US issuers struggle to meet evolving customer expectations but bright spots exist, JD Power finds

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ncreased financial stress, lack of responsiveness and misaligned terms and rewards have created a recipe for declining customer satisfaction with credit card issuers. According to the JD Power 2021 US Credit Card Satisfaction Study, overall customer satisfaction has declined this year, led by mid-size issuers that struggled to connect with evolving customer needs in a volatile economy.

“While there are some bright spots this year among individual issuers, the pandemic really broke a multi-year trend of improving satisfaction,” said John Cabell, director of banking and payments intelligence at JD Power.

Key findings of the 2021 study include:
​​​​​​​Overall satisfaction declines led by mid-size issuers: Overall satisfaction with credit card issuers felll to 805 from 811 a year ago.

One mid-size issuer stands out: Goldman Sachs, issuer of the Apple Card and new to the study, was the highest-ranking mid-size issuer with a score of 864, some 47 points higher than the nearest issuer.

Shrinking credit limits rub customers the wrong way: Industry-wide, 2% of US credit card customers say their credit limits have been reduced.

Rewards satisfaction languishes despite changes: Issuers made changes to reward programmes, such as making grocery shopping and takeout dining additional ways to earn points. Despite this, satisfaction with earning rewards declined to a level equal to that in 2019.

Many customers have wrong card: Misalignment between reward programmes and spending is linked with an average $756 in lower monthly spending, a seven-percentage-point higher likelihood of switching cards, and a four-percentage-point higher likelihood of citing a problem.

New fintech entrants raise bar on satisfaction: New fintech firms are setting standards that highlight the fragile nature of cardholder satisfaction.