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Efma Report
 

Efma Report

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    Efma Report Efma Report Presentation Transcript

    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE The Internet Tsunami based on the forthcoming report by Efma, Novamétrie, Crédit Agricole, Microsoft, Capgemini Barcelone, 29 November 2007
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE 2nd annual report Online financial customer behaviour in Europe Annual online survey Conducted by Efma with Novamétrie, Microsoft, Capgemini & Crédit Agricole, 50 online finance experts 4,836 online finance users – visiting a bank’s or insurer’s site once a month or more often 6 countries (proportion of online finance users) • Italy (1/5) • France (1/4) • Spain (1/4) • The Netherlands (1/3) • The UK (1/3) • Sweden (1/2)
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Financial services experts expect online sales of financial products to double and reach 30% in 2011 47% 50% 42% 36% 40% 30% 22% 22% 18% 17% 16% 20% 14% 12% 9% 6% 10% 0% Sweden UK Netherlands France Spain Italy 2007 2011
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Experts estimate that online sales have no major impact on the branch network •Yes •13% •No •87% Decrease in number of branches •No •Yes •50% •50% •Yes •31% •No •69% Impact on branch network Decrease in branch size
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Experts increasingly see the Net as a sales channel Not really 4% Not really 15% Quite 17% Completely Quite 53% 32% Completely 79% Source of Sales channel information
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Online banking users claim they bought more financial products online in 2007 Over the past 12 months, did you subscribe online any of the following financial products? Bestsellers vary from one country to the next: Non-life insurance, current 37% accounts, investments and 33% 32% 32% credit cards most popular 30% 24% 25% 25% 23% 23% 15% 14% 15% 15% 10% 8% 9% 5% 7% rd t es it t ce ce it ce e ts rd un un ed an m ed en ca ag an an ca co ur Ho co cr cr stm rt g ur ur bit it ac ac er ng ed ins r & ins ins De Mo ve um gs nt lvi Cr Ca e h In rre vin vo ns Lif alt Cu Re Sa Co He 2007 2006
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Online users say non-life insurance and current accounts are attractive products to buy online Which products look the most attractive for full online subscription, including electronic signature?
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE The gap between attractiveness and actual online subscriptions shows strong potential Subscription Attractiveness 63% 63% 55% 49% 37% 33% 31% 15% Δ=27 Δ=30 Δ=24 Health Δ=34 Current Car & home Credit card % % % Insurance % account insurance 48% 45% 40% 32% 30% 16% 12% 10% Mortgages Consumer Δ=16 Δ=33 Δ=24 Investments Life Δ=20 credit % % % insurance % Δ=Attractiveness/Application
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Car and home insurance are most popular online purchases - specially in the UK When it comes to motor or home insurance, would you like to buy them online and have you done so in the past 12 months?
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Even mortgages are far more popular online than bankers generally believe When it comes to mortgages, would you like to buy yours online and have you done so in the past 12 months?
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Local variations in online product sales depend on availability 1. Investments 1. Current account 1. Current account 2. Car & Home ins 2. Investments 2. Credit card 3. Debit card 3. Credit card 3. Debit card 1. Current account 1. Car & Home ins 1. Investments 2. Health insurance 2. Credit card 2. Car & Home ins 3. Car & home ins 3. Current account 3. Current accont
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Internet is the preferred source of information when researching financial products – by far What are your sources of information before subscribing a financial product? The Net is 80% preferred check their by 89% bank’s site first!
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Time saving, product comparisons and wealth of information are top reasons for researching online What are the three main reasons why you browse the internet before subscribing a financial product? Increased price focus: 58% look for better deals (+26%)
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Online finance users are increasingly self-directed Before subscribing a financial product or service, How do you make up your decision? Prefer Prefer to make to make decision decision alone alone 65% 57%
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE And increasingly committed to the online channel When it comes to subscribing online , in which category do you feel you are? Prefer to do maximum online 39% Prefer to do maximum online 55%
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE The self-directed largely dominate among online finance users 2% 1% 1% 37% 38% 50% 49% 60% 62% Self-directed Validator Delegator 2% 1% 17% 26% 35% 64% 72% 83%
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE A majority of committed Net users want to do a maximum online 4% 5% 6% 8% 11% 11% 31% 54% 52% 34% 32% Maximalist Mostly researcher 52% Not ready 3% Not interested 7% 13% 5% 7% 4% 23% 24% 58% 25% 62% 69%
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Self-directed and committed online users are ready to by-pass branches Proportion of internet users who claim both that they are self-directed and that they would rather perform the maximum online when purchasing a financial product or service 20% of all UK consumers 5% of French consumers
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Online finance users expect fewer & more efficient in-person interactions Would you say that the internet is transforming your relation with your bank and that it allows you to...
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Satisfaction with online finance is increasing – but there is room for improvement On a scale from 1 to 10 where 1 is not at all satisfied and 10 very satisfied, how satisfied are you with you online banking site? 0 1 2 3 4 5 6 7 8 9 2007 Decision support tools 6.53 2006 Ability to call or be called by an adviser 6.61 Product attractiveness 6.68 Wealth of information 6.98 Application facilities 7.08 Ease of use and navigation 7.32 Home page 7.47 Main security Availability 7.96 concern is, for Reliability 31%, online 8.09 fraud Security 8.21 Overall satisfaction 7.73
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Online finance users are also satisfied with their adviser 11% 15% 17% 83% 85% 89% Satisfied Not 13% 12% satisfied 16% 84% 87% 88%
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Segmentation reveals differences in online banking users’ appetite for online purchase France Italy Spain 7% 9% 22% 9% 18% 11% 27% 14% 4% 22% 3% 3% 8% 28% 6% 28% 4% 24% 24% 16% 13% Netherlands UK Sweden 4% 4% 7% 3% 3% 12% 24% 23% 11% 11% 18% 3% 6% 3% 4% 11% 6% 15% 32% •45% 55%
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Online users are willing to receive mail or calls regarding financial products of interest to them Which of the following services would help you buy financial products online?
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE The high expectations of online users affect the entire multichannel experience Online finance users are more bullish about the Net than bankers and insurers Online sales popularity varies along with offerings – laggards like France are digging themselves into a hole By failing to add value, providers let the self-directed, committed online users focus on price This critical mass of customers ready to bypass the branch require more performing account managers Multichannel integration is key to upselling through personalized offerings online or on the phone
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Experts recommend multichannel tools Remote access to product expert • • Instant messaging with account manager Most effective • Free and instant call back • Personalized email or newsletter • Personalized alerts • Video product presentation Effective • Site personalization • Online promotions Least effective • Auctions
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Dr Therese Torris Programme Director Efma 16 rue d’Aguesseau - 75008 Paris - France Tel: +33 1 47 42 69 76 ttorris@efma.com
    • ONLINE FINANCIAL CUSTOMER BEHAVIOUR IN EUROPE Main Conclusions Internet is increasingly a sales Users trust their online bank’s channel security Car & home insurance most But fear of fraud is a concern popular products online Online finance users have fewer, Online finance users are more but more meaningful interactions and more self-directed with their account manager 89% of online finance users see 76% of online banking users the Net as their main source of claim to see their account information for financial products manager less often – against 77% a year ago Price focus 55% of online finance users 58% of Internet users browse the claim to be self-directed – against Web for better deals – against 39% a year ago 32% only one year ago