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Microsoft Financial Services Industry Survey Results

Survey of Adult “Millenials” 18-29 years old

September 2009

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Survey MethodologyDATA COLLECTION DATES: August 19 – 23, 2009

METHOD: Online survey

SAMPLE SIZE: 500 adult “Millenials” 18-29 years old

SAMPLE: A total of 500 interviews were conducted in the U.S. Sampling error cannot be calculated for surveys that use a self-selected online panel of respondents. If this sample had been conducted among a fully random sample, the estimated margin of error for sample would be ±4.4 percentage points at the 95% confidence level.

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Detailed Findings

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Level of trust in the financial services industry and the government are both down

Given the economic and financial problems over the past year in the U.S. and around the world, has your level of trust in the

U.S. financial services industry increased, decreased or stayed the same?

Given the economic and financial problems over the past year in the U.S. and around the world, has your level of trust in the U.S. government increased,

decreased or stayed the same?

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Eight in ten have favorable opinions of community banks while less than half have favorable opinions of Wall Street investment banksPlease tell us your current opinion of each of the following institutions that are part of the U.S. financial services

industry. For each one we would like to know if you have a very favorable, somewhat favorable, somewhat unfavorable, or very unfavorable opinion of them at this time. (RANDOMIZE.)

Community banks

Local community financial advisors or planners

Credit unions

Large national insurance companies

Large national banks

Local insurance agencies or brokers

Independent brokerage firms

Large consumer investment firms

Large Wall Street investment banks,

Hedge funds

% Favorable opinion

80%

73%72%

71%

68%

67%

58%

55%

49%

48%

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Only half of “Millennials” feel that the financial services industry is in touch with their generation

We’re now going to list some statements and after each one we would like you to tell us how well you believe this statement describes the overall U.S. financial services industry that includes banks, capital markets firms,

insurance companies, etc. – very well, somewhat well, not too well, or not well at all. (RANDOMIZE.)

The U.S. financial services industry provides a good customer experience

The U.S. financial services industry is trustworthy

The U.S. financial services industry is transparent with its customers

The U.S. financial services industry is in touch with younger generations

The U.S. financial services industry is stable

The U.S. financial services industry has a good public image

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Two-thirds are less likely to invest money into the stock market given the economic and financial problems of the past year Given the economic and financial problems over the past year in the U.S. and around the world, please indicate

if you are much more likely, somewhat more likely, not too likely or not likely at all do each of the following activities. (RANDOMIZE.)

Invest money into the stock market

Invest money into 401Ks or other retirement plans

Purchase an insurance policy

Deposit money into a bank

% Not likely to do activities

67%

51%

45%

22%

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“Millennials” are more likely to trust their parents and friends when it comes to seeking advice concerning financial planning

We’re now going to list people and organizations some people turn to for information and advice about issues related to financial planning. After each one is listed, please tell us how much you would trust financial planning

information and advice you would receive from this source – a great deal, some, very little, not at all. (RANDOMIZE.)

Your parents

Your friends

Financial advisors or planners

Financial institutions, such as banks

Your colleagues at work

The business page of your favorite newspaper

Financial talk shows

Online financial blogs

Your therapist

Your barber or hair stylist

% Trusts a great deal or some

81%

71%

66%

64%

56%

55%

48%

45%

36%

30%

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The vast majority of “Millennials” are concerned about their financial future

Given the economic and financial problems over the past year in the U.S. and around the world, please tell us how much you agree or disagree with each of the following statements. (RANDOMIZE.)

% Agree with statements

I am concerned about my own financial future

I am concerned that more financial institutions will continue to fail in the near future

I believe U.S. financial institutions do not deserve more bailout money

I believe the U.S. government will have additional bailouts for U.S. financial institutions in

the near future

I am unsure about where to turn for reliable financial advice

85%

82%

80%

78%

75%

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There are many activities financial institutions can adopt to improve trust among “Millennials”

Please tell us how important it is to you personally for financial institutions to adopt each of the following activities to improve your trust in this current economy? (RANDOMIZE.)

% Find important to improve trust

92%Admitting mistakes immediately when they happen

Creating simpler and clearer materials explaining financial risks, etc.

Being more open and transparent by sharing free information

Getting rid of large bonuses until the U.S. economy improves

Allowing more regulation involving third parties, government officials and more

Creating online blogs where you can pose questions and get answers

Creating open dialogue using social networking, two-way blogs, Twitter, etc.

89%

86%

82%

74%

68%

59%

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Three-quarters find monthly emails a useful and valuable communication vehicle

Please tell us if you would find it useful and valuable for financial institutions to use the following technologies when communicating with you, explaining your financial risks or rewards, etc.? (RANDOMIZE.)

% Find useful and valuable

Monthly emails

Online live chats with customer service representatives

Personal web portal with your account information

Text message updates to your phone

Financial application for a smart phone

Streaming webcasts given by financial experts

Streaming podcasts given by financial experts

Real-time Twitter feed and responses (from customer service)

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Appendix

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Age

18 - 20 23

21 - 23 25

24+ 52

Respondent ProfileWhere they live

City/Urban 42

Suburbs 36

Town or village 9

Rural area, but not a farm 12

On a farm in a rural area 1

Region

East/Northeast 21

Midwest 34

South 20

West 25

Race

White 64

Latino/Hispanic 11

Asian 13

Black/African-American 13

Other 2