BBDO KNOWS

THE BANKING IMAGE CRISIS 2013

BBDOKNOWS PERSONAL FINANCES: ATTITUDES & BEHAVIOURS

BBDO KNOWS

37%

GLOBALLY HAVE NEGATIVE FEELINGS TOWARDS THEIR PERSONAL FINANCES

SOURCE: Corporate Executive Board

ATTITUDES: STATE OF PERSONAL BBDO KNOWS FINANCES
% who think the state of their own personal finances will improve, stay the same or worsen over the next 12 months | June 2012 80% 60% 40% 20% 0% -20% -40% -60% -80% Hungary Poland Australia Canada Czech Rep Russia Netherlands South Korea Argentina Sweden Mexico France Japan Spain Italy Germany Ireland Denmark Turkey USA Brazil China India GB Will worsen Will stay the same Will improve

Source: nVision Research | Base: 1,000-5,000 online respondents per country aged 16-64 (Mexico 16-54), June 2012

ATTITUDES: YOUR FINANCES – LONG TERM BBDO KNOWS
• Significant numbers of customers have negative feelings towards their personal finances and goals • In Europe the vast majority feel their financial situation will remain the same in the next 12 months, a very small number believe their situation will improve • Globally those with a positive outlook, for the next 12 months, has declined • Satisfaction with personal finances presents a fragmented picture. Europeans are more downbeat, while Brazilian consumers are the most optimistic - 63% believe their finances will improve over the next 12 months

Source: Nvision 2012 Ernst & Young 2012

ATTITUDES: PERSONAL FINANCES BBDO KNOWS BREAKDOWN
MAKING ENDS MEET

37%
have negative feelings

DEBT
BALANCE SHEET OUTGOINGS

INCOME

INTEREST EARNED

PAYING OFF DEBT

SPEND

SAVING

34%
have negative feelings TOO MUCH DEBT

43%
have negative feelings INABILITY TO SAVE ENOUGH

Source: Corporate Executive Board

WHAT ARE YOUR FINANCIAL PRIORITIES? BBDO KNOWS

FOR THE VAST MAJORITY, FINANCIAL PRIORITIES RELATE TO THE PRACTICAL. LIVING DAY TO DAY AND PAYING THE BILLS IS CONSIDERED MOST IMPORTANT IN MANY MARKETS ACROSS EUROPE FOLLOWED BY HAVING SOME MONEY FOR EMERGENCIES

Source Nvision 2012

BBDOKNOWSWS RESEARCH
HOW DO YOU FEEL ABOUT SAVINGS AND DEBT?
PLEASE PLAY FILM - ‘HOW DO YOU FEEL ABOUT SAVINGS AND DEBT?’

BBDO Knows research, Mobile Ethnographies, UK, 2013

BBDO KNOWS WHAT ARE YOUR MOTIVATIONS FOR
SAVING?
Financial priorities and motivations for savings relate to the need for security and reassurance and the need to protect the existing quality of life
UNCERTAINTY
Nothing specific, but to have a financial 'buffer' or… To pay for a specific thing or experience for yourself,… Nothing specific, but to make a better future for your…

PLEASURE FAMILY PRACTICAL LIVING EXPENSES

Buying a home To accumulate money and earn interest Providing retirement income for yourself Covering costs of children going to university Covering other education costs for children Covering medical expenses Providing help for children to get married 0% 20% 40%

UK Germany China

60%

80%

100%

“What have been your main reasons for having savings over the past five years”| % who say it has been their most or second most important reason for saving | 2012
Source: Lloyds TSB/Future Foundation/nVision|Base: 2,540 onlinerespondents, aged 18-65,2012

BEHAVIOUR: THE GOOD AND THE BAD BBDO KNOWS

23%
globally became more indebted

13%
globally paid down their debt sooner than required

14%
globally paid more income into savings and investments

Good behaviour is more pronounced in emerging markets In China the household savings ratio is 43% of the total disposable household income, this is compared with just 2% in the US

Source: CEB, Nvision2012

BEHAVIOUR: PROACTIVE FINANCIAL BBDO KNOWS MANAGEMENT
SHORT TERM LONG TERM

58%
globally say they carefully budget their finances Nvision

Vs

9%
globally say they keep a formal written plan for long term goals CEB

People are much more proactive about their short term finances than their long term goals. Though proactive long term financial management is much higher among higher net worth individuals and in developing markets
Source: Nvision 2012 CEB 2013

BBDO KNOWS
ONLY GLOBALLY FEEL POSITIVE ABOUT THEIR PROGRESS IN ACHIEVING THEIR FINANCIAL GOALS
The role of communications should be to change the attitude of the remaining

35%

65%

SOURCE: Corporate Executive Board

BBDO KNOWS SUMMARY
ATTITUDE
NEGATIVE FEELINGS REGARDING PERSONAL FINANCES

BEHAVIOUR
PROTECTION FROM FUTURE UNCERTAINTY

The negative feelings associated with personal finances and progress towards goals contribute to the general feelings of uncertainty and worry. The biggest priority is maintaining quality if life, e.g. paying bills and the biggest motivation for saving relates to protecting against uncertainty.

ATTITUDE
CAREFUL

BEHAVIOUR
CAUTIOUS SHORT-TERM FOCUSED

Consumers are being more cautious and more ‘careful’ with their money, they are justifying expenditure and the ambition is to save for an item rather than to use credit. Generally the feeling in some markets is that it is hard to save. Short term behaviour is often better than long term behaviour in finance

BBDO KNOWS THE OPPORTUNITY

HELP CUSTOMERS
1. Address their long term financial goals as well as their short term ones; set achievable goals; ensure goal realisation; facilitate budgeting and planning.

2. 3. 4.

BBDO KNOWS ROLE OF BRAND AND COMMUNICATION
HELP CUSTOMERS
1. Address their long term financial goals as well as their short term ones; set achievable goals; ensure goal realisation; facilitate budgeting and planning.

COMMUNCIATION
1. Articulate the service/support; 2. encourage the start of a dialogue; 3. maintain a dialogue throughout the course of setting and achieving goals.

2. 3. 4.

BBDO CLIENT EXAMPLE: GOOD BEHAVIOUR BBDO KNOWS
ING, USA – GOOD BEHAVIOUR

BBDO KNOWS CLIENT EXAMPLE: ENCOURAGE BBDO GOOD BEHAVIOUR
BNZ, NEW ZEALAND – GOOD BEHAVIOUR

BBDO CLIENT EXAMPLE: GOOD BEHAVIOUR BBDO KNOWS
NATIONAL BANK OF GREECE, GREECE – SAVE THE CHANGE

ETHNOCARD Just imagine, one day to start rain showering…. and start raining ….small change! …out of nowhere!!! Wow! This is luck! This day has come… with ETHONCASH PLUS and the smart reward program “doro ta psila” (translated: “keep the change for a gift”). Which rounds up to the one euro the amount of your purchase, gives you the difference for a gift, and debits it on your account. In order to enjoy everyday the…. rain shower, do your purchases with the debit card ETHNOCASH PLUS instead of cash. By NBG.

EXAMPLE: ENCOURAGE SAVINGS BBDO KNOWS
NATWEST, UK – WHY WE SAVE
Natwest articulate the motivation behind saving and offer a product to help customers achieve their goals

http://www.commbank.com.au/personal/home-loans/i-phone-app.html

EXAMPLE: ENCOURAGE SAVINGS BBDO KNOWS
BARCLAYS, UK – SAVINGS FLEXIBILITY

http://www.commbank.com.au/personal/home-loans/i-phone-app.html

EXAMPLE: ENCOURAGE SAVINGS BBDO KNOWS
RABODIRECT, AUSTRALIA – WHY WE SAVE
Rabodirect also articulate the motivation behind saving and offer a product to help customers achieve their goals but they also use the opportunity to different themselves from other banks

http://www.commbank.com.au/personal/home-loans/i-phone-app.html

EXAMPLE: SUPPORT BBDO KNOWS
LLOYDS TSB, UK – TOOLS
Lloyds TSB offer support in the form of in branch appointments and online tools including Money Manager a tool that analyses and breaks down your spending so a customer can stay in control of their spending

http://www.commbank.com.au/personal/home-loans/i-phone-app.html

EXAMPLE: ENCOURAGE GOOD BBDO KNOWS BEHAVIOUR
NATWEST, UK – ENCOURAGING A SAVINGS RITUAL

EXAMPLE: ENCOURAGE GOOD BBDO KNOWS BEHAVIOUR
NATWEST, UK – ENCOURAGING PROACTIVITY
Natwest encourage proactive finance management and discussion, this was the Natwest homepage at the start of 2013

BBDO KNOWS

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