2019 Accenture Global Financial Services Consumer Study: Summary

1. DISCOVERTHE PATTERNSIN PERSONALITY 2019 Accenture Global Financial Services Consumer Study Readtheconsumertrendsaffecting banksandinsurersandexplorehow customerswantto engagethrough our fourpersonas

2. The pressure is on for banks and insurers to provide highly personalized services, but how can they accommodate a million markets of one? Today’s financial services consumers are willing to share their data— but want more in return. Copyright © 2019 Accenture. All rights reserved. 2

3. Copyright © 2019 Accenture. All rights reserved. 3 Our 2019 Global Financial Services Consumer Study sought to answer that question, surveying 47,000 banking and insurance customers across 28 markets in Asia, Europe and North America.

4. Copyright © 2019 Accenture. All rights reserved. 4 Through this survey, we sought to understand what these consumers value, what differentiates them and how they want to engage with financial providers.

5. Copyright © 2019 Accenture. All rights reserved. 5 We identified several patterns among consumers, which we distilled into five key findings: 1. 2. 3. 4. 5.Consumers want integrated propositions addressing core needs Consumers increasingly want a fully personalized offering from their financial providers Consumers are willing to share data with their providers in return for better advice and more attractive deals Consumers want better integration across physical and digital channels Consumers’ trust in financial institutions is high and increasing

6. The consumers in our survey can be segmented into four broad personas based on how they perceive and engage with banks and insurers. Financial services consumer personas Copyright © 2019 Accenture. All rights reserved. 6

7. Meet the personas Copyright © 2019 Accenture. All rights reserved. 7 Pragmatists: Ubiquitous, trusting and channel agnostic Also making up 23 percent of the sample, Pragmatists see technology as a means to an end rather than as a lifelong passion. They are satisfied with the service levels they receive and they expect good value from providers. They are interested in (though a little suspicious of) personalization. Pioneers: Risk takers, tech- savvy and hungry for innovation Tech-savvy and keen to engage with financial providers using mobile devices, Pioneers are hungry for innovation in services and channels. They account for 23 percent of respondents. Traditionalists: Value human touch, tech-avoiders and losing trust Generally older (55+) than the other personas, Traditionalists show low levels of engagement and satisfaction with their financial services providers. They are the smallest group from our consumer survey, comprising 21 percent of respondents. Skeptics: Tech-wary, dissatisfied and alienated Skeptics are the largest group, accounting for 33 percent of the sample, yet their dissatisfaction with financial providers means they are a challenging persona to engage. More than a third are under 35, making them a long-term opportunity for providers if they can be targeted.

8. Copyright © 2019 Accenture. All rights reserved. 8 Pioneers : 23% Risk takers, tech-savvy and hungry for innovation Young 50% are between 18 and 34. Tech-savvy 87% say smartphone is principal device for transacting online. Open to risk Three in four are willing to take risks to improve their lives. Hungry for innovation 73% want to explore new channels such as wearable devices. Inspired by the new 80% are interested in integrated propositions from financial providers and non- financial vendors. Pragmatists: 23% Ubiquitous, trusting and channel agnostic Everywhere Most evenly distributed persona group across age groups and geographies. Channel agnostic 77% don’t mind which channel they use if they get what they need. Open to advice 95% say they trust their human advisors in their bank branch on loan or mortgage advice. Data conscious 79% are alert and cautious about their data privacy. Trusting Trust bank to look after financial well-being and insurer to protect data.

9. Copyright © 2019 Accenture. All rights reserved. 9 Skeptics: 33% Tech-wary, dissatisfied and alienated Risk-averse Only 42% say they take risks to improve life. Tech-wary Only 57% describe themselves as confident users of technology. Frustrated Feel let down in terms of customer service. Difficult to convince Low interest in integrated propositions around core needs. Dissatisfied Only 31% have a positive experience when they visit their bank branch. Traditionalists: 21% Value human touch, tech-avoiders and losing trust Mature 66% are 55 and older. Tech-avoiders 78% never use a mobile app or website to contact their bank. Responsive to human touch Value personal contact with knowledgeable staff. Feeling let down Only 53% say providers deliver well on their priority of polite, knowledgeable staff. Losing trust 13% trust their banks and insurance providers less than a year ago.

10. Copyright © 2019 Accenture. All rights reserved. 10 Seesimilarityto understanddifference There are five key findings where our persona groups differ in terms of their attitudes and preferences in relation to financial services: 1. Appetite for integrated propositions addressing core needs 2. Appetite for personalization of services 3. Willingness to share data for reciprocal benefits 4. Integration between physical and digital channels 5. The role played by trust

11. Copyright © 2019 Accenture. All rights reserved. 11 Appetiteforintegrated propositions CUSTOMER ATTITUDES AND PREFERENCES 1 Integrated propositions combine products and services from financial providers and non-financial service vendors, giving customers a “one-stop-shop” to address core needs.

12. Copyright © 2019 Accenture. All rights reserved. 12 Interested Willing to pay Interested in integrated propositions overall Car-care propositions including insurance, car loans, remote monitoring of performance, regular maintenance checks, and advice and/or lessons on how to drive more safely Home-care propositions covering home insurance, financing, a service to cover essential home repairs, and all home utilities Willing to pay CUSTOMER ATTITUDES AND PREFERENCES: 1. APPETITEFOR INTEGRATED PROPOSITIONS 64% 40% 26% 10% Interested 82% 61% 45% 22% Willing to pay 63% 36% 21% 6% Interested 82% 60% 43% 18% 80% 57% 43% 20% 60% 32% 21% 7% Around half of consumers expect financial providers to offer propositions addressing core needs (with significant variations by persona). 60% of Pioneers are prepared to pay for these propositions. Skeptics Pragmatists Pioneers Traditionalists

13. Become key players in ecosystems that deliver integrated propositions around a customer need. Whatdoesthis meanforfinancial providers? CUSTOMER ATTITUDES AND PREFERENCES: 1. APPETITEFOR INTEGRATED PROPOSITIONS Copyright © 2019 Accenture. All rights reserved. 13

14. Copyright © 2019 Accenture. All rights reserved. 14 Appetitefor personalization ofservices CUSTOMER ATTITUDES AND PREFERENCES 2 Consumers want tailored, customized offers from banks and insurers. But their interest in personalization varies significantly by persona.

15. Copyright © 2019 Accenture. All rights reserved. 15 Interested in insurance models linked to lifestyle and behavior, such as car insurance linked to driving habits Interested in savings tips based on spending patterns CUSTOMER ATTITUDES AND PREFERENCES: 2. APPETITE FOR PERSONALIZATION OF SERVICES 79% 75% 54% 53% 85% 70% 50% 21% Consumers, especially Pioneers and Pragmatists, have a strong appetite for greater personalization. Skeptics Pragmatists Pioneers Traditionalists

16. Actively target customers interested in personalized services with experiences that strengthen their brand values at every touchpoint. Whatdoesthis meanforfinancial providers? CUSTOMER ATTITUDES AND PREFERENCES: 2. APPETITE FOR PERSONALIZATION OF SERVICES Copyright © 2019 Accenture. All rights reserved. 16

17. Copyright © 2019 Accenture. All rights reserved. 17 Willingness tosharedata forreciprocalbenefits 3 Truly personalized financial services are powered by data. Customers understand this and are prepared to hand over more personal information in return for a more tailored service. CUSTOMER ATTITUDES AND PREFERENCES

18. Copyright © 2019 Accenture. All rights reserved. 18 CUSTOMER ATTITUDES AND PREFERENCES: 3. WILLINGNESS TO SHARE DATA FOR RECIPROCAL BENEFITS Willing to share data in return for receiving faster, easier services Willing to share data to receive more competitive/lower prices 95% 87% 82% 59% More than three-quarters of all respondents are willing to share the data required for benefits such as personalized offers, more efficient and intuitive services, and more competitive pricing. But Traditionalists are hardest to convince. 96% 89% 84% 63% SkepticsPragmatistsPioneers Traditionalists

19. Copyright © 2019 Accenture. All rights reserved. 19 Create stronger incentives to encourage customers to share their data. What does this mean for financial providers? CUSTOMER ATTITUDES AND PREFERENCES: 3. WILLINGNESS TO SHARE DATA FOR RECIPROCAL BENEFITS

20. Copyright © 2019 Accenture. All rights reserved. 20 CUSTOMER ATTITUDES AND PREFERENCES Finallyhaveintegration betweenphysicalanddigital channels Consumers still want the long-expected omnichannel experience that players in other industries are providing. 4

21. Copyright © 2019 Accenture. All rights reserved. 21 All consumers still value face-to-face support, yet more than half of consumers expressed an appetite for a true omnichannel banking experience. However, not all consumers are satisfied with their experience across channels. 68% 68% 63% 66% Favor face-to-face interaction with their bank CUSTOMER ATTITUDES AND PREFERENCES: 4. INTEGRATION BETWEEN PHYSICAL AND DIGITAL CHANNELS Want to see their banks blending physical and digital services Say that the quality of service varies across channels 80% 72% 53% 33% 64% 24% 51% 22%58% 41% 48% 45% Favor face-to-face interaction with their insurer Skeptics Pragmatists Pioneers Traditionalists

22. Copyright © 2019 Accenture. All rights reserved. 22 • Leverage their physical footprint and integrate physical and digital services to meet customer needs more effectively. • Have a GAFA vision and program and grow business through third- party platforms Whatdoesthis meanforfinancial providers? CUSTOMER ATTITUDES AND PREFERENCES: 4. INTEGRATION BETWEEN PHYSICAL AND DIGITAL CHANNELS

23. Copyright © 2019 Accenture. All rights reserved. 23 Role played by trust CUSTOMER ATTITUDES AND PREFERENCES Customers trust their bank and insurer to look after their financial well-being and their data. However, trust is not necessarily a driver of loyalty. 5

24. Copyright © 2019 Accenture. All rights reserved. 24 88% 89% 65% 69% Trust their bank: 88% 93% 71% 79% To look after their long-term financial well-being To look after their data 83% 77% 59% 56% Trust their insurer: 83% 85% 63% 72% To look after their long-term financial well-being To look after their data CUSTOMER ATTITUDES AND PREFERENCES: 5. ROLE PLAYED BY TRUST 38% 44% 34% 38% Top reasons why consumers would leave their current provider: Issues/concerns over data security All personas and in particular Pioneers show a high level of trust, but one third of Pioneers—the highest rate—switched providers last year. While consumers trust banks and insurers with their data, a data breach would also cause many consumers to switch providers. SkepticsPragmatistsPioneers Traditionalists

25. Copyright © 2019 Accenture. All rights reserved. 25 • Invest in and communicate clearly on measures to protect customer data. • Find new ways of creating added value to build consumers’ long-term loyalty, don’t rely on customer “inertia”. Whatdoesthis meanforfinancial providers? CUSTOMER ATTITUDES AND PREFERENCES: 5. ROLE PLAYED BY TRUST

26. Copyright © 2019 Accenture. All rights reserved. 26 To stay relevant and win loyalty in a digital economy, banks and insurers should harness consumer data to deliver a hyper-relevant, highly convenient and trustworthy customer experience. Winning consumers’ trust and loyalty CUSTOMER TRUST MODEL BRAND + TOUCHPOINTS + BEHAVIOURS REPUTATION SOCIAL AGENDA OTHER FACTORS • Internal • External • Inferred • Acquire • Retain • Service • Right time • Right channel • Right content TRUST ACTION INSIGHT CONSENTED DATA HYPER- RELEVANCE

27. Copyright © 2019 Accenture. All rights reserved. 27 A head start for financial providers Banks and insurers should become a “living business”, creating a business model that moves beyond traditional industry boundaries and is agile, innovative and hyper-relevant.

28. Copyright © 2019 Accenture. All rights reserved. 28 1. Expand business models through ecosystems with non-financial vendors. As providers cooperate with vendors to provide integrated propositions around core customer needs, they can focus on amplifying their brand values for differentiation. Howcanbanksandinsurersgetahead startonbuildingalivingbusiness model? 2. Offer personalized experiences tailored to personas. Providers must shape propositions, products and services by each customer segment and identify related investments required to deliver target returns.

29. Copyright © 2019 Accenture. All rights reserved. 29 5. Anchor trust through all touchpoints. Informing customers on measures to strengthen data security and how their data is shared with ecosystem alliances, vendors and partners may be increasingly important for brand. 4. Fully integrate physical and digital. Executing the right mix of automation and human contact is key to being a trusted “partner” in the customer journey toward financial well-being. 3. Receive personal data in exchange for advice and better terms. Providers should work particularly hard to identify genuine value for customers who are less interested in and less prepared to exchange data for personalized services.

30. Become a living business. Ready to stay relevant and win customer loyalty? When banks and insurers find the patterns among their consumers, they can find their way toward offering trustworthy, omnipresent, personalized service. DOWNLOAD THE STUDY NOW. Or contact: Copyright © 2019 Accenture. All rights reserved. Piercarlo Gera Senior Managing Director, Accenture Financial Services Customer Insight & Growth piercarlo.gera@accenture.com Alan McIntyre Senior Managing Director, Accenture Global Banking a.mcintyre@accenture.com Erik J. Sandquist Managing Director, Global Lead for Accenture Insurance Customer Insight & Growth erik.j.sandquist@accenture.com www.accenture.com/FSConsumerStudy2019 30