BBDO KNOWS Attitudes & Behaviors in Personal Finance

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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



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



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KNOWSBBDOEXAMPLE: ENCOURAGE SAVINGSRABODIRECT, AUSTRALIA WHY WE SAVE


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


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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BBDO KNOWS Attitudes & Behaviors in Personal Finance