DISCOVER THE PAT T E R N S IN PERSONALITY Explore our latest research and uncover the consumer trends affecting banks and insurers today. Find out how customers want to engage with you through our four powerful personas. 2019 Accenture Global Financial Services Consumer StudyContents Overview Customer personasPioneers Pragmatists Skeptics Traditionalists Customer attitudes and preferencesAppetite for integrated propositions addressing core needs Appetite for personalization of services Willingness t o shar e da ta f or r ecipr ocal benefits Integration between physical and digital channels The role played by trust Recommendations About the research 3 6 8 11 14 17 21 22 28 32 38 45 48 53 #FSConsumerStudyFinancial Services customers are more willing than ever to share dataprovided that data sharing powers integrated propositions and offers that are tailored to their needs. The pressure is on for banks and insurers to provide highly personalized services, but how can they accommodate a million markets of one? B y fi n d i n g t h e p a t t e r n s t h a t b r i n g c u s t o m e r s t og e t h e r . In 2018 we surveyed 47,000 banking and insurance customers across 2 8 m a r k e t s i n A s i a- P a c i fi c , E u r o p e , L a t i n A m e r i ca , M i d d l e E a s t a n d A f r i ca , a n d N o r t h A m e r i ca . T h r o u g h t h i s s u r v e y , w h i c h b u i l d s o n o u r fi r s t b i e n n i a l study in 2017 and is one of the largest of its kind, we sought to understand what these consumers value, what differentiates them and how they want t o e n g a g e w i t h fi n a n c i a l p r o v i d e r s . What brings customers together sets them apart 2019 Accenture Global Financial Services Consumer Study 3 #FSConsumerStudy OVERVIEWConsumers want integrated propositions addressing core needs. Our research reveals that around half of consumers e x pec t fi na nc i a l pr o v i der s t o o f f er pr opos i t i ons add r ess i ng c o r e n e e d s , a n d n o t o n l y t r a d i t i o n a l fi n a n c i a l se r v i ce s . These propositions typically focus on a particular customer need, such as a complete “mobility proposition” for ca r b u y e r s t h a t i n c l u d e s d i f f e r e n t fi n a n c i n g , r e n t i n g and reselling options, as well as access to insurance, m a i n t e n a n ce a n d a n c i l l a r y se r v i ce s . Our study identified several patterns among consumers, which we distilled into five key findings: 1. Other examples include a property-buying solution encompassing a mortgage, home insurance coverage and an additional loan for furnishings and a health proposition that provides wearable devices, points-based rewards f o r h ea l t h y b e h a v i o r , o r a cce s s t o w e l l n e s s se r v i ce s . 4 #FSConsumerStudy 2019 Accenture Global Financial Services Consumer Study OVERVIEWConsumers increasingly want a fully personalized offering from their financial providers. One in two consumers indicated an interest in personalized fi n a n c i a l a d v i ce f r o m b a n k s t h a t i s s h a p e d b y t h e i r p e r s o n a l circumstancesincluding analysis of spending habits and advice on how to manage moneywhile 64 percent are interested in insurance premiums that are tied to behavior ( s u c h a s d r i v i n g s a f e l y ) . Consumers are willing to share data with their providers in return for better advice and more attractive deals. For example, they are interested in offers and perks based on where they shop most often and priority services such a s a f a s t - t r a c k i n s u r a n ce c l a i m s se t t l e m e n t . 4. 2. 5. 3. Consumers want better integration across physical and digital channels. Mo r e t h a n h a l f o f a l l o u r s u r v e y r e s p o n d e n t s e x p r e s se d an appetite for a true omnichannel banking experience that would allow them to switch seamlessly between p h y s i ca l a n d d i g i t a l c h a n n e l s . Consumers trust in financial institutions is high and increasing. Consumers are likely to say that they trust their banks a n d i n s u r e r s m o r e t h a n t h e y d i d 1 2 m o n t h s a g o . T o maintain this trust, particularly when holding customers personal data, providers should demonstrate robust security measures while delivering value-adding i n s i g h t a n d p e r s o n a l i z e d se r v i ce s . 5 #FSConsumerStudy 2019 Accenture Global Financial Services Consumer Study OVERVIEWYo u c a nt spell personal without persona To engage customers with personalized services and see each customer as an individualbanks and insurers should first recognize their customers similarities. The consumers in our survey can be divided into four broad personas b a se d o n h o w t h e y p e r ce i v e a n d e n g a g e w i t h b a n k s a n d i n s u r e r s . The differences between these personas are striking, and highlight how traditional demographic segmentation, such as by age or wealth, can miss important nuances of how consumers view t he i r fi n a nc i a l pr o v i der s . 2019 Accenture Global Financial Services Consumer Study 6 #FSConsumerStudy CUSTOMER PERSONASPioneers: Risk takers, tech-savvy and hungry for innovation Tech-savvy and keen to engage w i t h fi n a n c i a l p r o v i d e r s u s i n g mobile devices, Pioneers are hungry for innovation in services a n d c h a n n e l s . T h e y a c c o u n t f o r 2 3 p e r ce n t o f r e s p o n d e n t s . Skeptics: Tech-wary, dissatisfied and alienated Skeptics are the largest group, accounting for 33 percent of the sample, yet their dissatisfaction w i t h fi n a n c i a l p r o v i d e r s m ea n s they are a challenging persona t o e n g a g e . Mo r e t h a n a t h i r d a r e under 35, making them a long- term opportunity for providers i f t h e y ca n b e t a r g e t e d . 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 l i f elong pass i o n. T he y a r e sa t is fied w i t h t he ser v i ce le v els t he y receive and they expect good value f r om pr o v i der s. T he y a r e i n t er es t ed in (though a little suspicious of) p er sonaliza t ion. Traditionalists: Value human touch, tech- avoiders and losing trust Generally older (55+) than the other personas, Traditionalists show low levels of engagement a nd sa t is f ac t i on w i t h t hei r fi na nc i a l ser v i ces pr o v i der s. T he y a r e t he smallest group from our consumer survey, comprising 21 percent o f r esp onden t s. Meet the personas: 2019 Accenture Global Financial Services Consumer Study 7 #FSConsumerStudy CUSTOMER PERSONASPioneers Young: 50% are between 18 and 34. More likely to be male than female: 55% of Pioneers are men. Earning a good wage: 43% are in a high-income bracket. Ethically minded: 65% say their providers approach to corporate social responsibility will influence their choice. Tech-savvy: 87% say their smartphone is their principal device for transacting online. Open to risk: Three in four are willing to take risks to improve their lives. Hungry for innovation: They 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. 8 #FSConsumerStudy 2019 Accenture Global Financial Services Consumer Study CUSTOMER PERSONASTrusting, but not loyal A l t h o u g h P i o n e e r s t r u s t t h e i r fi n a n c i a l p r o v i d e r s , t h e y a r e the least loyala third had switched banks within the past year . B u t w h i l e t h e sea r c h f o r b e t t e r - v a l u e p r o d u c t s and services is their main driver for switching, Pioneers also c o n s i d e r m o r e a l t r u i s t i c f a c t o r s . A l m o s t t w o t h i r d s s a y t h a t c o r p o r a t e s o c i a l r e s p o n s i b i l i t y w o u l d i n fl u e n ce t h e i r c h o i ce o f a n e w p r o v i d e r . Risk-takers Pioneers are most willing to take risks to improve their lives75 percent of them say they dont mind doing thisconsiderably more than the 53 percent of Pragmatists and over three times the percentage o f T r a d i t i o n a l i s t s w h o a g r e e w i t h t h i s s t a t e m e n t . 2019 Accenture Global Financial Services Consumer Study 9 #FSConsumerStudy CUSTOMER PERSONAS: PIONEERS95% agree 73% agreeWould be willing to share data in return for personalized and convenient services Compared to 80% overall “I would like my bank or insurer to introduce new ways of communicating with me, such as via wearable devices” Compared to 31% overall Importance of personalization Activities Importance of access Lifestyle Trust Tech and data attitudes Pioneers Total 54% 80% 87% 72% 86% 48% 81% 75% 89% 70% 76% 87% 30% 54% 75% 56% 68% 39% 65% 48% 65% 56% 62% 54% Read content online Content most of the time Phone is principal device Browse internet on mobile Take risks to improve life C on fiden t user of tech Read social media posts Seek work/life balance Lik e traditional approaches Check accounts on phone People seek my advice Alert about data privacy Bank Social Network Provider Retailers Tech/Telecoms Insurance 88% 83% 61% 57% 48% Trust to look a f t e r fi n an c i a l well-being 2019 Accenture Global Financial Services Consumer Study 10 #FSConsumerStudy CUSTOMER PERSONAS: PIONEERSEverywhere: Pragmatists are the most evenly distributed persona group across age groups and geographies. Channel agnostic: 77% dont mind which channel they use as long as they get what they need. Satisfied: 78% have a positive experience when they visit their bank branch. Content: They are less likely to be interested in bespoke or novelty customer experiences. Open to advice: 95% trust human advisors in bank branches to give advice on a loan or mortgage. Data conscious: 79% say they are alert and cautious about their data privacy. Trusting: They are more likely to trust their bank to look after their financial well-being, and for their insurer to safeguard their data. Pragmatists 11 #FSConsumerStudy 2019 Accenture Global Financial Services Consumer Study CUSTOMER PERSONAS Happy with their service P r a g m a t i s t s a r e m o r e b r o a d l y s a t i s fi e d w i t h t h e i r c u r r e n t fi n a n c i a l p r o v i d e r s t h a n t h e o t h e r t h r e e p e r s o n a s . Mo r e t h a n t h r e e - q u a r t e r s say they have a positive attitude toward bank branches, and 96 percent say they trust the advice they receive from human a d v i s o r s a t t h e i r i n s u r a n ce b r a n c h w h e n m a k i n g a c l a i m . Interested in personalization, but wary about signing up They are the group closest to Pioneers in terms of behavior, and are interested in offers, perks, alerts and tips based on t h e i r s p e n d i n g p a t t e r n s . H o w e v e r , t h e y a r e l e s s i n t e r e s t e d i n t h e se se r v i ce s t h a n P i o n e e r s . Embrace technology, but only up to a point Pragmatists want control over their accounts and are keen o n f a s t a n d e f fi c i e n t se r v i ce . T h e y l i k e o n l i n e a cce s s v i a d e s k t o p o r l a p t o p , r a t h e r t h a n b y m o b i l e d e v i ce . L e s s t h a n a third are interested in a wider range of in-branch services, s u c h a s c o f f e e s h o ps o r fi n a n c i a l e d u ca t i o n . 2019 Accenture Global Financial Services Consumer Study 12 #FSConsumerStudy CUSTOMER PERSONAS: PRAGMATISTSTotal Pragmatists 85% agree 72% agreeWould be willing to share data in return for personalized and convenient services Compared to 80% overall “I would like my bank to blend physical branches and digital services, allowing me to interact with them in the way that best suits me, and which gives me a seamless experience” Compared to 59% overall 34% 62% 79% 66% 78% 27% 77% 53% 79% 64% 70% 60% Importance of personalization Activities Importance of access Lifestyle Tech and data attitudes 30% 54% 75% 56% 68% 39% 65% 48% 65% 56% 62% 54% Trust Read content online Content most of the time Phone is principal device Browse internet on mobile Take risks to improve life C on fiden t user of tech Read social media posts Seek work/life balance Lik e traditional approaches Check accounts on phone People seek my advice Alert about data privacy Bank Social Network Provider Retailers Tech/Telecoms Insurance 89% 77% 31% 29% 18% Trust to look a f t e r fi n an c i a l well-being 2019 Accenture Global Financial Services Consumer Study 13 #FSConsumerStudy CUSTOMER PERSONAS: PRAGMATISTSDiscontent: Just 45% say they are content most of the time. Risk-averse: Only 42% say they take risks to improve life. Mistrustful: Least likely to trust banks and insurers to look after their data. More tech-wary: They are less confident users of technology than their peers. Frustrated: They feel let down in terms of customer service. Difficult to convince: Low interest in integrated propositions around core needs from financial providers and non-financial vendors. Dissatisfied: Only 31% have a positive experience when they visit their bank branch. Skeptics 14 #FSConsumerStudy 2019 Accenture Global Financial Services Consumer Study CUSTOMER PERSONAS Often unhappy Skeptics are demanding and often unhappy with the se r v i ce t h e y r e ce i v e f r o m t h e i r fi n a n c i a l se r v i ce s p r o v i d e r s . They are not interested in personalized products and se r v i ce s a n d l e s s t h a n a t h i r d w a n t t o u se n e w c h a n n e l s . Lacking in trust S k e p t i c s s h o w l o w l e v e l s o f t r u s t i n p r o v i d e r s . T h i s d o e s n t seem to affect their loyalty to these providers, however on average, Skeptics stay with their bank for 14 years and t h e i r i n s u r e r f o r se v e n y ea r s . Less likely to use mobile for transactions Although younger than other persona groups, Skeptics are less likely than Pioneers and Pragmatists to use their mobile phone to access information and transact online, or to spend time each day browsing the internet on their m o b i l e d e v i ce . 2019 Accenture Global Financial Services Consumer Study 15 #FSConsumerStudy CUSTOMER PERSONAS: SKEPTICSTotal Skeptics 80% agree 48% agreeWould be willing to share data in return for personalized and convenient services Compared to 80% overall“I am frustrated when I call customer s e r v i c e s b e c a u s e m y qu e r y i s r ar e l y r e s o l v e d b y t h e fi r s t p e r s o n I s p e ak t o ” Compared to 36% overall 27% 45% 65% 58% 60% 33% 71% 42% 58% 54% 45% 56% Importance of personalization Activities Importance of access Lifestyle Tech and data a