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KNOWSBDOTHE BANKING IMAGE
CRISIS
2013
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PERSONAL FINANCES:ATTITUDES & BEHAVIOURS
BBDOKNOWS
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37% GLOBALLYHAVE NEGATIVE FEELINGS
TOWARDS THEIR PERSONAL
FINANCES
SOURCE: Corporate Executive Board
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KNOWSBBDO KNOWSBBDOATTITUDES:STATE OF PERSONALFINANCES
Source: nVision Research | Base: 1,000-5,000 online respondents per country aged 16-64 (Mexico 16-54), June 2012
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
Canada
SouthKorea
USA
Australia
Japan
Sweden
Denmark
Germany
GB
Spain
Ireland
CzechRep
France
Italy
Poland
Netherlands
Hungary
Brazil
China
India
Mexico
Turkey
Russia
Argentina
Will worsen Will stay the same Will improve
% who think the state of their own personal finances will improve, stay the same or worsenover the next 12 months | June 2012
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Significant numbers of customers have negative feelingstowards their personal finances and goals
In Europe the vast majority feel their financial situation willremain the same in the next 12 months, a very small numberbelieve their situation will improve
Globally those with a positive outlook, for the next 12 months,has declined
Satisfaction with personal finances presents a fragmentedpicture. Europeans are more downbeat, while Brazilianconsumers are the most optimistic - 63% believe their financeswill improve over the next 12 months
Source: Nvision 2012 Ernst & Young 2012
ATTITUDES:YOUR FINANCES LONG TERM
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KNOWSBBDO KNOWSBBDOATTITUDES: PERSONAL FINANCESBREAKDOWN
PAYING
OFF
DEBT
SPEND SAVING
INCOMEDEBT
BALANCE SHEET
OUTGOINGS
INTEREST
EARNED
Source: Corporate Executive Board
34%have negative feelings
43%have negative feelings
37%have negative feelings
MAKING ENDS MEET
TOO MUCH DEBT INABILITY TO SAVE ENOUGH
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FOR THE VAST MAJORITY, FINANCIAL PRIORITIES RELATE TO THEPRACTICAL. LIVING DAY TO DAY AND PAYING THE BILLS IS CONSIDEREDMOST IMPORTANT IN MANY MARKETS ACROSS EUROPE FOLLOWED BYHAVING SOME MONEY FOR EMERGENCIES
Source Nvision 2012
WHAT ARE YOUR FINANCIAL PRIORITIES?
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BBDOKNOWSWS
RESEARCH
BBDO Knowsresearch, Mobile
Ethnographies,UK, 2013
HOW DO YOU
FEEL ABOUTSAVINGS AND
DEBT?
PLEASE PLAY FILM- HOW DO YOUFEEL ABOUT
SAVINGS ANDDEBT?
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Source: Lloyds TSB/Future Foundation/nVision | Base: 2,540 online respondents, aged 18-65, 2012
WHAT ARE YOUR MOTIVATIONS FOR
SAVING?
0% 20% 40% 60% 80% 100%
Providing help for children to get married
Covering medical expenses
Covering other education costs for children
Covering costs of children going to university
Providing retirement income for yourself
To accumulate money and earn interest
Buying a home
Nothing specific, but to make a better future for your
To pay for a specific thing or experience for yourself,
Nothing specific, but to have a financial 'buffer' or
UK
Germany
China
What have been your main reasons for having savings over the past five years| % who say it has beentheir most or second most important reason for saving | 2012
UNCERTAINTY
PLEASURE
FAMILY
PRACTICALLIVING
EXP
ENSES
Financial priorities and motivations for savings relate to the need forsecurity and reassurance and the need to protect the existing quality of life
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Good behaviour is more pronounced in emerging markets
In China the household savings ratio is 43% of the total disposablehousehold income, this is compared with just 2% in the US
Source: CEB, Nvision2012
BEHAVIOUR:THE GOOD AND THE BAD
23%globally became moreindebted 13%globally paid down theirdebt sooner thanrequired
14%globally paid moreincome into savings andinvestments
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People are much more proactive about their short term financesthan their long term goals. Though proactive long term financial
management is much higher among higher net worth individualsand in developing markets
Source: Nvision 2012 CEB 2013
BEHAVIOUR:PROACTIVE FINANCIAL
MANAGEMENT
SHORT TERM LONG TERM
Vs
58%globally say they carefully
budget their finances Nvision
9%globally say they keep a
formal written plan for long
term goals CEB
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ONLY 35% GLOBALLYFEEL POSITIVE ABOUT THEIR
PROGRESS IN ACHIEVING THEIR
FINANCIAL GOALS
SOURCE: Corporate Executive Board
The role of communications should be to change the attitudeof the remaining
65%
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SUMMARY
NEGATIVE FEELINGS
REGARDING
PERSONAL
FINANCES
PROTECTION FROM
FUTURE
UNCERTAINTY
The negative feelings associated
with personal finances and progress towards goals contributeto the general feelings of uncertainty and worry.
The biggest priority is maintaining quality if life, e.g. payingbills and the biggest motivation for saving relates to protectingagainst uncertainty.
CAREFUL CAUTIOUS
SHORT-TERM
FOCUSED
Consumers are being more cautious and more careful withtheir money, they are justifying expenditure and the ambition is
to save for an item rather than to use credit. Generally thefeeling in some markets is that it is hard to save.
Short term behaviour is often better than long term behaviourin finance
ATTITUDE
ATTITUDE
BEHAVIOUR
BEHAVIOUR
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THE OPPORTUNITY
1. Address their long termfinancial goals as well astheir short term ones;
2. set achievable goals;3. ensure goal realisation;
4. facilitate budgeting andplanning.
HELP CUSTOMERS
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ROLE OF BRAND ANDCOMMUNICATION
1. Articulate theservice/support;
2. encourage the start of adialogue;
3. maintain a dialogue
throughout the course ofsetting and achievinggoals.
1. Address their long termfinancial goals as well astheir short term ones;
2. set achievable goals;3. ensure goal realisation;
4. facilitate budgeting andplanning.
HELP CUSTOMERS COMMUNCIATION
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KNOWSBBDOBBDO CLIENT EXAMPLE: GOOD BEHAVIOURING, USA GOOD BEHAVIOUR
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KNOWSBBDOBBDO CLIENT EXAMPLE: ENCOURAGE
GOOD BEHAVIOURBNZ, NEW ZEALAND GOOD BEHAVIOUR
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KNOWSBBDOBBDO CLIENT EXAMPLE: GOOD BEHAVIOURNATIONAL BANK OF GREECE,
GREECE SAVE THE CHANGE
ETHNOCARDJust imagine, one day to start rainshowering.and start raining .small change!out of nowhere!!!Wow! This is luck!This day has come
with ETHONCASH PLUS and thesmart reward program doro ta psila(translated: keep the change for agift).Which rounds up to the one euro theamount of your purchase,gives you the difference for a gift, and
debits it on your account.In order to enjoy everyday the. rainshower,do your purchases with the debit cardETHNOCASH PLUS instead of cash.By NBG.
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KNOWSBBDOEXAMPLE: ENCOURAGE SAVINGSNATWEST, UK WHY WE SAVE
http://www.commbank.com.au/personal/home-loans/i-phone-app.htm
Natwest articulate the
motivation behindsaving and offer a
product to helpcustomers achievetheir goals
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KNOWSBBDOEXAMPLE: ENCOURAGE SAVINGSBARCLAYS, UK SAVINGS FLEXIBILITY
http://www.commbank.com.au/personal/home-loans/i-phone-app.htm
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KNOWSBBDOEXAMPLE: ENCOURAGE SAVINGSRABODIRECT, AUSTRALIA WHY WE SAVE
http://www.commbank.com.au/personal/home-loans/i-phone-app.htm
Rabodirect also
articulate themotivation behind
saving and offer aproduct to helpcustomers achievetheir goals but they
also use the
opportunity todifferent themselves
from other banks
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KNOWSBBDOEXAMPLE: SUPPORTLLOYDS TSB, UK TOOLS
http://www.commbank.com.au/personal/home-loans/i-phone-app.htm
Lloyds TSB offer
support in the form ofin branch
appointments andonline tools includingMoney Manager a toolthat analyses and
breaks down your
spending so acustomer can stay in
control of theirspending
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KNOWSBBDOEXAMPLE: ENCOURAGE GOOD
BEHAVIOURNATWEST, UK ENCOURAGING A SAVINGS RITUAL
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KNOWSBBDOEXAMPLE: ENCOURAGE GOOD
BEHAVIOURNATWEST, UK ENCOURAGING PROACTIVITY
Natwest encourage
proactive financemanagement anddiscussion, this was theNatwest homepage at thestart of 2013
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