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EY global consumer banking survey - Western European highlights
 

EY global consumer banking survey - Western European highlights

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EY’s third global study of retail banking customers shares consumer insighths

EY’s third global study of retail banking customers shares consumer insighths

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    EY global consumer banking survey - Western European highlights EY global consumer banking survey - Western European highlights Presentation Transcript

    • Winning through customer experience EY Global Consumer Banking Survey 2014 Western Europe Highlights (supplement to Global Results)
    • Page 2 EY’s third global study of retail banking customers since 2011 ► More than 32,000 banking customers in 43 countries ► Our extensive global consumer banking survey of 32,000 customers in 43 markets shows that, after a number of years of sharp decline, confidence in the global banking industry is on the rise, trust in individual banks is high and most customers across the globe are satisfied enough to recommend their main banking provider. But the survey also reveals quite marked regional differences in terms of confidence and trust, approaches to advice and use of digital channels ► Key questions explored: ► What is the role of trust in creating customer advocates, and how valuable is it? ► Are banks investing in the right components of the customer experience? ► How well are banks performing on key interactions — from the basics of day-to-day transactions, to resolving problems and helping customers achieve their financial goals? ► How similar are customer behaviors across the globe? ► How well are banks prepared to fend off potential new market entrants?
    • Page 3 The current environment Confidence in the industry % change in confidence in banking industry in past 12 months • Customers in Western Europe have expressed a net decrease in confidence in the banking industry in the past year. • This decrease in confidence appears in almost every country in Western Europe, with Ireland and Spain showing the largest declines; Luxembourg is the single exception. Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom 11% 10% 4% 8% 12% 13% 8% 67% 7% 8% 6% 7% 9% 8% 9% 5% 9% 33% 52% 58% 66% 32% 42% 71% 51% 25% 41% 30% 56% 59% 63% 48% 53% 56% 50% 48% 37% 32% 30% 60% 46% 16% 41% 8% 52% 62% 38% 34% 28% 44% 38% 39% 41% 19% Increased Remained the same Decreased
    • Page 4 Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom The current environment (cont.) The value of advocacy % of customers who recently made or are planning changes with their PFSP • Similar to global results, advocates across all countries in Western Europe are more likely to have increased or be planning to increase their business with their PFSP compared to those who are less likely to recommend their PFSP. • Customers who are advocates in Luxembourg, Sweden and Spain are most likely to open new accounts and services. • Advocates in Luxembourg, Italy, Ireland, the United Kingdom and Spain are more likely to consolidate all accounts than customers in other Western European countries. 39% 35% 52% 46% 36% 35% 25% 69% 41% 39% 32% 36% 37% 36% 43% 43% 38% 54% 9% 6% 0% 8% 5% 5% 6% 11% 10% 9% 7% 5% 5% 5% 6% 7% 7% 13% 24% 24% 29% 28% 22% 28% 19% 58% 20% 19% 18% 20% 26% 31% 24% 32% 24% 35% 2% 4% 2% 4% 1% 1% 2% 5% 3% 1% 2% 3% 2% 2% 4% 1% 2% 5% Consolidated / will consolidate all accounts Opened / will open new accounts and services Very likely to recommend PFSP Less than very likely to recommend PFSP
    • Page 5 The power of trust Degree of trust % of customers citing different levels of trust in PFSP • Western European customers express less trust in their PFSP than seen globally, with the lowest levels of complete trust seen in Spain and, most notably, Ireland, countries where confidence in the banking industry has shown minimal increase and a significant decrease over the past 12 months. • The highest levels of complete trust in one’s PFSP are observed among customers in Norway and Switzerland. 26% 54% 38% 19% 32% 50% 21% 20% 21% 16% 40% 42% 38% 30% 31% 42% 32% 44% 59% 41% 55% 64% 63% 46% 65% 72% 65% 51% 53% 49% 58% 53% 58% 51% 56% 49% 15% 5% 7% 17% 5% 4% 14% 8% 14% 33% 7% 9% 4% 17% 11% 7% 12% 7% Complete trust Moderate trust Minimal or no trust Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom
    • Page 6 Experience with financial services providers Rates/fees More convenient to have everything in one place Access to branches and banking services Branch/office location Information provided by friend or relative Information provided by news or advertising Their decision to open or close branches Other Not sure The experience is what matters Reasons for opening and closing accounts Reasons that customers opened and closed accounts in past 12 months • While experience matters, so too do rates and fees (especially in Ireland); both are mentioned as the most common reasons for opening or closing accounts in Western Europe • The convenience of having everything in one place is a key factor for opening or closing accounts among customers in Denmark, Finland, Luxembourg, and Portugal, while branch accessibility is cited by those in Austria 2% 7% 5% 9% 13% 26% 28% 29% 30% 41% 3% 8% 6% 5% 7% 18% 17% 28% 32% 33% 3% 12% 3% 6% 10% 14% 13% 25% 35% 36% 4% 16% 5% 5% 6% 10% 10% 26% 36% 25% 9% 10% 2% 3% 7% 20% 15% 31% 31% 34% 3% 26% 8% 9% 6% 17% 20% 34% 37% 20% 3% 16% 0% 4% 9% 7% 8% 19% 41% 35% 3% 32% 10% 3% 10% 11% 18% 14% 32% 18% 2% 15% 5% 2% 7% 14% 21% 47% 18% 27% 0% 9% 10% 12% 7% 20% 11% 38% 20% 54% 4% 13% 2% 4% 6% 3% 9% 32% 39% 39% 4% 23% 6% 10% 0% 7% 7% 20% 46% 25% 5% 7% 3% 5% 8% 19% 14% 24% 47% 31% 4% 8% 2% 0% 5% 10% 13% 26% 37% 27% 1% 14% 3% 4% 12% 16% 18% 18% 43% 35% 3% 10% 8% 2% 5% 6% 9% 11% 60% 21% 3% 6% 3% 7% 15% 20% 14% 24% 37% 39% 1% 6% 2% 5% 6% 15% 12% 23% 47% 34% Global Western Europe Austria Belgium Denmark* Finland* France Germany Ireland Italy *Data for closed accounts not shown due to small sample size (<10) Close accounts Open accounts
    • Page 7 Experience with financial services providers Rates/fees More convenient to have everything in one place Access to branches and banking services Branch/office location Information provided by friend or relative Information provided by news or advertising Their decision to open or close branches Other Not sure The experience is what matters (cont.) Reasons for opening and closing accounts Reasons that customers opened and closed accounts in past 12 months 2% 7% 5% 9% 13% 26% 28% 29% 30% 41% 3% 8% 6% 5% 7% 19% 17% 28% 32% 33% 3% 12% 3% 6% 10% 14% 13% 25% 35% 36% 4% 16% 5% 5% 6% 10% 10% 26% 36% 25% 1% 0% 3% 18% 4% 5% 7% 30% 6% 63% 8% 0% 4% 29% 9% 16% 0% 54% 4% 9% 4% 28% 2% 2% 8% 6% 6% 26% 27% 25% 0% 25% 11% 0% 11% 0% 10% 13% 31% 10% 5% 27% 2% 9% 7% 7% 13% 26% 33% 28% 3% 9% 2% 5% 9% 13% 19% 11% 29% 40% 9% 0% 5% 0% 0% 0% 0% 79% 11% 5% 1% 14% 4% 5% 17% 31% 21% 26% 33% 36% 5% 15% 9% 7% 3% 6% 8% 22% 43% 25% 2% 16% 0% 2% 12% 0% 8% 27% 35% 31% 4% 12% 0% 5% 12% 9% 11% 27% 29% 36% 0% 32% 3% 15% 5% 12% 15% 19% 17% 34% 1% 12% 5% 7% 10% 14% 14% 20% 45% 25% 6% 13% 2% 3% 13% 13% 7% 25% 26% 35% Global Western Europe Luxembourg Netherlands Norway* Portugal Spain Sweden* Switzerland United Kingdom Close accounts Open accounts *Data for closed accounts not shown due to small sample size (<10)
    • Page 8 Identifying opportunities for banks in Western Europe Benefit importance and satisfaction Satisfaction Importance Average Average High HighLow Offers excellent online banking features Provides easy access to branches and ATMs Has an excellent reputation Is transparent about what they charge for and makes it clear to you how to avoid paying fees Handles your requests quickly Makes it easy to conduct your most frequent transactions Has excellent mobile banking features Provides excellent customer service at call center Provides banking access at places other than banks Communicates important information clearly Knows your accounts/ services/transactions Provides financial plan Knows previous contacts/ interactions Always finds new ways to improve how you conduct your business Provides access to financial experts Invests in your financial well being Proactively alerts you to products of interest Takes relationship into account when quoting fees/rates Customizes products and services to fit your needs Recommends what you really need Finds ways to save money Reaches out if problem may exist Protects your financial information Keeps your personal information safe Works with you when you need help or encounter a problem • Customers in Western Europe tend to reflect global views, with greater importance being placed on working with customers when they need help or encounter a problem and offering excellent online banking features Trust Convenience Communications Advice Problem resolution
    • Page 9 Online/Internet Mobile ATMs Branch or office Call center Make banking simple and clear Channels usage % of customers who use channels daily or weekly • Customers in Western Europe use the ATM and online/Internet channels most frequently. • Online/Internet usage is highest in Finland, the Netherlands and Portugal, and usage of ATMS is particularly high in Austria, Ireland and Portugal. • While used less frequently, customers in Ireland, Italy, Luxembourg and Spain are the most likely to make use of the services and personal connection available within the branch, offering bank employees a greater opportunity to promote sales and offer advice if transactional activities can be fulfilled through self-service channels. 3% 4% 9% 10% 20% 9% 20% 49% 20% 37% 1% 2% 4% 6% 21% 4% 13% 48% 12% 43% 0% 0% 3% 5% 20% 0% 10% 63% 14% 44% 1% 2% 2% 3% 17% 2% 14% 45% 6% 52% 2% 1% 1% 7% 14% 2% 1% 25% 13% 45% 0% 0% 1% 1% 17% 0% 6% 47% 10% 60% 1% 2% 3% 5% 26% 4% 9% 33% 8% 37% Daily Weekly 1% 2% 2% 3% 20% 2% 14% 48% 10% 45% 1% 1% 6% 6% 24% 5% 22% 64% 17% 44% 1% 3% 5% 9% 21% 6% 18% 49% 15% 34% Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Opportunity 1
    • Page 10 Online/Internet Mobile ATMs Branch or office Call center 1% 2% 4% 6% 21% 4% 13% 48% 12% 43% 3% 4% 9% 10% 20% 9% 20% 49% 20% 37% Make banking simple and clear (cont.) Channels usage % of customers who use channels daily or weekly 3% 4% 6% 11% 18% 13% 19% 48% 27% 33% 3% 8% 26% 2% 3% 54% 17% 54% 2% 6% 12% 3% 2% 22% 18% 59% 1% 15% 3% 24% 3% 18% 58% 12% 51% 2% 3% 7% 8% 24% 9% 19% 48% 15% 40% 1% 1% 2% 8% 11% 2% 1% 23% 24% 57% 1% 1% 4% 4% 9% 1% 7% 47% 6% 35% 1% 2% 3% 8% 25% 6% 17% 54% 13% 45% Global Western Europe Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom Opportunity 1 Daily Weekly
    • Page 11 Bank websites Information from branch Bank employees Friends and/or relatives Social media Financial advisor Third-party websites TV and/or radio commercials/ads Magazine or newspaper ads Information sent in the mail Sources used when searching for financial services provider % of customers selecting among top 3 information sources 9% 10% 12% 14% 16% 13% 29% 22% 29% 38% 6% 7% 7% 16% 13% 7% 25% 23% 23% 32% 8% 5% 5% 13% 12% 6% 29% 32% 23% 30% 5% 9% 4% 10% 17% 1% 31% 18% 16% 25% 8% 3% 7% 12% 9% 3% 28% 11% 18% 20% 2% 7% 8% 4% 19% 13% 19% 29% 14% 42% 5% 4% 3% 15% 19% 4% 22% 14% 18% 22% BankcontrolledAdvocates 7% 5% 8% 22% 11% 7% 24% 24% 21% 31% 11% 7% 9% 15% 14% 4% 28% 17% 30% 44% 5% 10% 7% 20% 12% 11% 27% 27% 29% 34% Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Opportunity 1 • Customers in Western Europe rely most on bank websites, so clarity and simplicity of online communications is essential; banks should also be aware of the potential advocacy generated by friends and relatives. • Other sources that customers in certain countries rely on include financial advisors in Finland and France and third-party websites in the Netherlands and United Kingdom. = Top 3 information sources Clarity through communications
    • Page 12 Bank websites Information from branch Bank employees Friends and/or relatives Social media Financial advisor Third-party websites TV and/or radio commercials/ads Magazine or newspaper ads Information sent in the mail Clarity through communications (cont.) Sources used when searching for financial services provider % of customers selecting among top 3 information sources 9% 10% 12% 14% 16% 13% 29% 22% 29% 38% BankcontrolledAdvocates Global Western Europe Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom 6% 7% 7% 16% 13% 7% 25% 23% 23% 32% 8% 45% 42% 9% 15% 11% 18% 61% 5% 31% 0% 2% 5% 21% 16% 10% 19% 19% 18% 28% 7% 2% 2% 12% 12% 2% 23% 18% 14% 32% 3% 5% 4% 6% 10% 6% 23% 28% 37% 37% 5% 5% 8% 12% 14% 11% 32% 19% 26% 26% 1% 3% 0% 16% 17% 12% 25% 19% 14% 37% 5% 2% 2% 16% 17% 7% 31% 24% 26% 30% 6% 5% 9% 27% 9% 5% 14% 14% 27% 40% Opportunity 1 = Top 3 information sources
    • Page 13 In person Can speak to someone known by phone at the branch during working hours Use online financial management tools to make decisions around spending, investments, and loans Can speak to someone by phone in a call center whom I can call any day, any time By video chat from home or work Help customers make financial decisions Interest in receiving advice % of customers who are somewhat or very interested in obtaining financial advice or assistance in different ways • Obtaining advice in person generates the greatest interest among customers in Western Europe across all countries, although overall the interest is less than customers globally for this and all other methods. • Other than in-person advice, speaking by telephone with someone at a local branch office during normal business hours generates the greatest level of interest, and the remaining options are far less appealing. • Austria and Luxembourg are the most interested in advice, especially the top-most two forms, while the Netherlands and Norway express the lowest interest. 31% 48% 49% 50% 61% 14% 26% 30% 42% 59% Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy 9% 16% 26% 55% 69% 11% 22% 23% 40% 57% 13% 24% 20% 43% 62% 10% 17% 21% 27% 49% 17% 31% 36% 53% 66% 8% 20% 22% 43% 59% 13% 34% 34% 38% 61% 23% 30% 32% 46% 59% Opportunity 2
    • Page 14 In person Can speak to someone known by phone at the branch during working hours Use online financial management tools to make decisions around spending, investments, and loans Can speak to someone by phone in a call center whom I can call any day, any time By video chat from home or work 31% 48% 49% 50% 61% 14% 26% 30% 42% 59% Help customers make financial decisions (cont.) Interest in receiving advice % of customers who are somewhat or very interested in obtaining financial advice or assistance in different ways 60% 59% 59% 58% 79% Global Western Europe Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom 8% 16% 23% 23% 38% 7% 27% 35% 26% 40% 18% 31% 37% 44% 61% 18% 32% 36% 40% 64% 5% 22% 23% 36% 54% 15% 24% 32% 49% 64% 11% 24% 29% 32% 54% Opportunity 2
    • Page 15 Build relationships via top engagement opportunities Impact of improved experience % of customers who would pay a little more, add more accounts/services, or increase their balances in exchange for advisory- related services • Customers in Western Europe are willing to reciprocate a bank’s investment in them, but at notably lower rates of engagement than those expressed by customers globally. • “Proactively alerts you to products, services or sales/promotions/special rates that might be of interest to you” and “allows you to choose from different pricing options” are unique among the top 10 engagement opportunities in Western Europe. 7% 7% 7% 6% 7% 7% 6% 10% 8% 11% 20% 22% 23% 22% 19% 23% 22% 23% 22% 22% 12% 10% 9% 12% 14% 17% 19% 17% 20% 19% 39% 39% 39% 40% 40% 47% 47% 50% 50% 52% Net Engaged #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 Engagement Rank 11% 15% 11% 14% 14% 13% 11% 18% 13% 17% 28% 27% 28% 28% 28% 28% 29% 31% 31% 30% 18% 18% 19% 19% 20% 23% 25% 22% 29% 25% 57% 60% 58% 61% 62% 64% 65% 71% 73% 72%#2 #1 #3 #4 #5 #7 #8 #12 #9 #14 Net Engaged Engagement Rank Provides a plan to help you reach your financial goals Invests in your financial well being Always finds new ways to improve how you conduct your business Rewards you for being a loyal customer Finds ways to save you money Customizes products and services to fit your needs Takes your overall relationship with them into account when quoting fees and rates Proactively alerts you to products, services or sales/ promotions/special rates that might be of interest to you* Respects your cultural or religious requirements Allows you to choose from different pricing options* Pay a little more Add more accounts/services Increase my deposits/investments Global Western Europe *Included in regional top 10; not included in global top 10 Opportunity 2
    • Page 16 Impact of improved experience – net engagement % of customers who would pay a little more, add more accounts/services, or increase their balances in exchange for advisory- related services • Outside the top-most tier of benefits, countries value different benefits, with “rewarding customers for being loyal customers” found in the top 3 opportunities in 9 countries and “finding ways to save customers money” identified in 8 countries. Top 10 regional engagement opportunities #1 Provides a plan to help you reach your financial goals #2 Invests in your financial well being #3 Always finds new ways to improve how you conduct your business #4 Rewards you for being a loyal customer #5 Finds ways to save you money #6 Customizes products and services to fit your needs #7 Takes overall relationship with them into account when quoting fees/rates #8 Proactively alerts you to products, services or sales/promotions/special rates that might be of interest to you #9 Respects your cultural or religious requirements #10 Allows you to choose from different pricing options Build relationships via top engagement opportunities (cont.) 57% 60% 58% 61% 62% 64% 65% 71% 73% 72% 39% 39% 39% 40% 40% 47% 47% 50% 50% 52% 36% 33% 27% 55% 46% 39% 43% 66% 37% 33% 49% 32% 31% 30% 55% 62% 46% 50% 54% 29% 29% 18% 30% 34% 55% 44% 58% 56% 73% 28% 39% 31% 25% 30% 42% 38% 33% 39% 47% 20% 37% 34% 31% 42% 39% 29% 34% 38% 42% 65% 38% 35% 39% 45% 48% 47% 49% 78% 54% 53% 41% 46% 56% 44% 55% 56% 56% 58% 69% Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Opportunity 2 ** ** ** ** ** ** ** ** ** ** ** = 3 highest rated engagement benefits among top 10 **Data not shown due to small sample size (<10)
    • Page 17 Top 10 regional engagement opportunities #1 Provides a plan to help you reach your financial goals #2 Invests in your financial well being #3 Always finds new ways to improve how you conduct your business #4 Rewards you for being a loyal customer #5 Finds ways to save you money #6 Customizes products and services to fit your needs #7 Takes overall relationship with them into account when quoting fees/rates #8 Proactively alerts you to products, services or sales/promotions/special rates that might be of interest to you #9 Respects your cultural or religious requirements #10 Allows you to choose from different pricing options 57% 60% 58% 61% 62% 64% 65% 71% 73% 72% Impact of improved experience – net engagement % of customers who would pay a little more, add more accounts/services, or increase their balances in exchange for advisory- related services 39% 39% 39% 40% 40% 47% 47% 50% 50% 52% Build relationships via top engagement opportunities (cont.) 73% 94% 100% 82% 74% 69% 82% 100% 95% 98% 24% 41% 35% 34% 36% 28% 58% 32% 46% 51% 29% 24% 39% 39% 46% 49% 76% 27% 44% 62% 53% 54% 65% 44% 52% 60% 41% 22% 38% 35% 42% 38% 46% 41% 47% 38% 30% 33% 34% 56% 46% 39% 32% 43% 49% 39% 41% 63% 47% 63% 44% 51% 26% 55% 33% 41% 33% 44% 42% 67% 30% 48% Global Western Europe Luxembourg Netherlands Norway Portugal Spain Sweden Switzerla nd United Kingdom Opportunity 2 ** ** ** ** ** ** ** ** = 3 highest rated engagement benefits among top 10 **Data not shown due to small sample size (<10)
    • Page 18 Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom When problems arise, become the customer’s advocate Incidence % of customers who experienced a problem in the past 12 months that required resolution assistance • Western European customers experience problems to a lesser degree than elsewhere. • Within Western Europe, customers in Denmark, Ireland, Portugal and Spain are most likely to report experiencing a problem, comparable to levels seen globally. • Customers in Germany, Norway, Sweden, Switzerland and the United Kingdom are the least likely to have reported problems in the past 12 months. Opportunity 3 20% 21% 12% 30% 38% 20% 23% 26% 23% 34% 21% 28% 26% 33% 23% 29% 25% 34%
    • Page 19 Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom When problems arise, become the customer’s advocate (cont.) Satisfaction Degree of resolution satisfaction among those who experienced problems • Denmark, Ireland and Spain, three countries with among the highest reported incidence of problems, also have among the lowest percentage of customers who are very satisfied with their problem resolution; other countries with fewer very satisfied customers include Italy and Portugal. • These five countries also had the highest rates of customers less than satisfied with the resolution. • Banks in these countries, as well as others, have an opportunity to increase advocacy by improving their customers’ problem resolution experience. Opportunity 3 31% 39% 53% 15% 21% 32% 30% 31% 16% 20% 35% 29% 29% 11% 38% 42% 28% 25% 34% 33% 0% 29% 27% 39% 36% 50% 31% 30% 27% 36% 36% 40% 20% 21% 30% 42% 35% 28% 47% 56% 52% 29% 34% 19% 53% 50% 38% 35% 35% 49% 42% 37% 42% 33% Very satisfied Satisfied Less than satisfied
    • Page 20 Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom Customers are actively exploring and pursuing their options Past and future activity % of customers who opened and closed accounts/services in past year or intend to do so in coming year • Western Europeans are somewhat less active than global customers as a whole in opening or closing accounts with their providers. • Customers in Austria, Luxembourg and Spain tend to exhibit the greatest activity over the past 12 months or anticipated activity over the next 12; customers in France, the Netherlands and the United Kingdom, on the other hand, have been among the least active in Western Europe. 23% 22% 22% 33% 18% 22% 14% 78% 26% 28% 23% 19% 22% 30% 24% 27% 24% 40% 35% 39% 46% 47% 42% 39% 26% 84% 36% 36% 38% 34% 38% 36% 41% 45% 39% 52% Opened/closed accounts in past 12 months Intend to open/close accounts in next 12 months
    • Page 21 47% 38% 26% 25% 50% 54% 45% 37% 19% 17% 49% 43% 38% 36% 53% 53% 42% 43% 34% 21% 34% 38% 21% 40% 32% 31% 34% -1% 26% 61% 40% 28% 44% 47% 40% 31% 46% 41% 39% 33% 44% 30% 57% 46% 33% 16% 23% 45% 60% 39% 30% 23% 31% 38% 33% 25% 26% 31% 12% 27% 54% 28% 19% 19% -5% 26% 23% 18% 26% 12% 22% 26% 19% 14% 11% 9% 29% 15% 20% 8% -2% 5% 12% -1% 14% Top 10 regional engagement opportunities #1 Provides a plan to help you reach your financial goals #2 Invests in your financial well being #3 Always finds new ways to improve how you conduct your business #4 Rewards you for being a loyal customer #5 Finds ways to save you money #6 Customizes products and services to fit your needs #7 Takes your overall relationship with them into account when quoting fees and rates #8 Proactively alerts you to products, services or sales/promotions/special rates that might be of interest to you #9 Respects your cultural or religious requirements #10 Allows you to choose from different pricing options Top-10 benefit average 31-benefit average Banks have new competitors for prized offerings Competitive advantage of traditional banks vs. new type of bank Difference in % share of mentions selecting traditional bank versus new type of bank as best able to offer benefits • Western European customers view their banks favorably overall, but traditional banks are most vulnerable to new types of banks able to find new ways to improve how customers conduct their business; considering the top 10 engagement opportunities overall, banks in Ireland, Italy, Luxembourg and Spain are most vulnerable, whereas those in Austria, Belgium, France, Norway and Switzerland view traditional banks more favorably. Global Western Europe Austria Belgium Denmark Finland France Germany Ireland Italy 21% 16% 16% 21% 9% 20% 15% 14% 15% 5% 14% 12% 33% 25% 19% 32% 26% 34% 32% 24% 21% 14% 20% 33% ** ** ** ** ** ** ** ** ** ** ** *Global average for global top 10 engagement opportunities, regional average for regional top 10 engagement opportunities **Data not shown due to small sample size (<10) = Negative gap: traditional banks receive lower share of mentions than new types of banks
    • Page 22 33% 25% 19% 32% 26% 34% 32% 24% 21% 14% 20% 33% -9% -11% -16% 5% -37% -21% 35% 0% -9% -38% -9% -23% 39% 28% 17% 50% -1% 52% 43% 36% 14% 16% 13% 45% 43% 33% 29% 15% 55% 51% 48% 38% 31% 29% 3% 27% 56% 54% 41% 32% 19% 7% 37% 16% 20% 14% 14% 29% 13% 17% 12% 9% 9% 16% -12% 37% 40% 27% 39% 55% 29% 27% 42% 20% Top 10 regional engagement opportunities #1 Provides a plan to help you reach your financial goals #2 Invests in your financial well being #3 Always finds new ways to improve how you conduct your business #4 Rewards you for being a loyal customer #5 Finds ways to save you money #6 Customizes products and services to fit your needs #7 Takes your overall relationship with them into account when quoting fees and rates #8 Proactively alerts you to products, services or sales/promotions/special rates that might be of interest to you #9 Respects your cultural or religious requirements #10 Allows you to choose from different pricing options Top-10 benefit average* 31-benefit average Banks have new competitors for prized offerings (cont.) Competitive advantage of traditional banks vs. new type of bank Difference in % share of mentions selecting traditional bank versus new type of bank as best able to offer benefits Global Western Europe Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom 21% 16% 16% 21% 9% 20% 15% 14% 15% 5% 14% 12% *Global average for global top 10 engagement opportunities, regional average for regional top 10 engagement opportunities **Data not shown due to small sample size (<10) = Negative gap: traditional banks receive lower share of mentions than new types of banks ** ** ** ** 40% 32% 36% 54% 26% 51% 51% 24% 31% -10% 48% 14% 31% 23% 7% 26% 19% 6% 25% 30% 32% 17% 33% 36% ** ** ** **
    • Page 23 EY’s eight customer segments Banks’CompetitiveDifferentiation Consumer Engagement (willingness to pay more for key benefits) Upwardly Mobiles New World Adopters Safety Seekers Traditionalists Elites Balancers Unhappy and Unmovings Self-Sufficients HighLow Small Large 1-9% 1 10-19% 20% or more Assets under management of total population Relative population • Overall, customers in Western Europe are less willing to pay more for improved delivery of key benefits compared with the global customer population.
    • Page 24 Conclusion
    • Page 25 ► Focus on the customer experience to build complete trust and create advocates ► Preserve banks’ competitive advantage in delivering benefits that are fundamental to banking and highly valued ► Given the competitive landscape, make investments in other areas, generally those that will increase engagement through customized advice and solutions ► Develop targeted, segment-based strategies. This requires careful attention to customer experience benefits, channel preferences, priorities and behaviors ► Focus on three areas of opportunity: ► Make banking simple and clear through transparency of fees, simplicity of offers and communication, and delivery of an omni-channel experience ► Help customers make the right financial decisions in a complex environment through more and better advice and through greater use of data and digital channels to empower customers ► Work with customers when problems arise and become their advocate through improved problem resolution capabilities Banks are poised for growth and well positioned to continue the recent momentum in building customer confidence
    • Page 26 Research methodology
    • Page 27 Summary EY surveyed 32,642 retail banking customers. • To qualify, respondents had to own at least one financial product as defined in the survey and have access to the internet. • The survey was translated into local languages and conducted online in 43 countries. • The survey instrument was pre-tested in Brazil, China, India, Spain and the United States to ensure the survey questions were understood and captured relevant aspects of customers’ banking behaviors and experiences. • All financial questions referenced each country’s local currency and were standardized into US dollars based upon the purchasing power parity conversion factor as reported by The World Bank for 2011 for all countries except Argentina, for which data was not available; the Big Mac index for July 2013, as developed and reported by The Economist, was used as an alternative for Argentina. • The target quotas were established based on age and gender in each country. • All data was weighted to reflect each country’s population based on age and gender, as well as each country’s global representation. Exceptions included Egypt, Kenya and Saudi Arabia where prevalence of male decision makers in the household resulted in the data being weighted by age only. Estimates used in weighting were drawn from The World Bank’s International Comparison Program database, which provides demographic indicators for countries and areas of the world with a population of 5,000 or more. • The average interview length was 16 minutes. North America Western Europe Eastern Europe Asia Pacific Canada United States 503 1,516 Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom 406 406 127 128 793 808 410 764 124 402 128 400 533 128 400 767 Czech Republic Poland Russia Turkey* Ukraine 415 508 1,806 872 507 Australia China Hong Kong Indonesia* Japan Malaysia* Singapore South Korea Vietnam* 414 2,776 472 1,504 1,503 504 405 514 776 Latin America Argentina Brazil Chile* Columbia* Mexico* 502 1,684 400 518 1,875 Middle East Egypt* Saudi Arabia 753 500 Africa India Kenya* Nigeria* South Africa* 502 1,500 512 India 2,177 Numbers represent respondents per country *Emerging markets
    • Page 28 Demographics Demographics reflect weighting of survey responses. All data was weighted to reflect each country’s population based on age and gender, as well as the country’s representation among the 43 countries surveyed. Gender 36% 28% 36% 18-34 35-49 50 or older Female 48% Male 52% Age Education *All financial information was captured in local currency and converted to US dollars using purchasing power parity conversion factor; see Research methodology for detail. 59% 15% 26% High school graduate or less Attended college/university College/university graduate 37% 23% 17% 6% 17% Decline to answer 100,000 USD or more 50,000 - 99,999 USD 25,000 - 49,999 USD Less than 25,000 USDMedian household income: 28,090 USD 24% 22% 13% 12% 15% 14% Decline to answer 250,000 USD or more 100,000 - 249,999 USD 50,000 - 99,999 USD Median investible assets: 46,875 USD Annual household income* Investable assets*
    • Contacts Philippe Desombere Market Leader Financial Services Belgium Advisory Services Mobile: +32 476 49 49 51 philippe.desombere@be.ey.com Kurt Cogghe Executive Director Customer & Revenue Growth Advisory Services Mobile: +32 471 64 77 48 kurt.cogghe@be.ey.com
    • Page 30 EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com/be. The services offered by Ernst & Young in Belgium refer to services offered by Ernst & Young Bedrijfsrevisoren/Réviseurs d’Entreprises BCVBA/SCCRL, Ernst & Young Tax Consultants BCVBA/SCCRL, Ernst & Young Accountants BCVBA/SCCRL, Ernst & Young Special Business Services CVBA/SCRL or their respective associated companies in Belgium, each of which is a separate legal entity and have their registered offices at De Kleetlaan 2, 1831 Diegem, Belgium. © 2014 EYGM Limited. All Rights Reserved. ey.com/be