2. The E&Y Global Consumer Banking Survey 2012
“The Customer takes Control”
► This is Ernst & Young’s latest survey of retail banking customers around the world.
► It builds on our previous global customer survey in 2011 and our European customer survey in 2010, and examines
the views of more than 28,560 banking customers in 35 countries, gathered in March 2012.
► The survey places particular emphasis on answering the following questions:
► How likely are customers to change banks, and if so, why?
► Is customer behavior towards their banks changing, and if so how?
► How are customers using different channels, and what do they expect
from them?
► What is driving customers’ satisfaction, and what improvements do they
want to see?
► What steps can banks take to enhance customer loyalty and advocacy?
Page 2 Customer Survey Results
3. The survey tells us that customers are taking control of their
banking relationships
► Customers are taking control
► They are changing banks.
► They prefer turning to sources other than their bank for financial advice and to find the best
deals.
► They want to play an active role in
tailoring their products and services.
► They want better value and improved
service.
► They want to be able to choose
between different channels, service
levels and costs.
Page 3 Customer Survey Results
4. Executive Summary
Customer confidence is decreasing for 2 main reasons
Fall in confidence Reason 1 Reason 2
Dissatisfaction of bonus culture Macro-economic reasons
+41%
+46%
+11%
► Customer confidence has ► The main reason why ► Marco-economic reasons
decreased by 41% since confidence has decreased is are the second cause of
2012 reaching 72% of client due to continued confidence decrease
with no confidence in their dissatisfaction with the
bank bonus culture of banks in
light of government
intervention
Page 4 Customer Survey Results
5. Executive Summary
Customers are increasingly likely to use other banks...
Attrition Multi-banking Why customers are
changing banks
% of customers in Belgium % of customers in Belgium with Top reasons for attrition.
planning to change bank one vs. multiple banking % of customers in Belgium
relationships
3 or more
banks
53% High fees or charges
+42%
2 banks
32% Poor branch experience
30% Poor rates on accounts
1 bank 23% Poor Financial Advisor’s
competencies
► Customers are becoming ► Multi-banking is on the rise ► Sensitivity to fees and
less loyal. The proportion of globally. Almost 80% have charges is the leading
customers planning to change one or two bank providers driver of attrition.
banks has increased from 7%
to 12% since 2011.
Page 5 Customer Survey Results
6. Executive Summary
…but still turn to a bank for most product and services
► The majority of customers still turn to a
bank when making product choices
about product and services
► Customers are increasingly likely to
choose a non-banking institution for
insurance product
Page 6 Customer Survey Results
7. Executive Summary
Financial Advisors remains the main source of information but…
Customers’ increasing willingness to actively manage their banking relationships represents a major change for the
industry.
Advice Social Networking Interaction
Top sources valued by customers in Belgium to % of customers in Belgium who use social
keep them informed on banking products networking to perform the following activities
► Customers prefer turning to financial advisory for financial ► The use of social media as a source of banking
advice and to find the best deals. information is amplifying customers’ voices, giving
them greater power as advocates or critics
► Comparison websites, relatively unknown five years ago,
are now a major source of influence
Page 7 Customer Survey Results
8. Executive Summary
...customer want to play an active role in tailoring their products and services...
Tailored Offerings Personal Information Update Frequency
% of customers who say their % of customers willing to provide How often customers would be
bank adapts the products and their bank more personal prepared to update their
services to meet their needs information information for their bank
50% When circumstances change
63% 18% Every six months
Yes
25% Every year
37%
No 7% Only at the beginning of the
banking relationship
► The majority of customers ► Customers are embracing the ► Moreover, a significant proportion
feel that products and benefits that come from of customers are willing to actively
services are only providing with personal maintain their personal
occasionally customized to information. 63% of customers information with their bank.
meet their needs. Only 14% are willing to provide more
of customers feel that they are personal information in order to ► In return, they expect to receive
provided with tailored receive more personalized tangible improvements in the
offerings. service. suitability of products and services
they are offered.
Page 8 Customer Survey Results
9. Executive Summary
...they want the flexibility to shape the relationship, contacting their bank
whenever and however they choose
Channel preferences
Preferred channel for different types of products,
services and activities
► Access to account information and simple
transactions are manly done via the internet
► While customers visit their bank to get advice on
product and services and to realize complex
transactions
Legend
Page 9 Customer Survey Results
10. Executive Summary
Customers want better value and improved service...
Actions that would increase customer satisfaction
% of customers listing the answer option as high priority
► Changing fees and charges structures are perceived
as being a good way to increase customer satisfaction
Page 10 Customer Survey Results
11. Executive Summary
...and they want to be rewarded for their loyalty
Loyalty program enrolment Customers strongly believe that Reward schemes
loyalty should be rewarded.
% of customers in Belgium % of customers who agree or % of customer in Belgium who value
enrolled in a bank loyalty/rewards strongly agree with the following the most from a loyalty program
program statements
+90%
► Enrolment in loyalty programs ► Loyalty schemes are not just something ► Customer reward most cash back on
has jumped by 90% versus last customers value highly, they are seen credit/debit card and choose for price
year as a leading attraction for new reductions as second and third
customers. Customers across all preference
countries identify tangible rewards for
loyalty as a leading factor that would
persuade them to change their bank.
Page 11 Customer Survey Results
13. Customer confidence
Change over the last year
How has your confidence in the banking industry changed over the past 12 months?
2011 2012
Page 13 Customer Survey Results
14. Customer confidence
Reason why it has decreased
Your confidence has decreased, please specify the reason by ticking all that apply.
2011 2012
Page 14 Customer Survey Results
17. Customer Behaviour
Reason for multi-banking
If you bank with more than one bank, why is this?
Page 17 Customer Survey Results
18. Customer Behaviour
Use of Social networking sites
Do you use social networking sites in relation to your banking activities to:
Page 18 Customer Survey Results
19. Customer Behaviour
Source of information
What sources do you value to keep yourself informed on banking products when considering a new product, a
replacement product or a potential switch of your main banking provider? (High importance + Medium importance)
Page 19 Customer Survey Results
20. Customer Behaviour
Preferred method of interaction
What is your preferred method of dealing with your bank for different types of products, services and activities?
Page 20 Customer Survey Results
21. Customer Behaviour
Paying for banking products/services
What are your expectations in terms of paying for banking products / services? (Mainly agree)
Page 21 Customer Survey Results
24. Customer Satisfaction
Change of banking provider
Have you ever changed your main banking provider?
2011 2012
Page 24 Customer Survey Results
25. Customer Satisfaction
Reason for change of banking provider
What reasons would/did make you change your banking provider?
Page 25 Customer Survey Results
27. Customer Satisfaction
Level of personalization
How would you rate the level of personalized attention provided by your bank?
Page 27 Customer Survey Results
29. How to Increase Satisfaction?
Loyalty Program Enrollment
Have you enrolled with a bank loyalty/rewards program?
2011 2012
Page 29 Customer Survey Results
30. How to Increase Satisfaction?
Loyalty program expectations
What do you or would you value the most from a loyalty program?
Page 30 Customer Survey Results
31. How to Increase Satisfaction?
Activities Improvement
Which of the banking activities would you most like your bank to improve/make easier to increase your
satisfaction with the service they provide?
Distribution per continent (Top 5)
Page 31 Customer Survey Results
32. How to Increase Satisfaction?
Personal Information
Would you be willing to provide your bank with more information about yourself, and/or your family, if it helped
your bank to recommend a more appropriate account or deliver a better service for you and your family?
Page 32 Customer Survey Results
33. How to Increase Satisfaction?
Information Update
How often would you be prepared to update the information for your bank?
Page 33 Customer Survey Results
34. How to Increase Satisfaction?
Improve Products & Services to meet requirements
If you’re not satisfied, what are the main ways the bank can improve this aspect? (Products / services to meet
requirements )
Page 34 Customer Survey Results
35. How to Increase Satisfaction?
Improve Internet Site Experience
If you’re not satisfied, what are the main ways the bank can improve this aspect? (Internet site experience )
Page 35 Customer Survey Results
36. How to Increase Satisfaction?
Improve Mobile Banking Services
If you’re not satisfied, what are the main ways the bank can improve this aspect? (Mobile banking services )
Page 36 Customer Survey Results
37. How to Increase Satisfaction?
Improve Transparency of fees
If you’re not satisfied, what are the main ways the bank can improve this aspect? (Transparency of fees )
Page 37 Customer Survey Results