Customer banking survey - Belgian focus

Belgium Focus

June 2012

“The customer takes control” Survey Results

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?


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.


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


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.


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.


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


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.


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


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


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


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.


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%


Customer Confidence


Customer confidence Change over the last year

How has your confidence in the banking industry changed over the past 12 months?

2011 2012


Customer confidence Reason why it has decreased

Your confidence has decreased, please specify the reason by ticking all that apply.

2011 2012


Customer Behaviour


Customer Behaviour Multi-banking trend

How many banks do you have a relationship with?


Customer Behaviour Reason for multi-banking

If you bank with more than one bank, why is this?


Customer Behaviour Use of Social networking sites

Do you use social networking sites in relation to your banking activities to:


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)


Customer Behaviour Preferred method of interaction

What is your preferred method of dealing with your bank for different types of products, services and activities?


Customer Behaviour Paying for banking products/services

What are your expectations in terms of paying for banking products / services? (Mainly agree)


Customer Satisfaction

Level of satisfaction


Customer Satisfaction Bank Loyalty

How many years have you been banking with your current main bank?


Customer Satisfaction Change of banking provider

Have you ever changed your main banking provider?

2011 2012


Customer Satisfaction Reason for change of banking provider

What reasons would/did make you change your banking provider?


Customer Satisfaction Degree of satisfaction

What is your degree of satisfaction?


Customer Satisfaction Level of personalization

How would you rate the level of personalized attention provided by your bank?


Customer Satisfaction

How to increase satisfaction


How to Increase Satisfaction? Loyalty Program Enrollment

Have you enrolled with a bank loyalty/rewards program?

2011 2012


How to Increase Satisfaction? Loyalty program expectations

What do you or would you value the most from a loyalty program?


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?


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?


How to Increase Satisfaction? Information Update

How often would you be prepared to update the information for your bank?


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 )


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 )


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 )


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 )


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Customer banking survey - Belgian focus

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