Small Banks and Consumer Satisfaction
46 Pages Posted: 21 Nov 2018 Last revised: 14 Nov 2019
Date Written: May 2019
Abstract
This paper examines the impact of the composition of local banking markets on customer satisfaction. I measure customer satisfaction at the county level using complaint data filed with the Consumer Financial Protection Bureau (CFPB) from 2012-2017. I find that there are fewer customer complaints in counties where there is a larger presence of small banks, holding constant the level of bank competition. This effect holds for various complaint types, market types, market demographics, and alternative econometric specifications. Additionally, I provide a detailed description of the CFPB complaint data.
Keywords: Consumer Satisfaction, CFPB, Bank Regulation, Small Banks
JEL Classification: G20, G21, G23, G28
Suggested Citation: Suggested Citation