online services survey: what customers want

Keane.com United States Australia Canada India United Kingdom

©2006 Keane, Inc. All rights reserved. CONFIDENTIALITY: The concepts and methodologies contained herein are proprietary to Keane, Inc.

Duplication, reproduction or disclosure of information in this document without the express written permission of Keane is prohibited.

Keane.com United States India Canada United Kingdom Australia©2006 Keane, Inc. All rights reserved. Confidentiality: The concepts and methodologies contained herein are proprietary to Keane, Inc.


Imran Sayeed

VP Global Financial Services

Keane, Inc

Online Services Survey:

What Customers Want

October 17, 2006 2©2006 Keane, Inc. All rights reserved. Confidentiality: The concepts and methodologies contained herein are proprietary to Keane, Inc.


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Keane Corporate Headquarters

Advanced Development and/or Operations Centers

About Keane

Financially stable US firm, founded in 1965 Publicly traded on NYSE (KEA) $956M 2005 revenues

Seamless global delivery model Onsite - Offsite - Near-shore - Offshore Common process, management & metrics Accountability – single point of contact Cost effective – optimize delivery

World class quality processes SEI CMM Level 5 operations ISO 27001 Security certifications offshore

Scalable World class people processes

End to end solutions Plan, Build & Manage solutions Program & Project Management AD & I, ADMO & BPO

Keane’s Financial Services Practice Largest Vertical at Keane, with 33% of revenues

30+ years of experience 3400+ projects completed since 1996

Current clients include 5 of the top 10 global investment banks and brokerages 5 of the top 10 insurance companies and brokers

Commitment to deliver results and quality — over 95% repeat clients

Center of Excellence for FS



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Online Customer ExperienceSurvey

KEANE



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Survey Snapshot

Financial Institutions

106 senior business and IT executives at regional, national, and international retail banks, insurers, and brokerages responded to a 20-question quantitative survey during October and November 2005

Sample titles: VP of innovation and planning; VP of information technology; CIO

A small group of executives was selected for qualitative interviews to validate the direction of the quantitative study

Customers

1,816 banking customers in the US, UK, and Canada responded to a 69-question online survey during Dec ’05 and Jan ‘06. The large majority of respondents were from the US.

Demographic highlights

95.5% are between the ages of 25 and 59

72% currently married

77% own a home

78% have a bachelors degree or post-graduate degree

Occupation categories:

Technical – 43%

Professional – 33%

Management – 17%

Other 7% in clerical, sales, or services



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Key Findings

Financial services firms are pinpointing online customer experience as a priority for boosting their organic revenue growth

66% of respondents say online services are a priority for working with customers in future

94% of respondents cite customer retention as a key factor for investing in online service

Of the financial services firms that are most satisfied with their organic growth, more than 70% defined themselves as innovators in the development of online products and services

At first glance, banking customers appear satisfied with their financial institutions’ online services. But further questioning reveals serious fault lines:

Most do not strongly agree that their financial institution is helpful with financial planning

Less than 20% of customers value the advice given by their financial institution

61% of customers say they know they need to plan, but need help

Almost 80% of “Aspiring Planners” would be likely to use expert advice and guidance on financial matters…and more than 60% would use an online diagnostic planning tool

Banks are missing a big opportunity by not using their Web sites to reach Aspiring Planners



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0 10 20 30 40 50 60

Factors other than the businesscase

Reduce customer care costs

Lower transaction costs

Customer acquisition

Cross-selling opportunities

Customer retention

Innovators Contenders

Online Customer ExperienceBusiness Drivers

Factors Cited in the Business Case for Online Customer Experience

Customer retention and cross-selling opportunities dominate the justification for investing in online customer experience



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Online Customer ExperienceInvestment Priorities

Innovators are more likely to invest in improving their customers’ online experience

0 5 10 15 20 25 30

We will make onlymoderate

improvements

We will makewhatever

improvements arenecessary to remain

competitive

We will makeaggressive

improvementsbecause online

customerexperience is animportant factor

Innovators Contenders



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0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Secure Easy to navigate Logically laid out Integratedseamlessley with the

processing at mybranch

Visually appealing

Strongly Agree (8 or higher)

0

2

4

6

8

10

Mean (1-disagree, 10- strongly agree)

Strongly Agree Mean

On the surface, customers are happy with many aspects of their primary banking institutions’ web sites

Customers find the site to be secure, easy to navigate, and visually appealing

Most respondents strongly agree with how data is integrated between their bank branch and the bank’s Web site

The percentages of those who “strongly agree” with positive characteristics of their banks’ Web sites remain high (see bars)



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The sites are seen to be professional, simple, and straightforward to use

Less than a third find the sites friendly

Very few customers find the site complicated, confusing, or boring

Even fewer rate it as fun

3.5%

4.9%

4.1%

10.0%

61.9%

28.4%

50.3%

70.3%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Fun

Confusing

Complicated

Boring

Friendly

Business-like

Simple andstraightforward

Professional

% of Survey Respondents



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But when customers are asked for more details of their online experience, it’s clear that they are not satisfied

Only a little more than 50% of customers strongly agree that their primary institution’s site is targeted to their needs

Dissatisfaction appears when customers are asked specific questions about information, tools, and features

Most do not agree that their financial institution is helpful with financial planning and products

Less than 20% of customers value the advice given by their financial institution

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Targeted to myneeds

The information thatI'm looking for

(Has) all the toolsand features that I

need

Helpful to myfinancial

product/planningprocess

I value the advicegiven on my

financialinstitution's website

% of Respondents Who Strongly Agree (rated 8 or higher on a scale of 1-10)

0

2

4

6

8

10

Mean (1-disagree, 10- strongly agree)

Strongly Agree Mean



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Advisory & Planning

…it is obvious that primary institutions are falling short in advisory and planning offerings

Customers are using presentation and transaction features; however, there is a steep drop-off with advisory and planning

Most customers use their primary institution for viewing accounts and for various transaction and data integration requirements

Yet there are weaknesses in product/rate information and tracking investments

Presentation Transaction & Data Integration

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

View accounts

Product/rate information

Funds transferBill Payment

Loan applicationsCredit applicationTracking investments

BudgetingFinancial tools

Investment planningFinancial researchInsurance purchase

Online financial advice

Goal setting

% Use Primary Bank for Activity



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In fact, there is a big gap between what financial firms say they are offering and what customers are actually using

Surveyed in late 2005 by Keane, financial institutions give a slightly lower rating for their advisory and planning capabilities than for presentation or transactions, for example (See line and RH scale)

However, customers are not actively using the advisory and planning services the banks say they offer

Presentation Transaction & Data Integration

Advisory & Planning

Mea

n A

vera

ge

Cap

abil

ity

Rat

ing

fro

m F

inan

cial

In

stit

uti

on

s

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

View accounts

Product/rate information

Funds transferBill Payment

Loan applicationsCredit applicationTracking investments

BudgetingFinancial tools

Investment planningFinancial researchInsurance purchase

Online financial advice

Goal setting

% Use Primary Bank for Activity

0

1

2

3

4

5



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4%

61%

35%

The majority of customers want to improve their financial planning and admit they need help

Banks are missing a big opportunity by not using their Web sites to reach Aspiring Planners

61% of customers (Aspiring Planners) say they know they need to plan, but need help

Many customers are intimidated by the planning process, aren’t ready to face planning, or are scared off by a combination of the two

There is also a significant opportunity in appealing more strongly to the Super Planners

Aspiring Planners

I do all of my financial planning = Super Planners

I know I need to plan, but I need help = Aspiring Planners

I have no interest in financial planning = Non-Planners

Super Planners

Non-Planners

How Customers Evaluate Their Planning Capabilities

Mapping Survey Response to Descriptive Segment

35%

61%

4%



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0%

20%

40%

60%

80%

100%

Non-planner Aspiring Planner Super Planner

Would not use Might use Most likely use

% of Respondents by Planner Segment

Aspiring Planners are very interested in expert advice and guidance on financial matters…

Almost 80% of Aspiring Planners would be likely to use expert advice and guidance on financial matters



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0%

20%

40%

60%

80%

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Non-planner Aspiring Planner Super Planner

Would not use Might use Most likely use

% of Respondents by Planner Segment

…as well as online diagnostic tools

More than 60% of Aspiring Planners would most likely use online diagnostic tools



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Attracting Aspiring Planners: Top Five online features

Simple product comparison, expert advice, and diagnostic tools lead the list of potential features

Lower-ranked features included:

Chat rooms

Stories of how similar people handle situations

Online presentation of financial topics

Independent product reviews

7.14

7.46

7.31

7.75

7.77

6 6.5 7 7.5 8

Links to financialWeb sites

Tips on how toapproach key events

A diagnostic tool

Expertadvice/guidance on

financial matters

Simple productcomparison

Mean (based on a rating of 1- would not use -10 would definitely use)



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House needs repairs…

Customer InsightUncovers a Major Disconnect

Found perfect house!

Would like to make offer…

House needs updates…

Need some new appliances…

Need to find an electrician

How will I mange all this?

BANK

Source: Keane’s clientexperience with Egg

CheckingAccount

CreditCard

UnsecuredLoan

Savings InvestmentsMortgage Insurance

Customer View Would like to buy a house? What can I afford? Need money to pay for repairs, updates and maintenance

Need home owners insurance

Bank View Sell a mortgage Fixed mortgage Variable Rate Mortgage Home owners insurance Home improvement loan

I want to sell… a mortgage.

I want to sell…

insurance.



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KEANE

Q & A

online services survey: what customers want

Documents

financial planning

banking customers

online services survey

financial mattersand

question online survey

quantitative study customers

development of online

banks web sites