1 Custom Questions on the 2014 GlobeScan RADAR March 2014

1

Custom Questions on the 2014 GlobeScan RADAR

March 2014

2

The research questions and results reported herein are provided on a confidential basis to Credit Union Central of Canada. CUCC is free to use the findings in whatever manner it chooses, including releasing them to the public or media.

GlobeScan Incorporated subscribes to the standards of the World Association of Opinion and Marketing Research Professionals (ESOMAR). ESOMAR sets minimum disclosure standards for studies that are released to the public or the media. The purpose is to maintain the integrity of market research by avoiding misleading interpretations. If you are considering the dissemination of the findings, please consult with us regarding the form and content of publication. ESOMAR standards require us to correct any misinterpretation.

Project: 3135, GlobeScan®

April 2014

For more information, contact:

Chris [email protected]

2

mailto:[email protected]

3

• Results are based on telephone interviews conducted among 1,000 adult respondents in Canada between January 10 and February 18, 2014.

• Please note that all figures in the charts and tables included in this report are expressed in percentages unless otherwise indicated. Total percentages may not add to 100 because of rounding.

Notes to Reader

4

• Credit union customers tend to have the same top-of-mind concerns as other Canadians, although when prompted they rate poverty and the environment as more serious challenges (while being less concerned than others about a range of other issues).

• Credit union customers strongly distrust global and national large companies; although all Canadians express negative net trust in business, credit union customers are far more distrustful than others.

• Banks and financial services companies are also distrusted by credit union customers; more than half say they do not trust companies in this sector, compared to 35 percent of others saying the same.

• Credit union customers are more likely than others to call for increased regulation of banks and financial services companies, in line with their distrust of the industry.

• Credit union customers are slightly more likely to call for banks and financial institutions to reduce service charges and interest on loans, and to operate ethically, when asked what issues should be prioritized.

• There are no differences between credit union customers and non-customers in terms of attitudes toward ethical consumerism.

Summary of Results

5

Most Important National Problem

Unprompted, Credit Union Customers vs Non-Credit Union Customers, 2014

Q1t. What do you think is the most important problem facing our nation today?

Economic problems are top-of-mind for all Canadians, but credit union customers are slightly less likely than other Canadians to spontaneously mention the economy or poverty and homelessness when asked about the most important problem facing Canada.

Economic problems Envi-

ronmen-tal prob-

lemsPolitical problems Health

issues / health care Unem-

ploymentMoral decay

EducationPoverty/home-

lessnessTaxes

18

12

12

10

10

5

3

1

1

22

11

12

7

11

1

2

6

2

Non-credit union customers

Credit union customers

6

Seriousness of Challenges to Society

“Very Serious,” Credit Union Customers vs Non-Credit Union Customers, 2014

Q3t. I am going to read you a list of possible challenges in our society. For each, please tell me how serious a challenge you think it is

When prompted to rate different challenges, however, credit union customers tend to rate poverty and homelessness, as well as environmental problems, as more serious than do others. However, this group tends to rate several other issues as significantly less serious than do non-credit union customers.

Poverty/homelessness

Environmental pollution

Health care

Crime/violence

Education

Online data security/privacy

Rising cost of food/energy

Lack of social security

Unemployment

Economic problems/uncertainty

Violation of workers’ rights

Human rights

Economic inequality

Gender inequality

56

55

54

49

41

37

34

34

29

28

28

27

26

15

48

49

52

48

38

47

51

43

36

39

28

31

34

23



7

Trust in Companies

Net Trust,* Credit Union Customers vs Non-Credit Union Customers, 2014

4t. Please tell me how much you trust each of the following institutions to operate in the best interest of our society. Would you say you have a lot of trust, some trust, not much trust, or no trust at all in…?

Credit union customers are extremely distrustful of global companies, compared to the general population. This group also tends to distrust large Canadian companies.

Large national companies

Global companies

-15

-60

-1

-19



*Net trust equals “a lot of trust” and “some trust” minus “not much trust” and “no trust at all”

8

Trust in Banks and Financial Services Companies

Credit Union Customers vs Non-Credit Union Customers, 2014

8t. Please tell me how much you trust each of the following types of companies. In answering, please use a scale from 1 to 5, where 1 is “no trust at all” and 5 is “a lot of trust.” How about [dt. Banks and financial services companies ]…?

Credit union customers are much more likely than others to say they do not trust banks and financial services institutions.



6

8

17

23

23

34

34

21

19

14

1

A lot of trust (5) 4 3 2 No trust at all (1) DK/NA

9

Perceived Need for Regulation of the Banking / Financial Services Industry

Credit Union Customers vs Non-Credit Union Customers2014

9t. For each of the following types of companies, please tell me if you think our government does too much, about the right amount, or not enough in regulating their activities to ensure the health and safety of society. What about [dt Banks and financial services companies]…?

Consistent with their distrust of banks and financial services companies, Credit union customers are more likely than others to call for increased regulation of the industry.



5

7

47

55

46

37

2

1

Too much government regulation

About the right amount of government regulation

Not enough government regulation

DK/NA

10

Most Important Issue the Banking / Financial Services Industry Needs to AddressCredit Union Customers vs Non-Credit Union Customers 2014

13t. And what about the Banking/Financial Services industry – what is the most important issue it needs to address?

Credit union customers have similar priorities as other Canadians when asked what issues banks and financial institutions should address, although they are slightly more likely to call for reduced service charges and interest on loans, and ethical operations. Credit union customers are less likely than others to point to profits and greed as a key issue.

Reducing service

charges / high in-

terest on loans

Operating ethically Better cus-

tomer ser-vice /

online ser-viceProfits/greed

More loans/

credit for small

businesses / con-

sumers

Quality financial products/servicesResponsi-

ble lending

Regulation/restructur-

ing/surveil-lance of banking system

Supporting charities/communi-

ties Low in-terest

rates for deposits

22

16

6

6

4

4

4

3

3

1

17

12

4

13

4

0

4

4

0

5

Non-credit union cus-tomers


11

Believe we need to consume less to preserve environment for future generations

Prefer to buy environmentally friendly products to ordinary ones

Encourage others to buy from socially/en-vironmentally responsible companies

Willing to pay more for socially/environmentally responsible products

Think people exaggerate the seriousness of environmental problems

Feel guilty about my negative impact envi-ronment

Shopping for new things excites me

Believe individuals cannot do much to save environment

In order to be happy I need a lot of material possessions

66

54

46

35

16

15

13

10

3

65

52

44

39

12

14

14

9

1



Ethical Consumption

“Strongly Agree,” 2014

28t. Please tell me if you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements.

Credit union customers and other Canadians exhibit very similar attitudes toward ethical consumption.

12

Aspirationals

Advocates

Practicals

Indifferents

38

45

10

7

42

40

6

13



Ethical Consumption: Segmentation

Consumer segmentation, 2014

Credit union customers are more likely to fall into the Advocates or Practical segments , but are less likely to be Aspirationals or Indifferents.

13

Appendix: Demographic Analysis

14

• More than one in ten Canadians (13%) use a credit union as their primary financial institution.

• Canadians are more likely to be using a credit union as their primary financial institution than any other type of bank except chartered banks.

• Credit union use is highest among:‒ Those in Western Canada (and especially in Manitoba + Saskatchewan)‒ Canadians with average levels of income‒ Canadian females as opposed to males

• Conversely, credit union use is lowest among:‒ Those in the Atlantic provinces and Ontario‒ Young adults (18 to 24 year-olds)‒ Canadians with the lowest levels of income‒ Canadian males as opposed to females

Summary of Results

15

Type of Financial Institution Used for Day-to-Day Banking Needs

2014

CU1. What type of financial institution do you primarily use for your day-to-day banking needs (chequing, deposits, bill payments, mortgage)?

Chartered banks

Credit unions

International banks

Internet-based

Virtual banks

Don't know / No answer

75

13

2

2

2

6

While three-quarters of Canadians use a chartered bank as their primary financial institution, more than one in ten use credit unions primarily.

16


By Gender, 2014


Chartered banks

Credit unions

Internet-based

International banks

Virtual banks

Don't know /No answer

78

12

3

1

1

4

73

14

2

2

2

7

Female

Male

Canadian women are slightly more likely than men to bank with credit unions. Canadian men are more likely than women to be using chartered banks.

17

Credit Union Use by Age

2014

CU1. What type of financial institution do you primarily use for your day-to-day banking needs (chequing, deposits, bill payments, mortgage)? 05 Credit Unions

65 years+

55 to 64 years

45 to 54 years

35 to 44 years

25 to 34 years

18 to 24 years

15

13

11

14

14

10

There is no obvious trend in credit union use by age, though the youngest respondents are the least likely to bank with credit unions—they are the most likely age group to be using Internet-based banks.

18


By Age, 2014


Chartered banks

International banks Virtual banks Internet-

based Credit unions

65 years+ 78 1 0 1 15

55 to 64 years 76 2 2 1 13

45 to 54 years 78 1 3 2 11

35 to 44 years 76 2 1 2 14

25 to 34 years 70 4 2 4 14

18 to 24 years 76 0 1 5 10

19

Credit Union Use by Province/Region

2014


Prairies

Alberta

British Columbia

Quebec

Ontario

Atlantic

30

21

21

10

8

7

Those in Western Canada are far more likely than those east of Manitoba to be using credit unions. Credit unions have particularly strong penetration in the Prairie provinces.

20


By Province/Region, 2014


Chartered banks


based Credit unions

British Columbia 67 4 1 3 21

Alberta 73 1 0 4 21

Prairies 60 0 2 3 30

Ontario 83 2 2 3 8

Quebec 74 0 1 1 10

Atlantic 80 5 3 1 7

21

Credit Union Use by Income Level

2014


Very high

High

Average

Low

Very low

11

11

21

11

8

Credit unions appear to appeal most to Canadians with average income levels. Average income respondents are the least likely income group to be using chartered banks.

22


By Income Level, 2014


Chartered banks


based Credit unions

Very high 76 2 2 8 11

High 78 2 3 4 11

Average 71 2 2 2 21

Low 80 0 1 1 11

Very low 85 1 1 0 8

23

For twenty-five years, GlobeScan has helped clients measure, understand and build valuable relationships with their stakeholders, and to work collaboratively in delivering a sustainable

and equitable future.

Uniquely placed at the nexus of reputation, brand and sustainability, GlobeScan partners with clients to build trust, drive engagement and inspire innovation within, around and beyond

their organizations.

www.GlobeScan.com

http://www.globescan.com/expertise/expertise-overview.html

Documents

1 Custom Questions on the 2014 GlobeScan RADAR March 2014