The news: Bank of America ranked first in J.D. Power’s 2021 US Retail Banking Advice Satisfaction Study. In the firm’s fourth annual survey, the banking giant scored 673 on a 1,000-point scale, topping second-place Citibank, which scored 640.
Why it’s worth watching: BofA excels in providing a service that’s highly utilized and appreciated by the few customers who take advantage of it. Yet there is limited demand for financial advice across the industry.
The opportunity: Aside from representing a market opportunity, financial advice offers a way for incumbents like BofA to maintain their branch networks. People prefer to conduct complex services in person. For example, a 2020 Deloitte survey found that respondents were more likely to prefer branches for services such as wealth management (62%) and mortgages (69%)—as opposed to routine offerings like credit cards (44%) and managing their checking accounts (54%).
These insights on channel preferences and the market potential for financial advice can help incumbent banks as they review their branch networks and assess how they can contribute toward their customer value proposition. Both could provide a competitive advantage over digital-only banks.