A new ranking of financial institutions based on their reputations had the banking sector improving despite a major scandal involving fraudulently created accounts.
Reputations in the banking industry among U.S. consumers have continued to recover, according to the 2017 Survey of Bank Reputations.
In fact, for the only time since tracking of such data began in 2011, the banking industry has achieved a strong reputation score.
American Banker reported the survey results Wednesday.
The publication noted that the sector improved even though the Wells Fargo & Co. fake account scandal came to light.
“The industry’s gains came despite a significant blow to Wells Fargo’s reputation score in the wake of revelations that bank personnel had engaged in the widespread creation of phony bank accounts,” American Banker said.
Wells Fargo’s overall score plunged to 48.6 in a system where a score under 50 is considered weak.
“Governance has become the most important driver of reputation in banking,” Stephen Hahn-Griffiths, vice president and U.S. consulting director for Reputation Institute, said in the statement. “In particular, ethical behavior and fairness are key trigger points for enhancing reputation in 2017.
“For a bank, having a strong reputation is important because it ensures customers will do business with you, policymakers and regulators will give you license to operate, and potential employees will be more willing to work for you.”
This year’s best bank reputation was held by Synovus Financial.
In addition, Synovus joined USAA Bank as the only U.S. banks to sport an “excellent” reputation.
Based on customer perceptions, USAA was No. 1, followed by First Tennessee, BNY Mellon, BOK Financial and CIT Bank.
Among non-customers, Synovus was on top, then USAA, Cullen/Frost Bankers Inc., BOK and Northern Trust.
The report indicated BOK’s 9.6-point year-over-year score increase was the biggest of any institution.
American Banker Executive Editor Bonnie McGeer attributed BOK’s improvement to heavy investment in employee training and development during the past few years.
“It also has fostered customer loyalty by sticking with borrowers in the energy sector through the tumult, as other banks bailed,” she added.
