According to A., more and more Americans are feeling the effects of inflation and are increasingly turning to banks for help JD Power survey released today.
Nearly three-quarters (72%) of Americans said the cost of goods is rising faster than their income — up 2% since June, an all-time high. Retail bank customers classified as financially healthy fell to an all-time low of 30%, while the proportion of those falling into the financially vulnerable category rose six percentage points to 45%, the study said.
A third of customers expect help from their banks as they prepare for a recession, the survey found, with 81% saying bank support is important to help them survive high inflation, including 91% of hyperinflation customers. When asked if banks had been contacted about how to deal with inflation, 31% said they had received some form of communication. Another 31% said they didn’t have one, but wished they had.
The environmental, social and governance performance of retail banks is also coming under increased scrutiny as bank customers navigate an increasingly challenging economy, the survey noted. One in five Americans (20%) said they left their bank because of its corporate social governance policies, and 16% said the same about their credit card issuer. ESG initiatives may not be a determining factor for most, but according to the survey authors, there has been a shift in the way bank customers feel about their financial institutions. “Americans no longer want their banks to play a passive role in their finances, nor do they want to be tied to corporations that disconnect from their communities,” the analysts said.