Nielsen VN - Personal Finance Monitor Mid-year 2010
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Transcript of Nielsen VN - Personal Finance Monitor Mid-year 2010
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Personal Finance Monitor 2010Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Personal Finance Monitor 2010
PersonalFinanceMonitor
Mid Year - 2010
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Personal Finance Monitor 2010
Vietnam is Heating Up!
• Healthy GDP grows in both urban & rural areas
• Vietnam is currently ranked equal #2 in the world on Nielsen’s consumer confidence index
• Business leaders continue to show bullish expectations for business growth over the next 12 months
• Well over 50% of total population is under 30 years old
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Personal Finance Monitor 2010
Vietnam 2010 Estimates
Population 87 millions
MaleFemale
43.1 millions (49.5%)43.9 millions (50.5%)
Urban 2009Rural 2009
29.6%70.4%
GDP growth rate 5.5%Inflation rate 10%
Wage growth 12.3%
Key cities: •Ho Chi Minh•Hanoi•Haiphong •Danang•Nhatrang•Cantho
CanthoHo Chi Minh
Danang
Hanoi
Haiphong
Nhatrang
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Personal Finance Monitor 2010
A ‘young’ population means an increase in purchasing power as it joins and progresses in the workforce
General Economy: PopulationSource: U.S. Central Bureau, International Database
0 1,000 2,000 3,000 4,000 5,000
0 - 4 5 - 9
10 - 1415 - 1920 - 2425 - 2930 - 3435 - 3940 - 4445 - 4950 - 5455 - 5960 - 6465 - 6970 - 7475 - 79
80+
010002000300040005000
FemaleMale Vietnam 2009Total Vietnam Population
Population under 30 years old: 56%
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Personal Finance Monitor 2010
0
10,000
20,000
30,000
40,000
50,000
60,000
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
Labor force ('000 individuals)
Source: Government’s General Office of Statistics (www.gso.gov.vn)
This workforce will further fuel the GDP Per Capita in the coming years
402 440552
725835
1,0241,074
1,200
2000 2002 2004 2006 2007 2008 2009 Expected2010
GDP Per Capita (in USD)Labor force (‘000 individuals)
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Personal Finance Monitor 2010
Consumer Confidence Index
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Personal Finance Monitor 2010
113108 105
101 99 98 98 98 97 97 97 94 93 92 9288 88
79 78 7873 73
69 6863 61
119119113 112109 107
102 101
6559
5556 52
129
88 87 8785 84 84 81
71
0
20
40
60
80
100
120
140
160
IN ID VN PH NO SG CN AU BR CO CA HK AE MY NZ DK IL SE NL CH PK AR TH MX ZA PL RU FI US AT BE TW DE UA GB EG CZ TR IT ES IE HU FR EE LV KO JP LT
Global average
Changes 2H10 vs.1H10
2H 2010 Nielsen Consumer Confidence Index
Vietnam shows sharp consumer confidence re-gains and is ranked #2 top confident country in Q2.2010
2 3 18 2 -2 5 1 -3 -1 5 2 2 -2 1 0 5 1 4 3 5 2 2 -3 5 4 3 2 3 2 -2 -1 -1 7 2 -2 -17 -1 3 -4 -10 1 4 -5 -1 6 0 1 6▲ ▲ ▲ ▲ ▼ ▲ ▲ ▼ ▼ ▲ ▲ ▲ ▼ ▲ ▲▲▲▲ ▲ ▲ ▲ ▼ ▲ ▲ ▲▲▲ ▲ ▼ ▼ ▼ ▲▲ ▼ ▼ ▼ ▲ ▼ ▼ ▲▲ ▼ ▼ ▲ ▲ ▲
Base : All respondents n=26995
Vietnam - 2nd most confident
93
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Personal Finance Monitor 2010
Business Barometer
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Personal Finance Monitor 2010
Source: Nielsen Business Barometer
Vietnam’s Business Leaders show high growth expectations towards the total economy and their own business conditions
What do you think GDP growth rate will be for the next 12 months?What do you think your industry growth rate will be for the next 12 months?
5.0
10.2
11.3
5.7
13.6
4.9
0
2
4
6
8
10
12
14
Est. Next 12 months GDPgrowth rate
All industry est growth rate
%
2010 1st half
2009 1st half 2009 2nd half
4 5
17 14
1712
20
17
2131
23
11
0%
20%
40%
60%
80%
100%
2009 2nd half 2010 1st half
25%+
21% - 25%
16% - 20%
11% - 15%
6% - 10%
Less than 5%
What do you think your company growth rate will be for the next 12 months?
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Personal Finance Monitor 2010
Tracked vs. 1 year ago, the workforce numbers are expected to increase to a good degree; which has a knock-on effect upon the manufacturers current concern of skilled labor shortage.
1 211
2
53
30
31
4
46
11
0%
20%
40%
60%
80%
100%
2009 1st Half 2010 1st Half
Increase significantly (5)
Increase somewhat (4)
Remain the same (3)
Reduce somewhat (2)
Reduce significantly (1)
Over the next 6 to 12 months, how do you anticipate your company's work force numbers to change?
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Personal Finance Monitor 2010
Personal Finance Monitor
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Personal Finance Monitor 2010
Research Design
Research Design• N=600 per month• HCMC / Hanoi
Primary source
Secondary sources
Respondent Criteria• Male & female• 18-50• HIB: ABCD• Decision makers
Methodology• Random sampling• F2F interviews
Nielsen Database
(2006, 2008, 2009)
Nielsen Regional Differences
Qualitative & Quantitative Studies
June 2009
General Statistics
Office
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Personal Finance Monitor 2010
Despite all of the rapid changes and the positive indicators Vietnam is currently a very crowded financial market place with approaching 100 financial service suppliers operating.
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Personal Finance Monitor 2010
Highlights
Debit & Credit cards see high levels of future
usage intention. Savings are still
largely untapped.
Half of the target remain unbanked
and amongst those around 50%
are either self-employed or have involvement in a
business
Customer service expectations are rising coupled
with an increase in multiple
account holdings
Highlights – Customers
Who to target?
Future Intentions
Keep your customers satisfied
Target Market is around 4 million
customers.50% of which are currently using
banking services
Triggers to attract new customers?
(*): target population from 18-50 years old in class ABCD residing
in Hanoi and HCMC.(Source: Nielsen database 2009)
A young urban population with
high internet penetration but still almost no
engagement with internet banking.
Why?
Internet
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Personal Finance Monitor 2010
Transactional account
ATM/ debit card
Deposit/ saving account at bank
Loan services provided by banks
Foreign exchange service
Domestic money transfer/payment
International money transfer/Expatriates' inward remittance
Credit card
transaction account (without card)
Custody service
Other banking services
Banking Services – Awareness and Usage - Total
Aware Currently using Lapsed
Q9a - Which of the following FINANCIAL SERVICES are you aware of? [MA]Q9b - Which of the following FINANCIAL SERVICES did you ever use? (but stopped) [MA]
Q9c - Which of the following FINANCIAL SERVICES are you currently using? [MA]
Base: All Respondents (n=1800)
Awareness and usage are limited to some traditional banking services. More education of advanced products needs to be implemented.
100
100
99
99
87
79
54
40
36
23
16
36
36
16
4
3
5
1
1
1
0
0
5
5
6
5
7
5
2
0
0
0
0
Approaching 50% of our
sample have a bank
account
9% of them have both
transactional and time deposit account
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Personal Finance Monitor 2010
Overall satisfaction towards main banks
Q17 – Using the following scale, please describe how satisfied you are with your main bank in each aspect. [SA]
There are some improvement areas in order to enhance customer satisfaction. These include more convenient opening hours, appealing promotions and superior services for VIP customers.
0 20 40 60 80 100
Total (n=891) HCM (A) (n=413)
HN (B) (n=478)
Staff's customer service (friendly, responsive)
Convenient opening hours
Quick and simple transactions and procedures
Staff's knowledge and ability to consult
Range of services/ products
Convenient transaction methods
Low service fee and competitive interest rate
Network of branches/ATM
Appealing promotion program
Facility at the transaction point
Superior services for VIP customers0 20 40 60 80 100 120
Under 35 yo (A) (n=530)
Over 35 yo (B) (n=361)
TOP 2 BOX – Strongly agree & Agree By region By age
Base: Bank users
B>A
A>B
B>A
B>A
B>A
B>A
A>B
B>A
B>A
B>A
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Personal Finance Monitor 2010
2
17
81
14Banks
3Banks
2Banks
1 Bank
Number of Banks Used
Total(n=596)
U35(n=344)
O35(n=252)
Class AB(n=262)
Class CD(n=334)
At this stage many customers still only use a single bank but this is changing. Whilst switching is rare, secondary accounts are increasing.
2
13
84
1
1
22
77
0
3
23
73
1
1
12
87
0
Mean score 1.22 1.20 1.25 1.33 1.14
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Personal Finance Monitor 2010
1st
2nd
3rd
Inconvenience – 45%
Procedures - 9%
Others – 23%4th
Poor customer service – 14%• No branch close to my house (30%)
• Not enough ATM’s (8%)
• Not convenient to use only one bank (5%)
Reasons for switching main banks
Q15 - Could you please let me know reasons why you stop using the service of your first bank?
• Staff are not enthusiastic (14%)
• Staff are not happy (9%)
• No demand (5%) • Complicated procedures (9%)
• ATM card is expired (9%)
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Personal Finance Monitor 2010Page 20
Debit&
Credit Cards
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Personal Finance Monitor 2010
ATM/Debit Card23%
(~0.9 mil people)
Credit Card1%
(~0.04 mil people)
• No demand• Knowledge
• InconvenienceDebit Card 24%
Credit Card 7%
• Broader coverage of ATM’s 71%
• ATM’s placed in Convenient and safe place 62%
• Safety of the card 52%• Issued by a trustworthy
bank 35%
Highlights – Cards
Future Intention
Reason for not using
Ownership
What could attract more customers?
(Source: Nielsen database 2009)
100
62
46
13
10
0
37
15
100
54
43
10
10
0
33
13
24
0
0
0
8
14
0
92
Card type awareness
* Base: Not Code 12 in Q9c
Awareness of both Debit and Credit cards has increased significantly over the past 5 years among the banks customers.
Q36a – Which kind of cards are you aware of?
ATM
Credit card
Debit card
Multi-functional card
Student associated card
Associated card
Integrated card
None of the above
21
0
0
0
9
8
0
91
2006 (n=1000)
2008 (n=1000)
Q2 - 2010 (n=891)*
2006 (n=500)
2008 (n=500)
Q2 - 2010 (n=413)*
2006 (n=500)
2008 (n=500)
Q2 - 2010 (n=478)*
19
0
0
0
9
5
0
91
Total HCM HN
98
23
15
0
0
2
0
0
99
22
15
0
0
1
0
0
97
25
13
0
0
3
0
0
100
32
35
2
8
0
23
6
Page 23
2nd
No demand 59%1st
Reasons for no use – Credit Cards
3rd Inconvenience 13%
Key responses :
• No demand (majority)
• Already have ATM card
• Do not prefer use credit
Key responses:
-I am not qualified to open a account
-Complicated procedures
-Not many places accept card payment
Knowledge 31%
Q38R2: Could you please let me know the reason why you do not use/own any credit card?
Key responses :
• Do not know how to apply for
• Do not know much about this service
• Do not know much about the credit function
The same is primarily true for Credit Cards but with inconvenience being given more importance.
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Personal Finance Monitor 2010Page 24
Lending
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Personal Finance Monitor 2010
At bank: 11%Non-bank: 14%
From family: 66%From friends: 54%Own savings: 34%
Interest rate(67%)
Simple procedure (66%)
Offer unsecured loan(38%)
Bank loan 2%(~0.08 mil people)Non-bank loan 6%(~0.2 mil people)
Highlights – LendingOwnership
Sources for non-bank lending Triggers for
usage
Future Intention
(Source: Nielsen database 2009)
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Personal Finance Monitor 2010
Savings & Investments
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Personal Finance Monitor 2010
Highlights – Savings & Investments
Personal Finance Monitor 2010
• Competitive interest rate 60%• Prestigious bank 56%• Highly recommended by others 52%• Good customer service 50%
Saving at non-bank sources 53% (~ 2.1 mil people). Saving at bank 10% (~0.4 mil people)
• Put money into my own business 61%• Gold trading 35%• Real estate 23%
Savings
Why I choose it as my main bank?
Main Banks
•ACB 21%• Vietcombank 14%• Agribank 14%• Sacombank 11%•Vietinbank 11%
Top 3 current Investment methods
(Source: Nielsen database 2009)
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Personal Finance Monitor 2010
Non-banking Savings
Q9a - Which of the following FINANCIAL SERVICES are you aware of? [MA]Q9b - Which of the following FINANCIAL SERVICES did you ever use? (but stopped) [MA]
Q9c - Which of the following FINANCIAL SERVICES are you currently using? [MA]
Base: All Respondents (n=1800)
85% of the target customers have savings that are not held in a bank. This suggests a lack of understanding of the benefits of using banks for these services.
Life insurance
Saving (not at banks)
Loans (from other sources apart from banks)
Investment (into real estate, securities, etc.)
100
99
95
91
Aware Currently using Lapsed
7
85
9
6
3
7
23
3
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Personal Finance Monitor 2010
Insurance
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Personal Finance Monitor 2010
Highlights – Insurance
• Life insurance• Educational • Accident
• Prudential 54%• AIA-AIG 25% (focus in HCMC)• Bao Viet 13% (focused in Hanoi)
Current use and most important
products Reason for Non-Owner Ship
Top 3 current Insurance Company
• Do not believe 48%• Have no knowledge 43%• Customer Service 41%
• Protection 74%• A form a savings 68%• Buying security 59%
Top Perception
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Personal Finance Monitor 2010
Non-bank users
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Personal Finance Monitor 2010
Barriers to banking?Barriers are largely around a perceived lack of value or convenience. Coupled with this is a reluctance to submit personal financial information.
Lengthy application procedures
63%
Valued pledged assets
required49%
High interest rates
38%
Financial evidence required
48%
Key Barriers to Banking
(n=909)
Q60 – Could you please let me know reasons why you do not use banking services?
Base: those who are not using banking services
Affordable interest rate
63%
Simpleapplicationprocedures
58%
No financial/ income
evidence required
38%
Prestigious banks39%
Potential Triggers
(n=909)
Q61 – Could you please let me know some factors that can help encourage you to use banking?
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Personal Finance Monitor 2010
HCM(A) (n=470)
Non-Bank - Saving
Top ranked
Total (n=850)
Top ranked
HN(B) (n=380)
Top ranked
97
2222
I buy gold and save at home.
I buy foreign currency and save at home.
I save money at home
I buy insurance for myself and my relatives in case unexpected problems happen.
Q62 – Could you please rank those investment (which are the most 3 preferred investment)?
Base: those who are not using banking services and save at home
97 98 94
These potential customers are seemingly happy to continue to save money at home. How much money is out there?
242
98
2
I buy gold and save at home.
I buy foreign currency and save at home.
I save money at home
I buy insurance for myself and my relatives in case unexpected problems happen.
13 2
94
1
I buy gold and save at home.
I buy foreign currency and save at home.
I save money at home
I buy insurance for myself and my relatives in case unexpected problems happen.
B
B
Self-employed & Business owners
Base: Self employed people (n=663)
Transactional account
ATM/ debit card
Credit card
Time deposit saving account
Loan services provided by banks
Foreign exchange service
Domestic money transfer/payment
International money transfer/ Expatriates' inward remittance
Investment
Loans (from non-bank sources)
Saving (not at banks)
Life insurance
36
36
1
16
4
3
5
1
6
9
85
7
Bank services
Non-bank services
Bank usage amongst this group is far lower than the total target customers base despite their meeting the same target criteria.
Total Users (A) Non-users (B) Total Users (A) Non-users (B)(n=1800) (n=891) (n=909) (n=663) (n=240) (n=423)
77
75
2
34
8
5
10
3
6
6
74
9
0
0
0
0
0
0
0
0
6
12
95
4
20
19
0
14
4
2
4
1
9
11
88
8
58
56
1
41
11
5
12
4
9
7
76
9
0
0
0
0
0
0
0
0
9
13
95
7
Total target audience Total self-employed people
B
A
A
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Personal Finance Monitor 2010
Banking Channels
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Personal Finance Monitor 2010
9
4
50
36
37
42
4
16
Everyday Every other dayOnce a week 2-3 times a monthOnce a month Once every 2-3 monthsLess than once every 3 months
Transaction channels – Total
Bank counter
ATM machine
83
77
Q26a - In past 6 months, which channels have you ever contacted/done transaction deposit/withdrawal/transfer/payment? [MA]
Q26b - How frequently do you make a transaction by each method? [SA]
Branch usage remains high to meet the largely simple needs of most customers. Trust and confidence issues overcome any inconvenience.ATM usage for simple transactions has soared rapidly as customers become aware of the benefits, boding well for new channels.
0.18 times/ week
0.50 times/ week
Mean scoreChannels Frequency
Base: All respondents
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Personal Finance Monitor 2010
Internet Access (% of population)
7
15
22 24
0
10
20
30
40
50
India Philippines China Vietnam
Internet usage in Vietnam is higher than many of its SE Asian neighbours and is growing significantly.
Source: Nielsen Omnibus Aug 2008 - Generation V Study
Nielsen Vietnam Mobile Insights Mar 2009
63
Malaysia
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Personal Finance Monitor 2010
Source: Nielsen Omnibus August 2008
Internet Access (% of population)
In urban areas and amongst the under 30’s internet usage is extremely high.Around 50% of them access the internet ‘at least once per day’.
Q38: Use of Internet in the past 12 months
7
15
22 24
63
45
73
21
7
0
10
20
30
40
50
60
70
80
India Philippines China Vietnam Malaysia HCM &Hanoi
18-30 31-40 41-50
And yet despite this behaviour, Internet banking is still only used by around 1% of customers.
Personal Finance Monitor 2010 Page 39Q28 - Could you please let me know the reason why you do not conduct transactions by_________ (READ OUT EACH CHANNEL THAT IS NOT CHOSEN IN Q27 FOR TRANSACTION TYPES)?Base: All Respondents
Call operatorn=890
SMS bankingn=891
Internet bankingn=889
Bank countern=181
ATM machinen=185
Awareness (54%)
- Lack of awareness about this channel (37%)
- Don’t know how to use this channel (9%)
Safety (32%)
- I don’t feel secured (27%)
Inconvenience (11%)
No demand (5%)
Others (6%)
Awareness (52%)
- Lack of awareness about this channel (36%)
- Don’t know how to use this channel (11%)
Safety (32%)
- I don’t feel secured (25%)
Inconvenience (11%)
No demand (5%)
Others (4%)
Awareness (52%)
- Lack of awareness about this channel (32%)
- Don’t know how to use this channel (15%)
Safety (28%)
- I don’t feel secured (21%)
- Lack of trust (5%)
Others (13%)
- I don’t know much about the internet (6%)
No demand (82%)
Inconvenience (18%)
- Time consuming (10%)
No demand (80%)
- I don’t use ATM card (46%)
- I have no demand (34%)
Safety (13%)
- I don’t feel secured (7%)
- Afraid of losing money (5%)
Inconvenience (10%)
- Not convenient to do transaction (6%)
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Personal Finance Monitor 2010
Q76 – What are the most 3 popular websites that you have visited during past 7 days? [MA]
Base: Those who choose code 4 in Q71a
vnexpress.net64%
24h.com.vn49%
tuoitre.com.vn48%
HCMC(n=309)
Hanoi(n=427)
Under 35(n=584)
Over 35(n=152)
dantri.com.vn73%
vnexpress.net60%
vnexpress.net62%
24h.com.vn63%
24h.com.vn57%
tuoitre.com.vn44%
vnexpress.net50%
dantri.com.vn38%
24h.com.vn41%
If you know who they are, where they spend their time and how often they go there, can you develop education and trust?
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Personal Finance Monitor 2010
Summary – Vietnam is heating up!
• Education – one should not underestimate the lack of understanding that exists around banking products amongst many customers. Communication and education will be an essential part of building relationships with those groups currently untapped.
• Youth – Vietnam has a large, young population and the signs, across all sectors, are that they are increasingly exposed to new products and services and they are increasingly open to investigating them.
• Operations & Channels – the best brand promise in the world must be backed up by operational delivery. Be bold with your channel delivery. Almost 50% of business leaders in Vietnam said that the internet will see an increase in spend as a communications channel this year.
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Personal Finance Monitor 2010
Questions?