2014 edition of the Market Monitoring Survey

Findings on financial services

ECCG meeting12 March 2014

Luca Protti, Consumer Markets Unit, SANCO

• It will be published in May 2014

• Main sources of information

• Market MONITORING SURVEY:

52 consumer markets (of which 31 services) in EU28 + IS/NO: around 60% of consumption expenditure

Consumers with recent purchasing experience in the market – not general population

Questions: comparability, trust, satisfaction, problems & complaints, choice and switching

Comparisons with 2010, 2011, 2012

Improved methodology.

• Other data:

PRICES: variability of prices across EU countries and link with spending power

COMPLAINTS collected by Member States

10th Consumer Markets Scoreboard

Consumer market monitoring survey

MPI(Market Performance

Indicator)= average (1, 2, 3, 4)

4. Live up to what you wanted

5. Choice

2. Trust

1. Comparability

3. Problems & complaints

MPIC(Market Performance

Indicator including Choice)

= average (1, 2, 3, 4, 5)

MPIS(Market Performance

Indicator including Switching)

= average (1, 2, 3, 4,6)

6. Switching

Market performance index: up slightly in 2013

2013 Difference 2013-2012 Difference 2012-2011 Difference 2011-2010

All markets 77.4 0.3 0.9 0.5

Goods markets 80.1 0.0 0.9 1.3

Services markets 75.6 0.5 0.8 - 0.2

MPI

Services markets – EU 27

Services market clusters

Cluster MPI 2013 MPI 2012Recreational Services 79.2 80.1

Insurance Services 76.4 75.8Transport 75.9 75.4Network Services 74.5 74.1Telecom 73.6 73.6

Banking Services 71.5 71.3- 2.1

- 2.8

Evolution since 2011

Country differences in market assessment

MarketDiff. between best

and worst country score

Top 5 countries Bottom 5 countriesImproved most

since 2011Deteriorated most

since 2011

All financial services 18.7 points MT, LV, LU, DE, FI PT, HR, BG, HU, ES CY, EL, MT, LV, SE NL, ES, PT, HU, EE

Banking Services 24.5 points MT, LU, DE, FI, CY BG, HR, IE, HU, ES CY, EL, LV, FR, MT EE, NL, HU, ES, PT

Insurance Services 12.8 points LV, MT, LT, LU, CY HU, PT, IYT, BG, ES MT, CY, EL, LV, SE ES, NL, PT, HU, EE

Regional differences in market assessment

EU28 EU15 EU13 North EU28 South EU28 East EU28 West EU28

All services markets 2013 75.6 76.0 74.4 75.7 72.6 74.3 77.8

Insurance Services 76.3 76.5 75.7 76.0 73.4 75.7 78.2

Banking Services 71.5 72.2 68.7 74.5 65.5 68.6 75.6

Socio-demographic differences in market assessment – Banking services

70.9

72.1

70.2

70.4

70.6

70.8

71.0

71.2

71.4

71.6

71.8

72.0

72.2

Man Woman

Gender

72.6

70.6

71.8

69.5

70.0

70.5

71.0

71.5

72.0

72.5

73.0

18-34y 35-54y 55+y

Age

68.5

71.0

72.4

73.5

66.0

67.0

68.0

69.0

70.0

71.0

72.0

73.0

74.0

Up to 15y 16-19y 20+y Still studying

Education

68.1

73.3 72.970.5

73.472.1

64.8

71.6

60.062.064.066.068.070.072.074.076.0

Occupation

69.9

71.7

69.0

69.5

70.0

70.5

71.0

71.5

72.0

yes no

Internet Usage

71.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

All

Socio-demographic differences in market assessment – Insurance services

76.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

1

All

75.9

76.8

75.4

75.6

75.8

76.0

76.2

76.4

76.6

76.8

77.0

Man Woman

Gender

77.0

75.5

77.0

74.5

75.0

75.5

76.0

76.5

77.0

77.5

18-34y 35-54y 55+y

Age

76.576.2 76.3

77.8

75.0

75.5

76.0

76.5

77.0

77.5

78.0

Up to 15y 16-19y 20+y Still studying

Education

74.0

77.176.0 76.1

79.3

77.2

74.7

77.5

71.072.073.074.075.076.077.078.079.080.0

Occupation

76.4

76.3

76.3

76.3

76.3

76.3

76.3

76.4

76.4

76.4

76.4

76.4

76.5

yes no

Internet Usage

Services markets clusters - Component analysis

Market cluster

Comparability

Trust Problems ComplaintsOverall satisfaction

Choice SwitchingEase of switching

Banking Services

Insurance services

Telecoms

Transport

Utilities

Recreational services

COMPARABILITY: “On a scale from 0 to 10, how difficult or easy was it to compare services in a specific market?”

TRUST: "On a scale from 0 to 10, to what extent do you trust suppliers to respect the rules and regulations protecting consumers?"

PROBLEMS: "Within the past <x>year(s), did you experience any problem with the services you paid for, either with the service or the provider, where you thought you had

a legitimate cause for complaint?”

COMPLAINTS: "Have you complained about any of these problems?"

Consumers most likely to complain to service provider and, secondly, to family and friends. Complaints to third parties remain rare.

OVERALL SATISFACTION: "On a scale from 0 to 10, to what extent did the services on offer from different suppliers live up to what you wanted within <the past period>?"

CHOICE: "On a scale from 0 to 10, would you say there are enough different suppliers of the services you can choose from?"

SWITCHING: "For <services>, have you switched <tariff plan> or <supplier> in <the past period>?"

Across the 14 markets, 14% of consumers have switched. In general, consumers are more likely to switch provider (9%) than the service with the same provider (5%).

EASE OF SWITCHING: "On a scale from 0 to 10, how difficult or easy <do you think it was/was it> to switch <the past period>?"

Consumers who have actually switched their supplier perceive switching as easier, especially in the market for mortgages and the three insurance markets.

Scoreboard and the European SemesterCommission Annual report on the integration of

the Single Market

• Part of 2014 Annual Growth Survey

• Key areas: services, transport, energy sector, digital economy.

• Recognises poor functioning of financial services for consumers

• Should be taken into account in National Reform Programmes and feed into Country specifc Recommendations

Scoreboard data and analysis are an important contribution to this process

Thank you for your attention!