Venus 2014 LAB report - Banking

The attitudes of women towards banks and banking services.helloimvenus.com/#venuslab

ABOUT THE SURVEY 3

MANAGEMENT SUMMARY 7

RESPONSIBILITY FOR MANAGING HOUSEHOLD FINANCES 12

BIG FOUR BRAND DESIRABILITY 15

PERCEPTIONS OF BANK ATTITUDES TOWARDS WOMEN 21

UNDERSTANDING OF BANKING NEEDS 24

MOBILE BANKING SERVICES 27

SUGGESTED IMPROVEMENTS 30

CONTENTS

3

35–39 years28%

25–29 years12%

30–34 years15%

40–44 years30%

45–49 years16%

Hello I’m Venus commissioned a survey of women to determine their perceptions of Australian banks and the understanding that these organisations display towards the needs of women.

The survey was conducted online between 31 October & 1 November using the Pureprofile consumer research panel. A total of 409 women between the ages of twenty-five and fifty years participated in the survey. Over half (58%) were aged in the thirty-five to forty-four year segment.

ABOUT

THE SURVEY

helloimvenus.com/#venuslabn=409

4

VIC30%

QLD22%

NSW38%

WA10%

The majority of respondents were located in New South Wales and Victoria (68%) and a total of 90% of respondents were located in the eastern states. Ten per cent of respondents were located in Western Australia.

In addition to these basic segmentation parameters, respondents were also asked which bank they considered to be their main bank, (results shown over page).

The Commonwealth Bank of Australia (CBA) is by far the dominant brand accounting for 27% of main bank nominations. However, amongst the 25–29 year segment this rises to 38%, a legacy effect from the strong presence that the brand has in the youth market. Typically, the proportion of women nominating CBA as their main bank tends to decrease with age. Few regional variations are noted in the share held by CBA.

helloimvenus.com/#venuslab

ABOUT

THE SURVEY

n=409

ONE-IN-FIVE WOMEN CONSIDER A BANK OUTSIDE THE MAIN SUITE

OF BRANDS TO BE THEIR MAIN BANK.

5

One-in-five women consider a bank outside the main suite of brands to be their main bank. A rate that reaches a peak of 29% in Western Australia. The use of these bank brands is also higher amongst women aged 30 – 34 years and 40–44 years.


Her main bank

6

National Australia Bank (nab) is considered to be the main bank by 12% of women but in the bank’s home state of Victoria this rises to 18%. ANZ which is also domiciled in Victoria did not garner the same benefit amongst women. Main bank consideration for ANZ is higher amongst women aged 30–34 years and in Western Australia.

Suncorp and St George are another two brands that benefit from higher main bank consideration in their “home states”.


AGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years

45–49 years NSW VIC QLD WA

Sample 409 50 61 113 121 64 156 123 89 41

Commonwealth Bank 27% 38% 30% 27% 24% 23% 27% 28% 29% 24%

National Australia Bank 12% 12% 10% 13% 13% 9% 9% 18% 12% 5%

ANZ 16% 14% 20% 17% 14% 14% 16% 14% 15% 22%

Westpac 12% 6% 11% 15% 12% 16% 15% 14% 8% 10%

St George 6% 2% 2% 5% 7% 16% 12% 2% 7% 0%

Bank of Queensland 2% 2% 0% 2% 2% 2% 1% 1% 6% 0%

Bendigo Bank 3% 4% 3% 3% 2% 5% 2% 4% 1% 7%

Suncorp Metway 1% 2% 0% 0% 2% 2% 0% 0% 4% 2%

Other (please specify) 20% 20% 25% 18% 24% 14% 19% 20% 18% 29%

Her main bank

SEVEN-IN-TEN WOMEN CLAIM TO SOLELY MANAGE THE HOUSEHOLD

BUDGET/FINANCES.

7

The current survey confirms the popular view that women control and manage household finances. Seven-in-ten women claim to solely manage the household budget/finances with a further twenty per cent jointly responsible.

Only 10% leave the management of money and finances to their partner. Interestingly, women in their thirties are a little more likely to let their partner manage the finances than either younger or older women. The relatively lower rate of involvement for women in their thirties as the sole finance and money manager may be influenced by child care responsibilities.


Management summary

8

CBA and St George main bank customers are more likely to be the sole finance manager in their household compared to other bank customers.

The Commonwealth Bank of Australia (CBA) has the largest share of the market and its share amongst the 25–29 year segment is particularly high. ANZ has the second-highest market share overall, with its highest share in the 30–34 year segment.

CBA emerges as the most desirable bank for women with approximately 10% of the view that it is a highly desirable brand, almost twice the rate of which other members of the big four achieve. However, the CBA brand polarises, because it is also the brand that is perceived to be least desirable by women.

Main bank customers find their bank to be more desirable than non-main bank customers with a third of big four main bank customers finding their own bank very desirable.

Women are divided in their view of how the banks treat them with approximately half of the view that their main bank does not always treat them seriously. Customers of the big four banks are a little more critical than customers of regional banks.

Seven per cent of women are of the view that their bank does not take them seriously at any time and a further 16% are of the view that their bank takes them seriously only for a limited amount of time. The women expressing these concerns are more likely to be aged in their thirties than any other age segments.

Younger women aged 25–29 years are the most confident that their bank takes them seriously.

Significantly approaching a third (31%) consider that their main bank takes them seriously only “most of the time” which undoubtedly has the potential to damage the banking relationship.


Continued

WOMEN ARE DIVIDED IN THEIR EVALUATION OF THEIR BANK’S

UNDERSTANDING OF WHAT WOMEN WANT FROM THEIR BANKING RELATIONSHIP.

9

Women are divided in their evaluation of their bank’s understanding of what women want from their banking relationship. While 44% believe that banks do understand their banking needs, a similar proportion are undecided. One-in-ten consider that banks do not understand what women want from a banking relationship. Customers of CBA and nab are a little more critical of the performance of their bank compared to other bank customer segments.

Younger women, 25–29 years and women over 40 years are more likely to express the view that banks understand the needs of female customers.


Relationship summary

10

Up to a third of women claim not to use any of the mobile banking services offered by their main bank. There is a an inverse relationship between usage and age, with older respondents a little less likely to use mobile services compared to their younger counterparts. Interestingly, women who consider nab and Westpac to be their main bank are less likely to use mobile services.

Approaching a third (31%) of women describe the mobile services provided to them as being excellent. Women aged 25–29 years are most likely to consider the services to be excellent while those aged in their thirties are a little less impressed. CBA and ANZ main bank customers hold the strongest perceptions of the mobile services offered by their bank with nab customers the least impressed with the range of services provided by their bank.


Mobile summary

1∕3

11

Only eight per cent consider the mobile services offerred to be poor and in need of improvement, a view most likely to be held by the 30–34 year segment and Victorian residents.

As part of the survey, participants were asked; what one thing would you suggest to banks to better meet their female customer’s needs? Over a third (37%) did not respond and 11% do not believe there is a need to particularly focus on the needs of women. There was a wide range of responses from the women who did answer, but the themes evident from their responses related to taking women seriously, taking the time to listen to them and understanding their needs and providing better advice.

At a lower level there was a desire for a little more flexibility and understanding of women who had children.


Continued 8%ONLY EIGHT PER CENT CONSIDER

THE MOBILE SERVICES OFFERED TO BE POOR AND IN NEED OF IMPROVEMENT.

12

Equal21%

Me69%

Partner/husband10%

The overwhelming majority of women singularly control the household finances (69%) and a further 21% consider themselves to be an equal partner in the management of household finances. Only 10% of women leave the management of household finances to their partner.

household finances

Responsibility for managing

Question: Who in your household is primarily responsible for managing budgets and household finances (including bills)?


13


AGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years


Sample 409 50 61 113 121 64 156 123 89 41

Me 69% 72% 66% 65% 73% 70% 72% 67% 70% 61%

Partner/husband 10% 10% 10% 12% 8% 9% 10% 8% 9% 17%

Equal 21% 18% 25% 24% 19% 20% 18% 25% 21% 22%

Amongst those who abrogate responsibility to their partner there are few meaningful differences. Women in Western Australia are nearly twice as likely (17%) to leave the management of the household finances to their partner, compared to women in the eastern states.

Women in New South Wales and Queensland are most likely to be solely responsible for the household finance management. Interestingly, it is also higher amongst women 25–29 years and 40–44 years and a little lower in years 30–39, a period commonly associated with women having a workforce participation break to have children.

Responsibility for managing household finances

Who in your household is primarily responsible for managing budgets and household finances (including bills etc)?

14


BANK

Total CBA nab ANZ Westpac St George BoQ Bendigo

Bank Suncorp Other

Sample 409 112 49 64 51 26 7 12 5 83

Me 69% 72% 69% 61% 57% 77% 86% 75% 60% 73%

Partner/husband 10% 4% 8% 16% 18% 15% 0% 0% 0% 10%

Equal 21% 23% 22% 23% 25% 8% 14% 25% 40% 17%

CBA and St George main bank customers are more likely to be the household money managers, while Westpac and ANZ main bank customers are less likely.

Continued

Who in your household is primarily responsible for managing budgets and household finances (including bills)?

CBA = Commonwealth Bank of Australia: nab = National Australia Bank: BoQ = Bank of Queensland

15

Big four

brand desirability

Women were asked to rate the desirability of each of the big four banks on a scale from extremely desirable to extremely undesirable with the option ‘they are all same’ provided.

A fifth of women consider the big four to be the same. This view is more likely to be held by women aged over 35 years.

Approximately one-in-seven women have a negative disposition to the big four banks, and it is a little higher for CBA at 20%.

At the other end of the scale, 10% of women rate CBA as extremely desirable, almost twice the rate of the other majors. There is also a difference between the attitude of non-main bank customers and main bank customers.

Across all brands, up to a third of main bank customers consider their brand to be highly desirable with Westpac having marginally the strongest support base amongst its main bank customers.

The distribution of responses across the scale for the four banks is very similar.


31%

22% 22%

29%

5%6%

5%

10%

Westpac

Main bank customers

Total sample

ANZ nab CBA

16

Big four

brand desirability

Ext

rem

ely

desi

rabl

e10

%

4%

Neu

tral

24%

Des

irabl

e26

%

Mor

e or

less

the

sam

e21

%

Und

esira

ble

16%

CBA

Ext

rem

ely

unde

sira

ble

Ext

rem

ely

desi

rabl

e5%

4%

Neu

tral

38%

Des

irabl

e17

%

Mor

e or

less

the

sam

e22

%

Und

esira

ble

14%

WESTPACE

xtre

mel

y un

desi

rabl

e

Ext

rem

ely

desi

rabl

e5%

3%

Neu

tral

35%

Des

irabl

e22

%

Mor

e or

less

the

sam

e20

%

Und

esira

ble

14%

NAB

Ext

rem

ely

unde

sira

ble

Ext

rem

ely

desi

rabl

e6%

3%

Neu

tral

36%

Des

irabl

e23

%

Mor

e or

less

the

sam

e21

%

Und

esira

ble

11%

ANZ

Ext

rem

ely

unde

sira

ble

17

Desirability rating

CBAAGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years


Sample 409 50 61 113 121 64 156 123 89 41

Extremely desirable 10% 18% 8% 13% 3% 11% 7% 15% 8% 10%

Desirable 26% 28% 28% 27% 25% 20% 24% 28% 28% 20%

Neutral 24% 16% 31% 19% 24% 30% 24% 25% 24% 20%

Undesirable 16% 14% 18% 14% 17% 16% 17% 11% 17% 22%

Extremely undesirable 4% 4% 5% 3% 6% 5% 4% 2% 7% 7%

They are all more or less the same 21% 20% 10% 23% 26% 19% 24% 20% 17% 22%

BANK


Bank Suncorp Other

Sample 409 112 49 64 51 26 7 12 5 83


Desirable 26% 42% 24% 20% 31% 15% 29% 25% 40% 7%

Neutral 24% 13% 37% 38% 31% 27% 0% 25% 0% 17%

Undesirable 16% 0% 20% 19% 14% 27% 0% 8% 20% 31%




18

AGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years


Sample 409 50 61 113 121 64 156 123 89 41


Desirable 22% 36% 18% 19% 20% 27% 21% 27% 25% 10%

Neutral 35% 30% 48% 38% 36% 22% 33% 38% 30% 44%

Undesirable 14% 8% 18% 11% 13% 25% 17% 6% 20% 17%



BANK


Bank Suncorp Other

Sample 409 112 49 64 51 26 7 12 5 83


Desirable 22% 18% 47% 23% 33% 19% 0% 17% 40% 10%

Neutral 35% 47% 14% 44% 35% 35% 14% 33% 20% 28%

Undesirable 14% 11% 4% 14% 10% 19% 14% 17% 0% 28%




Desirability rating

NAB

19

AGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years


Sample 409 50 61 113 121 64 156 123 89 41


Desirable 23% 32% 20% 23% 20% 25% 25% 22% 20% 24%

Neutral 36% 24% 44% 38% 40% 25% 31% 40% 38% 37%

Undesirable 11% 4% 13% 10% 11% 20% 11% 9% 16% 12%



BANK


Bank Suncorp Other

Sample 409 112 49 64 51 26 7 12 5 83


Desirable 23% 21% 16% 41% 29% 19% 14% 25% 60% 12%

Neutral 36% 50% 45% 20% 35% 38% 14% 17% 20% 29%

Undesirable 11% 7% 14% 2% 10% 15% 29% 8% 0% 23%




Desirability rating

ANZ

20

AGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years


Sample 409 50 61 113 121 64 156 123 89 41


Desirable 17% 24% 21% 15% 15% 16% 18% 16% 18% 15%

Neutral 38% 42% 44% 42% 36% 27% 37% 41% 34% 39%

Undesirable 14% 8% 15% 11% 15% 25% 15% 10% 17% 20%



BANK


Bank Suncorp Other

Sample 409 112 49 64 51 26 7 12 5 83


Desirable 17% 20% 4% 14% 35% 15% 0% 17% 40% 13%

Neutral 38% 47% 61% 47% 8% 35% 29% 17% 40% 28%

Undesirable 14% 11% 12% 20% 4% 23% 14% 17% 0% 20%




Desirability rating

Westpac

21

No, not really7%

Sometimes16%

All the time10%

Most of the time31%

Women are divided in their perception of the treatment they receive from their main bank. Approaching half (46%) consider that they are taken seriously all the time, a rate that is highest amongst women aged 25–29 years. It is lower amongst older women but falls to only 39% of women aged 30–34 years. Women in Western Australia and New South Wales are the lest likely to consider that they are taken serious all of the time.

towards women

Perceptions of bank attitudes

Question: Does your main bank take women seriously?


22


At the other end of the scale, 7% consider that they are not taken seriously, a rate that is largely consistent amongst women aged over 30 years. It is also a little higher amongst women in New South Wales.

Approaching half (47%) consider that at times their main bank does not take them seriously at all times.

One-in-six are of the opinion that their bank sometimes takes them seriously, with a rate that is much higher amongst women at 35–39 years of age.

Perceptions of bank attitudes towards women

Does your main bank take women seriously?

AGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years


Sample 409 50 61 113 121 64 156 123 89 41

No, not really 7% 4% 7% 7% 5% 13% 9% 5% 8% 2%

Sometimes 16% 8% 25% 15% 16% 16% 17% 13% 13% 24%

Most of the time 31% 32% 30% 32% 31% 31% 33% 34% 25% 32%

All the time 46% 56% 39% 46% 48% 41% 41% 48% 54% 41%

23


Women who consider that their main bank is outside the majors, hold a significantly higher perception of the way they are treated than women who have a big four bank as their main bank. Banks such as BoQ, Suncorp and Bendigo Bank have almost twice the level of women in the ‘all the time’ segment compared to the big four banks.


MAIN BANK


Bank Suncorp Other

Sample 409 112 49 64 51 26 7 12 5 83

No, not really 7% 7% 10% 9% 2% 12% 0% 8% 0% 5%

Sometimes 16% 20% 35% 19% 12% 8% 0% 17% 0% 5%

Most of the time 31% 41% 18% 33% 51% 27% 14% 8% 40% 18%

All the time 46% 32% 37% 39% 35% 54% 86% 67% 60% 72%


Perceptions of bank attitudes towards women

24

Yes44%

Undecided45%

No11%

Women’s attitudes are again divided in their perceptions of the understanding that banks have of females.

Question: Do you think banks understand what women want?


Understanding of banking needs

25


One-in-ten women do not think that banks understand the needs of women, a proportion that is largely consistent across all age groups and geographies with the exception of Western Australia, where this view is only held by 7% of women. Women are more likely to consider that CBA and nab have no idea/a limited idea of female banking needs relative to the other majors.

Just over 40% are of the view that banks do understand the needs of their female customers, but the rate is significantly higher amongst women who consider their main bank to be outside the big four. It is also higher amongst women 25–29 years and those aged 40–44 years.


Do you think banks understand what women want?

AGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years


Sample 409 50 61 113 121 64 156 123 89 41

Yes 44% 46% 43% 41% 47% 42% 45% 37% 54% 39%

No 11% 10% 11% 10% 9% 17% 12% 11% 11% 7%

Undecided 45% 44% 46% 50% 44% 41% 43% 53% 35% 54%

26


A significant proportion of women (45%) are undecided on their bank’s understanding of females. These women are more likely to be 35–39 years and Victorian. The are also more likely to be nab and ANZ main bank customers.


Do you think banks understand what women want?

MAIN BANK


Bank Suncorp Other

Sample 409 112 49 64 51 26 7 12 5 83

Yes 44% 37% 31% 39% 47% 42% 100% 50% 60% 57%

No 11% 14% 18% 8% 4% 12% 0% 25% 0% 8%

Undecided 45% 49% 51% 53% 49% 46% 0% 25% 40% 35%


27

Excellent31%

I don’t use my main bank’s mobile banking services

33%

Poor45%

Ok28%Could be better

7%

One third of women claim not to use any of the mobile banking services offered by their main bank. The non-use of these services tends to rise with age and is higher amongst women aged over forty years. Women who consider nab and Westpac to be their main bank are less likely to use mobile services.

Question: How do you rate your main bank’s mobile banking services?


Mobile banking services

28



MAIN BANK


Bank Suncorp Other

Sample 409 112 49 64 51 26 7 12 5 83

Excellent 31% 32% 16% 34% 25% 23% 57% 25% 20% 39%

OK 28% 28% 41% 25% 31% 31% 29% 8% 60% 19%

Could be better 7% 4% 6% 11% 4% 15% 0% 17% 0% 8%

Poor 1% 3% 0% 0% 0% 4% 0% 0% 0% 0%

I don't use my main bank's mobile banking services 33% 33% 37% 30% 39% 27% 14% 50% 20% 34%


Approaching a third (31%) of women consider the mobile services provided to be excellent. Women aged 25–29 years are most likely to consider mobile services to be excellent as are those living in Queensland. CBA and ANZ main bank customers hold the strongest perceptions of the mobile services offered by their bank with nab customers the least impressed with the range of services provided by the bank.


29

At the other end of the scale, 8% consider their bank’s mobile services to be poor and in need of improvement, a view most likely to be held by the 30–34 year segment and Victorian residents.



How do you rate your main bank’s mobile banking services?

AGE LOCATION

Total 25–29 years

30–34 years

35–39 years

40–44 years


Sample 409 50 61 113 121 64 156 123 89 41

Excellent 31% 46% 26% 28% 30% 28% 29% 28% 40% 22%

OK 28% 26% 36% 32% 22% 23% 29% 28% 19% 39%

Could be better 7% 8% 11% 6% 7% 5% 8% 7% 9% 5%

Poor 1% 0% 2% 1% 1% 2% 1% 2% 0% 0%

I don't use my main bank's mobile banking services 33% 20% 25% 33% 40% 42% 33% 35% 31% 34%

30

Suggested improvements

to meet the needs of female customers

Only a small number of women were able to offer any concrete suggestions of desired improvements.

Over a third (37%) did not respond and 11% do not believe there is a need to particularly focus on the needs of women as opposed to generic customer needs/service for both men and women.

Amongst the wide distribution of responses from the remaining group of women, the key themes related to taking women seriously, taking the time to listen to them and understanding their needs and providing better advice.

At a lower level there was desire for a little more flexibility and understanding of women who had children.

It should be noted that the relatively large non response rate on this question limits the extent of sub-segment analysis.



© This research study remains the intellectual property of Venus and Pureprofile.

Economy & Finance

Venus 2014 LAB report - Banking