KPMG - The future of the Belgian banking industry - November 2013
Customer banking survey - Belgian focus
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Transcript of Customer banking survey - Belgian focus
Belgium Focus
June 2012
“The customer takes control” Survey Results
Page 2 Customer Survey Results
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 3 Customer Survey Results
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 4 Customer Survey Results
Executive Summary Customer confidence is decreasing for 2 main reasons
Fall in confidence
► Customer confidence has
decreased by 41% since
2012 reaching 72% of client
with no confidence in their
bank
+41% +46%
► The main reason why
confidence has decreased is
due to continued
dissatisfaction with the
bonus culture of banks in
light of government
intervention
+11%
► Marco-economic reasons
are the second cause of
confidence decrease
Reason 1
Dissatisfaction of bonus culture
Reason 2
Macro-economic reasons
Page 5 Customer Survey Results
Executive Summary Customers are increasingly likely to use other banks...
% of customers in Belgium
planning to change bank
+42%
Attrition
► Customers are becoming
less loyal. The proportion of
customers planning to change
banks has increased from 7%
to 12% since 2011.
% of customers in Belgium with
one vs. multiple banking
relationships
1 bank
2 banks
3 or more
banks
Multi-banking
► Multi-banking is on the rise
globally. Almost 80% have
one or two bank providers
Why customers are
changing banks
Top reasons for attrition.
% of customers in Belgium
53% High fees or charges
32% Poor branch experience
30% Poor rates on accounts
23% Poor Financial Advisor’s
competencies
► Sensitivity to fees and
charges is the leading
driver of attrition.
Page 6 Customer Survey Results
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 7 Customer Survey Results
Executive Summary Financial Advisors remains the main source of information but…
Top sources valued by customers in Belgium to
keep them informed on banking products
Advice
► Customers prefer turning to financial advisory for financial
advice and to find the best deals.
► Comparison websites, relatively unknown five years ago,
are now a major source of influence
Social Networking Interaction
% of customers in Belgium who use social
networking to perform the following activities
► The use of social media as a source of banking
information is amplifying customers’ voices, giving
them greater power as advocates or critics
Customers’ increasing willingness to actively manage their banking relationships represents a major change for the
industry.
Page 8 Customer Survey Results
Executive Summary ...customer want to play an active role in tailoring their products and services...
% of customers who say their
bank adapts the products and
services to meet their needs
Tailored Offerings
► The majority of customers
feel that products and
services are only
occasionally customized to
meet their needs. Only 14%
of customers feel that they are
provided with tailored
offerings.
Update Frequency
How often customers would be
prepared to update their
information for their bank
50% When circumstances change
18% Every six months
25% Every year
7% Only at the beginning of the
banking relationship
► Moreover, a significant proportion
of customers are willing to actively
maintain their personal
information with their bank.
► In return, they expect to receive
tangible improvements in the
suitability of products and services
they are offered.
% of customers willing to provide
their bank more personal
information
Personal Information
► Customers are embracing the
benefits that come from
providing with personal
information. 63% of customers
are willing to provide more
personal information in order to
receive more personalized
service.
63%
Yes
37%
No
Page 9 Customer Survey Results
Executive Summary ...they want the flexibility to shape the relationship, contacting their bank whenever and however they choose
► 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
Preferred channel for different types of products,
services and activities
Channel preferences
Legend
Page 10 Customer Survey Results
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 11 Customer Survey Results
Executive Summary ...and they want to be rewarded for their loyalty
Loyalty program enrolment
► Enrolment in loyalty programs
has jumped by 90% versus last
year
Reward schemes
% of customer in Belgium who value
the most from a loyalty program
► Customer reward most cash back on
credit/debit card and choose for price
reductions as second and third
preference
% of customers who agree or
strongly agree with the following
statements
Customers strongly believe that
loyalty should be rewarded.
% of customers in Belgium
enrolled in a bank loyalty/rewards
program
► Loyalty schemes are not just something
customers value highly, they are seen
as a leading attraction for new
customers. Customers across all
countries identify tangible rewards for
loyalty as a leading factor that would
persuade them to change their bank.
+90%
Page 12 Customer Survey Results
Customer Confidence
Page 13 Customer Survey Results
Customer confidence Change over the last year
How has your confidence in the banking industry changed over the past 12 months?
2011 2012
Page 14 Customer Survey Results
Customer confidence Reason why it has decreased
Your confidence has decreased, please specify the reason by ticking all that apply.
2011 2012
Page 15 Customer Survey Results
Customer Behaviour
Page 16 Customer Survey Results
Customer Behaviour Multi-banking trend
How many banks do you have a relationship with?
Page 17 Customer Survey Results
Customer Behaviour Reason for multi-banking
If you bank with more than one bank, why is this?
Page 18 Customer Survey Results
Customer Behaviour Use of Social networking sites
Do you use social networking sites in relation to your banking activities to:
Page 19 Customer Survey Results
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 20 Customer Survey Results
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 21 Customer Survey Results
Customer Behaviour Paying for banking products/services
What are your expectations in terms of paying for banking products / services? (Mainly agree)
Page 22 Customer Survey Results
Customer Satisfaction
Level of satisfaction
Page 23 Customer Survey Results
Customer Satisfaction Bank Loyalty
How many years have you been banking with your current main bank?
Page 24 Customer Survey Results
Customer Satisfaction Change of banking provider
Have you ever changed your main banking provider?
2011 2012
Page 25 Customer Survey Results
Customer Satisfaction Reason for change of banking provider
What reasons would/did make you change your banking provider?
Page 26 Customer Survey Results
Customer Satisfaction Degree of satisfaction
What is your degree of satisfaction?
Page 27 Customer Survey Results
Customer Satisfaction Level of personalization
How would you rate the level of personalized attention provided by your bank?
Page 28 Customer Survey Results
Customer Satisfaction
How to increase satisfaction
Page 29 Customer Survey Results
How to Increase Satisfaction? Loyalty Program Enrollment
Have you enrolled with a bank loyalty/rewards program?
2011 2012
Page 30 Customer Survey Results
How to Increase Satisfaction? Loyalty program expectations
What do you or would you value the most from a loyalty program?
Page 31 Customer Survey Results
How to Increase Satisfaction? Activities Improvement
Distribution per continent (Top 5)
Which of the banking activities would you most like your bank to improve/make easier to increase your
satisfaction with the service they provide?
Page 32 Customer Survey Results
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 33 Customer Survey Results
How to Increase Satisfaction? Information Update
How often would you be prepared to update the information for your bank?
Page 34 Customer Survey Results
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 35 Customer Survey Results
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 36 Customer Survey Results
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 37 Customer Survey Results
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 38 Customer Survey Results
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