banking on your happy customers - sap infographic

1
In a recent retail customer survey sponsored by SAP, IDC Financial Insights looked into the state of happiness among banking customers across seven Asia/Pacific markets: Australia, China, India, Indonesia, Malaysia, New Zealand and Singapore. This IDC Infographic shows our findings and what they mean for banking executives eager to impress and delight their customers. Asia/Pacific Customers are Generally Happy A Breakdown Further Reveals the Differences in Happiness Breakdown of Happiness Scores 1-3 = Unhappy 4-6 = Dissatisfied 7-9 = Satisfied 10 = Very Happy On a scale of 1-10, where 1 is “very unhappy” and 10 is “very happy”, how happy are you with your current primary banking relationship? Happiness Scores 9 8.5 8 7.5 7 AVERAGE 8.07 The 3 factors most likely causing happiness in the Asia/Pacific markets (apart from price) But there are Different Drivers of their Happiness 10% cited security as a priority due to the large scale of phishing activities in the country. China Location Online Service Security 77% reported online as being the most convenient channel for transactions, an area that Australian banks have been regional leaders in. Australia Online Service Transaction Efficiency Security 79% used online banking as bank branches are often located in busy areas with limited parking. Malaysia Online Service Location Transaction Efficiency 10% said locations of banks were still important – a reflection of Indonesia’s lower Internet penetration of 22%. Indonesia Location Short Waiting Times Online Service 89% said online was the most convenient channel, which is not surprising considering the spread out population of New Zealand. New Zealand Online Service Transaction Efficiency Security 30% were phone banking users in a country where online still remains an important channel – the highest among all countries researched. India Online Service Transaction Efficiency Location 25% said long queues at ATMs were a major pain point, underpinning the importance of location. Singapore Location Online Service Transaction Efficiency 80% 70% 60% 50% 40% 30% 20% 10% 0% ON AVERAGE 16 % 72 % 10 % 2 % very happy satisfied dissatisfied unhappy What are these Customers Like? Customers’ Preferred Channels 0.2 % Social 56.6 % Online 25.9 % ATM 10.7 % Branch 5.4 % Mobile 1.2 % Phone With a relationship manager how do happiness scores differ? vs of customers still keep other banking relationships 92 % Happiness by Length of Banking Relationship The happiest customers were those with a 5-10 year relationship with their bank <1 Year 1-3 Years 3-5 Years 5-10 Years >10 Years Happiness Scores The average user interacts with their bank times/ month Online ATM Branch Mobile Phone Social 4.9 times 3.8 times 1.9 times 1.1 times 0.6 times 0.2 times Why Making Your Customers Happy Matters More Happy Customers = Better Deposit Growth Top 5 Banks by Happiness Scores Lowest 5 Banks by Happiness Scores Axis Bank Indian Overseas Bank 10 9 8 7 6 5 Happiness Scores Citi (India) Bank Mandiri National Australia Bank Bank A (China) Bank D (Indonesia) Bank B (Singapore) Bank C (Indonesia) Bank E (Australia) 10 20 30 40 18 % Average for top 5 banks Average for lowest 5 banks 12 % % Growth in Deposits 2011/2010 Small Banks are Generally Better at Customer Satisfaction Tier 1 Tier 2 Tier 3 8.03 8.13 8.60 Happiness Scores Small banks can leverage their resources to provide focused services but with higher cost to revenue ratios Use data and statistics intelligently to create value for customers and the bank Leaders OCBC Commonwealth Bank of Australia DBS National Australia Bank Westpac UBank ICICI Bank 10 Technology Imperatives to Enhance Customer Happiness 1 Single Customer View Leverage integrated backend database for a holistic view of customers’ banking relationship to promote cross selling and enhance personalized services Leaders OCBC Commonwealth Bank of Australia 6 Social Banking Provide financial services and conduct transactions on social media platforms Leaders CIMB Maybank Commonwealth Bank of Australia ICICI Bank 8 Differentiated Pricing Offer optimal products and deals to customers based on data history Leader OCBC 9 Customer-Centric Corporate Banking Bring consumer banking type initiatives to corporate clients Leaders ANZ Bank Citi HSBC Standard Chartered Bank Deutsche Bank 10 Gamification Add play-like elements such as rewards systems to increase customer engagement Leaders Commonwealth Bank of Australia Standard Chartered Bank Allow customers new options for how they purchase items and open up new markets with new payment types for untapped population segments Leaders YES Bank CIMB Citi 7 New Payments 2 Big Data Analytics Upgrade existing branches and ATMs to better service customers Leaders ANZ Bank DBS Standard Chartered Bank Citi 3 Expanding Traditional Channels Launch new branch formats and “bank in briefcase” programs to extend reach beyond existing branches Leaders CIMB RHB Bank Dutch-Bangla Bank 4 New Channels Leverage and automate channels to service customers better, especially when and how they wish to be served Leaders Standard Chartered Bank National Australia Bank 5 Omni-Channel Strategy Research Team: Michael Araneta and Michael Yeo Source: IDC Financial Insights Asia/Pacific Survey on Banking Customer Happiness, 2013, Sponsored by SAP IDC Financial Insights White Paper, The Path to Banking Happiness, July 2013 (http://to.idc.asia/the-path-to-banking-happiness) Note: N=100 retail customers in each market except for Australia (N=50) and New Zealand (N=50) Copyright 2013 IDC Financial Insights. Reproduction without written permission is completely forbidden. This IDC Infographic was produced by IDC Asia/Pacific Go-to-Market Services. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis independently conducted and published by IDC Financial Insights. Any IDC Financial Insights information or reference to IDC Financial Insights that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For more information, visit: www.ap.idc.asia or contact: [email protected] Brought to you by

Upload: sap-for-banking

Post on 07-Nov-2014

762 views

Category:

Documents


0 download

DESCRIPTION

In a recent retail customer survey sponsored by SAP, IDC Financial Insights looked into the state of happiness among banking customers across seven Asia/Pacific markets: Australia, China, India, Indonesia, Malaysia, New Zealand and Singapore. This IDC Infographic shows our findings and what they mean for banking executives eager to impress and delight their customers. Download the white paper here https://global12.sap.com/india/host.epx?kNtBzmUK9zU

TRANSCRIPT

Page 1: Banking on your happy customers - SAP Infographic

In a recent retail customer survey sponsored by SAP, IDC Financial Insights looked into the state of happiness among banking customers across seven Asia/Pacific markets: Australia, China, India, Indonesia,

Malaysia, New Zealand and Singapore. This IDC Infographic shows our findings and what they mean for banking executives eager to impress

and delight their customers.

Asia/Pacific Customers are Generally Happy

A Breakdown Further Reveals the Differences in Happiness

Breakdown of Happiness Scores

1-3 = Unhappy 4-6 = Dissatisfied 7-9 = Satisfied 10 = Very Happy

On a scale of 1-10, where 1 is “very unhappy” and 10 is “very happy”, how happy are you with your current primary banking relationship?

Happ

ines

s Sc

ores

9

8.5

8

7.5

7

AVerAge

8.07

The 3 factors most likely causing happiness in the Asia/Pacific markets (apart from price)

But there are Different Drivers of their Happiness

10%cited security as a priority due to

the large scale of phishing activities in the country.

ChinaLocationOnline ServiceSecurity

77% reported online as being the

most convenient channel for transactions, an area that Australian banks have been regional leaders in.

AustraliaOnline ServiceTransaction Efficiency Security

79% used online banking as bank

branches are often located in busy areas with limited parking.

MalaysiaOnline ServiceLocationTransaction Efficiency

10%said locations of banks were

still important – a reflection of Indonesia’s lower Internet penetration of 22%.

IndonesiaLocationShort Waiting Times Online Service

89% said online was the most

convenient channel, which is not surprising considering the spread out population of New Zealand.

New ZealandOnline ServiceTransaction Efficiency Security

30% were phone banking users in

a country where online still remains an important channel – the highest among all countries researched.

IndiaOnline ServiceTransaction EfficiencyLocation

25% said long queues at ATMs

were a major pain point, underpinning the importance of location.

SingaporeLocationOnline ServiceTransaction Efficiency

80%

70%

60%

50%

40%

30%

20%

10%

0%

ON AVerAge

16%

72%

10%

2%

very happy

satisfied

dissatisfied

unhappy

What are these Customers Like?

Customers’ Preferred Channels

0.2% Social

56.6%Online

25.9%ATM

10.7%

Branch

5.4%

Mobile

1.2%Phone

With a relationship

manager how do happiness scores differ?

vs

of customers still keep

other banking relationships

92%

Happiness by Length of Banking Relationship

The happiest customers were those with a 5-10 year relationship with their bank

<1 Year 1-3 Years 3-5 Years 5-10 Years >10 Years

Happ

ines

s Sc

ores

The average user interacts with their bank

times/month

Online ATM Branch Mobile Phone Social

4.9 times3.8 times 1.9 times1.1 times 0.6 times 0.2 times

Why Making Your Customers Happy Matters

More Happy Customers = Better Deposit Growth

Top 5 Banks by Happiness Scores

Lowest 5 Banks by Happiness Scores

Axis BankIndian Overseas Bank

10

9

8

7

6

5

Happ

ines

s Sc

ores

Citi (India) Bank Mandiri

National Australia Bank

Bank A (China)

Bank D (Indonesia)

Bank B (Singapore)

Bank C (Indonesia)

Bank e (Australia)

10 20 30 40

18%Average

for top 5 banksAverage

for lowest 5 banks

12%

% Growth in Deposits 2011/2010

Small Banks are Generally Better

at Customer Satisfaction

Tier 1 Tier 2 Tier 3

8.03 8.13

8.60

Happiness Scores

Small banks can leverage their resources to

provide focused services but with

higher cost to revenue ratios

Use data and statistics intelligently to create value for customers and the bank

LeadersOCBC Commonwealth Bank of Australia DBS National Australia BankWestpacUBankICICI Bank

10 Technology Imperatives to Enhance Customer Happiness

1 Single Customer ViewLeverage integrated backend database for a holistic view of customers’ banking relationship to promote cross selling and enhance personalized services

LeadersOCBC Commonwealth Bank of Australia

6 Social BankingProvide financial services and conduct transactions on social media platforms

LeadersCIMBMaybankCommonwealth Bank of Australia ICICI Bank

8 Differentiated PricingOffer optimal products and deals to customers based on data history

Leader OCBC

9 Customer-Centric Corporate BankingBring consumer banking type initiatives to corporate clientsLeadersANZ Bank CitiHSBCStandard Chartered BankDeutsche Bank

10 GamificationAdd play-like elements such as rewards systems to increase customer engagement

LeadersCommonwealth Bank of Australia Standard Chartered Bank

Allow customers new options for how they purchase items and open up new markets with new payment types for untapped population segments

LeadersYES BankCIMBCiti

7 New Payments2 Big Data Analytics

Upgrade existing branches and ATMs to better service customers

LeadersANZ BankDBSStandard Chartered BankCiti

3 Expanding Traditional Channels

Launch new branch formats and “bank in briefcase” programs to extend reach beyond existing branches

LeadersCIMBRHB BankDutch-Bangla Bank

4 New Channels

Leverage and automate channels to service customers better, especially when and how they wish to be served

LeadersStandard Chartered BankNational Australia Bank

5 Omni-Channel Strategy

Research Team: Michael Araneta and Michael Yeo

Source: IDC Financial Insights Asia/Pacific Survey on Banking Customer Happiness, 2013, Sponsored by SAP

IDC Financial Insights White Paper, The Path to Banking Happiness, July 2013 (http://to.idc.asia/the-path-to-banking-happiness)

Note: N=100 retail customers in each market except for Australia (N=50) and New Zealand (N=50)

Copyright 2013 IDC Financial Insights. Reproduction without written permission is completely forbidden.

This IDC Infographic was produced by IDC Asia/Pacific Go-to-Market Services. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis independently conducted and published by IDC Financial Insights. Any IDC Financial Insights information or reference to IDC Financial Insights that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For more information, visit: www.ap.idc.asia or contact: [email protected]

Brought to you by