Customer Satisfaction With Retail Banks Falls

If outsized fees, long lines and poor problem resolution have left you even more dissatisfied with your bank this year, you're not alone.

An annual survey conducted by J.D. Power and Associates found that customer satisfaction with retail banks declined for the third year in a row. Dissatisfaction with fees is the most commonly reported problem, as well as the No. 2 reason why customers switch to another bank.

The poll also found more problems being reported, fewer problems being resolved, longer wait times and more difficulty in accessing branches.

Banks have exacerbated the problems by reducing staff and increasing fees to meet shareholder demands, says Rockwell Clancy, J.D. Power's executive director of financial services. Banks' negative image is only compounded by the shaky economy, as consumers often blame them for troubles in the housing and mortgage markets.

"Now is the time for banks to really differentiate themselves from competitors by focusing on customer service and convenience," Clancy adds. "Banks with higher levels of customer satisfaction will generate higher deposit growth and achieve better financial results over the long term."

The survey of 19,602 households was conducted in January. Commerce Bank(CBSH Quote - Cramer on CBSH - Stock Picks) and Wachovia (WB Quote - Cramer on WB - Stock Picks) were the only national chains to receive a top ranking in at least one area of the country.

Sovereign Bank(SOV Quote - Cramer on SOV - Stock Picks), PNC Bank (PNC Quote - Cramer on PNC - Stock Picks), Bank of America (BAC Quote - Cramer on BAC - Stock Picks), Citibank (C Quote - Cramer on C - Stock Picks) and Wells Fargo (WFC Quote - Cramer on WFC - Stock Picks) all received a lowest ranking in at least one region.

A look at what banks received the highest and lowest rankings in each region of the country:

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