on its customers’ financial health and performance.
To what extent do your financial providers help you improve the performance and health of your financial life?
The results may not be surprising, but they’re depressing, and point to an opportunity for banks to find a new strategy upon which to compete: financial health.
Capital One, USAA, and Chime are Best at Improving Financial Health and Performance
Three banks—Capital One, USAA, and Chime—are tied with 48% of their customers saying the banks help them improve their financial health and performance.
We have to give the nod to Capital One here, with 20% of its customers indicating that the bank helps them significantly improve their financial health and performance, in contrast to 11% of USAA members, and 15% of Chime customers.
Bank of America just missed the podium by improving the financial health of 46% of its customers. If it’s any consolation, compared to USAA, a higher percentage of Bank of America customers said the bank significantly improves their financial health.
With USAA’s historically high Net Promoter Scores, finding it at (or near) the top of the list isn’t a surprise. And with Chime’s early access to paychecks, Spot Me feature, and credit builder credit card, it’s no surprise to see the challenger bank score well.
The strong performance of Capital One and Bank of America is consistent with a JD Power study conducted in the summer of 2020 which found:
“Among customers of the top 10 banks, Bank of America and Capital One tie for having the highest levels of support for their customers’ financial health. Bank of America’s Better Money Habits® and Capital One’s Learn and Grow are examples of programs that help customers develop healthy financial habits.”
In addition, as noted in The Financial Brand:
“In 2020 BofA rolled out Life Plan, a digital financial management platform. And the two institutions each have digital assistants—Erica (Bank of America) and Eno (Capital One)—that play a concierge role in providing advice.”
And Now For the Depressing News
Kudos to the top four banks for the relatively strong percentage of customers who say the banks have a positive impact on their financial health and performance impact.
They may not want to brag too loudly, though: 40% of their customers said the banks have no impact on their financial health or…