ey global consumer banking survey - western european highlights

Winning through customer experience

EY Global Consumer Banking Survey 2014

Western Europe Highlights (supplement to Global Results)

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?

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

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

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

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 accountsReasons 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%

GlobalWesternEurope Austria Belgium Denmark* Finland* France Germany Ireland Italy

*Data for closed accounts not shown due to small sample size (<10)

Close accountsOpen accounts

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 accountsReasons 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%

GlobalWesternEurope Luxembourg Netherlands Norway* Portugal Spain Sweden* Switzerland

UnitedKingdom

Close accountsOpen accounts

*Data for closed accounts not shown due to small sample size (<10)

Identifying opportunities for banks in Western Europe

Benefit importance and satisfaction

Sa

tis

fac

tio

n

Importance

Ave

rag

e

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/transactionsProvides 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

TrustConvenience

Communications

Advice

Problem resolution

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%

GlobalWesternEurope Austria Belgium Denmark Finland France Germany Ireland Italy

Opportunity 1

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%

2%

3%

54%

17%

54%

3%

8%

26%

3%

2%

22%

18%

59%

2%

6%

12%

3%

18%

58%

12%

51%

1%

15%

3%

24%

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%

GlobalWesternEurope

Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland

UnitedKingdom

Opportunity 1

Daily Weekly

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%

Ban

k co

ntr

oll

edA

dvo

cate

s

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%


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

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%

Ban

k co

ntr

oll

edA

dvo

cate

s

GlobalWesternEurope Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland

UnitedKingdom

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

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%


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

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%

GlobalWesternEurope Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland

UnitedKingdom

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

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

EngagementRank

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

EngagementRank

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 Series4

Global Western Europe

*Included in regional top 10; not included in global top 10

Opportunity 2

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

#1Provides a plan to help you reach

your financial goals

#2 Invests in your financial well being

#3Always finds new ways to improve

how you conduct your business

#4Rewards you for being a loyal

customer

#5 Finds ways to save you money

#6Customizes products and services to

fit your needs

#7Takes 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

#9Respects your cultural or religious

requirements

#1

0

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%

0.36

0.33

0.27

0.55

0.46

0.39

0.43

0.66

0.37

33%

49%

32%

31%

30%

55%

62%

46%

50%

54%

0.29

0.29

0.18

0.3

0.34

0.55

0.44

0.58

0.56

0.73

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%


Opportunity 2

**

**

**

**

**

**

**

**

**

**

**

= 3 highest rated engagement benefits among top 10

**Data not shown due to small sample size (<10)


#1Provides a plan to help you reach

your financial goals


#3Always finds new ways to improve

how you conduct your business

#4Rewards you for being a loyal

customer


#6Customizes products and services to

fit your needs

#7Takes overall relationship with them

into account when quoting fees/rates

#8


#9Respects your cultural or religious

requirements

#1

0


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%

0.29

0.24

0.39

0.39

0.46

0.49

76%

27%

44%

62%

53%

54%

65%

44%

52%

60%

41%

22%

38%

35%

42%

38%

46%

41%

47%

38%

0.3

0.33

0.34

0.56

0.46

0.39

32%

43%

49%

39%

41%

63%

47%

63%

44%

51%

26%

55%

33%

41%

33%

44%

42%

67%

30%

48%

GlobalWesternEurope Luxembourg Netherlands Norway Portugal Spain Sweden

Switzerland

UnitedKingdom

Opportunity 2

**

**

**

**

**

**

**

**

= 3 highest rated engagement benefits among top 10

**Data not shown due to small sample size (<10)

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%

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.)

SatisfactionDegree 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

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 monthsIntend to open/close accounts in next 12 months

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%


#1Provides a plan to help you reach your financial goals


#3Always finds new ways to improve how you conduct your business

#4Rewards you for being a loyal customer


#6Customizes products and services to fit your needs

#7


#8


#9Respects your cultural or religious requirements

#10Allows 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.


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

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%


#1Provides a plan to help you reach your financial goals


#3Always finds new ways to improve how you conduct your business

#4Rewards you for being a loyal customer


#6Customizes products and services to fit your needs

#7


#8


#9Respects your cultural or religious requirements

#1

0


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

GlobalWesternEurope

Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland

UnitedKingdom

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%

**

**

**

**

EY’s eight customer segments

Consumer Engagement (willingness to pay more for key benefits)

Ba

nks

’ Co

mp

etit

ive

Diff

ere

ntia

tion

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.

Conclusion

► 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

Research methodology

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

CanadaUnited States

5031,516

AustriaBelgiumDenmarkFinlandFranceGermanyIrelandItalyLuxembourgNetherlandsNorwayPortugalSpainSwedenSwitzerlandUnited Kingdom

406406127128793808410764124402128400533128400767

Czech RepublicPolandRussiaTurkey*Ukraine

415508

1,806872507

Australia ChinaHong KongIndonesia*JapanMalaysia*SingaporeSouth KoreaVietnam*

4142,776

4721,5041,503

504405514776

Latin America

ArgentinaBrazilChile*Columbia*Mexico*

5021,684

400518

1,875

Middle East

Egypt*Saudi Arabia

753500

AfricaIndia

Kenya*Nigeria*South Africa*

5021,500

512

India 2,177

Numbers represent respondents per country*Emerging markets

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

Female48%

Male52%

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 answer100,000 USD or more50,000 - 99,999 USD25,000 - 49,999 USDLess than 25,000 USD

Median household income: 28,090 USD

24%

22%

13%12%15%14%

Decline to answer250,000 USD or more100,000 - 249,999 USD50,000 - 99,999 USD

Median investible assets: 46,875 USD

Annual household income*

Investable assets*

Contacts

Philippe DesombereMarket Leader Financial Services Belgium

Advisory ServicesMobile: +32 476 49 49 [email protected]

Kurt CoggheExecutive Director Customer & Revenue Growth

Advisory ServicesMobile: +32 471 64 77 [email protected]

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.

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ey global consumer banking survey - western european highlights

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